Practical Ecommerce

Ecommerce Search Marketing Evolves

A few years ago, small ecommerce business owners invested a good part of their marketing budgets on search engine optimization. Their goal was typically to obtain the highest possible search rankings, to capture as much organic traffic as possible. Many businesses used that as their core tactic for search engines. Organic traffic was considered free.

If they did a good job, they had a shot at the first page of Google’s search results, where the majority of clicks occur. They could even break into the coveted top five positions, above the fold. A strategy might have been to drive 70 percent of search traffic from organic listings.

Organic Traffic Risky

But seasoned merchants know they can quickly be dumped off the first page of Google with an algorithm change. If you’ve ever changed platforms or the navigational structure of your store, it’s likely your rankings suffered. Things like personalized search results, local results, and suggested keywords have also altered the search landscape. Many merchants, therefore, invested more money in pay-per-click advertising to maintain their search traffic.

In the last 12 months, it’s become obvious to me that Google is mainly an advertising platform. You may as well just pay for Product Listing Ads or PPC ads if you want to be seen. If you are a local business, you may have potential leverage with the local listings, but that will require some other types of investment with Google social and local platforms.

‘Running Shoes’ Example

Google is focusing its user experience on companies that pay for ads for popular search terms, or are local. Consider, for example, the broad search term “running shoes.”

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Running shoes search results example.

Running shoes search results example.

The screen shot above goes below the fold. We can see three PPC text ads that include premium features like phone numbers, store rankings on Google+, and sitelinks. We see eight Product Listing Ads. These are generally the highest converting links on a page for shoppers. We also see a map for five local running shoe stores along with links and reviews. We see only three organic search results, and one is a local business with a Google score of 27 out of 30.

Clearly, companies that have invested in ads or in Google local listings and Google+ have benefited. What about all other companies with great SEO? They are buried at the bottom of the page. Google has stacked the odds that you will click on the results at the top of the page and above the fold. That increases Google’s revenue.

‘Trout Flies’ Example

Next, consider “trout flies,” a more niche search.

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"Trout flies" search results example.

"Trout flies" search results example.

If your store sells fishing flies, you may be rewarded more for your SEO efforts. There are Product Listing Ads — PLAs — at the top right, but not as many as for “running shoes.” There are PPC ads, but they are on the right side. We see five or six organic results above the fold. We also see image results, which could a good place to optimize. In short, if you were selling trout flies, you might consider a premium text ad targeting “trout flies.”

‘Cheap Polarized Sunglasses for Men’ Example

Finally, consider the term “cheap polarized sunglasses for men.”

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"Cheap polarized sunglasses for men" search results.

"Cheap polarized sunglasses for men" search results.

As with the “trout flies” search, we see a few organic results below the PLAs. Notice the depth and quality of the single ad that is shown on the page. It is optimized for “polarized sunglasses for men,” includes a 5 star ranking with 800+ reviews, and site links to the most popular related navigation paths. Most clicks for “cheap polarized sunglasses for men” likely go to that ad. The searchers likely do not read the organic results below the PLAs.

What Does It Mean?

If I were running an ecommerce business — I sold my online jewelry business last year, after owning it for ten years — I would invest in PLAs and PPC campaigns. I would closely watch my results and return on investment, especially on broad terms.

Segment and target your campaigns as much as possible to present results that are highly personalized to the search terms you have chosen. Target longtail keywords with rich ads that will dominate the page, as in the sunglasses example above. Invest in landing pages that are optimized for the search terms. Conduct A/B testing on different ads and landing pages.

Consumers are more comfortable clicking on ads now than in the past. Part of the reason is the ads are high quality and generally take shoppers to relevant products. Organic results are frequently not as concise and don’t necessarily take consumers to the optimal locations for shopping. The means more clicks on text and PLA ads. It may also mean more money for merchants, as the conversion rates are typically higher from those ads than organic clicks.

Don’t Ignore SEO

Ecommerce merchants should not ignore SEO. But they should not count on organic search to deliver 70 percent of their traffic with a 3 or 4 percent conversion rate. Merchants should still provide good content for their products and site category pages because that‘s what shoppers want to see when they come to a site. It will increase the chances of closing the sale.

If you have solid organic search rankings for your products and see a high conversation rate from that traffic, stay the course. But plan for PPC ads. If Google makes changes that reduce your revenue, you can quickly step in with paid campaigns to offset the lost traffic.

You’ll still want backlinks from affiliates, blogs, and social media. But, don’t do it just for SEO. Leverage those links as referrals from multiple channels. Realize that the content you post on Facebook may influence a future purchase. Don’t just view it as a targeted link.

Conclusion

Diversify your store’s traffic as much as possible. Invest in advertising, but measure the ROI. Make sure you think beyond the cost of a single acquisition and consider the lifetime value of a customer. If you sell cheap sunglasses, for example, ask if a sale is a one-time purchase or a potential repeat buyer. If it’s one time, consider passing on the ads for that search term. But if you sell products like polarized sunglasses for men, the advertising investment to get to the top of the page may be worth it.

Dale Traxler
Dale Traxler
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Comments ( 6 )

  1. Scott Kahle May 4, 2013 Reply

    I’m sorry, but Google Adwords has been a HUGE waste of money for me. The conversion rate is low, much lower than organic and the click cost can be ridicuosly high.

  2. brustici May 7, 2013 Reply

    Scott, you missing the point of this. As ecommerce websites move more mainstream you will have to invest in PPC. A mixed approach, plus social media play is very critical. If you have tried Google Adwords and found it failed, but have you tested all of the options from PLAs to Content Network? Google is moving to a "pay to play" model for eCommerce merchants and you will need to adjust your business plans to find your specific sweet spots. In my experience of managing many types of AdWords for merchants. I have found success in one of the many options they provide.

  3. gmcfax May 7, 2013 Reply

    I have to agree with Scott Kahle. I was spending $2500.00 per month on PPC and using Network Solutions to run and optimize my Adwords campaign. After getting tired of making good money and spending better money I quit Adwords cold turkey with no major effect to my sales. SEO and organic traffic has been the way to go for me.

  4. Stephen Pazyra May 9, 2013 Reply

    Great Article! This is perfect time. With the Google updates that happened in October many of us are trying to figure out what to do with the drop in organic sales. What you have explained here is exactly what we needed to hear. PPC and Google Shopping are so important now.

    For people that have not seen good results in your PPC you need to relook at what you were doing. Are you using Negative Keywords? This is so important. Also, not to use broad match because it is easy. As Dale said ROI is important and you can make it work.

    Dale, you said “image results could be a good place to optimize”. Any suggestions? I don’t know how to do it.

    ~ Chef Steve

  5. The Collectors Hub May 11, 2013 Reply

    I agree with Scott Kahle and GMCFax. We where spending the majority of our advertising budget on Adwords with almost 0% conversion rate. (We used negative keywords and didn’t use broadmatch.)

    What we did notice is that our placement in organic search placements dropped immediately (within a day) after we stopped Adwords. We thought that was strange so we started Adwords back up and again within a day, our organic search placements started to rise. So at least for us, we seem to be penalized by Google for not having an Adwords campaign up and running.

  6. Pamotos Colomb Ia June 30, 2013 Reply

    I feel its very important to monitor your search matched keywords from your campaings. these will give you a better idea of the quality of trafic your getting. In our case http://www.pamotos.com Adwords has a 0.1% conversion, these with out including asisted conversions…. but i think that you have to focus your strategy in adwords as lead generations and not as instant sales. These way youll be able to market at your adwords visitors later on if you at least capture their email or phone number.

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