Google makes it free for retailers to list their products on the Google Shopping tab, helping them receive free exposure regardless of whether they pay to advertise via Google Shopping. As product listings increase with this development, shoppers will have a wider range of products to choose from and compare, making for a better overall experience. The better the experience, the more time shoppers will spend on Google Shopping, and the less time they will spend on Amazon.
Why does this matter?
Amazon has quickly been accelerating its Sponsored Ads capabilities, encouraging merchants to shift Ad budgets from Google Shopping to the e-Commerce giant. In an attempt to compete, Google has redesigned the Google Shopping home page in the past year and has now come out with this major announcement. This battle of the giants is certainly something worth keeping an eye on.
How does this announcement affect you, a digital advertiser?
It doesn’t – for now. There will still be Paids ads shown on the Google Shopping tab, similar to how Amazon has paid listings mixed with free listing. The idea resembles how the SERP shows paid ads on top (prime ad space) and free listing below. The question that will eventually arise is whether the increase in traffic to the Google Shopping Tab offsets the possible loss of impression share to free product listings. Stay tuned.