Google and Shopify double down to increase Ecommerce
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Google and Shopify double down to increase Ecommerce

When it comes to search engine giant Google, undoubtedly the jewel in Alphabet’s crown, one business is more important than all the others combined: advertising. The company made its billions in the ad world – whether on search or YouTube – long before it branched out into areas like streaming video on demand subscriptions (YouTube Red). And advertising is still its most tried and trusted source of revenue – as well as it’s biggest (by a very large margin indeed). Of the ads it sells, shopping ads are a big deal – that’s why Google is teaming up with Shopify (again) to spur their uptake amongst online retailers.

Alphabet’s share price has risen by 12% over the past three months

graph 1207 google

SOURCE: Yahoo Finance

Google is launching a new tool that makes it easier for online sellers to run ads on a number of its popular services. These ad spaces, which are aimed at consumer retail (think clothing and gadgetry), are going to be available to buy straight through Shopify. It’s the latest move in a strategic integration of the two companies’ businesses, an approach necessitated by the unbelievable expansion of Amazon over the past ten years.

Google’s new commerce tool is one of four that were revealed on Tuesday, all of which center on “automating the ad-buying process.” Commerce will let marketers define goals (acquiring new customers, or driving traffic into store, for example) and then let the system “spray” ads efficiently over Google search, Maps, YouTube, and the web.

Google’s head of advertising, Sridhar Ramaswamy, said: “It’s a one-stop shop. Setting up multiple campaigns for each of these services is clearly a big burden, and it leads to outcomes like budgeting inefficiency.” Speaking about the collaboration with Shopify, he added: “It’s one of those relationships that’s really mutually beneficial.”

Disclosure

Dominion holds Alphabet in its Global Trends Ecommerce Fund.


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