Today, we deep dive into Fredrik Lindros’s presentation at the Redeye SaaS Seminar on how e-retailers can improve their success rate with Google Shopping with Speqta’s new Google Shopping optimization tool, Bidbrain, which launched in June 2021!
Modern Consumer Shopping Behaviors
The beginning of Fredrik Lindros’s presentation starts with a discussion on e-commerce.
In the video, he calls the e-commerce space the “modern battleground” for retailers. Stating that, now, people have more than one option when they want to buy something:
- Either they go to a mall or a store and buy a product directly
- OR they look up the product online.
Today’s consumers, who have been pampered with the conveniences of online shopping, are more likely to end up in the latter category. And the place that they go to do so? Is Google.
Fredrik drops more than enough statistics to prove this fact. Stating that Google owns over 72% of the Search Ads market (with a majority of the rest of the market shared by Amazon and Bing) and that the Search Ads market, as of 2019, is worth approximately 143 billion USD — and is expected to reach 211 billion USD by 2025.
The point here is that Google is the place to be if you want the right kind of interest in your products. Or, more specifically, Google Shopping, as Fredrik Lindros states that Shopping Ads earn approximately 65% of all clicks on Google Ads.
How to Get on Google Shopping?
And so, okay. Point taken. Google Shopping is the place to be. But what next?
Well, Fredrik tells us what’s next by giving an overview of how to get your products listed on Google Shopping. “It’s a bidding auction and you pay per click,” he says to begin with. “That means that you’re promising to Google that you’ll pay ‘this much’ per click if your ad is able to end up there. And, of course, if a person clicks on that ad, you will pay that promised amount.”
Simple enough, right? But the complication comes after when you’re trying to figure out just how much you’re willing to pay or how much is worth paying in order to have your items listed.
Fredrik breaks down the different strategies that modern e-retailers take as follows:
- One Price for All! This tactic is popular with beginners who want to test the waters out first by having everything on the same price point — that is, every single product is set up with one CPC (Cost-per-Click) price. It’s not the most budget-friendly method, and neither is it great for long-term success, but it is an option.
- Manual Rules! Those that are looking to be more advanced with their experimentation usually move on to setting up rules for their bids (by deciding manual rule settings for increasing and decreasing bids based on performance). Taking this strategy means that you have full control over your bids, however, it also means that, if you’re looking to scale up your efforts, you’ll need to maintain it regularly, maybe even hire an in-house department that will handle the adjustments for you.
- Digital Agencies! Don’t want to do all the work yourself? Well, then the next strategy Fredrik Lindros introduces is to connect with digital agencies that will take care of your campaigns for you. This does mean losing out on control though! And, of course, you can’t be certain that they’ll be 100% on your side.
- Artificial Intelligence! Having a machine do the thinking and calculating for you is another way to get the load off your shoulders if need be. Most retailers default to Google’s own tools when AI is mentioned, but there are actually plenty of alternatives out there. The aforementioned, Bidbrain, the newest in Speqta’s line of AdTech products, is one. Others that you may have heard of are Bidnamic or UPP AI.
In his presentation, Fredrik Lindros states that the one to come on top of all this is the one that is the most “granular” with their bidding — the one that can make use of all their data to figure out the best way to win.
He points to those who use Artificial Intelligence as the ones having the advantage — the ones with the leg up over their competitors. And he claims that Bidbrain is exactly the right tool for the job to get this done. What does this mean? And is it true? Can Bidbrain really be the answer to ensuring success on Google Shopping?
Achieving Success on Google Shopping with Bidbrain™
Fredrik Lindros begins his argument for Bidbrain with a thought experiment for what a small online retail shop might expect when managing their Shopping Ads, saying:
“If you have 25 brands, and about a thousand products in 5 different variations (like size and color) and pricing that currently differs from your competitors at different times of the day, week, month — all this, combined, equals to about 945M different bidding strategies possible.”
He makes a perfectly reasonable point thereafter by asking: “Are you prepared to do all this work manually or would you rather let intelligent machines handle it for you?”
With Google Shopping, it’s all about long-term success. In the beginning, when you’re starting out with just a couple of hundred thousand combined bidding strategies to muddle through, you might do fine with a small in-house marketing department. But, as you scale your business, you’ll need more and more people — more and more resources too — just to be able to keep up with what your competitors are already doing at a single click of a button.
And that, according to Fredrik, is the reason why he believes that Bidbrain is the answer to winning the e-commerce war. Already, their early case studies have seen positive results — with the average sales of their users seeing an increase ranging from +20-50%.