A few months ago Google announced that it would be changing Google Shopping into a pay to play service. Many brands decided to pay and many opted out. The ones that stayed are seeing their money’s worth. Google Shopping ads are out performing text ads by 47% on clickthrough rates and conversion rates are 38% higher with the new vertical service.
One of the reasons for the improved performance is a universal lesson for the social media agency. Vertical searches (a search that has a global filter installed, think of all the Google options at the top of the screen such as ‘image’ or ‘shopping’) are better able to ascertain user intent. Searches are almost guaranteed to be more in line with what the customer is looking for and so clicks and conversions will also be more efficiently delivered to the user.
Another advantage of these engines is the lack of the big box retailers. While there are some, Wal-Mart is an example of a business that withdrew when Google changed to a pay to play system. Wal-Mart has the ability to offer up semantic searches within its own internet presence. That makes Google Shopping and other verticals more competitive for the smaller businesses. The social media agency would be wise to advise clients to take advantage of this.