Google Shopping Proves Successful for Retailers Using PLAs

We’re counting down the days until it’s time for the deadline to sign up for Google Shopping and receive the 10% discount incentive (August 15th).  In the meantime, we’ve taken a look at what our retailers are seeing from a data perspective to give retailers a benchmark for what to expect from Google Shopping.

First, it should be noted that Google Product Search (GPS) is historically the largest comparison shopping engine our retailers have worked with—generally responsible for anywhere from 15-60% of CSE traffic—though the level of traffic tends to be unpredictable and varies widely.

Over the last 60 days (especially after the 28th of June, when the new user experience launched), we’ve seen a corresponding drop off of GPS daily traffic.  At the same time, Product Listing Ads traffic has jumped dramatically, so while this is in line with what we’d expect, the dramatic inversion of these programs has been remarkable.

Take, for example, the image below, which looks at the traffic pattern for one of our retailers that is representative of most.  The green line represents Product Listing Ads (PLAs) and the red line represents traffic not from PLAs, as in Google Product Search. You can see that right around the time that Google launched Google Shopping there was a dramatic shift in traffic levels.

Google Shopping PLAs

In case you needed another reason to go ahead and launch your PLAs, here are some other insights gleaned from our statistics.

Looking at all of our customers, the gross merchandise value (GMV) driven by Google Product Search for customers that are NOT using PLAs continues to drop.  However, for those using PLAs, the GMV driven by GPS has risen slightly.  What does this mean?  Apparently those customers using PLAs are doing better on the existing free GPS than their counterparts who aren’t using PLAs.

Further, for our customers using PLAs, their Google Shopping traffic is up incrementally, but their Google Shopping revenue is up significantly.

One last point, for those customers who are not yet using PLAs, year-to-date Google Shopping revenue growth is flat (these customers would have ads showing up through the existing GPS or Google Extensions).  However, for those customers who have implemented PLAs, year-to-date revenue on Google Shopping is up more than 2X!

We’ve got another Tuesday 20 Webinar on Google Shopping this Tuesday, as well as an opportunity to apply for a free assessment to see how you could be best using Google Shopping.

We’ll continue to take a look at these figures and will update this blog with meaningful information, so check back often.

Blog post by Link Walls, Director of Product Management, ChannelAdvisor (@linkwalls)