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Google Update: Why Online Retailers Should Embrace Advertising Across Digital Storefronts

According to this week’s Google update, gone are the days where ads in websites should be seen as a threat. In fact, retailers are slowly embracing turning to digital advertising as another business apart from whatever their core business is. 

Even though this seems to be the trend nowadays for online platforms, it took awhile for companies to actually open their doors to this idea. This is understandable though, seeing as the main point of having an online store is to keep people on it for as long as possible – not to have them click out. The old stigma with ads is that it will definitely take a user elsewhere and ultimately hurt the business, but Google begs to differ.


According to Google Ad manager’s internal data of the first half of this year, U.S. retail ad inventory has already grown in volume. But despite it growing at a rate of 48% in June 2019, versus 10% compared to other verticals (entertainment, news, games and sports), it is said that retail sites in the US still sell the smallest number of ads. 

ad inventory volumes screenshot


This is a shame considering that strategically adding in ads into an online shopping experience can significantly improve the experience of the user, as well as help the retailers grow their revenue. In this update, Google talks about how to leverage the retailers’ digital storefront in a way that they could benefit from it. First of all, by allowing promotions to take place on their websites, they’re easily able to gather audience insights on what kind of ads work and what do not.  By doing so, retailers are able to compare and contrast their ad offerings to secure advertisements that make the most sense with their brand partners, manufacturers or other key advertisers. 

Apart from that, Google urges retailers to think about being open to the idea of other ad formats. Among these kinds, video ads stand out the most, as it’s been found that the Average American Spends over an hour a day watching videos on both mobile and desktop videos. 

“The average American spends over an hour a day watching videos across mobile and desktop devices, according to eMarketer. But, throughout the second quarter of 2019 in the US, the ratio of display to video ads served in browsers on retails websites was 99:1. This imbalance represents a significant opportunity for retailers to tap into more ad dollars and deliver a richer user experience for their shoppers.” said Think with Google

Rewarded video is still quite new to the online retailing scene, but Google Ad manager’s comprehensive study on how these ads could be beneficial is worth looking into if you’re considering allowing video ads in your online space. 

Overall, with this week’s Think with Google update, one thing is clear: retailers that have an online storefront should definitely start considering the presence of ads on their websites. No longer it is more of a nuisance to both the user and the website owner, but it is something that could bring a great amount of benefit. 


Want more digital advertising tips? Check out what crucial changes Google Adwords has made to their system recently here. 


The post Google Update: Why Online Retailers Should Embrace Advertising Across Digital Storefronts appeared first on Pepper Gang.

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Google Update: Why Online Retailers Should Embrace Advertising Across Digital Storefronts


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