CES 2019 Reminds Advertisers about the Power of Voice

CES 2019 Reminds Advertisers about the Power of Voice

Marketing

In 2019, more than 74 million Americans will own smart speakers, up 15 percent from 2018. So it’s no surprise that the annual CES, occurring this week, has been showcasing products powered by voice interfaces. Within the first few days of CES, Google alone made a slew of announcements intended to show why Google Assistant is catching up with Amazon’s Alexa as a leading voice assistant. For instance, Google Maps now incorporates Google Assistant, and Google is working with Lenovo on a voice-activated alarm clock/visual display. Not to be outdone, Amazon announced a relationship with technology firm Telenav to make Alexa a more useful voice-based navigation tool in automobiles.

So where do these developments leave advertisers? After all, it’s not as if people are using their voices to buy products and services online. For the most part, consumers use voice as a way to find music and get weather forecasts. And most people do not use voice to search for anything online. But here’s the thing: people are using voice, and more than ever. They might not be using their voices to interact with your brand just yet, but the day is coming when they will. For a number of businesses, that day is here.

For quite some time, we’ve been advocating that advertisers prepare for a voice-first world. As I noted in a 2017 blog post, advertisers can do a number of things now to be savvy about the rise of voice. For instance, advertisers should evaluate your search queries and look for conversional text. (“Who,” “What,” “Where,” “When,” “Why,” and “How” are great phrases to focus on.) Also, pay attention to any long-tail queries that include a natural phrase such as “near me” or “can I get the number for . . . ” Use these queries to understand what consumers want to know about your products or services. That’s because consumers exercise a more natural and conversational language when they use their voices, thus altering their search behavior. You can then gather those learnings to strategize a personal user experience for voice searchers.

CES should serve as a reminder that a voice-first world is coming. You don’t want to be a laggard in that world. Contact True Interactive to make your online advertising flourish.

 

Get Ready for AI Everywhere

Get Ready for AI Everywhere

Artificial Intelligence

In 2019, artificial intelligence (AI) will make digital advertising more targeted, thanks in part to the efforts of Google. But marketers will need to invest more time and effort to make AI pay off.

It’s clear that AI is essential to Google’s growth. In February 2018, CEO Sundar Pichai said AI is more profound than electricity or fire. A few months later, he published a statement of AI principles in which he outlined seven ways Google will use AI (and ways that Google will not). The post focused on the importance of using AI for social good. Pichai did not mention using AI for advertising, but Google is certainly applying AI to make advertising smarter.

For instance, in 2018, Google launched a number of products that use machine learning (a form of AI) to improve online advertising performance. I recently blogged about one such product, responsive search ads. As I noted, responsive search ads make it possible for advertisers to enter multiple headlines (up to 15) and descriptions (up to four) when creating a search ad. Then Google Ads applies machine learning to automatically test different combinations and learn which combinations perform best. In addition, per Google, advertisers can add a third headline and second description to your text ads, and your descriptions can have up to 90 characters.

2018 was just a warm-up for what’s to come in 2019. Businesses demand more accountability and ROI from their online ad spend, and AI does just that. I expect Google will focus more on using AI to make YouTube more effective. Google has already injected AI into YouTube with features such as maximize lift, which is a smart bidding tool that automatically adjusts bids at auction time to maximize the impact a company’s video ads have on brand perception. Maximize lift is supposed to help businesses reach people who are most likely to consider their brand after seeing a video ad.

One concern we often hear from advertisers is that YouTube is not as useful for direct-response campaigns as it is for brand building. In 2019, we’ll see the emergence of tools that do a better job targeting video ad content to people who are in shopping mode and ready to buy as Google makes YouTube more of a lower-funnel platform.

AI will make online advertising better. But AI will also require marketers to invest more time and energy to make it pay off, as I discussed in my post about responsive search ads. It’s important that businesses understand its uses and requirements. For more insight, contact True Interactive. We help businesses maximize the value of their online advertising and understand where the industry is headed.

Image source: https://pixabay.com/en/artificial-intelligence-robot-ai-ki-2167835/

Advertiser Q&A: Google Showcase Shopping Ads

Advertiser Q&A: Google Showcase Shopping Ads

Google Uncategorized

Google has been beefing up its showcase shopping ads product to help retailers spice up their holiday advertisements. Showcase shopping ads make it possible for businesses to group together related products to merchandise them more effectively. The format is tailored for mobile viewing. Recently Google added new features such as video to make these ads more powerful. At True Interactive, we’ve been applying showcase shopping ads with favorable results. One of our clients running showcase shopping ads has seen an 80-percent higher click-through rate over standard shopping ads. This blog post explains showcase shopping ads based on questions we’ve received.

What exactly are showcase shopping ads?

Showcase shopping ads appear as a collection of shoppable images displaying different products offered by an advertiser. The ads are built to capitalize on broad keyword searches such as “winter sweaters.” The showcase shopping ads work this way:

  • Someone making a non-brand search for, say, winter sweaters will see in their search results display ads from different retailers with winter sweaters and promotional ad copy.
  • When the shopper clicks on the ad, they are taken to a landing page with a merchant’s line of winter sweaters. The shopping ad display, or showcase, resembles a brand page to the user, consisting of products the advertiser wants the user to see.

A shopper may click on an inventory and complete a purchase.

A business can create multiple showcase shopping ads. The header image can be different based on what is uploaded into each showcase shopping ad. In the above example of winter sweaters, a retailer could run a header image that focuses on sweaters but have another header image that focuses on outerwear for a “winter coat” search. The Google algorithm chooses which products appear based on variables such as the product titles, description, and type.

Who is this a good fit for?

It is highly recommended that you have at least 1,000 products in your inventory. There is no minimum budget. The format is effective for anyone who wants to get their products in front of a large audience because it’s based on broad keywords. It’s not for people competing for specific keywords. For bigger advertisers, showcase shopping ads are a good way to display multiple products for broad keywords. You can create an engaging photo and additional messaging that smaller businesses may not be able to afford.

Why is Google beefing up showcase ads?

The main reason Google is pushing showcase ads is that they are optimized for mobile. Salesforce recently predicted that mobile devices would dominate both traffic and orders for the entire 2018 holiday shopping season (68 percent of traffic and 46 percent of orders). On Black Friday alone, retailers saw $2.1 billion in sales from smartphones, accounting for 33.5 percent of Black Friday sales. The rise of mobile reflects broader shopping trends, and Google wants to capture a share of ad revenue associated with mobile shopping by offering a shoppable ad format.

What is the pay model?

The pay format is cost per engagement, not cost per click. The user has to be on the ad for 10 seconds or more, at which time the advertiser is charged. This approach can be a drawback. A click is a specific action. But having a page open for 10 seconds is a passive way to measure user intent. A person may not be really engaged with a product while a screen is open.

Any tips for getting the most out of Google showcase shopping ads?

Yes. Advertisers need to do two things:

  • Ensure all your products are grouped together in an easily findable way.
  • Have your products accurately labeled in each ad group.

Bottom line: Google showcase shopping ads give multiple advertisers a way to showcase multiple products for generic keywords that can otherwise be very expensive. If you compete for generic keywords in a mobile centric world – and who isn’t? – then you should consider Google showcase shopping ads. If you need help getting started or if you are running Google showcase shopping ads and want to take your game to the next level, contact True Interactive. We’re here to help.

Four Alternatives to Last-Click Attribution

Four Alternatives to Last-Click Attribution

Attribution Modeling

Advertisers have become accustomed to the belief that the final click that leads directly to the conversion is the most important click – hence the affinity for last-click attribution. But it’s important that businesses transition away from last-click attribution. That’s because last-click attribution fails to account for the value of the entire conversion path.

Most marketers would agree that their brand campaigns drive a large number of conversions and have very low costs per action (CPAs). Of course the cost per clicks (CPCs) in brand campaigns tend to be very low, but those campaigns are also benefiting from last-click attribution models.

Let’s think about a customer journey for a moment. With the holiday shopping season upon us, many of us will start our search for the perfect gifts with some online searching. Here’s how one of my searches might look:

Top electronic gifts 2018 -> Fitness Trackers -> Top Rated Fitness Trackers ->Apple Watch

In the example above, the brand campaign housing the keyword “Apple Watch” would get 100-percent of the conversion credit if you use the last-click model. Clearly, I did not start my search on a branded keyword, yet the brand campaign gets full credit. When marketers use last-click attribution, they generally see that non-brand keywords achieve low conversation rates and high CPAs, and brand keywords achieve high conversion rates and low CPAs. But is this approach really a fair way to evaluate our campaign and keyword performance?

Marketers have all seen non-brand keywords fail to work well in a campaign. They may be costly to run, and rarely do we see strong conversions. I have paused my fair share of non-brand keywords as I can’t justify their worth to my clients. Not surprisingly, I see search volume decline; and although my CPA often times improves, my overall number of conversions also begins to decline. What we have been missing is the ability to see the value of the entire conversion path.

Alternative Models

One of the main focuses for Google this year has been transitioning clients from last-click attribution into a model that gives credit to each paid click in the user journey. Currently, there several different attribution models available in Google Ads.

Let’s take a look at some of the choices:

Data-Driven Attribution

The model Google recommends most is data-driven attribution, which uses Google’s machine learning technology to determine how much credit to assign each click in the paid search journey. This attribution model is all based on an advertiser’s own data and continues to “learn” over time.

Data-driven attribution takes both converting and non-converting paths into account, and it’s powered by dynamic algorithms that assign credit to touch points based on fractional credit. Google recommends choosing data-driven attribution when available. Unfortunately, this attribution model is not always an option as it requires 15,000 clicks on Google search and 600 conversions over a 30-day period.  Although smaller advertisers will not have access to this attribution model, there are still some good options available.

Linear Model

The linear model distributes the credit for the conversion equally across all clicks on the conversion path. If it takes four clicks for a searcher to convert, each click receives an equal part of the total conversion credit.

Time Decay Model

The Time Decay Model gives more credit to clicks that happen closer in time to the actual conversion. For example, if the path to conversion takes five clicks, the time decay model would assign an increasing proportion of credit with each subsequent click, with the final click that led to the conversion receiving the most credit.

Position-Based Model

The Position Based Model gives 40 percent of the conversion credit to the first click, 40 percent to the last click in the conversion path, and the remaining 20 percent across the other clicks on the path.

A Recommended Approach

As mentioned above, if the data-driven attribution model is an option for your campaigns, always choose that. But if you don’t have enough data available for that option, how do you go about choosing among the other options? Google offers a few suggestions:

  • Choose a time decay model if your client has a conservative growth strategy, is a market leader, and has little competition. In this scenario, the final clicks in the conversion path will get more credit.
  • If your client is growth oriented, new to the market, and is facing a lot of competition, choose a position-based model where the first and last clicks in the conversion path will get the most credit while the clicks in between will receive a smaller portion.
  • If your client falls somewhere in between, you may opt for a linear model, giving equal credit to all the clicks on the conversion path.

There is no absolute right or wrong choice, and any of the models you choose will give you better insight into the complete conversion path more than the last-click model can. Google also offers an attribution modeling tool in Google Ads that allows you to change attribution models and compare results among the different model types.

Outcomes of Different Models

No matter what attribution model you choose, you should anticipate a decline in brand conversions and an increase in non-brand conversions. The actual number of conversions will remain the same regardless of the model you choose. But you will see fractional conversions reported, indicating each campaign/ad group/keyword that played a role on the conversion path.

So let’s revisit my holiday shopping search from above:

Top electronic gifts 2018 -> Fitness Trackers -> Top Rated Fitness Trackers -> Apple Watch

If I used a position-based attribution model, here would be the new breakdown for conversion credit:

  • 40 percent of the credit would be given to “top electronic gifts 2018.”
  • 10 percent of the credit would be given to “fitness trackers.”
  • 10 percent of the credit would be given to “top rated fitness trackers.”
  • 40 percent of the credit would be given to “Apple Watch.”

Using last-click attribution, I would see keywords “top electronic gifts 2018,” “fitness trackers,” and “top rated fitness trackers” appear to be poor performers, as all of the conversion credit would have gone to “Apple Watch.” Conversely, if I were to use the position-based model, I would see that all of those keywords together played a role in the conversion path — and I would have a better understanding of the value of my non-brand keywords. This insight would allow me to make smarter decisions when optimizing.

Without question, we are able to make smarter decisions when we have a better understanding of the full conversion path. I suggest taking some time to experiment with the various attribution models using the attribution modeling tool in Google Ads. Based on your findings, select the attribution model that best suits your goals. I have found the additional conversion path insight to be valuable.

For more insight into how to improve the performance of your online advertising, contact True Interactive. We’re here to help.

Photo by rawpixel on Unsplash

Why Google Smart Shopping Is a Boon for Retailers

Why Google Smart Shopping Is a Boon for Retailers

Google

School is always in session at True Interactive. We regularly learn about Google products through Google’s Partner Academy, which keeps its advertising partners in the know about key product updates.  At a recent Partner Academy event in Chicago, we got immersed in Google’s recently launched smart shopping campaigns. Smart shopping combines multiple campaigns running on Google ad networks and uses machine learning to maximize their performance. My take: retailers should jump on smart shopping now to maximize your holiday campaigns.

Smart shopping combines shopping and dynamic remarketing campaigns into one product available on all networks where people are conceivably shopping:

  • Search.
  • Display.
  • Remarketing.
  • YouTube.

Smart shopping provides an efficient way for advertisers to roll up multiple campaigns into one. In addition, Google optimizes performance of your campaign across each network. According to Google’s blog,

With Smart Shopping campaigns, your existing product feed and assets are combined with Google’s machine learning to show a variety of ads across networks. Link to a Merchant Center account, set a budget, upload assets, and let us know the country of sale. Our systems will pull from your product feed and test different combinations of the image and text you provide, then show the most relevant ads across Google networks, including the Google Search Network, the Google Display Network, YouTube, and Gmail.

With Smart Shopping campaigns, your existing product feed and assets are combined with Google’s machine learning to show a variety of ads across networks. Link to a Merchant Center account, set a budget, upload assets, and let us know the country of sale. Our systems will pull from your product feed and test different combinations of the image and text you provide, then show the most relevant ads across Google networks, including the Google Search Network, the Google Display Network, YouTube, and Gmail.

To help you get the best value from each ad, Google also automates ad placement and bidding for maximum conversion value at your given budget.

The main advantage of the product is that Google serves your ads among the four networks where they perform best. In addition, smart shopping offers a more efficient spend, more sensible budgeting (you fund only one campaign and let Google optimize your budget), and a simplified approach to campaign management. The product is a boon for large retailers running complex campaigns, including, of course, holiday campaigns.

There is a downside, though: you cannot break out results by the four types of shopping experiences. Therefore you cannot really optimize toward the best performing format. When I asked Google about this limitation, I was told that providing this breakout is one of Google’s highest priorities for smart shopping campaigns in 2019. So, stay tuned.

In addition, you cannot apply negatives, such as negative keywords and topics, to your campaign. So if you want to, say, exclude news topics to avoid having your ad appear alongside an undesirable topic, you cannot do so.

The format also has limits. Smart shopping supports only two bid types: maximum conversion value and target return on ad spend. You also have to install the dynamic remarketing tag on to your site, which drops a cookie on users’ browsers and draws on the product ID as well as the revenue and other attributes to create audiences. (By contrast, with standard remarketing, you don’t need to fuss with this tag. You can use a generic tag that applies everywhere.)

Since smart shopping campaigns take about 15 days to really take effect, make sure you plan ahead so that you hit peak performance on days that matter most to you, such as Cyber Monday. If you have questions about how to deploy smart shopping campaigns, contact True Interactive. We’re here to help.

Note: this post is the first in a four-part series on recently launched ad products from Google. Watch our blog for more posts.

Image source: https://www.pexels.com/photo/working-macbook-computer-keyboard-34577/

Google Broadens Exact Match: What You Need to Know

Google Broadens Exact Match: What You Need to Know

Google

Our clients have been asking us about some recent news regarding how Google defines exact match. Here’s what’s going on and what you need to know:

Broadening “Exact Match”

Exact match is a keyword match type. With exact match keywords, a business can conduct a paid search campaign and reach potential customers searching for a specific keyword that you’re bidding on; or some close variant of it.

Google recently broadening the meaning of an exact match. Google is now looking at user intent when matching a query against a keyword. As Google noted in a blog post, Google will show ads for searches that include implied words, paraphrases, and other terms with the same meaning. Here’s how Google explains the change:

Let’s say you’re marketing for a travel business. If you’re using the exact match keyword [yosemite camping], your ads may show on other terms like “yosemite campground,” “campsites in yosemite,” or “yosemite national park ca camping.”

In each case, the intent of the search still matches the original keyword: to go camping in Yosemite National Park. However, you wouldn’t show on terms like “yosemite hotel” or “best yosemite camping,” because while both refer to staying at the park, the intent is different. Instead, these terms would match to the broad match version of this keyword.

This update represents a major change to Google’s algorithm. Why the change? According to Google, roughly 15 percent of searches conducted every day are new. As a result, potential customers might be looking for products and services using terms and phrases that are not even on your radar screen. But now, with machine learning, Google can cast its net wider without advertisers needing to manage an ever-expanding keyword list.

Benefits

Both advertisers and Google should benefit from this change. Businesses should be able to reach more people using Google’s advertising products. According to Google, advertisers using mostly exact match keywords see 3 percent more exact match clicks and conversions on average, with most coming from queries they aren’t reaching today. Google also benefits by matching user queries to a broader pool of keywords – which means more clicks, traffic, and revenue for Google.

What You Should Do

I advise any advertiser to keep a close eye on your search query reports (SQRs). You may notice unexpected queries matched to your keywords. You may need to add keyword negatives to modify your campaign. All algorithm changes have an impact. So watch your reports closely and be ready to adapt as needed. If you have additional questions about exact match targeting, contact True Interactive. We’re happy to help!

Google Responsive Ads: What You Need to Know

Google Responsive Ads: What You Need to Know

Google

Google is working harder to woo advertisers as the company faces stiffer competition from Amazon and Facebook. For example, Google rolled out responsive search ads and responsive display ads to make the advertising platform more flexible for brands. It is important that advertisers understand these features and how to maximize their value.

How Responsive Search and Display Ads Work

According to Google, responsive search ads make it possible for advertisers to enter multiple headlines (up to 15) and descriptions (up to four) when creating a search ad. Then Google Ads applies machine learning to automatically test different combinations and learn which combinations perform best. In addition, per Google, advertisers can add a third headline and second description to your text ads, and your descriptions can have up to 90 characters.

Responsive display ads work the same way, with advertisers submitting up to up to 15 images, five headlines, five descriptions, and five logos for a display ad. As with responsive search ads, Google uses machine learning to test different combinations and show the ads that work best. According to Google, “On average, advertisers see 10% more conversions at a similar CPA when using multiple headlines, descriptions, and images with responsive display ads (versus a single set of assets).”

What You Need to Know

Based on our experience with clients, I see some near-term ramifications:

  • Your advertising will become more effective. These formats are exciting because they capitalize on machine learning to scale your advertising content. As Google notes, “Great display ads assist consumers using rich images and useful information. However, showing the most relevant and engaging ads across millions of sites and apps isn’t easy.” Responsive ads are a compelling solution.
  • Organic content pays a price. By making ads more effective, Google will push organic listings down in search results.
  • You need to invest more effort. Yes, Google does do the heavy lifting when it comes to executing on your ads. But to get the most out of this format, you’ll need to come up with more variants of your message and images. (That’s the point of responsive search and display: Google takes multiple inputs to give you optimal results.) In addition, you’ll want to monitor which assets are performing best, which takes time and effort (although Google provides tips for doing so on its blog).

What You Should Do

  • Review your messaging strategy. Having more variants of your content presents an opportunity to review your messaging and differentiators. You obviously don’t want to create content willy-nilly. All your content should support your brand in some way.
  • Learn. The Google blog links I’ve shared above contain a number of tips for maximizing the value of these ads. For instance, with responsive search ads, Google advises that you include at least one of your keywords in your headlines, and create headlines that are relevant to the keywords you’re targeting. Furthermore, provide as many distinct headlines as you can. Per Google, “More headlines gives Google Ads more options for assembling your messages into relevant ads, which may increase performance.”

At True Interactive, we’re working with clients to plan and execute advertising with these and many other tools. We’ll report our learnings on our blog. Watch for our posts, and contact us if you need help with your online advertising.