September 30, 2015

Click And Collapse With Google

By Damian Blackden Chief Strategy Officer

Damian Blackden

Damian Blackden

Chief Strategy Officer

Damian Blackden updates us on changes to our digital shopping experience as part of the new Change Briefing series.

What’€™s Changed

Google continues to make it easier for consumers to buy stuff directly from its inventory by announcing that YouTube video ads can now carry a Click-To-Buy button. The formats, unsurprisingly called Shopping Ads effectively turn the ad into a kind of digital storefront, and are a continuation of Google’€™s strategy to collapse the journey between exposure and purchase.

What The Change Means

We know that significant traffic can be lost every time a consumer is asked to make a click during the purchase process. In fact the current shopping cart abandon rate is 68%.

The shorter, or more collapsed the journey that the person has to make, the higher the likely conversion rate, so this latest development should help increase sales from You Tube inventory. Very importantly it also makes for a better user experience for individuals with mobile devices.

Implications Of The Change For Advertisers

This is not a disruptive change, but it is useful. More progress by Google joining up online marketing and physical in-store purchases would have been interesting and welcome. However these new Shopping Ads are a positive development, and we suggest testing them when relevant.

As with search there is a danger that the sale is incorrectly associated solely with the last click, so we recommend that a detailed path to purchase analysis is carried out in order to measure the actual rather than initial perceived effect of these ads.