Earlier this year google made significant change on the “Search for purchases” tab in the United States, so that the service can primarily place free product lists selected by Google algorithms instead of paid ads. Building on this change, Google today introduces a switch to free product listings on the US Google search results homepage. Previously, he only displayed sponsored links in his “product knowledge panel”.
This panel appears when a Google user searches for a product that has matching listings on an e-commerce website. But so far, these links have been paid. According to Google, starting this summer, free lists will appear on these panels.
This change will appear primarily in the US on mobile devices, and then on the desktop.
However, shopping advertisements do not disappear. These ads will appear separately at the top of the page, where they are marked as other Google ad units.
Since moving to free lists in April of this year, Google said the average number of clicks has increased by 70% and the number of impressions of free ads and ads on the Shopping tab in the United States has increased by 130%. These indicators were based on an experiment. look at clicks and impressions after free lists have been entered, compared to the control group. The control group had a certain percentage of Google traffic that was not transferred to the new free experience.
Google has situated his move to free lists as a way to help businesses trying to reach customers because of the consequences of the coronavirus pandemic. But the reality is that this change was about to happen at some point — pandemic or not — because of Amazon’s threat to Google’s business.
Amazon has been steadily over the years gobbling up key business google: Revenue from search ads. In a report released last fall, before the pandemic, analytics firm eMarketer said Google’s share of search advertising revenue will slide from 73% in 2019 to 71% by 2021, as more and more Internet users began searching for products directly on Amazon.
Coronavirus is now pushing more and more customers to shop online even more, which is pretty much profitable for Amazon. Pandemic reported online store helped increase drive by 26% for example, revenue for the first quarter of 2020. Meanwhile, the new eMarketer forecast assessments that Google’s ad revenue will fall for the first time this year, dropping 5.3% to $ 39.58 billion due to a pandemic impact on advertising spending – especially on reducing advertising costs for travelers.
Google needed to change its search service to get more than just paid listings in order to compete better. Paid lists alone will not always match the user’s best search query and will not appear as a complete choice – a problem that the huge Amazon online store does not have. But Google’s move to free listings also encourages advertisers to pay for increased visibility. Now advertisers will need a way to stand out against a wider and more diverse assortment of products.
“For many salespeople, digital communications with customers is still a relatively new territory or a smaller part of their business,” said Bill Goth, president of commerce at Google. “However, consumer preferences for online shopping have increased dramatically, and it’s very important that we help people find all the best options available and help sellers communicate more easily with customers on the Internet.”