Google Shopping is Changing...

As CEO and owner of Productcaster, one of Europe’s largest Comparison Shopping Services (CSS), I was invited to Brussels on 5 December to join 30 other key stakeholders (plus 1,500 joining online) to discuss the future of the search channel and feedback on Google’s plans to become compliant with EU, and likely UK, law.??

And what I can tell you with absolute certainty is that the Google Shopping channel will change substantially by March 2024.??

Legally, it has to change in look and feel, and ethos to satisfy the Digital Marketing Act set out in November 2022. The legislation was passed to stop a monopoly and to increase competition in the channel, essentially preventing Google and other big tech gatekeepers from prioritising their products and services over other service providers within search.??

As both a collaborator and competitor with Google in this space, we welcomed the Digital Marketing Act when it was announced, but rumblings of discontent are still being heard across the industry, and the question being asked is whether the changes will go far enough??

What is Google Shopping???

When you search for a product type on Google, 99% of the time you will get an advertising carousel window at the top of the page, containing a range of different products and details from a variety of retailers (images are known as 'PLAs'). These ads are pulled from multiple CSS, including Productcaster, ProductHero, Croud, and importantly to this conversation, from Google itself.??

The initial legal challenge focused on the issues that Google was both media owner and advertiser, which makes for a less competitive and less efficient environment for other CSS providers and consumers.?

What did we learn from Brussels???

This workshop was more than just a talking shop. Google outlined its plans to make the Google Search Channel compliant with EU law over the next year. To quote Oliver Bethell, Head of Competition, EMEA at Google??

“The text is written, the legislature is clear, we are now building for compliance.”?

Stakeholders in the room fell into two clear camps. On the one hand, “older” (pre-2017) CSS businesses are making calls to remove the Google Shopping boxes completely, as they see it as economically ineffective. They believe that too much traffic terminates on Google, which limits both choice for the consumer, and competition. Understandably, Google does not agree. Product images are not in-scope for changes, and they do not see that the PLAs are illegal or non-compliant.??

The second group, comprising ‘new’ CSS companies, believe that working more closely with? Google to develop the existing Google Shopping Channel and drive better performance across the board is the way forward.??Productcaster is in this group.

But who is correct???

So, what happens next???

The onus is on Google to make the next move. Everyone agrees that more channel transparency is necessary, and that competitors should be allowed to access and use the same algorithms and data to level the playing field. It is likely that Google will have to give up more control, data, and traffic, and must pass through these cost savings to independent 3rd party CSS, such as Productcaster, which is a great move for us all.??

Over the next few months, Google will share mock ups as the channel develops and is tested to become compliant. As of now, there is no clarity on how Google will become compliant across different verticals such as Shopping, Travel and Local. We are all playing a waiting game.??

What is Productcaster recommending??

As a key player in the CSS industry, we are very clear about our own views and recommendations.??

1. All brands should be using a 3rd party CSS – All brands that use Google Shopping campaigns should go through an independent, marketing focussed CSS, like Productcaster. It is just as effective, and gives a saving of roughly 18% with each click (the fee charged by Google to use their service). We know he saving is real because we already represent 1,000s of brands across Europe – just look at Wayfair, New Balance, Ann Summers, Cult Beauty, La Redoute, Jo Jo Mama Bebe, Aldi – all saving money using Productcaster.?
2. Mothball ‘By Google’ CSS – we are asking for ‘By Google’ on Shopping to be removed, with only independent CSS allowed to serve on Google. With higher costs and limited customer service, there is no clear benefit to brands and consumers of serving via ‘By Google’ Comparison Shopping Service. It would be a very quick and easy way to show compliance with the Digital Marketing Act, while still enabling the channel and Google to flourish.
3. Focus on the customer – there is too much focus on legalities and corporate back and forth. Customers need trust and convenience in online shopping and their experience matters. Putting them at the heart of the experience will simplify decision making for Google, it’s simply not in the best interests of customers to be served preferential ads that are less appropriate.??

I was privileged to be in the room in Brussels and to witness the conversations first-hand. But where the next move takes us? It’s anyone’s guess.???

If you would like to see how we can save 18% per click on your Google Shopping campaigns and join 1,000s of retail brands in the process, drop us an email at [email protected]???