with the help of Euclid Introduction Chris Scharmüller Head of Strategic Customer Development amp Sales Whoop smarterecommerce Euclid of Alexandria or Father of Geometry The solution Orthogonalization ID: 566905
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Slide1
Optimize Google Shopping
with the help of EuclidSlide2
Introduction
Chris Scharmüller
Head of Strategic Customer Development & Sales
Whoop! / smarter-ecommerceSlide3
Euclid (of Alexandria) or “Father of Geometry”Slide4
The solution: Orthogonalization
Black Box Bidding
One „all products“ target for your whole assortment
0,55$Slide5
One Ad Group per SKU
First Dimension: Items
$0.15
$0.32
$0.05
$0.17
$0.57
$0.10
$0.11Slide6
The ad group structure enables you to set device modifiers (= bids) for every item
Second Dimension: Devices
$0.15
$0.32
$0.05
$0.17
$0.57
$0.10
$0.11Slide7
Short explanation of the underlying concept
Third Dimension: Query Types (or intent)
CAMPAIGN GROUP
PRIORITY
NEG.KEYWORDS
BIDS
BUDGET
Products
low
none
very high
Brands
medium
product-terms like “free 5.0”
high
Shared Budget
Other
high
product-terms brand terms
low
Nike Free 5.0
Running Shoes
Nike Men’s Running Shoes
Nike Free 5.0 …
99.90 €
shop.co.ukSlide8
Characteristics of shopping queries
Low
Med
High
Query Word Count
1-2
2-4
3 or more
Brand Reference
not likely
very likely
most likely
Intent-based Query Components
not likely
likely
(top-rated. price. comparison)
likely
(buy. online shop.
financing options)
Match to Inventory
very many products match
many products match
only a handful of products match
Last Click
Conversion Rates
low
medium
high
Traffic Volume
high
very low to low
medium to highSlide9
Based on Query Sculpting
Third Dimension: Query Types
$0.15
$0.32
$0.05
$0.17
$0.57
$0.10
$0.11Slide10
ThanksSlide11
How to apply the concept of the purchase funnel to Google Shopping?
Target-ROAS: 5
Actual ROAS: 2.17
Action: Reducing the bids
PRODUCT
CLICKS
CONV
CR
VPC
CPC
Nike Free 5.0 Running Shoes Neon
1500
19
1.26 %
€ 1.26
€ 0.58
Nike Free 5.0 …
99.90 €
shop.co.uk
Every type of query is treated the same!
The problem of Google Shopping:Slide12
Shopping Campaigns are auto-targeted
There are no keywords for Shopping Campaigns. but you are able to use negative keywords!
There are no keywords for Shopping Campaigns. but you are able to use negative keywords!Slide13
Query Sculpting
Solving a big problem of Google Shopping
SEARCH TERMS (= Queries)
CLICKS
CONV
CR
VPC
CPC
ROAS
Nike Free 5.0
100
3
3%
€ 3
€ 0.5
6
Slide14
Explicit Query Sculpting
Advantages
Great way to manage query behavior
Flaws
Patterns can be very heterogeneous and won’t be applicable on the whole assortment
Also those patterns have to be researched in the first place and managed continuously
Potential hidden performers will stay in the “other”-Campaign
Slide15
Query Sculpting
SEARCH TERMS (= Queries)
CLICKS
CONV
CR
VPC
CPC
ROAS
Nike Free 5.0
100
3
3%
€ 3
€ 0.5
6
Buy Nike Men’s Running Shoes
250
12
4.8%
€ 4.8
€ 0.4
12
Men’s Running Shoes
300
0
0%
€ 0
€ 0.6
0
Running Shoes
600
1
0.16%
€ 0.16
€ 0.7
0.22
Nike Men’s Running Shoes
250
3
1.2%
€ 1.2
€ 0.5
2.4
Nike Free 5.0 …
99.90 €
shop.co.uk
Think of queries (and query components) having a different likeliness of conversion.Slide16
3 Buckets for your Search Queries
Nike Free 5.0 …
99.90 €
shop.co.uk
QUERIES
CLICKS
CONV
CR
VPC
CPC
ROAS
SCORE
Nike Free 5.0
100
3
3%
€ 3
€ 0.5
6
high
Buy Nike Men’s Running Shoes
250
12
4.8%
€ 4.8
€ 0.4
12
high
Men’s running shoes
300
0
0%
€ 0
€ 0.6
0
low
Running Shoes
600
1
0.16%
€ 0.16
€ 0.7
0.22
low
Nike Men’s Running Shoes
250
3
1.2%
€ 1.2
€ 0.5
2.4
med
We use a score for defining the likeliness of a conversion.
The score is used to group the queries into 3 buckets. Slide17
Funnel Buckets
CLICKS
CONV
CR
VPC
CPC
ROAS
ACTION (for Target-ROAS > 5)
high (lower funnel)
350
15
4.29%
€ 4.29
€ 0.43
9.98
Large Increase of Bids
Med (mid funnel)
250
3
1.2%
€ 1.2
€ 0.5
2.4
Small Increase of Bids
Low (upper funnel)
900
1
0.11%
€ 0.11
€ 0.66
0.16
Large Decrease of Bids
You can see the results.Slide18
Tactic Flow for Shopping Campaigns
Campaign 2
”high”
Campaign 3
”low”
Campaign 1
”med”
Traffic
Mostly exact terms with a low conversion probability
Mostly phrases consisting out of 2-6 words having a high conversion probability
Average Terms and pool for gathering new queriesSlide19
Campaign Structure - The Concept
Campaign 2
”high”
Campaign 3
”low”
Campaign 1
”med”
Traffic
Low Priority
Medium Priority
High Priority
Campaign Priority
Low Performing Queries
as Negative Exact
Low Performing Queries
as Negative Exact
High Performing Queries
as Negative Phrase
Negative Keywords
noneSlide20
Term Scoring
SCORE
Brand
reference
tdf/idf
weight
Color
reference
Performance
metrics
Term
length
Many
othersSlide21
Term Scoring - a very simplified example
SCORE = WordCount + if(BrandRef = True.2.0) + NormalizedCTR/2 + NormalizedConversionRate*2 + other Arguments
Running Shoes
2
0
1
2% CTR
0.16% CR
0.32
3.32
=
Buy Nike Men’s Running Shoes
2
4
9.6
20.6
=
5
8% CTR
4.8% CR
further Reading:
http://nlp.stanford.edu/IR-book/pdf/irbookonlinereading.pdfSlide22
Scored terms based on an advanced model
(Potential) High performers - Last 30 Days
Clicks
CR
Cost
Score
asics
gt
2000 4
235
6.38%
81.73
154.31
asics gt 2000 4 men
85
4.71%
31.98
145.48
adidas zx 750
522
4.79%
172.78
142.40
asics gel cumulus 17
211
4.27%
97.1
131.10
asics gt 2000 4 women
89
3.37%
37.76
124.15
asics gt 2000
276
3.26%
127.14
121.10
nike metcon 2
251
3.19%
63.63
120.14
asics kayano 22
132
3.03%
41.93
120.07
asics nimbus 18
104
2.88%
33.44
118.08
asics gel nimbus 18
130
2.31%
44.21
116.98
asics gel cumulus 17 women
84
0.00%
43.37
115.45
…Slide23
Scored terms based on an advanced model
(Potential) Low performers - Last 30 Days
Clicks
CR
Cost
Score
knee bandage
13
0.00%
5.23
1.5
asics
25
0.00%
12.89
1.67
sports duffle bag
17
0.00%
4.29
2.11
trail shoes
16
0.00%
6.82
2.25
beach slippers
33
0.00%
16.86
2.53
adidas leisure suit
13
0.00%
4.27
3.53
nike duffle bag
13
0.00%
3.63
3.79
nike bag
19
0.00%
6.11
3.85
adidas running shoes
28
0.00%
16.46
3.89
nike slippers
14
0.00%
5.28
3.89
running shoes women
13
0.00%
6.23
3.94
…Slide24
Implementation guide
high
(lower funnel)
Add with
medium Priority
low
(upper funnel)
Add with
low priority
flow
flow
Mid
(mid funnel)
Existing Campaign
Set to High Priority
Add 2 Campaigns per existing
Shopping Campaign
All non-polarized queries are
managed via the mid funnel
which serves as a pool for them.
Low Performers List
as negative Exact
[knee bandage]
[sports duffle bag]
[trail shoes]
[beach slippers]
[adidas leisure suit]
High Performers List
Low Performers List
as negative Phrase
[knee bandage]
[sports duffle bag]
[trail shoes]
[beach slippers]
[adidas leisure suit]
as negative Exact
“asics gt 2000 4”
“adidas zx 750”
“asics gel cumulus 17”
“nike metcon 2”
“asics kayano 22”Slide25
Choose the right Campaign Priorities
Don’t’ forget to clone all other campaign settingsSlide26
Tip: Use Negative Keyword Lists
And add them to all applicable campaigns.Slide27
The Upper Funnel Exact List to Mid and Lower Funnel
And add them to all applicable campaigns.Slide28
And the Lower Funnel Phrase only to the
Mid Funnel
And add them to all applicable campaigns.Slide29
Analyzing the Attribution Behaviour
of Google Shopping
Interest
Comparison
Decision
Branded SearchSlide30
Analyzing the Attribution Behaviour
of Google Shopping
After some weeks you are able to get better insightsSlide31
New: Data Driven Attribution (DDA)
& Integration in Conversions
If you have over 800 conversions (suggested by Google) you can use DDA
You can apply an attribution model to your conversion measurementSlide32
What does that mean for Shopping/PLAs?
You can shed some light on attribution behavior of queries and products
“running shoes”
“nike running shoes”
click
“buy nike free 5.0 shoes”
click
Conversion:100 £
today
future
0 £
0 £
100 £
last-click wins
33.33 £
33.33 £
33.33 £
e.g. linear model
click
Important note: Automated Bidding for Google Shopping will continue to use the last-click-modelSlide33
THANK YOU!
SEE YOU AT THE NEXT#ecommercial