Price Competition for Better Sales and Low CPC On Google Ads

BURLINGTON, Mass. - April 29, 2020 - PRLog -- Largest retailers might spend up to $50 million a year on Google Ads to get customers' attention.

The result can be a situation where your ad spends are increasing but revenue is not. This is a major problem among many Google marketers: despite spending huge money on Google Product Ads, they do not achieve the desired conversion rates.

Why Is That?

Conversion depends on many factors. First, the product itself should be good. But in online marketing, the quality of the product is directly related to the quality of the content displayed on the landing page. The more information there is about the product, the better informed the customers are. This, in turn, leads to a higher chance of a sale.

Lowering prices have the potential to increase sales without compromising overall profit margin through lower CPC prices.

However, we have found another key factor that is influencing the purchasing behaviour of customers:

Price Competitiveness

Just as price is a major factor for winning the coveted Amazon Buy Box, we've discovered it has a big impact on Google Product Ad performance too.

How Do We Know This?

We monitored price data for three Google advertisers daily over a three–month period. During this time frame, these advertisers combined for:

• 125 million impressions
• $430,000 in ad spending
• $2.5 million in revenue

For this data, we compared changes in price competitiveness for individual SKUs to performance metrics.

Results
A product being "cheapest" on an SKU yielded:

• 16% lower Cost Per Click (CPC)
• 30% higher Sales Conversions


For more insights check "https://growbydata.com/price-competition-low-cpc-google-listing-ads/" from "GrowByData"