1. Google Confidential and Proprietary 1Google Confidential and Proprietary 1
Why Companies Need A
Product Listing Ad (PLA)
Strategy

2. Google Confidential and Proprietary 2Google Confidential and Proprietary 2
Today’s Presenters
Anita Avram
Strategic Partner Manager
Google
Dice Nakamura
Business Development Manager
Vertical Nerve
Ernie Cote
President
Vertical Nerve

3. Google Confidential and Proprietary 3Google Confidential and Proprietary 3
Agenda
• The Retail Landscape
• The New Google Shopping
• Why Product Listing Ads?
• Set Up
• Optimization
• Q & A

4. Google Confidential and Proprietary 4Google Confidential and Proprietary 4
Before We Begin
• Fast paced and relevant
• Plenty of time for your questions
• Submit questions using Chat feature in GoTo Mtg
• Should be great questions, great group on the call
• >100 online and ecommerce companies represented
• Automotive, CPG, Fashion, Food, Furniture, Jewelry, Medical, Sports/Fitness,
Technology, Tools, Utilities

5. Google Confidential and Proprietary 5Google Confidential and Proprietary 5
Google/Vertical Nerve Partnership
Our goal today is to educate the online retail
space on how advertisers can best leverage
Product Listing Ads (PLAs) to generate sales for
their business!

6. Google Confidential and Proprietary 6Google Confidential and Proprietary 6
Booth 659 – Discount Attendee Codes Available
A few clients we’ve helped recently
Vertical Nerve, a national leader in Search Marketing & Digital Analytics
Speaking at Chicago & Boston

7. Google Confidential and Proprietary 7Google Confidential and Proprietary 7
Registration Poll: Does your company have an SEM Strategy?
0% 20% 40% 60% 80%
SEO/PPC/PLA
One Strategy
No Strategy
Results
Results
1/3 using 1 strategy, SEO,
PPC or PLA

8. Google Confidential and Proprietary 8Google Confidential and Proprietary 8
The Changing Retail
Landscape
Anita Avram

9. Google Confidential and Proprietary 9Google Confidential and Proprietary 9
First Moment
of Truth
Second Moment
of Truth
Stimulus
purchase
motivator
in-store
experience
post-
purchase
Traditionally, We Followed a 3-step Mental Model
of Marketing

10. Google Confidential and Proprietary 10Google Confidential and Proprietary 10
The New “Many Moments” Mental Model looks like
a Flight Map
Stimulus
Stimulus
FMOT
Source: Google/Shopper Sciences, Purchase Funnel Analysis, April 2012. N = 3,000

11. Google Confidential and Proprietary 11Google Confidential and Proprietary 11
Everyone and Everything is Online
There are over 2B web users worldwide, with another billion coming
online by the end of 2015

12. Google Confidential and Proprietary 12Google Confidential and Proprietary 12
The New Path to Purchase
12
61%
of Internet users research
online about products and
services prior to purchase
Sources: IAB/TNS/Google, Consumer Barometer, Worldwide, May 2012. Motorola Solutions, June 2012
69%
of those who research online
use a search engine before
purchase
48%
search offers while in-store

13. Google Confidential and Proprietary 13Google Confidential and Proprietary 13
Connect people to the products and
brands they love at the moment that
they’re searching with Google Shopping

14. Google Confidential and Proprietary 14Google Confidential and Proprietary 14
The New Google Shopping

15. Google Confidential and Proprietary 15Google Confidential and Proprietary 15
Google Shopping snapshot
100 billion+ queries per month
1 billion+ products
100K+ sellers

16. Google Confidential and Proprietary 16Google Confidential and Proprietary 16
Product listing ads – your store shelf on Google

17. Google Confidential and Proprietary 17Google Confidential and Proprietary 17
Product Listing Ads
Nov 2010 to Dec 2011
PLATraffic
Since launching to all US advertisers in Nov 2010, Product Listing
Ads have seen significant growth with advertiser adoption and
product improvements
+600% traffic growth YoY globally
2X CTR vs. text ads

18. Google Confidential and Proprietary 18Google Confidential and Proprietary 18
Product listing ads power google.com/shopping

19. Google Confidential and Proprietary 19Google Confidential and Proprietary 19
Product Listing Ads for shoppers on the go
Google.com Google.com/s
hopping
Shopper app

20. Google Confidential and Proprietary 20Google Confidential and Proprietary 20
360 degree imagery

21. Google Confidential and Proprietary 21Google Confidential and Proprietary 21
Product-level bidding made easy
• Requires no changes to your feed
• Target subsets of your products to promote more heavily
• Quickly bid on new or top selling holiday items
• Increase bids on products that are not selling fast enough

22. Google Confidential and Proprietary 22Google Confidential and Proprietary 22
Enhanced campaigns for Product Listing Ads

23. Google Confidential and Proprietary 23Google Confidential and Proprietary 23
Why Use Product Listing
Ads?

24. Google Confidential and Proprietary 24Google Confidential and Proprietary 24
Why use Product Ads?
1
Better Clickthrough Rates (CTRs)
Because Product Ads are more attractive and engaging than
standard text ads, they offer better CTRs.

25. Google Confidential and Proprietary 25Google Confidential and Proprietary 25
Why use Product Ads?
2
Better Lead Quality and Conversion Rates
Product Ads give users information (merchant, price and
picture) before they click through, so they are better informed
and more likely to complete a sale when they arrive on your site.

26. Google Confidential and Proprietary 26Google Confidential and Proprietary 26
Why use Product Ads?
3
Easy Targeting
Google automatically selects the most relevant products to
show from your Merchant Center account when a user enters a
related query.

27. Google Confidential and Proprietary 27Google Confidential and Proprietary 27
Why use Product Ads?
4
No risk
When Product Listing Ads are priced on a CPA basis, you only
pay when someone makes a purchase after clicking on one of
your ads.

28. Google Confidential and Proprietary 28Google Confidential and Proprietary 28
Success stories
Electronics
↑↑
50% Click thru rate
100% Conversion rate
↑ 73% Cost per click
Outdoor
↑ 10x Sales Kept target ROAS
↑↓
55% Click thru rate
11% Cost per click
↓ 36% Cost per acquisition
Outdoor
Appliances ↑↑
12% Conversion rate
8% Revenue
↓
↑
10% Bounce rate
129%Site visits
Hardware
Tools ↑↑
50% Traffic
50% Conversion rate
↑
↑
15% Order value
“Dead product” sales
Travel
↑↑
200% Sales from Google
40x Sales from PLAs
100% of products in PLA
RETAILER GOOGLE SHOPPING HIGHLIGHTS

29. Google Confidential and Proprietary 29Google Confidential and Proprietary 29
Getting Started

30. Google Confidential and Proprietary 30Google Confidential and Proprietary 30
In order to participate in Product Ads, you must link your AdWords and Google
Merchant Center accounts.

31. Google Confidential and Proprietary 31Google Confidential and Proprietary 31
Create a new Campaign by selecting “Search Network Only”. Then select
“Product Listing Ads” as the Campaign type.
Step 1: Campaign Creation
Select Product
Listing Ads

32. Google Confidential and Proprietary 32Google Confidential and Proprietary 32
Specify your bidding strategy of CPC or CPA%. CPA% is only available to
white-listed customers in the US.
Step 2: Bids
Note: Only New Campaigns can be set to CPA%.
CPC Option
CPA%
Option

33. Google Confidential and Proprietary 33Google Confidential and Proprietary 33
Step 3: Associate your Google Merchant Center account to
the campaign.
Note: This option will only appear
after you connect your Merchant
Center Account to AdWords.

34. Google Confidential and Proprietary 34Google Confidential and Proprietary 34
Step 4 (Optional): Indicate a Promotional Message for
your PLAs (i.e. “Free Shipping”)

35. Google Confidential and Proprietary 35Google Confidential and Proprietary 35
Step 5: Do notice that the “All Products” Product Target is
default checked in. This means that all the products in the
feed should be promoted. You can change this later.

36. Google Confidential and Proprietary 36Google Confidential and Proprietary 36
Optimizing PLAs
Dice Nakamura

37. Google Confidential and Proprietary 37Google Confidential and Proprietary 37
Poll Results: How are you bidding across your catalogue?
Bidding Strategies
Formulaic
Manufacturers Name
& Price
One Bid for all
Products
Not Using Bid
Strategies
45%!

38. Google Confidential and Proprietary 38Google Confidential and Proprietary 38
The PLA Success Plan
Step 1: Start Right Away
• Category-level PLAs using your existing
data
• Optimize Google product data feed
• Investigate click costs for your
products/industry with low budgets and
low CPCs
 Learn how to be successful with PLAs
• Build account history to receive lower
CPCs
Step 2: Maximize ROI
• Product-specific PLAs
• Control bids for individual products
• Manage ROIs & costs for each
product
• Pause unprofitable products
• Market your most competitive
products
Poll Result: 41% are NOT removing under-performing SKUs

39. Google Confidential and Proprietary 39Google Confidential and Proprietary 39
Step 1 – Submit better product data
a. Re-upload data feed often
b. Get the most out of feed attributes
c. Check for feed errors
d. Use the Data quality tab
e. Work on product titles

40. Google Confidential and Proprietary 40Google Confidential and Proprietary 40
Step 2 – create better structure
a. Use an All products target
b. Target high value product segments
c. Find new segments to break out
d. Facilitate traffic flow
e. Bid strategically

41. Google Confidential and Proprietary 41Google Confidential and Proprietary 41
Q & A
Want to talk more?
Dice Nakamura
e: dicen@verticalnerve.com | p: 214-206-3410