In the competitive world of ecommerce, staying ahead of the curve is crucial, and competitive intelligence can be your secret weapon. We surveyed 75 small and medium-sized businesses using Google Shopping to uncover key insights that can help you thrive.
The main takeaway: By automating tedious tasks, you can free up time to refine your campaigns and explore new marketplaces, gaining a competitive edge. Want to create a winning ecommerce marketing campaign? Download our free guide to Google Shopping!
1. Campaign Structure: The Biggest Hurdle for 67% of Small Ecommerce Businesses
A whopping 50 out of 75 businesses in our survey pointed to campaign structure and product group organization as their biggest challenge. This is closely tied to bid management, the second most common challenge. Let’s break down how to tackle these intertwined aspects.
When you start a Google Shopping campaign, all your products are lumped into a single group. You need to divide them into separate groups based on shared characteristics, as this influences your bidding strategy.
Focus on price, profit margin, and conversion rate when creating product groups. Ideally, products within a group should be similar across at least two of these metrics. This ensures you’re not setting the same bid for products with vastly different profit potentials.
Remember, your product group bid determines how much you’re willing to pay per click. Higher bids are suitable for products that are pricier, more profitable, or convert better. By optimizing your product groups and bids, you can maximize your budget’s efficiency and outperform competitors.
2. Manual Data Feed Management: A Common Struggle for 40% of Businesses
Another challenge highlighted in our survey was managing product data feeds. A staggering 40% of respondents still handle this manually using spreadsheets.
For those new to Google Shopping, a product data feed is essentially a spreadsheet in Google Merchant Center that provides Google with structured information about your products.
Google uses this information to display your products in relevant Shopping search results. The quality and accuracy of your data feed directly impact your products’ visibility and chances of attracting potential customers.
As your product catalog expands, manual management becomes cumbersome and prone to errors. That’s where automated feed solutions come in. Software like nexus-security’s Data Feeds can streamline the process by automatically optimizing and syncing your product data with Google Merchant Center, saving you time and reducing risks.
3. Untapped Potential: Only 8% of Businesses Utilize Walmart Marketplace
While 55% sell through their own websites, 41% on Shopify, 39% on Amazon, 28% on eBay, and 13% on BigCommerce, a mere 8% leverage Walmart Marketplace.
For the uninitiated, Walmart Marketplace is a third-party platform that allows you to list your products alongside Walmart’s, tapping into their massive customer base. While there’s a referral fee per sale, it offers significant advantages.
The beauty of Walmart Marketplace is its simplicity: the per-sale referral fee is your only cost. Unlike Amazon, there are no monthly subscription fees or hidden charges. Considering it’s the third-largest online retailer in the US, the exposure gained for a minimal cost is a fantastic deal.
While Amazon has its strengths, such as wider reach, pay-per-click advertising, and fulfillment services, Walmart Marketplace offers a cost-effective alternative with less competition, making it an attractive option for expansion.
4. GDN vs. Bing Shopping: Why Bing Deserves More Attention
Our survey revealed that 65% of businesses utilize the Google Display Network (GDN) for advertising, while only 33% leverage Bing Shopping. While display advertising is a powerful tool for brand building and remarketing, underestimating Bing Shopping could be a missed opportunity.
While the GDN boasts a broader reach, Bing Shopping excels in commercial intent. Users on Bing Shopping are actively looking to buy, making it a prime channel to showcase your products at the perfect moment.
Furthermore, our research shows that Bing Shopping offers lower cost-per-click and higher click-through rates compared to Google Shopping. Although Google Shopping generally sees higher conversion rates, the average cost-per-acquisition on Bing Shopping is nearly half that of Google Shopping.
With its substantial user base, high commercial intent, and cost-effectiveness, Bing Shopping deserves serious consideration.
5. Expanding to New Platforms: A Low Priority for 11% of Businesses
Our survey highlighted that while 59% prioritize improving campaign ROAS and 15% focus on expanding product catalogs, only 11% prioritize exploring new advertising platforms.
While focusing on ROAS is crucial, neglecting new platforms means missing out on potential customers. Reaching potential buyers across multiple touchpoints is vital in today’s fragmented ecommerce landscape.
For instance, engaging past website visitors with compelling Instagram ads can nurture their interest and guide them through the sales funnel. They might eventually convert through Bing Shopping, highlighting the importance of a cohesive cross-platform approach.
Via Instagram. As the customer journey becomes increasingly complex, a cross-platform strategy is no longer optional; it’s essential.
Additionally, exploring emerging platforms like Quora, which boasts a large user base and a relatively new advertising platform (Quora Ads), offers early adopters a competitive edge. Being an early mover allows you to establish a strong presence and gain valuable experience before the platform becomes saturated.
Key Ecommerce Marketing Takeaways
To recap, here are three actionable takeaways:
- Automate data feed management. Investing in automation saves time, reduces errors, and allows you to focus on optimizing other aspects like campaign structure.
- Explore Walmart Marketplace and Bing Shopping. These platforms offer cost-effective alternatives to their larger counterparts with less competition, providing significant growth opportunities.
- Align your strategy with the customer journey. A successful ecommerce strategy requires engaging potential customers across multiple touchpoints, from social media to search engines, ensuring maximum reach and impact.
A Note on the Data
This blog post is based on a survey of 75 small and medium-sized businesses that actively advertise on Google Shopping. Thanks to Meg Lister for her assistance with this data set.