Heard of Google Product Ads yet?

Google is getting in on a percentage of sales with their new product ads.  Shopping centers and malls have always done this.  You want the store by the busy entrance, no problem pay up!

Google has been quietly doing a limited Alpha test of a new program called Google Product Ads.

In place of a few Adwords slots you’ll start seeing an image of the product you’re looking for with prices from a few different vendors. These have started to pop-up in major cities around the country recently.

Why is this important?  There are no keywords and no cost per click.

So you’re no longer paying by click, but cutting Google a check for a percentage of sales.

The items are placed in a data feed similar to Froogle but with a few extra bells and whistles.
There are no keywords, so Google puts up your item on searches it sees fit.

How do you get in on the action?

You need to join Google’s affiliate network and basically make Google an affiliate of your program.

From our insider source  there are three known factors that weight in on who and what gets displayed.

They are:

  1. Quality Score
  2. The % of commission you’re willing to pony up
  3. Something Google is calling “traction”

When you step back and think about it,  they are computing what and who will bring them the most revenue…the consequences are dizzying.

Does a 5% commission to Google on a $1,000 digital camcorder sale bring in more revenue then a few Adwords ads in those spots?

What if your competitor offers Google a 6% commission over your 5%?

What if your site converts better than the competitor so Google makes more in the end on your 5% than your competitor’s 6%?

What if there’s more revenue to be made from Adwords in those slots?

Or

What if these new ads become so profitable, Adwords starts loosing spots? There may be a time when a top Adwords spot for a product could be near impossible to get.  The commission generated from a product ad may pale in comparison to the revenue that same spot would make with an Adwords ad.

There are some very powerful computers that will be crunching all this and learning/adjusting from results as they go.

At some point Google will have a very good idea which combination of products and vendors make them the most money when someone searches “digital camcorder,”….etc

This has the power to grow a company exponentially and put others out of business.

If you want to make sure you’re ready for this new, exciting change, give us a call 303-790-1602 x 701. We have a secret insider that is currently part of the Alpha test and can advise you on how to ready yourself for this game changer.