Conversion Optimization in Google Shopping through Bidding and Excluding Keywords

The foundation of Conversion Optimization in Google Shopping is data feed optimization. A poorly created data feed leads to inaccurate search results on one hand and poor click-through rates on the other. Conversions then become, at best, accidental occurrences that you better not count on.

However, this article is about conversion optimization using negative keywords and bidding. You can find more information on data feed optimization here.

An SEA campaign depends on excluding keywords

Why should you use exclusionary keywords in conversion optimization? This way, you control at which point in the sales funnel (AIDA) potential customers are made aware of your products. You can start in the initial Attention or Interest phases, or choose to allow customers onto your webshop only in the Action phase – when they are truly ready to buy.

If my client sets conversion optimization, meaning better performance in terms of cost-sales ratio, as a goal with a limited budget, I try to direct only potential customers in the Action phase to the client’s website. This way I save the click cost of those who do not exactly know what they want to buy yet.

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Fig. 1: Google Shopping campaigns without negative keywords can receive search queries as poor as spam.[/caption]

How to use negative keywords

By default, we use a negative keyword list in our performance campaigns to keep freebie hunters, reviewers, and information seekers away from our ads. More importantly, it's essential to consider exactly what your product is. And also: What is your product not.

Example: A potential customer wants white adidas sneakers. However, you sell black Converse sneakers. Consequently, you don't sell adidas sneakers, so I exclude “adidas”. You don’t offer white sneakers, so I exclude “white”. Now you might think: “Wait a minute, the potential customer could…” Exactly. Could. But not in this moment, not with this search query. With this search query, he was quite set on white adidas, and you can neither offer adidas nor white.

You invested your limited budget in someone who looked at your product but actually wanted something else. One such occurrence isn’t bad, but if it happens frequently, you ultimately lack the budget to invest in clicks from those searching for black Converse sneakers. These you can service immediately because you offer their desired product. A conversion is much closer here.

In addition to creating specific lists of exclusionary keywords, you should also pay special attention to the “search terms” tab. Here you learn what exactly users typed in that ultimately led to clicking your ad. Often here, you’ll identify “cost drivers” that have not led or only sporadically led to conversions despite numerous clicks. Exclude these, but ensure to exclude them with the “exact match” keyword option if in doubt, to avoid paralyzing your campaign.

Another example: For a sneaker online shop, the search query “sneakers” likely results in many clicks, but rarely conversions, driving up your Cost-per-Order (CPO). Exclude “sneakers”, and no ads will trigger when users enter anything with the word “sneakers”. This results in a significant loss of traffic. However, if you exclude “sneakers” in square brackets, with the “exact match” option, you avoid ad triggers only for queries that solely contain the term “sneakers” without any other word.

Bidding as a Conversion Optimization Tool

Good data feed optimization, granularly set up campaigns, and specific exclusionary keywords mean you don't have to worry too much about bidding. Because all of these ensure your ads are displayed appropriately for search queries. But: how generic can search queries be for a good conversion rate?

We are again assuming the advertiser has a limited budget and we want as high a return on investment (ROI) as possible. We are interested in the potential customers in the action phase.

What do you think? Who is likely to purchase a pair of sneakers within the next minutes/hours?

1. Users with the search query “sneakers”

2. Users searching for “Converse Chuck Taylor sneakers black size 43”

A is a so-called generic query, likely from users who are still searching for the right model for them. Many clicks to many online shops transpire here until a pair of sneakers is purchased – if at all.

B is a so-called longtail query from a user who knows exactly what they want and has a clear intention to buy. Usually, only a price comparison follows, after which the shoes are purchased.

This is the customer we want! But how can we avoid User A and attract User B? Answer: Through proper bidding. A certain regularity can be observed between high bids and generic queries. This means that in reverse, lower bids lead to longtail queries. Nonetheless, you must maintain a certain level to remain visible at all. In practice, this isn’t easy.

A tip is to orient yourself by the benchmark CPC. I recommend always bidding less than what's shown there. Careful monitoring on the “search terms” tab is crucial to evaluate the generic vs. longtail query share and if the generic entries are indeed generating conversions and solid revenue. Generic is not always bad; you just need to have these keywords under control.

While exclusion is more of a laborious task, bidding is a mix of analysis, experience, and some gut feeling. Bidding tools work only with the first point, yet often successfully. However, automated bidding should only be utilized once you have gathered very, very extensive data. Only then are they reliable. Until then, experience and intuition with manual bidding are invaluable.

There are, of course, impression share percentages for different product groups that have been proven to work well. But a few details have to remain internal. Perhaps the image below gives an indication.

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Fig. 2: Small selection of report columns in a shopping campaign with about 11% cost-sales ratio. 23% visibility delivers very specific queries but still enough traffic. But “only” 0.8% conversion rate? Completely okay, as these are higher-priced products, as shown by the conversion value.[/caption]

What can we do for you?

Would you like to promote your products on Google Shopping? We’re happy to advise you on bidding and negative keywords in shopping campaigns.

We look forward to your inquiry.