Google Tests New Products Ads in Search Results
Google’s paid search results are evolving. Google is testing product ads in search results, with actual images, prices and long descriptions of products offered by merchants. The ads are currently being tested on very limited basis on Google.com, by invitation. In order to participate merchandize must be uploaded to Google Base via feeds.
Unlike classic pay per click ads, Google product ads charge advertisers only in the event of successful conversion. The payout rate is a commission determined by the advertiser. The higher the commission the higher your ad will show in search results.
Ad Descriptions
Unlike Adwords, there is no set limit to product ad descriptions. Description length depends directly on XML feeds submitted to Google Base. The more detailed your Google Base submissions, the more detailed will be ad descriptions.
Targeting
Unlike keyword targeting, Google product ads will show up based on product descriptions. Google will determine when to show the ads, while a detailed description will help it show up for a broader number of key phrases. Google will also automatically differentiate between informational and commercial ads, making sure the ads only show up for commercial type searches with intention of purchase.
There are no charges per click, so advertisers do not lose money even if their products accidentally show up for non – commercial queries.
Ad Rank
Ad Rank = Commission × Quality Score. The quality score takes into account the relevance of your product to the user’s query, conversion rate of the query and the matched product ad on Google, your account history, and other relevant factors.
Basically the higher the commission the higher an ad will rank.
Small vs Big
The model will cut already slim margins for drop shippers and possibly start the demise of this poor business model. Shops who can afford to buy containers of merchandize will win, since they will able to offer high commission based on wholesale purchases.
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