On聽this podcast, we聽discuss a聽new feature that is聽available 迟辞听黑料门 merchants 迟辞听completely automate their Google Shopping ad聽creation 补苍诲听management.
Ricardo Lasa is聽the聽CEO of聽Sitewit/Klicken the聽company that 黑料门 partnered with 迟辞听deliver this new functionality.
We聽discuss the聽overall advertising market for聽Google shopping, integration with 黑料门,
Transcript
Jesse: Hey guys, Jesse Ness here, with the聽黑料门
Richard: Hey, how鈥檚 it聽going, Jesse?
Jesse: It鈥檚 a聽good day here! Today is聽actually different: we鈥檝e got a聽couple guests, 补苍诲听before introducing them鈥 This is聽a聽feature that we鈥檙e going 迟辞听talk about today, 补苍诲听a聽partner that really shows what 黑料门 is聽all about. So聽we鈥檙e going 迟辞听talk about some really
David: Hey everybody! It聽is聽great 迟辞听be聽here! Jesse, thank you for聽the聽welcome, much appreciate it! You know for聽me聽today, I聽think it鈥檚 really important 迟辞听share a聽little bit of聽my聽background so聽we聽get an聽understanding of聽what I聽bring 迟辞听the聽table 补苍诲听why I鈥檓 so聽into 黑料门 补苍诲听why I聽think you should be聽too, so.
My聽history is聽that I鈥檝e been doing
So, joining 黑料门 as聽the聽VP聽of聽Marketing has been a聽great opportunity for聽me聽because I鈥檝e gone from sitting in聽your shoes where you鈥檙e trying 迟辞听drive traffic into helping drive a聽platform 迟辞听make sure that it聽works well for聽our customers 补苍诲听making sure it聽has the聽updated features 补苍诲听capabilities 迟辞听help you guys grow. What鈥檚 really interesting 迟辞听me聽is聽that I聽mentioned a聽lot of聽these big humongous brands鈥 Right, we聽did have tremendous budgets, we聽had a聽lot of聽people, 补苍诲听we聽had a聽lot of聽capabilities, 补苍诲听that was amazing because we聽could do聽things that other smaller shops couldn鈥檛, 补苍诲听the聽seat that I聽find myself in聽now is聽really interesting with 黑料门, because what we鈥檙e doing is聽bringing those capabilities that we聽had for聽
We鈥檙e bringing these capabilities down 迟辞听small shops 补苍诲听giving big reach 补苍诲听big capabilities 迟辞听small companies that don鈥檛 have the聽big budgets, don鈥檛 have the聽big stages, but allow them 迟辞听have a聽significant presence around the聽world 补苍诲听grow their businesses. So, I鈥檓 super stoked 迟辞听be聽a聽part of聽this 补苍诲听working with you guys, Rich 补苍诲听Jesse, has been just phenomenal.
Jesse: Awesome! So, David, we聽want 迟辞听take some of聽your experience 补苍诲听have you chime in聽when we聽interview our next guest. Ricardo Lasa is聽the聽CEO of聽SiteWit who runs the聽the聽application Kliken. Ricardo, can you introduce yourself?
Ricardo: Sure! Thank you for聽having me. I聽am聽Ricardo Lasa, I鈥檓 the聽
Jesse: Awesome, awesome! So, I聽think let鈥檚 start off with introducing Google Shopping 迟辞听our customer base. So, in聽your words, what is聽Google shopping if聽you are not aware of聽it?
Ricardo: Sure! So, Google as聽a聽platform has a聽couple variations on聽how you can actually advertise on聽it. So, the聽first platform that they provided was Google AdWords. And that was a聽platform that was used for聽both selling or聽advertising
Jesse: Ricardo, when you鈥檙e talking about the聽AdWords platform, as聽most people know it聽that鈥檚 where you type a聽search into Google 补苍诲听you see text ads聽鈥 that鈥檚 what you鈥檙e talking about, right?
Ricardo: That鈥檚 right! Actually, when you just search into Google, the聽results that you see primarily are driven by聽the聽AdWords engine 补苍诲听they鈥檙e all text ads.
Jesse: Sure. And now I鈥檓 moving on聽迟辞听where we聽stand today, what is聽Google shopping?
Ricardo: Sure! So, then Google made a聽specialized advertising engine for聽
Richard: Oh, that鈥檚 awesome! Hey, Ricardo, this is聽Richard. Quick question, you mentioned one of聽my聽favorite words a聽few sentences back聽鈥 automation聽鈥 because Jesse 补苍诲听I聽have tried 迟辞听do聽this in聽the聽past on聽our own,
Ricardo: Sure. Actually this is聽a聽thing I鈥檓 super excited about, because we鈥檝e built such a聽wonderful integration between the聽both platforms. So, 黑料门, obviously shines at聽the聽store side of聽things, right: inventory management, you had all the聽product information, 补苍诲听so聽forth. And then if聽you were going 迟辞听try 迟辞听do聽this manually with Google Shopping, that鈥檚 pretty long set of聽steps that you need 迟辞听go聽through.
So聽first, you have 迟辞听get a聽Google Merchant Center account on聽your own. You have 迟辞听get that verified 补苍诲听then claim which basically means that you need 迟辞听put a聽snippet of聽tagging 迟辞听the聽website. Once you go聽through all that process, you need 迟辞听export your inventory into a聽Google feed. And then you need 迟辞听basically select what parts of聽that feed you want 迟辞听use on聽a聽campaign. Then, you need 迟辞听add that 迟辞听Google AdWords, so, basically you need 迟辞听get a聽Google AdWords account, so聽you need 迟辞听set all that up, 补苍诲听set up聽a聽campaign, 补苍诲听the聽Google AdWords feed 补苍诲听then launch the聽campaign. So, now we鈥檙e talking about seven 迟辞听twelve independent steps on聽multiple platforms, so聽it鈥檚 a聽very complex task.
Jesse: For sure. Now I聽hope for聽people listening out there: I聽hope you did not take notes, because that鈥檚 what you used 迟辞听have 迟辞听do. It鈥檚 painful, there鈥檚 a聽lot of聽steps there, a聽lot of聽things that can go聽wrong, a聽lot of聽frustration. Ricardo, how did you guys tackle that issue?
Ricardo: Sure. We鈥檝e will built a聽platform for聽Google Shopping from the聽ground up聽with 黑料门, right. Actually, we鈥檝e worked with 黑料门 补苍诲听Google itself.
What we聽do聽is聽basically we聽automate all the聽processes. For example, the聽creation of聽a聽merchant center account is聽automatic, we聽do聽that directly 补苍诲听programmatically through the聽API, the聽verification of聽the聽stores also gets done programmatically on聽the聽黑料门 Instant Sites. And then the聽actual generation of聽the聽feeds 迟辞听go聽into the聽campaign聽鈥 it鈥檚 also automatic.
So, you just select what categories you want 迟辞听advertise on, 补苍诲听we聽generate the聽feeds for聽the聽campaigns automatically. Actually, it鈥檚 beyond just generating the聽feeds. We聽worked with 黑料门 补苍诲听Google 迟辞听form specialized product description 补苍诲听product titles that are actually
The final result is聽that your feeds are much better than you would do聽them by聽hand. They鈥檙e fully automated, there is聽no聽Google Merchant account acquisition. There鈥檚 no聽AdWords account acquisition either. I聽mean we聽actually do聽that automatically. Basically, you just choose what categories you want 迟辞听advertise to, how much money you want 迟辞听spend, 补苍诲听we聽launch the聽campaigns. The process goes from a聽set of聽multi steps, you know,
David: Wow! Ricardo, you make the聽sound so聽simple. Actually I鈥檝e been through the聽process 补苍诲听looked at聽what you guys have been doing. I鈥檓 super impressed with it聽补苍诲听we鈥檙e really happy 迟辞听integrate you into 黑料门. I聽think it鈥檚 going 迟辞听be聽a聽great partnership, absolutely.
One of聽the聽things I鈥檇 love 迟辞听cover just a聽little bit is聽聯the why聰. Having sat in聽黑料门 merchants鈥 seats for聽many years, the聽interesting thing about Google Shopping 补苍诲听why we聽should all be聽paying attention 迟辞听this, listening 迟辞听the聽knowledge of聽Ricardo 补苍诲听Richard 补苍诲听Jesse? Is聽it聽that the聽world is聽changing 补苍诲听search is聽changing. What鈥檚 happening now is聽people used 迟辞听like the聽text 补苍诲听they actually read. Nobody really reads anymore. This is聽a聽visual world 补苍诲听that鈥檚 the聽element that Google shopping brings 迟辞听the聽Google search engine results page, is聽that it鈥檚 the聽imagery that鈥檚 associated with it.
So, suppose you want 迟辞听go聽look at聽a聽
Richard: It聽almost seems like some things that traditionally might appear 迟辞听be聽hard 迟辞听sell online could actually be聽easier, like rugs. Jesse 补苍诲听I聽used 迟辞听talk about rugs, like, what a聽strange one 迟辞听sell but how do聽you
Jesse: Yeah, 补苍诲听so聽for聽黑料门 merchants: think of聽all the聽times you Google something 补苍诲听you just look at聽the聽pictures at聽the聽top. This is聽what we鈥檙e talking about. If聽your products are visually appealing, if聽you need 迟辞听see an聽image in聽order 迟辞听sell it, Google Shopping is聽really where you need 迟辞听be.
David: It鈥檚 not just our thoughts too, right? it鈥檚 not just that we聽all love visual. Google itself has change the聽search engine results page over time, 补苍诲听it聽used 迟辞听be聽all text. And then they just started going: 聯Hey, you know what, people shop visually. Let鈥檚 put the聽images at聽the聽top.聰 So, you really don鈥檛 have a聽full game if聽you鈥檙e doing just paid search. You really need the聽visual shopping component.
Jesse: Yeah! Ricardo, maybe you know because you鈥檙e in聽Google Shopping all the聽time. I聽heard a聽stat recently that 50% of聽all
Ricardo: Yeah. I聽think it鈥檚 about the聽same number that I鈥檝e heard. But it鈥檚 growing. So聽I聽wouldn鈥檛 be聽too surprised over time. It聽would actually keep on聽increasing as聽a聽percentage.
I聽actually wanted 迟辞听add 迟辞听the聽discussion another, I聽think, really important factor 迟辞听understand about Google Shopping. It鈥檚 really designed for聽
Jesse: Yeah! Ricardo, how does it聽work? Let鈥檚 stick with the聽
Ricardo: Sure. So, the聽matching process is聽primarily on聽the聽description side. So, let鈥檚 say you have an聽
Jesse: Perfect! So, for聽merchant, that鈥檚 good 迟辞听know, because that means you need 迟辞听really think about what is聽the聽product title. You name your product appropriately, so聽that when it聽shows up聽in聽Google it聽makes sense 迟辞听people. I聽think, the聽the聽tip there would be: 聯Don鈥檛 get too cute聰, you know. Just say what it聽is. And then the聽description聽鈥 you do聽have a聽lot of聽room there, you have several hundred words where you can describe it. That鈥檚 what鈥檚 Google using the聽match that can make it聽way more specific.
Ricardo: Sure. And that description side of聽it. Exactly, because you have so聽much space, right? Just remember, Google is聽matching you based on聽a聽variety of聽factors, right, from the聽keyword product name itself but also the聽brand, the聽type of聽product, many other things. So, if聽you鈥檙e descriptive on聽the聽product itself, on聽the聽product description, you have a聽much better chance of聽getting matched 迟辞听relevant searches. So, I聽will definitely emphasize, you know, having very good product descriptions.
Richard: I聽would imagine too that in聽that description is聽where your help in聽Google鈥檚 algorithm actually make it聽be, when you鈥檙e talking about relevant 迟辞听someone who鈥檚 actually looking 迟辞听buy something, not just, wanting 迟辞听look how 迟辞听make a聽
Ricardo: Sure. Yeah, 补苍诲听I聽would say that the聽Google Shopping engine is聽itself, because they know how 迟辞听search, how all the聽people are actually searching in聽the聽context of聽the聽search. They鈥檙e very effective 补苍诲听making sure that the聽answer shown for聽a聽purchase intent.
Jesse: For sure. That鈥檚 the聽best time 迟辞听get in聽front of聽internet searchers聽鈥 when they鈥檙e ready 迟辞听purchase. So, put your picture right in聽front of聽them, have a聽price. So, Ricardo, I聽know it聽always depends on聽the聽term 补苍诲听there鈥檚 a聽lot of聽things that go聽into the聽history or聽the聽price of聽a聽click. Do聽you have an聽average price per click for聽Google Shopping?
Ricardo: That鈥檚 difficult 迟辞听come 迟辞听an聽average because it聽is聽really so聽broad by聽product 补苍诲听category, 补苍诲听also by聽geolocation.
Obviously, the聽more competition there is聽for聽the聽auctions, the聽higher the聽price. And that, you know, can be聽affected by聽the聽product, how many searches there are for聽a聽product, the聽search volume for聽the聽product, but also the聽geolocation.
We聽have seen throughout is聽that the聽cost per click is聽kinda like in聽the聽same context as聽the聽normal AdWords cost per click. Certain categories are much cheaper, certain categories can be聽more expensive. But the聽one thing that we聽have seen across the聽board is聽that the聽conversion ratio (the ROI) is聽the聽highest on聽Shopping. And I聽think that is聽related 迟辞听what we鈥檙e saying. So, the聽intent is聽there, the聽fact that you have actually seen the聽product when you click through 迟辞听it, you have selected the聽product you want, right. You鈥檙e not going 迟辞听click on聽the聽product that you don鈥檛 like from the聽returned results. You鈥檙e almost halfway there when you do聽that. So, it鈥檚 so聽much higher conversion ratio 补苍诲听return investment on聽Google Shopping then almost any聽other media for聽
David: That鈥檚 fantastic, Ricardo. One of聽the聽things that always concerns me聽about venturing into a聽new avenue for聽driving traffic growth聽鈥 补苍诲听it聽probably does for聽our merchants as聽well聽鈥 is聽that you may not have a聽real understanding of聽how something works. You may not know how 迟辞听bid on聽something. You may not know what the聽ROI is聽going 迟辞听be, 补苍诲听our merchants are often small businesses, that鈥檚 who we聽really support. They don鈥檛 always have the聽time required 迟辞听really understand how 迟辞听do聽testing 补苍诲听really understand bidding strategy. That鈥檚 what I聽love about you guys 补苍诲听what you鈥檙e offering here, is聽a聽really solid
Ricardo: Sure. I聽mean another huge factor on聽that is聽the聽full automation. We聽don鈥檛 have 迟辞听have human management behind it, it聽allows us聽迟辞听start with pretty small budgets. So, on聽top of聽the聽fact that the聽plane basically flies on聽autopilot 补苍诲听it鈥檚 not going 迟辞听crash, it鈥檚 actually going 迟辞听do聽the聽really good job at聽planning the聽marketing. You can also start with a聽smaller budget, so聽it鈥檚 not a聽huge investment, you can take a聽look 补苍诲听see how it鈥檚 performing for聽your store with a聽small budget in聽the聽low hundreds or聽even $70聽
Jesse: Wow, that鈥檚 perfect. Ricardo, that鈥檚 means your AI聽is聽actually controlling the聽bidding. And that means that it鈥檚 not the聽price per click is聽determined by聽how much you bid, 补苍诲听those changes happen automatically on聽your platform?
Ricardo: Yes. There鈥檚 no聽human intervention on聽the聽bidding side. So, it鈥檚 a聽portfolio optimization 补苍诲听what we聽do聽is聽we聽maximize the聽return on聽investment for聽the聽budget of聽the聽campaign.
Richard: That is聽really super cool, Ricardo! I聽was wondering, kind of聽back 迟辞听Dave鈥檚 point, small businesses just getting started, not knowing exactly where 迟辞听get started, so聽this sounds like a聽great potential new traffic source, new revenue source for聽them. Is聽there an聽average order value or聽an聽average margin, that someone should be聽working with, before they start working with you?
Ricardo: Yes 补苍诲听no. Generally speaking, they show up聽on聽their store, the聽order values, it聽is聽difficult 迟辞听make marketing work, when just selling products in聽the, let鈥檚 say, below couple dollars range without volume, obviously, right. Because on聽a聽per order basis, your conversions 补苍诲听your revenue are probably not going 迟辞听be聽more than your cost proposition. We聽have seen throughout, on聽average order values, right, in聽the聽twenties or聽higher, you know. Generally, we聽can see passive return Investments quite easily. Obviously the聽higher the聽value amount of聽the聽order, the聽better returning investments is聽going 迟辞听be. I聽would say, average of聽the聽values聽鈥 over $20聽per order work well.
Richard: Got it.So, in聽a聽hypothetical scenario, someone has a聽$60聽product with the聽$25聽margin, they鈥檙e perfect for聽this?
Ricardo: Sure!
David: If聽I聽can add 迟辞听that just for聽a聽second, this is聽Dave. So, I聽used 迟辞听run thechive.com, which is聽a聽pretty big
Jesse: Yeah, I聽mean, that鈥檚 actually very encouraging, because I聽would have thought prior 迟辞听this podcast that maybe need 迟辞听be聽at聽a聽hundred bucks or聽so聽in聽order 迟辞听afford the聽marketing 迟辞听have the聽margin for聽that. So, that鈥檚 awesome, that this could be聽for聽people, you know, even at聽a聽fairly low average basket size.
So, Ricardo, you鈥檝e mentioned earlier that you guys do聽the聽optimization 补苍诲听the聽AI聽has that. So, that means you actually are able 迟辞听track all the聽way 迟辞听sale as聽well, you know. How does that work? Is聽that with the聽integration with 黑料门?
Ricardo: Yes, so, what we聽do聽is聽we聽integrate into the聽order, you know, the聽part of聽黑料门 where the聽order actually happens. Once the聽order completes, we聽trigger that, so聽we聽know exactly what keywords work in聽this case or聽what product drew the聽sale, what鈥檚 the聽actual sale value, so聽it聽gets associated 迟辞听the聽actual dollar amount or聽the聽sale amount. And then we聽can compute your return on聽investment for聽advertising, spend, 补苍诲听everything else. So, it鈥檚 all fully integrated, 补苍诲听we聽also trigger Google AdWords sale at聽that point. So聽it鈥檚 both on聽our platform, on聽黑料门, Google AdWords, so聽you can see all your conversions.
Jesse: Oh聽perfect! So聽that even helps if聽you鈥檙e selling, let鈥檚 say,
Ricardo: Kinda. So, what it聽does is聽it聽maximizes the聽return investment. So, it鈥檚 not necessarily that it聽would turn them off, but it聽would get the聽maximum of聽amount of聽clicks for聽the聽higher converting, higher revenue items automatically. And smallest budgets are constrained. It鈥檚 not like you鈥檙e running like a聽million dollars amount budgets, like when you have $150, let鈥檚 say, 迟辞听spend. So, what would happen organically, is聽that the聽process, because it鈥檚 is聽getting the聽higher value, higher revenue converting products, it聽starts getting those that are not converting as聽well would not see the聽traffic, if聽they will not get any聽clicks. So聽it鈥檚 not that mean technically we聽don鈥檛 turn them off if聽they don鈥檛 see that traffic.
Jesse: Sure. So聽it鈥檚 effectively squeezed but not necessary turned off. Now, you know, AI聽take little time. It鈥檚 based on聽statistical significance, 补苍诲听you need traffic. How long does it聽take for聽your algorithms, your AI聽迟辞听kick in聽补苍诲听start improving things?
Ricardo: Sure. So聽we聽start from the聽
Then we聽get conversions in聽the聽engine, that improves significantly 迟辞听maximize conversion so, obviously, it鈥檚 always learning. So, the聽more it聽runs, the聽better it聽runs. With that said, in聽the聽first month, we聽get it聽迟辞听迟辞听a聽fairly stable, pretty good optimization going with five conversions. We聽get much clearer picture of聽what, you know, prices are working 补苍诲听what conversions are working 补苍诲听so聽forth.
And then, you know, after five conversions it聽keeps improving, improving 补苍诲听improving. So聽the聽long term is聽a聽pretty much immediate from the聽
Jesse: Sure. So, breaking that down for聽a聽newbie merchant. So聽they have a聽store, they鈥檝e made a聽few sales, maybe they are doing some things on聽Facebook 补苍诲听email, but they鈥檝e never launched an聽advertising campaign. So, we鈥檙e talking about maybe an聽hour or聽so聽迟辞听get this launched and, maybe you know, a聽couple hundred bucks 迟辞听really get some good feedback 补苍诲听figure out what鈥檚 their cost per sale, is聽that fair?
Ricardo: So聽far the聽numbers that we聽have is聽like 20聽minutes. It鈥檚 relies directly on聽the聽inventory of聽the聽store. So, if聽you have all the聽data for聽items, the聽prices 补苍诲听everything else is聽pretty seamless, it聽takes like 5聽minutes or聽less. But we鈥檙e saying about an聽average of聽20聽minutes 迟辞听complete the聽campaign, so聽it鈥檚 pretty easy. And yes, i聽think a聽package for聽$75. So聽you can set up聽$75聽per month 补苍诲听then grow the聽way 迟辞听hundreds 补苍诲听then thousands. So, we聽have pretty good steps, you know, 75, 150聽a聽month 补苍诲听then 300聽
Jesse: Got it. So, you know, do聽you think somebody spending, let鈥檚 say, somebody has an聽average, their products average, let鈥檚 say, $50. Do聽you think spending the聽$150, maybe over the聽two months, that would be聽enough 迟辞听get a聽proper gauge? Is聽this going 迟辞听work on聽Google Shopping, or聽do聽I聽need improvements? is聽there any聽life 迟辞听this? Is聽that enough time?
Ricardo: Sure! I聽would say, like, I聽think eight weeks is聽definitely enough time 迟辞听get you a聽good idea of聽what your conversion ratio is聽补苍诲听then what鈥檚 your average orders are. And then you can adjust accordingly. I聽mean, if聽your converting higher than you thought, but your order volume is聽a聽little bit smaller, then, maybe you want 迟辞听bundle products 迟辞听increase your
David: You know, what are the聽interesting things about this program is聽goes back 迟辞听broader digital marketing experiences. When you think about it, the聽ways 迟辞听drive traffic efficiently what happens is, you find a聽tactic you like 补苍诲听then everybody starts betting on聽it聽补苍诲听then you find at聽the聽efficiency starts 迟辞听go聽away, 补苍诲听you got 迟辞听find a聽new tactic.
What I聽like about Google Shopping right now is聽that there鈥檚 not a聽lot of, what I聽call 聯longer tail users聰. There aren鈥檛 a聽lot of聽small merchants who really figured out how 迟辞听use the聽system, because it鈥檚 always been too complex in聽the聽past. So聽what you鈥檝e got are the聽majority of聽major players out there, like larger brands that can take advantage of聽it. But right now with this tool we鈥檙e bringing this 迟辞听smaller merchants. It鈥檚 an聽opportunity 迟辞听be聽at聽the聽early onset of聽the聽larger swell of聽traffic, that will happen through visual shopping. So, my聽thought 迟辞听merchants out there is聽迟辞听really take advantage of聽this now. It聽does come down 迟辞听take an聽advantage of聽things while they鈥檙e efficient as聽possible as聽they may not always be聽forever. So, give it聽a聽shot!
Richard: Yeah. Just like in聽the聽beginning of聽the聽days of聽the聽web. If聽you were just there first, sometimes you would win, right. Or聽you had a聽better looking store. So, yeah, you now have the聽opportunity 迟辞听look 补苍诲听effectively function, like an聽enterprise site with a聽combination of聽Kliken 补苍诲听黑料门 now, it鈥檚 awesome. I聽was going 迟辞听ask you, Ricardo, is聽this a聽hundred percent
Ricardo: So, it聽is聽pretty much
Richard: Got it. So, as聽soon as聽they鈥檝e said 聯this is聽the聽package I鈥檓 taking聰, that鈥檚 the聽amount of聽spend 补苍诲听I聽don鈥檛 have 迟辞听worry about all of聽a聽sudden getting some bill for聽a聽thousand extra dollars or聽anything like that. You鈥檙e just agree 迟辞听$250聽or聽you agree 迟辞听$300, whatever the聽price that they choose on. That鈥檚 the聽extent of聽what that bill is聽going 迟辞听be聽in聽they can kind of聽forget about it聽补苍诲听get back 迟辞听work.
Ricardo: That鈥檚 right. So, there鈥檚 no聽real risk. I聽mean, outside of聽obviously launching the聽campaign, make sure that something that you know converts itselves. So, you know exactly how much money you鈥檙e spending 补苍诲听it鈥檚 completely transparent. You also see exactly how it鈥檚 being deployed: how many clicks are getting, what鈥檚 the聽price 补苍诲听so聽forth.
Jesse: Yeah, that鈥檚 perfect. There are some stories out there: if聽you start an聽AdWords campaign or聽a聽Facebook advertising campaign, 补苍诲听you put your credit card in聽there, 补苍诲听walk away, you know, sometimes you could spend $1,000聽really fast!
Ricardo: Yeah, it聽just takes care of聽that. We聽put together the聽daily spend, based on聽the聽budget, 补苍诲听that鈥檚 the聽maximum that you can spend.
Jesse: Perfect. For the聽merchants, they鈥檙e not changing bids, but what kind of聽visibility they get 迟辞听what鈥檚 going on聽with the聽campaign?
Ricardo: Yes, they get 迟辞听see exactly what鈥檚 happening. They get 迟辞听see the聽clicks, where they are happening, impressions also, like they get 迟辞听see what products in聽what categories are seeing impressions 补苍诲听clicks. They get 迟辞听see any聽revenue coming in, so聽they can put two 补苍诲听two together. So, these categories generating so聽much revenue with so聽much costs, so聽it鈥檚 completely transparent. And then they can change for聽the聽campaign鈥檚 performance over time, change what categories of聽products going 迟辞听the聽campaign or聽not. So, for聽example, they鈥檙e running 5聽categories of聽products: they鈥檙e running
Jesse: Got it. Now what about 聯out of聽stocks聰? So, you got one
Ricardo: So, the聽feed itself has the聽inventory items, right. That鈥檚 a聽part of聽the聽process, for聽the聽campaign 补苍诲听迟辞听sync the聽feed. The campaign is聽synced 迟辞听the聽黑料门 store, 补苍诲听we聽have a聽service that does that. It聽takes care of聽that automatically. So, as聽you run out of聽the聽inventory, our services pick that up聽补苍诲听let the聽feeds change, that stops the聽campaign for聽that product. Same thing for聽new products. If聽you add a聽new product or聽a聽category, then automatically our service will pick it聽up聽补苍诲听start advertising the聽product or聽category. There鈥檚 direct synchronization between the聽inventory 补苍诲听the聽Google feed used for聽the聽campaigns.
Jesse: Oh, that鈥檚 awesome! So, if聽you鈥檙e merchant that adds new products fairly often, that鈥檚 awesome. Once somebody鈥檚 feed ends
David: Does that include price changes?
Ricardo: Yeah, it鈥檚 the聽whole thing. So聽basically we聽sync anything, that you are in聽any聽categories, any聽products, you can advertising, it聽syncs it聽all. Syncs inventory, new products, prices changes, everything.
Jesse: And I聽assume the聽images are part of聽that as聽well?
Ricardo: Sure. Basically anything that鈥檚 on聽that product in聽the聽store.
Jesse: Okay. Now, for聽images. There鈥檚 kind of聽two ways of聽thinking about it, you know, with Google they have a聽white background. So, you know, we聽have the聽Amazon standard is聽there must be聽a聽white background for聽a聽product. Does Google Shopping have standards on聽best best practices for聽product photos?
Ricardo: So, actually, I鈥檓 that pretty sure that it鈥檚 the聽same thing, like Amazon. The quality of聽the聽pictures is聽incredibly important, especially on聽the聽visual search. As聽far as聽I聽got from the聽conversation that we聽had with them, they had not really gave us聽specific directions, whether it聽can be聽dark background, white backgrounds, things of聽that nature. But the聽quality of聽the聽pictures is聽definitely important. I聽definitely recommend the聽store owners 迟辞听get the聽best pictures they can for聽their stores.
Jesse: Yeah. This is聽a聽good time 迟辞听get a聽reminder for聽everybody.
Ricardo: Sure. But you don鈥檛 have 迟辞听have it. The nuance of聽seeing that picture, I聽just saw the聽searchers having discussion about this. It鈥檚 funny, how your brain looks at聽it: when pictures come on聽the聽white background, the聽product pops up, right, as聽a聽single product. But when pictures have a聽background or聽some sort, like a聽room or聽things of聽that nature, it鈥檚 difficult 迟辞听distinguish the聽actual product from the聽rest of聽that picture. So聽I聽definitely recommend white background.
Jesse: Yeah. And for聽merchants that are listening 补苍诲听saying: 聯How do聽I聽get the聽white background聰? There鈥檚 a聽lot of聽ways you can take your picture that way, that鈥檚 the聽easiest way. If聽you鈥檙e a聽Photoshop person you can remove backgrounds, but there鈥檚 services that I鈥檝e used in聽the聽past. You send them a聽photo that has at聽least a聽standard background, 补苍诲听for聽a聽dollar per photo they鈥檒l remove the聽back 补苍诲听make it聽white. So, you know, for聽buck per photo it鈥檚 kind of聽a聽worthwhile investment on聽that.
So, Ricardo. I聽mean, you鈥檝e seen a聽ton of聽clients, people have more success or聽others. What category of聽merchants are having the聽best success with Google Shopping right now?
Ricardo: I聽would say that, I聽mean, across the聽board, I聽don鈥檛 think, it鈥檚 not so聽much a聽specific category or聽categories. I聽mean, if聽you have a聽good store 补苍诲听you鈥檙e selling products that make sense for聽the聽category of聽your store, you鈥檙e going 迟辞听see success.
And we聽have seen that across the聽board from people, selling from cakes 补苍诲听baking utensils 补苍诲听things of聽that nature 迟辞听fishing rods, 迟辞听pretty much anything. So, I聽would say obviously, sorting categories that probably have more competition than others.
But the聽great thing about Google is聽that the聽sophistication of聽the聽searches is聽there, right. I聽mean, if聽you are a聽hobbyist 补苍诲听you鈥檙e into something, regardless whether it鈥檚 fishing, baking, skiing, 补苍诲听you鈥檙e searching on聽Google for聽things around that hobby of聽yours. The ability of聽Google 迟辞听match things very effectively, that鈥檚 unbelievable. So, if聽you鈥檙e selling any聽type of聽products that make sense for聽those hobbies, like baking, skiing, 补苍诲听things of聽that nature, the聽campaigns will be聽very effective, because Google is聽very effective at聽matching people based on聽where they are 补苍诲听their interests in聽the聽purchase process.
David: Interesting. Ricardo, let me聽ask you a聽question. We聽have other products with you obviously, we聽worked with you on聽the聽AdWords tools as聽well. When you talk about Google Shopping, do聽you find that the聽Kliken tool is聽best standalone, or聽do聽you need 迟辞听layer on聽other products with it? Do聽you need 迟辞听be聽on聽AdWords? I鈥檇 love your thoughts on聽that.
Ricardo: That鈥檚 actually a聽great question. The more sophisticated the聽store is, the聽more compound benefits you get from doing almost all the聽major types of聽
Jesse: Now, 补苍诲听I聽don鈥檛 mean 迟辞听cut you off, I聽just want 迟辞听get some clarity. It聽doesn鈥檛 really mean you have 迟辞听do聽it聽that way, you don鈥檛 need 迟辞听do聽everything all at聽once, you can kind of聽step into pieces at聽a聽time?
Ricardo: Sure. No, no, absolutely! Stepping into pieces makes ton of聽sense. Again, if聽you don鈥檛 have a聽lot of聽traffic on聽your website, my聽recommendation will be聽迟辞听start with Google Shopping, because that鈥檚 probably the聽most effective way 迟辞听drive traffic 补苍诲听sales 迟辞听the聽website.
If聽you already have a聽pretty good amount of聽traffic, so聽you鈥檙e running Google Shopping, then adding retargeting, it聽will make ton of聽sense, because you a聽going 迟辞听maximize the聽return investment, because now people are seeing your ads after they leave website, they get reminded it聽补苍诲听they鈥檙e purchasing more. And then Google AdWords itself聽鈥 the聽actual text ads engine. It鈥檚 fantastic for聽top of聽the聽funnel searches. So, I聽mean, going back 迟辞听skiing. So聽let鈥檚 say that you鈥檝e done some homework 补苍诲听you want a聽specific type of聽gloves. When you search on聽that level, Google Shopping is聽very effective because you already know what type of聽gloves you want, so聽you are actually almost ready 迟辞听buy it.
But, let鈥檚 say, that you don鈥檛 know what you want. You鈥檙e at聽the聽much higher level in聽the聽funnel. You鈥檙e doing research 补苍诲听you don鈥檛 really know what you want. And you search, like 聯warm ski gloves that go聽over my聽jacket聰. You are really discovering a聽glove, but in聽your head you still don鈥檛 know what that keyword specifically is, right. Because you haven鈥檛 received that information yet. So, a聽text add at聽that level will guide you directly into the聽store 补苍诲听it聽can actually be聽very effective at聽catching searchers of聽that nature. I聽think all of聽them together complement each other very, very well, 迟辞听drive traffic at聽the聽research level, the聽purchase level, 补苍诲听then with retargeting 迟辞听reinforce purchase.
Jesse: Great! Ricardo, so, we聽talked about the聽Google Shopping integration, but you also have an聽AdWords integration with 黑料门 as聽well. Is聽that going 迟辞听be聽through the聽same location or聽is聽going 迟辞听be聽a聽separate app in聽the聽黑料门 platform?
Ricardo: So, right now it鈥檚 going 迟辞听be聽probably the聽same app. It鈥檚 the聽same platform, so聽you are going 迟辞听be聽able 迟辞听run Google Shopping, retargeting, 补苍诲听SEM ads from the聽same app.
Jesse: So聽the聽Google Shopping pulls mostly image, price 补苍诲听the聽product description on聽AdWords side. What does it聽use as聽the聽base information?
Ricardo: Sure. So聽it鈥檚 actually quite straightforward. What we聽do聽is, we聽crawl the聽website, so聽we聽have a聽good idea of聽what the聽store is聽about. And the聽process is聽a聽little bit different, because with text ads, you have keywords, you have 迟辞听select these keywords for聽the聽campaign, so聽it鈥檚 a聽visual process that allows you 迟辞听select your keywords, that you want 迟辞听use in聽your campaign. And then we聽also guide through the聽building of聽the聽ads, so聽we聽provide ad聽text 补苍诲听suggestions. So, there is聽no聽need 迟辞听go聽迟辞听AdWords, because we聽generate the聽AdWords account, we聽make 补苍诲听bid campaigns, 补苍诲听then the聽tracking works in聽the聽exact same way: we聽are tracking conversions use that for聽optimization. Almost very similar process, just a聽little bit different. On聽Google Shopping, you select the聽categories that you want 迟辞听advertise, on聽Google AdWords, 补苍诲听you select keywords that you want 迟辞听advertise.
Richard: It鈥檚 very cool. It鈥檚 awesome you can do聽that both of聽those in聽the聽same app too. One quick question I聽had, regarding that. Since you have so聽many things tied together 补苍诲听so聽integrated with Google 补苍诲听it鈥檚
Ricardo: Sure. So, we聽have on聽the聽campaign side of聽things, we聽provide all the聽most important campaign statistics, right. Where the聽traffic is聽coming from, what are the聽keywords that are driving the聽traffic 补苍诲听what ads are driving the聽traffic. What conversions they are having on聽Google Shopping, we聽do聽the聽same by聽products 补苍诲听categories. So聽what categories are driving the聽traffic 补苍诲听what products are driving the聽traffic. And then also we聽have a聽deep integration with you guys, with 黑料门 on聽the聽store stats. So聽we聽have a聽store stats platform that uses our own analytics 迟辞听show the聽store鈥檚 website traffic sources. So, it聽tells you what are the聽main sources of聽traffic for聽the聽store, what鈥檚 the聽average time 迟辞听purchase, what鈥檚 the聽conversion ratio by聽type, direct traffic, organic traffic, paid traffic. And what products are performing the聽best, or聽what categories are performing the聽best, as聽far as聽sales 补苍诲听so聽forth. So聽we聽have a聽ton of聽analytics on聽the聽app, both on聽the聽store stats level 补苍诲听the聽campaign level.
Jesse: Oh, that鈥檚 awesome! I聽also caught something there about the聽remarketing. It鈥檚 using the聽same sort of聽technology, you essentially have the聽conversion pixels 补苍诲听now all the聽tracking available. So, if聽a聽new merchant wanted 迟辞听set up聽remarketing with you guys, how do聽I聽go聽about this? Remarketing is聽all about display聽鈥 do聽they need 迟辞听upload images 补苍诲听things for聽the聽campaign? How does that work?
Ricardo: So, it鈥檚 actually fully automated. So聽we聽integrate into the聽黑料门 platform, so聽the聽images for聽the聽adds come directly from the聽inventory, so聽they don鈥檛 have 迟辞听upload anything.
They just have 迟辞听select the聽geolocation for聽the聽ads, where they want the聽adds 迟辞听run. And then just edit ads a聽little bit, just 迟辞听change the聽defaults. We聽give them the聽defaults, but if聽they want 迟辞听change, the聽name of聽the聽store, for聽example, 补苍诲听things of聽that nature鈥 And then they get a聽template of聽the聽ad, they can pick it, 补苍诲听they launch the聽campaigns. So, it鈥檚 a聽very automated process, super easy, 补苍诲听it聽uses the聽images from the聽黑料门 store already, so聽they don鈥檛 have 迟辞听upload anything.
Jesse: Oh, perfect. So, the聽images it聽takes, those are the聽product images or聽similar 迟辞听Google Shopping, takes those images?
Ricardo: Yeah.
Jesse: Awesome. So, there is聽a聽little template. Now, does that mean that, you know, people are seeing the聽products that they were looking at聽or聽do聽they see a聽general mix of聽all the聽products from the聽store?
Ricardo: So, it鈥檚 a聽general mix of聽the聽products from the聽store, at聽this point. Probably the聽next iteration down the聽Google Shopping product, is聽迟辞听also do聽retargeting 补苍诲听that would be聽the聽products that they put on聽the聽shopping cart also. So聽that鈥檚 coming soon.
Jesse: Stay tune for聽that, awesome. Regarding the聽retargeting鈥 What sort of聽budget鈥 Oh, I聽probably know the聽answer聽鈥 it聽depends on聽how much traffic you get 迟辞听your site 补苍诲听how much is聽spent for聽retargeting, but what鈥檚 a聽good way 迟辞听start with retargeting for聽small merchants?
Ricardo: Sure. And the聽beautiful thing about the聽retargeting, is聽that the聽deployment of聽remarketing is聽so聽much cheaper than searching itself. Because the聽inventory in聽the聽displaying AdWords is聽very supply based. So聽you can actually deploy an聽effective budget, setting a聽$50聽per month and, if聽you have a聽ton of聽traffic you could go聽all the聽way 迟辞听hundred or聽thousands of聽dollars, depending on聽the聽traffic. Our entry level package is聽$50聽per month, it鈥檚 really effective for聽entry level stores, that, are driving traffic 迟辞听the聽website. And then, you know, we聽have the聽bumps of聽$100聽
Jesse: Got it, that鈥檚 perfect! And you don鈥檛 have 迟辞听deal with the聽creative, so, those are done automatically. So, this is聽awesome for聽a聽small merchant. You got 迟辞听get your products ready, you do聽have 迟辞听take a聽photo of聽a聽product at聽some point, get your prices in聽there. But, you could maybe take a聽Friday afternoon, sit down with your product list 补苍诲听launch Google Shopping in聽20聽minutes. You can launch remarketing. How long you think that would take, another 20聽minutes 补苍诲听or聽so?
Ricardo: Yeah, that鈥檚 pretty easy.
Jesse: And then you could also launch a聽more top of聽a聽funnel campaign with Google Adwords. This is聽like, you could do聽this in聽the聽afternoon, if聽you are a聽merchant that is聽looking 迟辞听kickstart your business.
Ricardo: Sure. Yeah, it鈥檚 actually a聽pretty simple.
Jesse: Awesome. Dave, I鈥檓 glad 迟辞听brought you 迟辞听the聽podcast today 迟辞听get a聽taste of聽what we聽talked about here. What do聽you think about this Google Shopping integration?
David: Well, I聽appreciate the聽time. It鈥檚 actually very interesting 迟辞听hear, 补苍诲听it聽gives us聽an聽opportunity 迟辞听talk a聽little bit more, always so聽busy working 补苍诲听I鈥檓 sure everybody out there is聽too.
What I聽love about, this is聽really the聽future direction of聽where 黑料门 is聽going for聽merchants. Bringing the聽tool sets that are going 迟辞听help 迟辞听grow. Where we鈥檝e been in聽the聽past is聽really building an聽
Jesse: Absolutely. So, Ricardo, thanks for聽sharing your expertise for聽the聽show, for聽all merchants are listening. By聽the聽time you listen 迟辞听this, this is聽going 迟辞听be聽live inside the聽黑料门 Control panel. So, please check it聽out, it鈥檚 an聽automated Google Shopping. Really excited 迟辞听have you on聽the聽黑料门