For eCommerce businesses, understanding the nuances of Google Ads and how to optimise them is crucial for maintaining a competitive edge. One of the lesser-known yet powerful tools in this arena is the Comparison Shopping Service (CSS). As a CSS partner, we can offer you a significant 20% discount on clicks. But first, let’s delve into how the Google Ads auction works and the benefits of using CSS.
Understanding the Google Ads Auction
Google Ads operates on a real-time auction system to determine which ads appear and in what order on search results pages. Here’s a simplified overview of the process:
- Search Query: When a user performs a search on Google, the system identifies all ads relevant to the search terms.
- Eligibility Check: Ads that do not meet certain criteria (e.g., targeting the right geographic location or adhering to policy guidelines) are filtered out.
- Ad Rank Calculation: The remaining ads are then evaluated based on several factors, which include:
- Bid Amount: The maximum amount you are willing to pay per click.
- Ad Quality: Measured through the Quality Score, considering factors such as ad relevance, expected click-through rate (CTR), and landing page experience.
- Context: The search context, including the user’s device, location, and time of day.
- Ad Extensions and Formats: Additional features like site links, call buttons, and more that can improve your ad’s performance.
- Ad Position and Cost: Ads with higher Ad Ranks will appear higher on the search results page. The actual cost per click (CPC) you pay is typically lower than your maximum bid, depending on the competition.
What is Google CSS?
CSS stands for Comparison Shopping Service. This service emerged from a 2015 ruling that required Google to make its Google Shopping ad spaces available to other price comparison engines. The essence of the case was that Google was monopolising the search result space by featuring its own price comparison engine, Google Shopping, without allowing other services the same opportunity. While the debate over the fairness of this argument continues, the result is clear: Google had to allow other Price Comparison Services into the auction.
What Does This Mean for eCommerce?
Essentially, CSS ads still direct users to the retailer’s website. When using a CSS partner, you create a new Merchant Center through the CSS partner, uploading your usual Google Shopping feed. Everything remains the same, but this Merchant Center is registered to the CSS. Over time, distinctions between a regular Merchant Center and CSS Merchant Centers have diminished. Now, products from both can appear in the Shopping tab, and separate accounts for CSS campaigns are no longer required.
The Main Advantage: Cost Savings
The heart of the CSS discussion lies in the potential for cost savings. Due to the court ruling, advertising through a CSS can provide a 20% “CPC discount”. Here’s why:
Google is required to make Google Shopping a separate revenue-generating entity. This means that when you get a click from a Google Shopping campaign, 20% of the cost per click goes to the Google Shopping corporate entity, and 80% goes to Google. In contrast, with a CSS Shopping campaign, 0% goes to the CSS partner and 80% to Google, effectively providing a 20% discount in the auction.
The Reality of the 20% Discount
While a 20% discount sounds enticing, the savings are theoretical. This bidding advantage is not explicitly listed in your Google Ads account nor refunded; it’s a bidding advantage in the auction compared to Google CSS. It’s a subtle yet significant benefit that can enhance your ad performance over time.
How JudeLuxe Can Help
As a CSS partner, JudeLuxe can help you leverage this 20% discount, enhancing your advertising strategy and maximising your return on investment. Here’s how:
- Lower Costs: Benefit from reduced cost-per-click, allowing you to stretch your advertising budget further.
- Improved Ad Positions: Achieve better ad placements without increasing your budget, making your products more visible to potential customers.
- Enhanced Profitability: More clicks at a lower cost can lead to higher conversion rates, driving more sales for less expenditure.
Conclusion
Understanding CSS and its impact on Google ad bids is essential for eCommerce businesses looking to optimise their advertising strategies. With JudeLuxe as your CSS partner, you can harness the power of the 20% discount to enhance your campaigns, achieve better results, and drive sustainable growth.
Ready to take advantage of this opportunity? Contact JudeLuxe today to learn more about our CSS partnership and how we can help you achieve your advertising goals!
