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Google’s AI search tools trigger strategic overhaul in business
Consumers demand seamless shopping
Aging department stores struggle to attract younger shoppers
Buy Now Pay Later surge
Google’s Shopping Graph + AI
ECOMMERCE SEO
Google’s AI search tools trigger strategic overhaul in business
Google’s latest unveiling of AI-powered search tools has sent shockwaves through the business world, compelling leaders to reevaluate their digital strategies. The tech giant’s innovations promise to transform online information retrieval, pushing companies to quickly adapt.
With these AI search tools set to revolutionize user information access, business experts emphasize the urgency of optimizing for AI algorithms. The new technology demands swift adaptation of content and marketing approaches to stay competitive. “It’s important for businesses to think of more than just pure on-page SEO optimization,” Ben Poulton, founder of SEO agency Intellar, told PYMNTS, highlighting the need for comprehensive content.
AI is reshaping how we search the web and shop online, making experiences more personalized and intuitive. “AI-powered search goes beyond simple keyword matching,” said Arsalan Vossough, CTO of VinoVoss, emphasizing AI’s capability to interpret query context for better results.
Businesses must adapt their SEO strategies for the AI era. “Consumers favor brands offering personalized experiences,” noted Tom Jauncey of Nautilus Marketing, stressing the importance of natural language queries and updated data across platforms.
Google’s AI search revolution presents both challenges and opportunities, urging companies to optimize content for personalized, intuitive online experiences.
(AI + Socials + Content + Scheduling) = STORI
Looking for an answer to your social media presence? Here’s the solution. The only thing missing in this equation is your brand – even if its current value is zero. STORI will ensure you get the maximum results. Add potential and subtract the time and cost of additional marketing resources. The math checks out!
ECOMMERCE ADVERTISING
Consumers demand seamless shopping, publishers and retailers adapt
Consumers increasingly expect to make purchases at the point of discovery, prompting publishers and retailers to adjust their strategies.
During a recent earnings call, BuzzFeed revealed that shoppable content helps retailers reach consumers at low-intent moments, expanding their audience base. “People come to BuzzFeed for various reasons,” said CEO Jonah Peretti. “Sometimes, while there, they discover shopping content and make purchases. It’s about discovery and inspiration.”
Peretti added that BuzzFeed is leveraging generative artificial intelligence to enhance personalized commerce, introducing features like dynamic insertion of recommended products to boost retailer offerings. Despite these innovations, BuzzFeed’s “commerce and other revenues” segment saw a 9% year-over-year revenue decline, attributed to reduced promotional spending and lower consumer traffic.
Other content companies, including recipe publishers and lifestyle sites, are also integrating shopping into their online experiences. As traditional retail sites become less effective, consumers expect shopping to come to them. The conventional shopping journey has evolved into a fluid process across multiple platforms.
Stylitics CEO Rohan Deuskar noted, “Inspirational content and cross-sell intentions that used to happen on homepages are now less common.” Lynette Green of Brown-Forman highlighted the expectation for brands to be accessible wherever consumers are.
By embedding shopping opportunities within engaging content, retailers can meet consumers’ demands for convenience and immediacy, likely leading to a continued rise in shoppable content.
ECOMMERCE TRENDS
Aging department stores struggle to attract younger shoppers
Department stores like Macy’s, Kohl’s, and Nordstrom face declining sales and an aging customer base, threatening their future. For over a century, these stores attracted generations with diverse offerings, but millennial and Gen Z consumers are now turning to social media, specialty retailers, big-box stores, and online platforms.
Retail analyst Oliver Chen of TD Cowen emphasized the urgency of appealing to younger customers, noting that department stores “need to cater to younger and older.” At Kohl’s, 40% of customers are baby boomers, and at Macy’s, it’s 36%, according to Numerator data.
Nordstrom, with a larger base of millennial and Gen X shoppers, has been quicker to sign deals with trendy brands like Kim Kardashian’s Skims and Australian fashion brand Princess Polly. Despite these efforts, all three stores predict weak sales growth.
Macy’s, under new CEO Tony Spring, plans to close many stores and open smaller, off-mall locations. Kohl’s is expanding its Sephora shops and adding Babies R Us departments. Both aim to attract younger shoppers through exclusive brands and improved private labels.
To remain relevant, department stores must adapt, breaking old habits and appealing to new generations.
DIGITAL PAYMENTS
The BNPL Surge
Buy now, pay later (BNPL) is expected to surge in the coming years. During the COVID-19 pandemic, consumers flocked to providers like Klarna, Afterpay, PayPal, and Affirm.
eMarketer forecasts 93.3 million U.S. consumers will use BNPL services this year, with usage rising through 2027. BNPL’s appeal lies in its ease of use and ability to spread out payments without interest or fees.
BNPL spending in the U.S. is expected to grow 12.3% in 2024 to $80.77 billion. Adobe Analytics reported BNPL plans accounted for $16.6 billion in holiday purchases in 2023, a 14% increase. On Black Friday, BNPL users spent 48% more than others.
With rising credit card debt, 11.2 million new users are expected to try BNPL in 2024. By 2027, Gen Z’s BNPL adoption will nearly match millennials’, says Arielle Feger, senior analyst at eMarketer.
Despite its popularity, BNPL faces scrutiny from regulators over credit disclosures and potential debt risks. A Sezzle survey found BNPL helps shoppers boost buying power and budget purchases, with 73% not recently denied credit.
“Retailers need to be agnostic about payment forms,” said Nancy Eichler, senior VP of marketing at Sezzle. Offering BNPL can attract more consumers and increase sales. Digital Commerce 360 reports 54% of major retailers now offer BNPL, up from 45.8% in 2022.
Google’s Shopping Graph
In ecommerce SEO, shop category pages have long been key, but this is changing. With the rapid rise of Google Shopping through Product Grids and AI Overviews, the focus is shifting to Google Shopping.
At the heart of this shift is the Google Shopping Graph, a crucial semantic database in the age of generative AI. This graph optimizes shopping experiences, making product research 2.8 times faster according to Microsoft. Users will need fewer touchpoints to discover products, with AI-generated answers streamlining the process.
A study by SE Ranking found an AI snippet box in nearly 26% of ecommerce search queries, often replacing classic search results. Another study by ZipTie.dev revealed that almost 80% of sources ranked for AI-generated snippets were not in the top 10 traditional search results.
Google’s Shopping Graph is a machine learning-powered, real-time database with over 35 billion products, providing detailed information like availability and reviews. To optimize for the Shopping Graph, ecommerce brands should leverage data from sources like YouTube videos, manufacturer websites, and online shops.
Ecommerce brands must focus on Shopping Graph optimization and adapt to generative AI’s impact on search behavior. Emphasizing relevant attributes in the Shopping Graph data sources is crucial for maintaining visibility and engagement in this AI-driven landscape.
Signing off,
The Merchant @CartHustle