It is very
early to predict exactly how new Google Shopping results change the e-commerce
sector. First monitoring shows unclear results. So the mercent blog shows how the new Product Listing Ads (PLA) are decreasing in relation to the previously free Google Product Search (GPS). Interestingly they measured
the traffic of the major US comparison search engines going up. However in
another post they state that there is a variety of non-economic reasons for
these figures. Hard to say how the PLA will influence the organic Serps...
Stop for a
moment! What was actually the role of the previous Google Product Search? Yes,
there was no cost involved! Advertisers got an injection of free traffic.
Considering the merchant’s total media budget the ROI would shrink without that
portion of Google traffic, right? The size of that unexpected cost is quite significant:
According to cpcstrategy GPS was the main comparison search engine based on revenue for merchants. About
half of merchants who responded to a recent study said that at least 20% of their website sales come from GPS. For those who are
excellent optimizers the share certainly must be higher!
So without
knowing the exact traffic differences it is worth to draw a scenario for the price
comparison microcosmos. We will look at the market participants as there are
merchants, comparison search engines (CSE’s) and arbitrage sites that use
product feeds provided by the CSE’s. We will discuss how the metrics change
without the free traffic form GPS. We will consider the strategic options. And
we will raise the question who will profit and who will face harder times.
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