Marketing
12 May 2023
Google will test generative AI for shopping search
Shopping results may get a new look on Google.
Photo by Pawel Czerwinski on Unsplash
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Google will apply generative AI to shopping searches as part of a series of new capabilities that rolled out this week at Google I/O.
With new updates to search in general, Google is aiming to expand the number of questions to which its search engine can provide answers, as well as change how the information is organized.
One of those functions includes shopping. According to a blog post, Google is now testing a new form of shopping search where users who type in the kind of item they are seeking get a “snapshot of noteworthy products to consider and products that fit the bill."
It will also display product descriptions that include reviews, ratings, prices and product images.
"With generative AI in Search, we can help you understand the full picture when you’re shopping, making even the most considered and complex purchase decisions faster and much easier," Google wrote in the blog post.
Google said the generative AI experience is built on Google’s Shopping Graph. This contains more than 35 billion product listings, with more than 1.8 billion listings refreshed every hour.
While there will be a new look to the results, familiar elements will still be in place. Ads will continue to be displayed as part of search results, Google said, appearing in dedicated slots throughout a page.
The experiment starts at Search Labs with a new initiative called SGE (Search Generative Experience). It’s available on Chrome desktop and the Google App. Access will begin opening up in the coming weeks, Google said.
The move offers the latest signal that a rapid period of growth in generative AI will bring about new tools for ecommerce. In this case, one of the most powerful search engines is transforming how it displays products, and aiming to get even better at answering questions. While this is still an early experiment, it suggests that generative AI has the potential to bring change to the structure of commerce on the web as we know it. Brand leaders should pay attention.
What will Amazon do? It's a question that looms over any shopping search announcement from Google. Amazon overtook Google as the top destination for new product searches. But improved tools from Google stand to make the search engine more attractive. Will Amazon respond with new capabilities of its own? The question becomes increasingly complex at a time when advertising is increasingly important to Amazon's business. It will likely tread carefully in any effort to tweak search results page structures that have proven to be lucrative.
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Marketing
09 June 2023
'There's a lot of ways to frame value'
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
Photo by Kelly Common on Unsplash
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.
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