In 100%. In many European markets, SEM agencies which had the appropriate IT possibilities created their own solutions, gaining a significant PLA display participation.
Sembot allows you to achieve the same results without a hassle & cost of building your own solutions.
CSS purchases clicks cheaper than directly in google shopping
You will pay only 80% of the current cost per click.
-20% CPC = 25% higher ROAS
After implementing CSS on existing and active campaigns of your customers, you will get an increase in the participation in displays at the same price for the broadcast. This is because the bidding is done at the stake without Google Shopping commission. This means an automatic increase in ROAS, as additional emission translates into higher revenue.
At the same time it is possible to lower the CPC and have the same participation in displays as before the CSS implementation – it is especially useful when the Client’s account had a very high share in winning auctions and increasing it, is pointless.
Google support about its “Google Shopping” service, the default CSS:
“According to the European Commission’s requirements, Google Shopping has to ensure its own profitability. That’s why we now deduct a certain percentage of the margin before the seller’s bid is put up for auction. The margin is included in the CPC that the seller will pay and is only charged if the user clicks on any of the seller’s ads. We encourage merchants to compare the costs and reimbursement policies associated with using different marketing channels to see which one suits them best.”
This means that when you buy PLA advertising through Google Shopping (by default) you pay a certain commission. The amount of this commission remains undisclosed.
In short, it was examined. Working on the same large, stable campaign after CSS activation on an account, the participation in displays is growing (so we are bidding with a larger CPC). By lowering the cost per click, we reduce the share in the displays. After reducing the CPC by about 20%, we get the results of participation in displays as before the launch of the CSS service.
Then don’t lower it! In this case, with the CPC unchanged, the real bid rate in the auction is 25% higher than on Google Shopping. This means a higher participation in displays and therefore a higher revenue. Costs remain unchanged, revenue increases and so does the ROAS, which is probably included in the contract with the customer.
That is the goal of Google. As soon as most products come from CSS it will automatically increase the cost per click. Then the discount will lose its rationale (because everyone will have it), and the reference point will be commissions that each CSS takes.
Today, a small number of shops in Europe use CSS. Until CSS becomes a standard you will have an advantage in auctions thanks to our solution. During this time, we will implement solutions that will improve your daily work and increase its effectiveness. After the disappearance of the discount – due to the fact that the whole market will use CSS – you will have lower labour costs thanks to Sembot.io solutions, own branding in the search engine and our bidding algorithms.