October 29, 2015
Google tool offers local insights for merchants
Providing a deeper dive into its search content, Google has launched a new tool called Shopping Insights that lets retailers analyze product interest by city and time in order to better understand local demand.
In a blog entry, Jonathan Alferness, VP, product management, Google Shopping, wrote that the tool estimates popularity and trends for a given product by aggregating keyword data from the millions of searches consumers are doing to shop for that product. The service then displays heat maps that show demand on a city by city basis. Using that knowledge, companies can then adjust their marketing campaigns through Google’s AdWords search advertising service and shift inventory in physical stores by region accordingly. Shopping Insights also shows how popular item searches are on mobile devices versus desktop.
Using Halloween costumes as an example, Mr. Alferness noted that searches around Minions were two-and-a-half times higher than Star Wars costumes in July. Following the release of new footage for the next Star Wars movie in late August, search interest for Star Wars costumes briefly overtook Minions, closing the gap to a 10 percent difference in September.
![[Image: Shopper Insights]](data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZpZXdCb3g9IjAgMCAxIDEiIHdpZHRoPSIxIiBoZWlnaHQ9IjEiIGRhdGEtdT0iJTJGcHVibGljJTJGaW1hZ2VzJTJGZGlzY3Vzc2lvbnMlMkYxODYzNSUyRnNob3BwZXItaW5zaWdodHMtc3RpbGwuanBnIiBkYXRhLXc9IjEiIGRhdGEtaD0iMSIgZGF0YS1iaXA9IiI+PC9zdmc+)
However, drilling down to the city level shows that Star Wars costumes are nearly three times more popular than Minions costumes in Berkeley, CA, while in another college town, Madison, WI, Minions costumes are three times more popular than Star Wars.
In another example of regional trends, interest in emoji joggers first appeared near Atlanta, then moved to New York City over the next several months, peaking during the holiday season last year. Consumers on the West Coast haven’t caught on to the apparel trend yet. Wrote Mr. Alferness, "This type of insight can help you understand how to meet demand for regionally popular products, while carrying less inventory in regions with less interest."
Shopping Insights is now available in beta in the U.S., covering the 5,000+ most popular products on Google Shopping between April 1, 2014 to Sept. 30, 2015.
Shopping Insights goes beyond Google Trends with its greater geographic detail, its distinction between mobile and desktop searches, and a focus on keywords rather than products. The Wall Street Journal noted that the tool will combine keywords, such as "Nike Air Jordan," "air Jordan" and "Air Jordans" to gauge overall demand for an item.
Writing for TechCrunch, Catherine Shu said that, with the focus on 5,000 most popular products searches, Shopping Insights appears to work better for spotting major trends rather than niche ones. Ms. Shu added, "Furthermore, while Shopping Insights can give businesses a sense of what their customers are interested in, it still can’t predict what they will actually buy."
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Discussion Questions
How good a job do major retailers currently do in determining local demand for products? Will a tool such as Shopping Insights do much to enhance current capabilities? What do you see as its benefits and limits?
Poll
Successful purchasing, planning and allocation experts may be slow in turning to Google for the answers to their reporting needs. Small and medium businesses will have to rely on customer inquiry, inventory analysis reports and trusted vendor recommendations for the time being. Making decisions with an open-to-buy report in one hand and Google’s predictions in the other is a little scary to me. Well, for now that is.
With some huge numbers being tossed around this year related to lost revenue potential due to out-of-stocks, overstocks and returns ($1.1T), retailers should be getting the message that something is amiss in their planning.
Is Google’s Shopping Insights the answer? No, but it sure wouldn’t hurt in getting new perspectives on demand. Too early to tell, but I have a great deal of confidence in Google.
And that’s my 2 cents.
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Successful purchasing, planning and allocation experts may be slow in turning to Google for the answers to their reporting needs. Small and medium businesses will have to rely on customer inquiry, inventory analysis reports and trusted vendor recommendations for the time being. Making decisions with an open-to-buy report in one hand and Google’s predictions in the other is a little scary to me. Well, for now that is.
With some huge numbers being tossed around this year related to lost revenue potential due to out-of-stocks, overstocks and returns ($1.1T), retailers should be getting the message that something is amiss in their planning.
Is Google’s Shopping Insights the answer? No, but it sure wouldn’t hurt in getting new perspectives on demand. Too early to tell, but I have a great deal of confidence in Google.
And that’s my 2 cents.