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This holiday season, shoppers are acting more quickly and more purposefully than ever before, with 7% less time spent in each mobile shopping session.1 Yet those same shoppers are making 64% more mobile purchases than last year in the retail category, according to Google Analytics data.2 Intent-filled shopping micro-moments will replace shopping marathons this season, and we’re rolling out three new features to help retailers act on these critical moments.

Optimize your shopping bids with remarketing lists

We’re excited to extend remarketing capabilities to both shopping ads (PLAs) and local inventory ads (LIAs) with shopping remarketing lists. Now you can optimize your shopping bids to re-engage high-value customers the next time they shop on Google.com. For example, when those who’ve abandoned their carts on your sites or your loyal customers shop again on Google on desktop or mobile, you can use remarketing lists to tailor your shopping bids and reconnect with them at a more cost-efficient ROI.

Early adopters are seeing great success with shopping remarketing lists:

"Shopping remarketing lists have proven incredibly successful for Magazines.com. We're able to strategically target consumers who did not convert in previous visits, driving 285% higher mobile and desktop conversion rates with 68% lower CPAs, making it one of the most effective features we’ve ever tested."
- Yuly Gonzalez, Sr. SEM Specialist, Rakuten Search

"With Shopping remarketing lists, our client Cruiser Customizing increased their conversion rate by 78% and their ROAS by 66%. We don’t want to have a single Shopping campaign now without shopping remarketing lists attached."
- Jeremy Brown, Chief Marketing Officer, Metric Theory

Get better insights into the products in high demand online and near your stores

To help you make better decisions about which products to merchandise and promote in your stores, online, and via your Google shopping data feed, we recently rolled out two new tools:

First, with the new Shopping Insights tool, you can identify the products people are actively looking for online and around your stores.* Based on aggregated and indexed data from April to September of 2015, the tool lets you explore the most popular shopping product terms on Google, measure their significance over time, filter for cities, and compare how consumers search for products differently on mobile or desktop.

The Assortment Report uses your existing Google Merchant Center data feed to identify gaps in your product assortment based on the popular products shoppers are clicking on, in real-time, by product category. For example, if you offer toys, you might learn that you’re not yet stocking the Sphero BB-8 App-Enabled Droid from Star Wars, one of the hottest toys right now on Google. This report also provides benchmark selling prices for each of those missing products to help you with sourcing and pricing decisions.

Posted by Archana Kannan, Product Manager, Google Shopping
1 Google Analytics internal data, September 2015
2 Google Analytics internal data, September 2015
* Available in the US, across all devices
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Last year, mobile devices used before or during shopping trips influenced just under one trillion dollars — or 28% — of in-store sales in the United States.1 Those sales grew from the billions of shopping micro-moments that power today’s buying economy. Fewer people wait to head to the mall on Saturday to go shopping; thanks to smartphones, shopping now happens anytime and anywhere. Read on for the latest ways we’re helping retailers reach shoppers in those crucial I-want-to-know, I want-to-go, and I want-to-buy moments.

I-want-to-know: Giving immediate answers for every shopping need
We're improving the mobile experience on Google to aid shoppers as they browse, compare, and research products.

1 in 5 people swipe to interact with shopping ads, expressing a strong desire to learn more.2 So we’re rolling out a new enhancement that gently expands the shopping ads as you swipe, revealing information like product ratings and availability at a nearby store. The result: more qualified traffic driven directly to retailers. This feature will begin rolling out on Chrome for Android this month, with iOS to follow in the coming months.
Expandable shopping ads

Conversational search is also really important -- we’re seeing more shoppers literally asking Google to help them learn more about products. So we’re rolling out new experiences that answer them right back.

On searches for the top-rated products, such as “Best women’s Nike running shoes,” we’re starting to show newly-designed shopping ads with authoritative rankings and product ratings. The new design is so helpful to those specific users that we've seen click-through-rate increases of up to 11% for retailers for these queries.3 Product queries that include “reviews” or “recommendations" are also increasingly common, so we’re showing new product review cards with product ratings and snippets from the most useful reviews from around the web. Finally, shoppers who want to learn more about a product’s features, like the resolution of the camera they’re considering purchasing, may now see a product attribute card with the most relevant information.
New experiences for shoppers searching for the best products, product reviews and attributes

 I-want-to-go: Helping shoppers find local stores
1 in 4 people who avoid stores say they do so because they don’t want to waste their time finding out that the thing they want isn’t in stock.4 So we’re doing more to serve people who clearly want to focus on products that are available within driving distance.

In late 2013, we launched local inventory ads, which show shoppers when the product they want is available at a nearby store. We’ve seen very positive results: retailers who enabled local inventory ads on mobile and desktop campaigns saw a 2% increase in overall clicks and no drop in online conversion rate when local inventory ads were served instead of shopping ads (PLAs).5 Because we’ve seen that LIAs are good for both shoppers and retailers, we’ll now be showing many more local inventory ads than we did before by prioritizing showing LIA over shopping ads on local intent shopping queries, like “coffee maker near me”. This new experience increased clicks on shopping ads by 85% for these queries.6
Local inventory ads for local intent queries

What if you could give shoppers the right information at the right time – without them even needing to ask? Google Now does just that by bringing people the information they need at the moment they need it. We’ve recently released two new cards for shoppers.

The Google Now in-store card appears when a shopper is near a store, displaying useful information such as sales, closing hours, loyalty card data, and more. When she clicks “Search store inventory,” a Google-hosted, retailer-branded local storefront allows her to browse that store’s shelves 24 hours a day. Also newly available is the Google Now price drop card. This card highlights a significant price reduction on a product the shopper has previously browsed, giving her a compelling reason to make that purchase now, online or in-store.
Google Now in-store card, local storefront & Google Now price drop card

 I-want-to-buy: Making it easy to purchase on mobile
US retailers’ conversion rates on desktop computers are 2X higher than on mobile.7 So we’re working on new solutions to help retailers increase mobile engagement and sales.

There are lots of great shopping apps out there, and we want to encourage shoppers to use them. That’s why we’re starting to work with a select group of global retailers including eBay, Flipkart and Zalando to add deep links to their apps right in their shopping ads, driving people straight to their mobile app instead of their website. This is a tremendous new opportunity for retailers and app developers to drive engagement with their shopping apps, and we’ll be expanding it to more advertisers in the coming months.
App deep linking for shopping ads

Finally, to help smartphone shoppers buy with ease from their favorite retailers, we'll be testing Purchases on Google. When a shopper searches on mobile for a product such as “women's hoodies”, she may see a shopping ad with 'Buy on Google' text. After clicking the ad, she's taken to a retailer-branded product page hosted by Google. Checkout is seamless, simple, and secure, thanks to saved payment credentials in her Google Account.
Purchases on Google

For retailers, opting in to Purchases on Google means improved mobile conversions thanks to a simplified checkout process. Participating retailers only pay for clicks on the shopping ads to the product page; all clicks and interactions on the product page are free. While Google hosts the product page and provides purchase protection for customers, retailers own the customer communication and can offer customers the option to receive marketing and promotional messages. “Customers increasingly want to shop on their own terms. Purchases on Google facilitates that flexibility while maintaining the merchant’s ability to own the customer relationship.” says, Peter Cobb, eBags Marketing EVP and Shop.org Chairman.

Although we're still in early experiments with a limited number of retailers, we see Purchases on Google as a big step towards helping retailers drive more mobile conversions and win more customers. “Purchases on Google will simplify our customers’ ability to search for items on Google and then buy with Staples.” said Faisal Masud, Executive Vice President of Global E-Commerce, Staples, Inc. “Working with Google on this offering will make the discovery and purchase process even easier for the customers we serve, with the power of both of our companies behind it.”

Jason LaRose, Chief Revenue Officer, Digital at Under Armour echoes a similar sentiment: "As the consumer continues to rapidly adopt mobile as their primary device, we have to move at a similar pace in how we reduce purchase friction and enhance the user experience with our brand. Google's technology solutions help us innovate, so our collaborative efforts are rich and ongoing.”

Greater expectations
With shoppers today, big expectations come from the smallest moments. That's good news, because retailers now have the technology to deliver on those expectations. The tools we shared this week can help retailers be there in those billions (and trillions!) of micro-moments with the right experience, and in the right context, to win the moments that matter the most.

To learn more about Google’s solutions for retailers, visit google.com/retail or contact your Google account manager.

Posted by Jonathan Alferness, Vice President, Product Management, Google Shopping
1Deloitte, Navigating the New Digital Divide: Capitalizing on Digital Influence in Retail, May 2015.
2 Google Shopping internal data, Q2 2015.
3 Google Shopping internal data, Q1 2015.
4 Google, Ipsos MediaCT and Sterling Brands, Digital Impact on In-Store Shopping, May 2014.
5 Google Shopping internal data, randomized user A/B experiment using Adwords Conversion Tracking for mobile and desktop, controlling for product mix and excluding local-only products, June 2015.
6 Google Shopping internal data,  randomized user A/B experiment, June 2015.
7 Aggregated data from Google Analytics for the US retail vertical, May 2015.

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When it comes to brick and mortar stores, misinformation runs rampant.

For instance, search results only send consumers to e-commerce sites, retailers lose the shopper who checks a phone in store, and buyers only visit stores to transact or showroom. Those are three common myths debunked in Digital’s Impact on In-Store Shopping1, new research conducted by Ipsos MediaCT and Sterling Brands for Google, based upon purchasing behaviors of more than 6,000 smartphone shoppers.

Although 95% of all retail transactions still occur in-store2, smartphones have quickly become consumer’s favorite and most trusted “shopping assistant.” These handy devices reduce buyers’ remorse, raise consumer expectations for getting more accurate and faster information from store associates, and present new challenges for hungry retailers.

For instance:
  • 68% of shoppers surveyed said they were happier with store purchases when they did research online before buying, according to those surveyed
  • 71% expect clerks to know or find product information more quickly now, due to smartphones
  • 46% of smartphone shoppers browse the retailer’s own site or app in-store

But when paired with a consistent shopping experience — specifically mobile optimized, locally relevant, and personalized search results — these same “shopping assistants” can become as powerful to sellers as they are to buyers, the research found.

In fact, they’ve helped double the value of in store visit,3 increase customer satisfaction (69% of consumers are more satisfied with purchases when they get to touch or feel a product in-store), and they’ve given retailers more opportunities to build brand loyalty (51% said they used digital devices to look for additional information after buying).

For instance, Sears Hometown & Outlet Stores saw a 16% higher clickthrough rate and 122% increase in visits to its stores after adopting Local Inventory Ads, which lets retailers display nearby store inventory to online shoppers.4 “Local inventory ads fit perfectly into our strategy of using digital tools to drive store traffic,” says David Buckley, chief marketing officer at Sears Hometown and Outlet Stores. “If people are searching for a product on their phones, there is nothing more targeted than serving that item with a picture, description, and price while letting the customers know exactly how far they are located from the product.”

The technology also helps Sears extend the reach of its advertising budget, driving $8 of in store sales for each dollar invested online.5 “When we compared our most recent performance of local inventory ads to offline media typically used to drive store sales, such as a recent broadcast television campaign,” Buckley explains, “local inventory ads returned in-store sales at more than 5X the rate of tv advertising for each dollar spent.6”
Similarly, Staples saw their store visit and ad click thru rates increase by 33% and 29% respectively, after indicating nearby stock in their search listings.

“Local Inventory Ads are another way Staples helps customers shop whenever and however they want through our omnichannel,” said Ellen Comley, vice president, integrated media, Staples, Inc. “We know that more and more customers are doing research online before buying, and local inventory ads make it easier for us to reach small businesses and ensure we’re providing the most relevant offers.”

Of course, those are just a few examples. In addition to identifying other ways smartphones are changing modern shopping, Digital’s Impact on In-Store Shopping outlines several steps retailers can take to optimize their online presence for smartphones:

5 things brick and mortar stores should do now
  1. Use Local Inventory Ads to promote nearby stock to interested buyers, including availability of complementary and recommended products
  2. Be sure to list store locations, hours, and phone numbers in online search ads
  3. Optimize online presence for mobile viewing and buying, including search results, website, app, and mobile ads to engage consumers while in store
  4. Localize and integrate custom offers and product recommendations to smartphone shoppers that disclose their location
  5. Take an omni-channel approach to marketing and measurement by combining your online and physical efforts into one (see also: Macy’s Inc)
There’s no denying that smartphone shoppers are looking at competing offers while in store, the research concludes. But a greater percentage of shoppers look to search engine results and a retailer’s own sites and apps first. To take advantage, retailers must acknowledge, react to, and consolidate their multi-channel approach into a “mobile first” omni-channel one.

Learn more about how top retailers are using digital to connect people with their stores here.

Posted by Emily Eberhard Pereira, Head of Shopping Solutions Marketing
1Google/Ipsos MediaCT/Sterling Brands, Digital Impact on In-Store Shopping, October 2014
2eMarketer: Total US Retail Sales Top $4.5 Trillion in 2013, Outpace GDP Growth, April 2014
3Shoppertrak 2014 foot traffic and Mastercard SpendPulse transaction Data  2010 thru 2014
4AdWords Store Visits Data. 2015
5Sears Hometown and Outlet Stores Data. 2015
6Sear’s Hometown and Outlet Stores Data. 2015
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December of 2014 may be remembered as the first truly omni-channel holiday season: the year retailers really stretched the sales funnel to include mobile, store visits and online buying under one big connected holiday umbrella.

Let's take a break from the holiday dash to see what we can learn from companies that have been creating unified shopping experiences for consumers while ringing in bigger and better profits for themselves. We'll start with a salute to three great examples of omni-channel thinking: Macy's, Sephora and REI.

Macy's 

When over 15,000 people streamed into Macy's main New York City store at 6 pm this Thanksgiving Day, CEO Terry Lundgren wasn't too surprised. Omni-channel helped put those shoppers there. “So far, people are gravitating to the doorbusters," Lundgren said the next day. "There’s so much information online, so they’re doing that research and going right for those doorbusters."1

Macy's has been working for years to focus its marketing and retail teams into a group with a
single vision on omni-channel conversions just like these.
"That incentive, of growing the number of omni-channel customers, is something we have shared over the last couple of years," says Jennifer Kasper, Macy's Group VP for Digital Media and Multi-cultural Marketing.

Sephora

"In retail, you can't think of mobile as a threat. You have to think about it as a magnet to draw that client into your store." That quote from Bridget Dolan, Sephora's VP Interactive Media, says it all about how Sephora has been winning with omni-media.

Sephora's progressive approach is the result of watching, and actually listening to, its customers. Today the Sephora mobile app lets shoppers scan products right off the shelf and see if they're right for their look. They can also look up past purchases, in case they want that same great shade of lipstick or eye shadow again.
New research shows that 46% of shoppers who use mobile devices in-store say they turn to the retailer’s site or app for information while they shop.2 "I really can't believe how much of our traffic is now coming from mobile devices," says Bridget Dolan, "and how many of our clients are using search as the way that they figure out which products they want to buy while they're standing in-store."

REI

The trusted outdoor retailer’s stores – especially its flagship locations -- are paradise for anyone who plays outside. REI now uses digital as a way to pull customers right into that local store experience.  After researching online, REI customers come into the store to try on those hiking boots or skis and then make the purchase.

Google/Ispos/Sterling research shows 69% of shoppers say they gather information from physical stores at some point in their shopping cycle.3 "One of the things we know definitively is that all of our digital tools really connect our members to our stores," says Annie Zipfel, SVP of Marketing for REI. "So they're often researching product online… and ultimately they're coming in the store to make that purchase."

What can we take away from these three examples of omni-channel success?

1) Care less about where. All three of these retailers are focused on using all channels to drive sales — wherever those sales might happen. As Jennifer Kasper of Macy's puts it, "The bottom line is, we're indifferent to whether [a shopper] converts in the store or online. We just want her to shop with Macy's."

2) Make mobile a magnet. The best omni-channel retailers make mobile a part of their in-store experience, inviting shoppers to use their hand-held devices as they browse. As Bridget Dolan of Sephora says, "We really welcome our clients to take out their phones in our store. A client that really knows exactly what she's buying, all the reviews, all her options... is actually a happier client and will come back and shop with you more often."

3) Bring down internal barriers. Annie Zipfel of REI says, "It is a smaller and smaller group that shops only in the store, or only online." If you still keep separate online and offline marketing teams, it may be time to think about bringing them, and their incentives, together so they can speak to customers in the way those customers shop now.

Happy Omnidays, retailers!

Posted by Julie Krueger, Retail Industry Director
Visit the Local Retail Playbook to see our new “Digital Impact On In-Store Shopping” research about how consumers are shopping on and offline, and how retailers are responding this holiday season.
1"CEOs of Target, Macy's, and Others Weigh In on Black Friday Sales." Fortune.com, November 28, 2014. http://goo.gl/lz3s0t
2"Digital Impact on In-Store Shopping." Google/Ipsos MediaCT/Sterling Brands, October 2014. http://goo.gl/4TU0sY
3ibid
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More and more people turn to search to plan their local shopping trips. In fact, 83% of shoppers would be more likely to visit a store if they could check the availability of an item online beforehand.1 Since we launched local inventory ads in the US last fall, many savvy retailers have taken advantage of the opportunity to promote their store items to nearby shoppers on Google.2 Now, we’re excited to make these ads available in the UK, France, Germany, Japan and Australia.


 Promote store-only products on desktop
We have also expanded support for store-only products and campaigns to desktop devices, enabling retailers to promote stores to the right customers at the right time. For example, you can prioritize showing local products to get shoppers in your doors during the weeks and days leading up to the holidays. As items go out of stock online and last-minute shipping costs increase, retailers who can provide cost-effective, quick in-store purchase options stand out in the crowd.


Get started with local inventory ads
Local inventory ads help retailers drive foot traffic and sales by showing local product availability, price and store information to shoppers in the area. If you’re a retailer with physical stores and are interested in getting started with local inventory ads, visit the program overview and fill out the interest form.

Posted by Christina Ilvento, Product Manager, Google Shopping

1 Research background: Google/Ipsos MediaCT/Sterling Brands, Digital Impact on In-Store Shopping, March-May 2014. Survey conducted among 6,000 smartphone users aged 18-54 who have influence in the purchase decision making process of Retail, CPG or Tech products and have used the Internet to look for shopping-related information.
2 Local inventory ads were formerly called Local Product Listing Ads.
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