How the New Google Automated Discounting Beta Can Influence Holiday Advertising Strategy
The peak shopping season is right around the corner, and brands are busy staying ahead of the curve, fine tuning strategy and ensuring success in Q4. While this year is no exception, consumers are also looking for - and expecting brands to deliver - the best deals. According to the CNBC Supply Chain Survey, 67% of those surveyed expect consumers to be on the lookout for discounts.
Nailing the perfect discount to entice consumers to purchase while still maintaining return can be difficult, but Google’s latest beta could help. Automated Discounts, a beta with Merchant Center, is a powerful tool that could be a game-changer for businesses aiming to drive sales and incremental profits this holiday season.
Retailers who participate in the beta release will have Google’s assistance in discounting product prices, based on multiple real-time signals. A discounted price will appear on Google Shopping ads and on the brand website.
Understanding Merchant Center’s Beta - Automated Discounts
This feature enables advertisers to more easily and quickly offer discounts on their products. This means that potential consumers searching for specific products on Google will see your shopping ads but also the deals offered. Google will use multiple real-time signals to aid retailers in discounting their products' prices. Once pricing information is gathered, it will be shared by Google. The last step is to apply the price to the website for shopping ads.
Too steep of a discount won’t occur within the beta, as brands have the ability to set minimum sale prices within the setup. By setting these minimums for Google it will cap the cost of the discount, allowing you to remain competitive and profitable for the holiday season.
Advantages for the Holiday Season
The holiday season is often a prime time for retailers to capitalize on increased consumer spending, but this year, consumers are eager for a deal. Merchant Center’s automated discounting beta gives businesses the ability to create a sense of urgency and excitement by showcasing their discounts. Shoppers are more likely to make a purchase when they feel like they are getting a great deal, making this beta the perfect tool to help drive incremental sales. Here are a few benefits of implementing this Merchant Center beta:
- Customized Pricing: Google’s real-time signals and forecasting models find the best product discount or promotions for you.
- Effective Discounts: The automated, customized prices are effective in appealing to consumers, with a goal to drive more conversions
- Time-Saving: Using real-time price optimizations with automation saves your brand time, effort, and money.
Enhanced Reporting and Insights
Understanding the effectiveness of your marketing efforts is crucial, especially during the critical holiday season. The automated discount beta provides insights into how your discounts are performing. You have the ability to track metrics like incremental impressions, conversions, and more. All automated discount reporting metrics will appear on your scorecard under the “Performance” tab in Merchant Center.
Google Ads’ Merchant Center Product Discounting Beta arrives as a timely tool for businesses preparing for the holiday season. By leveraging this feature, you can create enticing offers, outshine competitors, and boost sales, all while providing shoppers with the discounts they seek. Embrace this innovative approach to advertising and you might just find that this holiday season becomes one of your most successful yet.
While the beta could be a game-changer for brands during the holiday season, there are requirements to meet Google has requirements, including:
- Aggregated minimum of 1,000 product clicks a week at merchant-level (your account can have multiple participating Merchant Center IDs, but each must separately fulfill this requirement).
- Conversion tracking and feed configuration set up.
- Merchant systems must be able to accept and honor Google-provided product prices from the URL.
- Commitment to allow Google to show opted-in products with a ramp up volume of 1%, 20%, 50%, and >50% over the course of the beta pilot.
There is also a review period after applying to be in the beta and a ramp-up period to ensure integration is working properly, so now is the time to apply if your brand wants to implement this new feature during the holiday season.
Appealing to consumers this holiday season is critical, and Automated Discounts can be a convenient and easy way to strategically drive additional conversions. More information and the ability to opt-in can be found here. If you could use a strategic partner to navigate Google betas and more, contact us today.
