Shopping Search Engines: The next step in Online Advertising

Anirudha Khopade, the author of this article is the CEO of Taglr. He can be reached at anirudha@taglr.com.

From flashy banner ads that were all the rage in the 90s to Google's text ads and the popularization of pay-per-click campaigns, online advertising has really come a long way. So, why online ads are getting so much attention these days? Because they are not only economical compared to print and electronic media ads, but they have a longer lifespan too. Also, online ads have the ability to draw in a more targeted audience, and unlike traditional ads, the results are highly measurable. No wonder the traditional ad mediums are finding it increasingly difficult to compete with the digital mediums.

Interestingly, in last couple of years another vertical has opened up in online shopping dimension i.e. shopping search engines. Shopping search engines assists buyers to discover relevant products easily and in much lesser time. Digital advertising spends include display and video ads, search engine marketing, social media ads, and online classifieds, but lately, shopping search engines have been creating quite a buzz. Although companies and customers have been using digital classifieds, their free and low-cost premium listings have opened them up to a sea of buyers and sellers, leading to a rather cluttered interface. If you have ever visited an online classifieds website, you would know how difficult it is to navigate through their many categories and identify a trustworthy seller. This is one of the reasons why customers these days are turning to shopping engines such as Google Shopping, Taglr, and MySmartPrice. These search engine platforms aggregate products from hundreds of retailers, helping shoppers quickly discover products, compare the available options, and select the best deal in a few easy clicks. Instead of visiting multiple websites hunting for a good deal, shopping search engines streamline the entire process with an easy-to-navigate, user-friendly interface. And, these platforms are so responsive that you can access them via any device, be it your phone, tablet or PC.

Companies are also wising up to the fact that shopping search engines are evolving from online classifieds as an effective marketing platform. One of the strongest indicators is that ad spends on Google Shopping was up 43% YoY in Q4 of 2018, as per a report by Merkle. Such businesses are on the right track, as shopping search engine platforms are known to attract high-quality visitors who know what they want. Instead of aimlessly browsing a wide range of different products, potential buyers search shopping engines using specific brand names. So, it is hardly surprising that nearly 35% Google product searches convert to transactions within merely five days!

Moreover, since shopping search engines direct visitors to the retailer's website, merchants get the golden opportunity to upsell and cross-sell their products. Advertising on shopping engines also allows retailers to adjust prices for specific products to stay competitive and reel in customers looking for the best value. Another interesting advantage is that most shopping search engines today are enabling online-to-offline commerce. For instance, if you are searching for a mid-level smartphone, you will be shown options from ecommerce websites as well from local stores near you. How amazing and convenient, isn't it?

However, I believe that shopping search engines can engage the attention of more customers by enhancing their search functionality with the ability to understand conversational language. And thanks to the development of artificial intelligence, these platforms will be able to predict with greater precision what customers want, and offer them highly personalized shopping experiences. In fact, they could convert casual visitors as well with the help of a more interactive interface, such as a virtual assistant. Looking at these trends, I foresee that a few years down the line, shopping search engines will not only play a much bigger role in the online advertising industry but also emerge as a one-stop shop for consumers.

Rapid urbanization, Internet penetration in rural areas, and rise in the use of smartphones mean that the Indian market is rife with untapped potential. In order to capture the attention of these consumers, retailers are going to use every avenue at their disposal. Right now, with media spends of 70%, electronic and print media still have the largest piece of the pie, followed by digital media at 17%. However, according to a report by Dentsu Aegis, these figures are set to change, for digital spends are slated to contribute a sizeable 29% by 2021. And as shopping search engines promise more targeted traffic, easy access and discoverability, competitive pricing, and products from an array of retailers, it is likely that they will grab a larger slice of this pie.