For online retailers:

Google launched its comparison ads, the so-called Comparison Listing Ads (CLAs), as a beta program in Europe at the beginning of March 2019, including in the German and French markets. The new ad format is a kind of showcase in which the user of several price comparisons gets different products matching his query. Connexity, one of the few CSS providers Google has selected for the program, gives online merchants tips on how they can benefit from the new ad format.

 1. Chance for more sales

In contrast to the Product Listing Ads (PLAs), in which the user clicks on a certain product and arrives at the product page of the online shop for purchase, the customer receives a selection of suitable products for his search term and for the CLAs from several price comparisons will be redirected to the corresponding landing page of the CSS provider. There he gets a detailed overview of a selection of suitable products from various online retailers and further comparative information. With the CLAs, Google offers the user the opportunity to discover a wider range of products and make an informed purchasing decision. Online retailers have the opportunity to attract and attract new customers they can not reach themselves.

2. No access without CSS partner

Online traders who currently do not cooperate with a CSS provider are excluded from the new performance channel because the trader himself has no direct access. As a result, online merchants who do not work with a CSS partner are missing out on reach, and they are likely to lose touch with users who want to compare product alternatives through the new CLA program. Merchants who are already working with a CSS provider can automatically join the CLA program if invited by Google to participate in the beta.

3. Technology and data quality are crucial

The CLAs show users different product groups. By choosing one, they are redirected to the price comparison of a CSS provider to make an informed buying decision. The online merchant must therefore choose the CSS partner with the highest probability of winning the user’s interest.

To find the right CSS partner, online retailers need to look for a partner with professional workflows and sophisticated technology that has been proven to optimize the performance of a campaign and has a strong understanding of the interaction and interaction between the customer and online merchants. Online merchants should also review the quality of their product data feed so that as many products as possible can be promoted through CLA, while choosing a CSS partner that will add to the product data feed.

4. Requirements for win-win situation

Since the CLAs require several clicks to complete the purchase, there is a higher chance that the user will jump in between. As a result, Google’s bids will be lower. Depending on the choice of the CSS partner, the online retailers could therefore notice a slump in the volume of sales via CLA. Again, it depends on the performance of the CSS partner: If this is characterized by a particularly user-friendly price comparison, the user spends more time on the site to compare products and prices and increases the likelihood of a purchase. At the same time, the CSS Partner should align the click cost to the online retailer’s cost-sales goal. This creates a win-win situation for online retailers with lower costs per sale at higher conversion rates.

Melanie Weckenmann, Vice President of Sales & Business Development at Connexity, commented on the impact of the CLA program: “We will be present with our ‘Shopzilla’ brand in the CLAs, which has been enabling users to compare products and prices for over a decade , and for online retailers of different sizes creates a significant added value within Europe. Online merchants should work with a partner who places value creation in the form of sales as their top priority. Connexity has proven it year after year and we are well positioned to help online retailers grow with the new CLA format. “