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June 27, 2017

Google Is Hit With €2.42 Billion Fine

BBCNews have today released that Google, who is owned by Alphabet inc., have been fined €2.42bn by the European Commission for abusing its power in promoting Google Shopping at the top of their search results. The European Commission believe that Google are distorting and monetising the shopping industry by pushing Google Shopping promotions above organic search listings.

This is a massive hammer blow for the worldwide powerhouse that is Google and will surely change how the search results are shown. Google have 90 days to transform the way that the search results show the listings, or they could face an additional fine for not complying with the ruling. This fine would be in the region of 5% of its parent account Alphabet’s average daily profits.

Google do plan on appealing this ruling, as it states that Google Shopping gives consumers a quick and exact match for what they are looking for. However, if they are made to change the way the search results are laid out by the European Commission, this could impact the brands that use Google Shopping to promote their products.

As we know, Google Shopping is part of the Pay Per Click system that Google offer. You can set this up through your AdWords account and bid what you will pay per click to your site. This has a great click to conversion rate as the product picture and pricing are displayed in the advert, meaning that you only click if you intend to purchase. This is great for small to medium sized businesses as correct forecasting of return of investment can be put in place.

If this system is removed, this will damage a lot of businesses bottom line, with the focus then moving to improving the website functions and the organic SEO listings, it will endeavour to increase the expenditure of companies trying to compete against big brands that have larger budgets with PPC and put a lot of smaller businesses under as they will not be able to cope with the extra costs.

The only way for a smaller business to then push themselves up the search engine results pages would be to improve their current ethical link acquisition.

So what does this all mean? Where do you stand if you do not have the time, the expertise or the contacts to increase the link building yourself? Only time will tell, but things may be getting a tad more difficult for the small e-commerce businesses that rely on the sales that Google Shopping brings them. Perhaps it’s time to delve into building an Organic Search campaign sooner rather than later.

PPC should supplement SEO, and SEO should supplement PPC, meaning a balanced campaign or organic and paid optimisation is the best way to ensure that your business’ site is driving traffic, helping to increase revenue and ultimately optimising your ROI.

If you’re interested in boosting either your PPC or SEO campaigns for your site, in light of the Google Shopping conundrum, then contact a member of our expert team today.



Chris Clowes

Christopher Clowes is Marketing Professional Qualified through the Institute of Digital Marketing and is an author of sales and marketing information books that have been published on Amazon. Within Absolute, Christopher is our SEO Manager whom looks after some of our top clients, with a keen eye on all things SEO.

Email c.clowes@absolutedigitalmedia.com

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