Google launched four new ad products to automate the process of buying ads and create a central marketing hub for Google. Via an integration with Shopify, Google now runs shopping ads on its site and enables advertisers to buy these ads directly through Shopify, a move that helps both companies fend off rival Amazon. The new ad products allow marketers to set a goal and then pursue it with ads across Google Search, Google Maps, YouTube and the Internet. Google ads head Sridhar Ramaswamy describes it as a “one-stop shop.”
Bloomberg reports that, “Shopify helps companies set up e-commerce websites, driving businesses to buy Google shopping ads.” Ramaswamy, who declined to discuss revenue terms between the two companies, said the relationship is “mutually beneficial.” Shopify has been a customer of Google’s cloud unit since March.
The new ad tools represent Google’s effort over the last three years to tie more of its services together for advertisers as well as integrate more machine learning capabilities. One tool, dubbed responsive search ads, “lets advertisers submit their pitch to consumers with more words and a wide variety of different headlines (as many as 15, up from one they can now submit),” then upload the ads and let Google select “the best words to use based on search terms people use and a wealth of other personal data about its logged-in users.”
Digital media firm iProspect head of paid search Jessie Dearien reported that, in early tests, “the tool drove down the price of ads and increased the number of ads people clicked on.” “Because it’s a more relevant ad, we’re seeing it be more effective,” she said.
Ramaswamy said that the tool, due to debut in the next few months, will not work differently in Europe, where the EU “has an open antitrust probe into Google’s ads business, in addition to a charge against Google’s shopping ad service.” Google also paid for access to millions of consumers’ credit-card data, to debut an ad format “expressly designed for retailers to drive foot traffic to stores.”
According to eMarketer, “the industry will buy $23.5 billion in digital ads this year – more than 20 percent of the total U.S. spending.”