Google Launches Product Listing Ads. Will Compete With Price Comparison Sites

Yesterday, Google flipped on product listing advertisements on the site. Which means that every time someone searches for a product, especially a gadget, Google will list out few online websites where you can buy it from and the price at which its being sold.

This is a great move by Google to tap into the growing e-commerce space. In India, e-commerce companies have been advertising heavily on Google to acquire customers. Now that e-commerce companies have slowed down on online ad spending, this is a great way to cut into the action.

Google Product Listing

Product listing ads were originally meant to point to Google Shopping, the search giant’s shopping service. However, the company seems to have tweaked the model in India. Ads are charged on a cost per click basis or conversion focused cost per acquisition percentage basis.

Will this impact the price comparison sites?

There will be an obvious impact that Google will cut out some of the middlemen involved. Price comparison sites which haven’t moved beyond SEO traffic are bound to see some loss in traffic.

Having said that, Google needs to massively tweak it’s algorithm to match the correct products (for the ad to be relevant), as a search for ‘galaxy S4’ also brings up Duos and the entire gamut of Galaxy products.

Thoughts?

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