Tony Chop, VP of Paid Media from Common Thread Collective, discusses the impact of PMAX on Google Ads, strategies for optimizing PMAX campaigns, and recent shifts in ad spend distribution. He shares insights on Google Shopping, data feeds, and the evolving digital advertising space, providing actionable advice for marketers looking to enhance their Google Ads proficiency.
PMAX impact leads to lower returns on Google ads compared to meta platforms due to market shift.
Effective PMAX optimization requires strategic campaign segmentation and feed-only strategies for improved ad performance.
Deep dives
Tony Chop's Extensive Google Ads Experience
Tony Chop, the VP of paid media at Common Thread Collective, shares his extensive 20-year experience in digital advertising, focusing particularly on Google ads. He highlights his early struggles with Google shopping during his freelance years, emphasizing the importance of data feeds and intricate inputs. Tony's deep tactical knowledge led him to become a data feed expert, showcasing the evolution of his understanding and expertise in the Google ad space.
Impact of PMAX on Google's Market Share
Recent data from the e-commerce industry suggests a significant shift in advertising spend from Google to meta platforms, notably impacted by PMAX performance. Google's market share declined from 25% to 16% as meta's share rose to 80%. The rise of PMAX on Google has led to a decrease in overall ad effectiveness, as noted in incrementality studies showing lower returns compared to standard shopping and meta products.
Significance of Brand Search in Google Ads Revenue
Brand search campaigns play a vital role in Google's revenue, with approximately $54 billion of Google Ads' revenue attributed to brand-related campaigns. The reliance on brand search poses challenges for advertisers, especially in managing rising CPCs and maintaining incremental returns. Insights point to brand search as a pivotal component requiring strategic decision-making to balance costs and competitive pressures.
Tactical Approach to PMAX Optimization
Navigating PMAX optimization involves strategic segmentation of campaigns to target specific audience clusters. Implementing dedicated campaigns for search, display, and YouTube optimizes ad performance. The emphasis on feed-only and brand exclusion lists refines targeting precision, creating opportunities for focused advertising strategies. Leveraging PMAX insights for distinct campaign deployment enhances ad effectiveness and profitability.
In this episode of the eCommerce Playbook Podcast, Taylor and Tony Chopp, the VP of Paid Media from Common Thread Collective, explore the shifting landscape of Google Ads and the challenges posed by the implementation of PMAX. With over 20 years of experience in digital advertising, Tony brings invaluable insights into how AI developments are reshaping the strategies for Google Ads, particularly with PMAX's impact on advertising effectiveness and budget allocation.
Tony breaks down the complexities of Google Shopping, the nuances of data feeds, and how brands can effectively navigate the ever-evolving digital advertising space. He also shares his journey from learning painful lessons in eCommerce advertising to becoming a data feed expert, making this session a goldmine for marketers looking to enhance their Google Ads proficiency.
Key topics covered include:
The transition to PMAX and its industry-wide repercussions.
Strategies for managing brand and non-brand PMAX campaigns to maximize ROI.
Analyzing recent shifts in ad spend distribution within the eCommerce sector.
This episode is packed with actionable advice and strategic insights to help you leverage Google Ads for your business advantage in the AI era. Don't miss out on understanding the current dynamics of digital advertising from one of the industry's seasoned experts!
Show Notes:
The Ecommerce Playbook mailbag is open — email us at podcast@commonthreadco.com to ask us any questions you might have about the world of ecomm.
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