Lecture Notes: Consumer Behavior and Google Shopping

Introduction

• Speaker: Sarah Engel
• Guest: Sean Scott, GM of Google Shopping
• Event Location: Las Vegas
• Main Topics:
  • Future of shopping
  • Consumer behavior shifts
  • Google Shopping and AI

Sean Scott's Experience

• Joined Google Shopping over a year ago, previously at Amazon
• Long-time Google fan, early adopter of Google products
• Excited about working with highly intelligent peers at Google

Key Consumer Behavior Shifts

• Four key shopping behaviors:
  1. Streaming
  2. Scrolling
  3. Searching
  4. Shopping
• Predictably unpredictable shopping journey with multiple touchpoints
• Opportunities for influencing customers at various stages

Shopper Journey Insights

• Entire shopping journey has to be considered
• Importance of being present at different funnel stages:
  • Upper funnel
  • Mid-funnel
  • Close-to-purchase

Future of Shopping

• Aim for assistive and personalized experiences
• Google Shopping's AI-driven upgrades:
  • Provides advice on atypical and specific search queries
  • Uses AI for product recommendations

Google's Innovation in AI

• Google leveraging AI in:
  • AI overviews
  • Lens and visual search
  • Vert.ex AI search
• Potential of Google Lens:
  • Visual search through photos
  • Circle search for detailed image-specific queries
  • 20 billion visual lens searches per month, 1/4 with commercial intent

Google vs. Social Media in Shopping

• Google's Trust:
  • Trusted for both small purchases and major decisions
  • YouTube’s role in product recommendations and information
• Google vs. TikTok/Meta:
  • Google as a trusted source throughout the shopping journey

Balance of Brand Building vs. Sales

• Need to show marketing as a profit driver
• Example: Urban Decay’s successful use of YouTube creators
• Significance of online videos in brand building

Recommendations for Retailers and Brands

• Balance brand building with sales growth
• Engage in entire purchase journey
• Adapt to new consumer behaviors and technological changes

AI and Future Opportunities

• AI is crucial for future business success
• Google’s Merchant Center as a foundation for AI in shopping
• Importance of local inventory data for immediate consumer needs

Conclusion

• Embrace AI and innovative strategies
• Ensuring data availability across platforms for effective consumer reach
• Importance of being adaptable and quick to implement changes

These notes cover the main points and insights presented during the session with Sean Scott on consumer behavior and Google's approach to evolving shopping experiences using AI and other technologies.