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Google Local Inventory Ads (LIA): 7 Strategies for Success

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Google Local Inventory Ads (LIA): 7 Strategies for Success

Reports show that shopper’s use of Buy Online, Pick Up In Store (BOPIS)—also commonly known as Click-and-Collect—is only continuing to grow after a major pandemic boost in adoption. Consumers enjoy the efficiency and convenience of placing an order online, and picking it up already-bagged at their nearby store, making local availability one of the biggest factors impacting purchase decisions in 2023.

Source: https://forecasts-na1.emarketer.com/5df80ef0d5924101a08b78a5/5df80db59610370b18a15f25

Having the ability to reach your audience online before they make a product decision is crucial for local businesses, which is why there’s never been a better time to leverage Local Inventory Ads (LIA).

Screenshot reading “Tinuiti Joins Google’s new Local Inventory Ads Partner Program"

Tinuiti is excited to announce that we recently joined Google’s new Local Inventory Ad Partner Program, and are among the first US-based Agency partners to do so. As an official LIA Partner, our teams are fully equipped to handle campaign management, strategy, and execution, serving as an end-to-end resource for retailers—including helping to onboard the required feeds to Google.

Here’s how Local Inventory Ads help drive in-store traffic and sales, how to set them up, and some expert tips for optimizing your campaigns.

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“Local Inventory Ads give retailers an opportunity to reach local shoppers by showcasing products available in their stores on Google. On top of driving customers to your physical stores, new features like store pickup and merchant hosted local storefronts lead to online traffic and conversions, resulting in more omnichannel revenue growth for retailers.”

Portrait of Ashlee Wiltshire

— Ashlee Wiltshire, Senior Director, Shoppable Media at Tinuiti
 

Table of Contents

 

 
Local Inventory Ads (LIA) are Google Shopping ads that are displayed when a searched product is available for purchase or pickup in a local store, and can be an effective way for retailers to drive in-store traffic.

These inventory listings are great at capturing a customer’s attention by offering ready-to-retrieve products available from local stores.

example of local inventory ads for yoga mats

Think of local inventory ads as an online banner that appears underneath product listings for a given search query:

  • They appear at the top of the search results right below the search query
  •  

  • Potential customers can quickly review local businesses that carry the product
  •  

  • Users that click on your local inventory ad are either directed to a Google-hosted local storefront page, or a merchant website’s product page (if the info for local pricing + availability on the product page meets Google’s requirements)
example of how local inventory ads work with local storefront

Source: Google

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In addition to appearing within Search results, LIAs can also be served on Google Images, Google Assistant, and Google Maps. Customers still have the option to purchase directly from your website if they can’t make it into your store, meaning your local inventory ads can support both in-store and ecommerce sales.

Recognizing that not everything folks shop for locally falls within an immediately available category— such as large furniture items on display in a nearby store—Google also offers an on display to order feature (ODO). Items leveraging this feature will note that they are “In store – available to order.” Eligibility requirements for using the ODO feature include: the listed item must be deliverable to the shopper’s home within 90 days of purchase; the URL shoppers are directed to from the listing must provide all shipping details, including cost and policy.

 

 

Google offers three options for activating and delivering LIAs: Google-hosted local Storefronts (GHLS), and Merchant-hosted local Storefronts (MHLS)—full or basic. Let’s explore how each works…
 

Google Hosted Local Storefronts

When users who click your LIA are directed to your Google-hosted Local Storefront, you can showcase even more information about your business to help close the sale, including:

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  • A description of your product or business
  • Links to your website
  • Phone number
  • Hours of operation
  • Map and navigation directions to your store

The opportunity to provide shoppers with a snapshot of this additional information is an advantage to using GHLS, but there is one primary con to consider: Shoppers are not taken directly to a page where they can purchase the item. For a one-click solution that gets folks straight from the ad to your website, Merchant-hosted Local Storefronts are recommended.
 

Merchant Hosted Local Storefronts (Full and Basic)

Google currently offers advertisers two options for Merchant-hosted Local Storefronts—full or basic. Both the full and basic programs are meant to break down some of the road blocks that have historically made local inventory ads tough to launch, and/or not as rewarding for merchants.

One of the key ways in which the full and basic programs differ is how much work is required to set them up, and keep them accurate. Let’s explore each more closely…
 

MHLS – Full Program

MHLS (full) includes local storefront information for a single merchant; when prospective customers click on one of these ads or listings, they will be taken directly to the advertising retailer’s website, similar to a regular Shopping ad.

Behind the scenes, this seamless shopping experience is being accomplished by a 2-step process after the ad or listing has been clicked. First, “Google passes a Business Profile store code where the item is available to the retailer.” Next, the retailer generates the landing page—customized to their specific store—for the product that was clicked. Google notes that while advertisers can self-detect customers’ locations, it is required that all customers clicking these ads are directed to the specific store Google passes in the URL generated by their click.

It’s important to note that the (full) program option for MHLS is only available to advertisers whose website product landing pages meet Google’s list of requirements. These stipulate the following: “Display your store’s local price or ensure that local prices match online prices, if only online prices are displayed. The price displayed on your landing page must match the price submitted in your local inventory feed for the selected store.”

Meeting those requirements is where things can quickly become a highly time-intensive project for your Web Design team, requiring that you’ve properly set up store-specific pages for every retail location, and done the necessary custom web design to ensure the price at that particular location is displayed. If you have the resources and the bandwidth, it’s a route worth considering. However, if time and ease are equally important factors, the basic program may be a better fit.
 

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MHLS – Basic Program

The MHLS (basic) program involves significantly less development work than the full program, requiring the following of your listings: “Show the omnichannel price on your product landing page. The price on your landing page must match the price value submitted in your primary product feed.”

“Managing prices for individual store locations can sometimes be chaotic, particularly for retailers with dozens, hundreds, or thousands of brick-and-mortar stores. The basic version of Google’s Merchant-hosted Local Storefront program enables advertisers to use a price match to help in navigating this issue.”

Mike Wojciechowski

Mike Wojciechowski, Senior Director, Shoppable Media at Tinuiti

When you implement LIAs using the basic program, customers who click on your ad or listing are directed to your omnichannel landing page; this page allows customers to select a specific store location for more information about the given item’s cost and availability. Similar to the full option, the basic program also represents a single merchant’s information.
 

The Pros and Cons of Product Listing Ads

 

  • Promoting in-store inventory: LIAs are connected to your local inventory feed, meaning you can promote your in-store inventory to local shoppers in real-time
  •  

  • Bringing a local shop online: The Google-hosted local storefront acts as an informative, digital local storefront that you can use to bring online awareness to your local store
  •  

  • Measuring performance: Stores have the ability to monitor the impact that digital ads have on foot traffic and in-store sales, and Google provides Store Visit data to help determine the true offline impact of your LIAs
  •  

  • Double exposure opportunity: You have the ability to run both regular Product Listing Ads (PLAs) and Google Local Inventory Ads simultaneously, ultimately increasing your real estate in search results

“You can have products that your website sells, and only a select few that are actually carried in-store. If somebody searches for your product, but it’s only available online, then your PLA can still be displayed. Alternatively, with a product that is carried in-store, a regular PLA can be shown to drive traffic to your site, or you can have Google Local Inventory Ads displayed to push in-store transactions.”

Portrait of Roman Fitch

— Roman Fitch, Director, Growth Media at Tinuiti

One of the only drawbacks to Local Inventory Ads is the process required for setting them up and keeping them maintained. You need an individual product feed for each store location to be completed within Google Merchant Center. Without the technology and resources needed to keep in-store statuses up to date with Google product feeds, some businesses may run into some trouble.

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“In-store sales and conversions are going to change inventory conditions, and if businesses are not able to keep that up-to-date on the Google side of things, products may end up being disapproved and potentially even flagged. So that’s where the challenge comes in if you have a lot of stores,” explains Fitch.

 

 
Businesses must meet certain criteria to qualify for LIAs, including:

  • Own brick-and-mortar stores that are open to the public (e.g. no appointment required)
  •  

  • Stores must sell physical goods that do not require additional purchases (e.g. no memberships required)
  •  

  • The store’s physical location must be in the country ads are being targeted to (Google Local Inventory Ads are currently supported in the US, UK, Canada, Australia, Austria, Brazil, Denmark, France, Germany, Ireland, Japan, Netherlands, New Zealand, Norway, Poland, Sweden, and Switzerland)
  •  

  • Customer’s personally identifiable information (PII) must be protected
  •  

  • Google Shopping Policies must be met, and abided by

 

 
In order to get started with Google Local Inventory Ads, there are a few steps you need to follow.
 

Set up necessary accounts

Local Inventory Ads work in tandem with a multitude of Google’s offerings, so you’ll need accounts for the following:

  • Merchant Center: You’ll need to set-up a Merchant Center account and upload your business logo to it
  • Google Ads Account: This will need to be connected to your Merchant account
  • Google Business Profile Locations (fka Google My Business): This will require information about your business locations, so be sure to have that ready. This will also be where you create your store’s unique identifier, which you’ll need when you create your local feed

 

Enable Local Inventory Ads in Merchant Center

Once you have your accounts set up, you need to enable LIAs in your Merchant Center settings.

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how to enable local inventory ads in merchant center

  1. Sign in to Merchant Center
  2. Click Growth in the navigation menu
  3. Click Manage programs
  4. Click Get started on the local inventory ads card
  5. Confirm qualifications are met
  6. Click the plus button
  7. Choose the country where your physical stores are located

 

Create your Shopping and Local Products Feeds

Four data types and sources to run Local Inventory Ads, Store Information, Product Information and Inventory Information

Source: Google

To set-up Google Local Inventory, you’ll need to set-up four different feeds:

  • Google Shopping Feed: This is your standard product ads feed
  • Local Products Feed: This will display a list of available products at each of your store locations
  • Local Product Inventory Feed: This feed displays specifics about your product, such as price, inventory, and location-specific information
  • Business Information Feed: This displays information about each of your stores and feeds that information to Google Business Profile
Depiction of where Google obtains information for Product Feed

Source: https://support.google.com/merchants/answer/3055932

From here, you can give Google information about your products through the local products feed.
Google has a complete list of mandatory and optional attributes, including:

  • ID
  • Title
  • Description
  • Image link
  • Brand

Once this has been created, it’s time to give Google location-specific information about your products. While some required attributes are standard across all items, others are conditional. Review the full list of local product inventory feed specification attribute requirements here, including:

  • Store code
  • Quantity
  • ID
  • Price

Taking the time to optimize your product feed can boost SERP visibility as well as sales, making it an important part of the feed creation process. If you’re not sure how to get started with feed creation, Google provides a detailed walk-through.
 

Register and submit inventory verification

Once your feeds are completed, you need to initiate inventory verification checks in your Merchant Center. After Google has received them, they’ll send out a representative to make sure your in-store inventory matches your local product feed, so be sure your information is accurate. Google may also schedule ongoing check-ins after their initial visit, so it’s vital to make sure your information is always up-to-date. If your inventory levels change frequently, we recommend sending multiple local product inventory feeds throughout the day.

Note that inventory verification is only required if you are using a Google-hosted Local Storefront, or a Merchant-hosted Local Storefront (basic) without a price match guarantee. Additionally, the number of required visits for GHLS users varies depending upon the number of store locations.

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If you are using MHLS (full) or MHLS (basic) with price match guarantee, no inventory verification store visits are required.

Chart with overview of how many inventory verifications are needed depending on landing page type and total number of stores

Source: https://support.google.com/merchants/answer/7083859

 

Apply your Local Inventory Ads to Shopping Campaigns

Now that you’re ready to go, all that’s left is to enable your local inventory ads. You can do this by accessing your Google Ads account. From here, access the shopping campaign you want, navigate to Settings, then select Shopping Settings (Advanced).

Now, simply check the enable local inventory ads box and you’re good to go!

 

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Here are some techniques you can implement into your own Google Local Inventory Ad Strategy.
 

1. Increase bids for nearby shoppers

Use a location extension bid modifier to increase bids for shoppers close to your stores.

Local Inventory Ads are triggered within a 25 to 35-mile radius of your store, serving to potential customers who use their device within this distance.

Screenshot of Google’s location extension for targeting Local Inventory Ads

An especially useful strategy here is to increase bids for shoppers closest to your stores. The closer a shopper is, the more likely they are to visit your location and complete a purchase.
 

2. Increase bids during store hours

You can ramp up bids during your store hours using the location extension bid modifier and setting the modifier to reflect your store hours.

This will help push your store to more shoppers when they want and can get your products.

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Screenshot of Google’s location extension for scheduling and bid adjustment Local Inventory Ads

Note: Make sure your store hours are in blue.

However, this doesn’t mean you should turn off bidding outside of store hours. It’s still important for shoppers to be able to find your products at all hours—instead, simply minimize bid spending.

 

3. Add Store Pickup / Buy Online Pickup In-store options

A “Pick up today” badge on your Local Inventory Ad sends a powerful message that a customer can have their product in-hand very quickly, which can further improve click-through and conversions.

Example of standard LIA vs. BOPIS-eligible LIA for size 6 diapers

Source: Google

“The Buy Online, Pickup in Store feature has been a great addition for Google Shopping over the past few years and we expect to see continued adoption for this feature as many stores adapt to a world where curbside pickup is more prevalent and stores are becoming distribution centers for ecommerce orders.”

Mike Wojciechowski

— Mike Wojciechowski, Senior Director, Shoppable Media at Tinuiti

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To make your Local Inventory Ads eligible for Pickup today, next you need to meet a special set of conditions and also complete the appropriate Feed requirements.

Overview of required and optional feed attributes for BOPIS Local Inventory Ads

Source: https://support.google.com/merchants/answer/9432086

 

4. Use LIAs and Product Listing Ads (Shopping Ads) together

There’s a big benefit to running both organic Local Inventory Ads and paid Shopping Ads (Product Listing Ads) together.

  • You can increase your visibility by covering more of the search results for searches that trigger both your LIA and Shopping ads
  •  

  • For shoppers that are near your store, your LIAs will trigger for both mobile and desktop
  •  

  • For shoppers not nearby, Shopping ads can still trigger on both mobile and desktop

 

5. Run small scale holdout tests

If you have a lot of stores and are uncertain about whether to move forward with local inventory ads, one of the easiest things you can test out is to only run Local Inventory Ads for a few stores.

“Pick stores in different zip codes that have similar levels of advertising investment and in-store traffic. Track the impact of running Local Inventory Ads and gather information on whether store traffic ticks up,” says Wojciechowski.

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“Running this type of holdout test for a few stores will give you valuable insights that could help you gauge the potential impact if you roll out the program to all your stores. You can also work through how easy it is to track the impact for one store and come up with internal workflows that would make it easier to report on at scale.”
 

6. Send a limited amount of in-stock products

“If you can’t guarantee that you will be able to give Google accurate inventory for all of your products in every store location, instead of giving up on the program, you can send Google some of your products,” says Wojciechowski.

“Pick products that you know will be in stock. If you are a fashion retailer, you might want to send only certain sizes or colors of an item that you know most stores will carry/not run out of.”
 

7. Keep up on maintenance

Local Inventory Ads are not a “set-it-and-forget-it” solution.

You’ll need to update Google daily on your in-store inventory, and Google must have some way to verify those inventory counts. Google Business Profile must have all your business’s information, so ensuring this information is accurate is a must.

The solution also includes map pins and additional store information when searches are performed on laptops or desktops.

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big 5 case study for local inventory ads

With proper Feed setup and Local Inventory Ads campaigns, Big 5 Sporting Goods managed to drive a 25% increase in-store traffic, which boosted their ROAS by a factor of 13X.

Read the full story on how Search, Shopping, and Local Inventory Ads are leveraged together to produce results here.
 
Editor’s Note: This post was originally published by Greg Swan in May 2020 and has been updated for freshness, accuracy, and comprehensiveness.

 

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Streamlining Processes for Increased Efficiency and Results

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Streamlining Processes for Increased Efficiency and Results

How can businesses succeed nowadays when technology rules?  With competition getting tougher and customers changing their preferences often, it’s a challenge. But using marketing automation can help make things easier and get better results. And in the future, it’s going to be even more important for all kinds of businesses.

So, let’s discuss how businesses can leverage marketing automation to stay ahead and thrive.

Benefits of automation marketing automation to boost your efforts

First, let’s explore the benefits of marketing automation to supercharge your efforts:

 Marketing automation simplifies repetitive tasks, saving time and effort.

With automated workflows, processes become more efficient, leading to better productivity. For instance, automation not only streamlines tasks like email campaigns but also optimizes website speed, ensuring a seamless user experience. A faster website not only enhances customer satisfaction but also positively impacts search engine rankings, driving more organic traffic and ultimately boosting conversions.

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Automation allows for precise targeting, reaching the right audience with personalized messages.

With automated workflows, processes become more efficient, leading to better productivity. A great example of automated workflow is Pipedrive & WhatsApp Integration in which an automated welcome message pops up on their WhatsApp

within seconds once a potential customer expresses interest in your business.

Increases ROI

By optimizing campaigns and reducing manual labor, automation can significantly improve return on investment.

Leveraging automation enables businesses to scale their marketing efforts effectively, driving growth and success. Additionally, incorporating lead scoring into automated marketing processes can streamline the identification of high-potential prospects, further optimizing resource allocation and maximizing conversion rates.

Harnessing the power of marketing automation can revolutionize your marketing strategy, leading to increased efficiency, higher returns, and sustainable growth in today’s competitive market. So, why wait? Start automating your marketing efforts today and propel your business to new heights, moreover if you have just learned ways on how to create an online business

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How marketing automation can simplify operations and increase efficiency

Understanding the Change

Marketing automation has evolved significantly over time, from basic email marketing campaigns to sophisticated platforms that can manage entire marketing strategies. This progress has been fueled by advances in technology, particularly artificial intelligence (AI) and machine learning, making automation smarter and more adaptable.

One of the main reasons for this shift is the vast amount of data available to marketers today. From understanding customer demographics to analyzing behavior, the sheer volume of data is staggering. Marketing automation platforms use this data to create highly personalized and targeted campaigns, allowing businesses to connect with their audience on a deeper level.

The Emergence of AI-Powered Automation

In the future, AI-powered automation will play an even bigger role in marketing strategies. AI algorithms can analyze huge amounts of data in real-time, helping marketers identify trends, predict consumer behavior, and optimize campaigns as they go. This agility and responsiveness are crucial in today’s fast-moving digital world, where opportunities come and go in the blink of an eye. For example, we’re witnessing the rise of AI-based tools from AI website builders, to AI logo generators and even more, showing that we’re competing with time and efficiency.

Combining AI-powered automation with WordPress management services streamlines marketing efforts, enabling quick adaptation to changing trends and efficient management of online presence.

Moreover, AI can take care of routine tasks like content creation, scheduling, and testing, giving marketers more time to focus on strategic activities. By automating these repetitive tasks, businesses can work more efficiently, leading to better outcomes. AI can create social media ads tailored to specific demographics and preferences, ensuring that the content resonates with the target audience. With the help of an AI ad maker tool, businesses can efficiently produce high-quality advertisements that drive engagement and conversions across various social media platforms.

Personalization on a Large Scale

Personalization has always been important in marketing, and automation is making it possible on a larger scale. By using AI and machine learning, marketers can create tailored experiences for each customer based on their preferences, behaviors, and past interactions with the brand.  

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This level of personalization not only boosts customer satisfaction but also increases engagement and loyalty. When consumers feel understood and valued, they are more likely to become loyal customers and brand advocates. As automation technology continues to evolve, we can expect personalization to become even more advanced, enabling businesses to forge deeper connections with their audience.  As your company has tiny homes for sale California, personalized experiences will ensure each customer finds their perfect fit, fostering lasting connections.

Integration Across Channels

Another trend shaping the future of marketing automation is the integration of multiple channels into a cohesive strategy. Today’s consumers interact with brands across various touchpoints, from social media and email to websites and mobile apps. Marketing automation platforms that can seamlessly integrate these channels and deliver consistent messaging will have a competitive edge. When creating a comparison website it’s important to ensure that the platform effectively aggregates data from diverse sources and presents it in a user-friendly manner, empowering consumers to make informed decisions.

Omni-channel integration not only betters the customer experience but also provides marketers with a comprehensive view of the customer journey. By tracking interactions across channels, businesses can gain valuable insights into how consumers engage with their brand, allowing them to refine their marketing strategies for maximum impact. Lastly, integrating SEO services into omni-channel strategies boosts visibility and helps businesses better understand and engage with their customers across different platforms.

The Human Element

While automation offers many benefits, it’s crucial not to overlook the human aspect of marketing. Despite advances in AI and machine learning, there are still elements of marketing that require human creativity, empathy, and strategic thinking.

Successful marketing automation strikes a balance between technology and human expertise. By using automation to handle routine tasks and data analysis, marketers can focus on what they do best – storytelling, building relationships, and driving innovation.

Conclusion

The future of marketing automation looks promising, offering improved efficiency and results for businesses of all sizes.

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As AI continues to advance and consumer expectations change, automation will play an increasingly vital role in keeping businesses competitive.

By embracing automation technologies, marketers can simplify processes, deliver more personalized experiences, and ultimately, achieve their business goals more effectively than ever before.

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Will Google Buy HubSpot? | Content Marketing Institute

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Why Marketers Should Care About Google’s Potential HubSpot Acquisition

Google + HubSpot. Is it a thing?

This week, a flurry of news came down about Google’s consideration of purchasing HubSpot.

The prospect dismayed some. It delighted others.

But is it likely? Is it even possible? What would it mean for marketers? What does the consideration even mean for marketers?

Well, we asked CMI’s chief strategy advisor, Robert Rose, for his take. Watch this video or read on:

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Why Alphabet may want HubSpot

Alphabet, the parent company of Google, apparently is contemplating the acquisition of inbound marketing giant HubSpot.

The potential price could be in the range of $30 billion to $40 billion. That would make Alphabet’s largest acquisition by far. The current deal holding that title happened in 2011 when it acquired Motorola Mobility for more than $12 billion. It later sold it to Lenovo for less than $3 billion.

If the HubSpot deal happens, it would not be in character with what the classic evil villain has been doing for the past 20 years.

At first glance, you might think the deal would make no sense. Why would Google want to spend three times as much as it’s ever spent to get into the inbound marketing — the CRM and marketing automation business?

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At a second glance, it makes a ton of sense.

I don’t know if you’ve noticed, but I and others at CMI spend a lot of time discussing privacy, owned media, and the deprecation of the third-party cookie. I just talked about it two weeks ago. It’s really happening.

All that oxygen being sucked out of the ad tech space presents a compelling case that Alphabet should diversify from third-party data and classic surveillance-based marketing.

Yes, this potential acquisition is about data. HubSpot would give Alphabet the keys to the kingdom of 205,000 business customers — and their customers’ data that almost certainly numbers in the tens of millions. Alphabet would also gain access to the content, marketing, and sales information those customers consumed.

Conversely, the deal would provide an immediate tip of the spear for HubSpot clients to create more targeted programs in the Alphabet ecosystem and upload their data to drive even more personalized experiences on their own properties and connect them to the Google Workspace infrastructure.

When you add in the idea of Gemini, you can start to see how Google might monetize its generative AI tool beyond figuring out how to use it on ads on search results pages.

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What acquisition could mean for HubSpot customers

I may be stretching here but imagine this world. As a Hubspoogle customer, you can access an interface that prioritizes your owned media data (e.g., your website, your e-commerce catalog, blog) when Google’s Gemini answers a question).

Recent reports also say Google may put up a paywall around the new premium features of its artificial intelligence-powered Search Generative Experience. Imagine this as the new gating for marketing. In other words, users can subscribe to Google’s AI for free, but Hubspoogle customers can access that data and use it to create targeted offers.

The acquisition of HubSpot would immediately make Google Workspace a more robust competitor to Microsoft 365 Office for small- and medium-sized businesses as they would receive the ADDED capability of inbound marketing.

But in the world of rented land where Google is the landlord, the government will take notice of the acquisition. But — and it’s a big but, I cannot lie (yes, I just did that). The big but is whether this acquisition dance can happen without going afoul of regulatory issues.

Some analysts say it should be no problem. Others say, “Yeah, it wouldn’t go.” Either way, would anybody touch it in an election year? That’s a whole other story.

What marketers should realize

So, what’s my takeaway?

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It’s a remote chance that Google will jump on this hard, but stranger things have happened. It would be an exciting disruption in the market.

The sure bet is this. The acquisition conversation — as if you needed more data points — says getting good at owned media to attract and build audiences and using that first-party data to provide better communication and collaboration with your customers are a must.

It’s just a matter of time until Google makes a move. They might just be testing the waters now, but they will move here. But no matter what they do, if you have your customer data house in order, you’ll be primed for success.

Want more content marketing tips, insights, and examples? Subscribe to workday or weekly emails from CMI.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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5 Psychological Tactics to Write Better Emails

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5 Psychological Tactics to Write Better Emails

Welcome to Creator Columns, where we bring expert HubSpot Creator voices to the Blogs that inspire and help you grow better.

I’ve tested 100s of psychological tactics on my email subscribers. In this blog, I reveal the five tactics that actually work.

You’ll learn about the email tactic that got one marketer a job at the White House.

You’ll learn how I doubled my 5 star reviews with one email, and why one strange email from Barack Obama broke all records for donations.

→ Download Now: The Beginner's Guide to Email Marketing [Free Ebook]

5 Psychological Tactics to Write Better Emails

Imagine writing an email that’s so effective it lands you a job at the White House.

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Well, that’s what happened to Maya Shankar, a PhD cognitive neuroscientist. In 2014, the Department of Veterans Affairs asked her to help increase signups in their veteran benefit scheme.

Maya had a plan. She was well aware of a cognitive bias that affects us all—the endowment effect. This bias suggests that people value items higher if they own them. So, she changed the subject line in the Veterans’ enrollment email.

Previously it read:

  • Veterans, you’re eligible for the benefit program. Sign up today.

She tweaked one word, changing it to:

  • Veterans, you’ve earned the benefits program. Sign up today.

This tiny tweak had a big impact. The amount of veterans enrolling in the program went up by 9%. And Maya landed a job working at the White House

Boost participation email graphic

Inspired by these psychological tweaks to emails, I started to run my own tests.

Alongside my podcast Nudge, I’ve run 100s of email tests on my 1,000s of newsletter subscribers.

Here are the five best tactics I’ve uncovered.

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1. Show readers what they’re missing.

Nobel prize winning behavioral scientists Daniel Kahneman and Amos Tversky uncovered a principle called loss aversion.

Loss aversion means that losses feel more painful than equivalent gains. In real-world terms, losing $10 feels worse than how gaining $10 feels good. And I wondered if this simple nudge could help increase the number of my podcast listeners.

For my test, I tweaked the subject line of the email announcing an episode. The control read:

“Listen to this one”

In the loss aversion variant it read:

“Don’t miss this one”

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It is very subtle loss aversion. Rather than asking someone to listen, I’m saying they shouldn’t miss out. And it worked. It increased the open rate by 13.3% and the click rate by 12.5%. Plus, it was a small change that cost me nothing at all.

Growth mindset email analytics

2. People follow the crowd.

In general, humans like to follow the masses. When picking a dish, we’ll often opt for the most popular. When choosing a movie to watch, we tend to pick the box office hit. It’s a well-known psychological bias called social proof.

I’ve always wondered if it works for emails. So, I set up an A/B experiment with two subject lines. Both promoted my show, but one contained social proof.

The control read: New Nudge: Why Brands Should Flaunt Their Flaws

The social proof variant read: New Nudge: Why Brands Should Flaunt Their Flaws (100,000 Downloads)

I hoped that by highlighting the episode’s high number of downloads, I’d encourage more people to listen. Fortunately, it worked.

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The open rate went from 22% to 28% for the social proof version, and the click rate, (the number of people actually listening to the episode), doubled.

3. Praise loyal subscribers.

The consistency principle suggests that people are likely to stick to behaviours they’ve previously taken. A retired taxi driver won’t swap his car for a bike. A hairdresser won’t change to a cheap shampoo. We like to stay consistent with our past behaviors.

I decided to test this in an email.

For my test, I attempted to encourage my subscribers to leave a review for my podcast. I sent emails to 400 subscribers who had been following the show for a year.

The control read: “Could you leave a review for Nudge?”

The consistency variant read: “You’ve been following Nudge for 12 months, could you leave a review?”

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My hypothesis was simple. If I remind people that they’ve consistently supported the show they’ll be more likely to leave a review.

It worked.

The open rate on the consistency version of the email was 7% higher.

But more importantly, the click rate, (the number of people who actually left a review), was almost 2x higher for the consistency version. Merely telling people they’d been a fan for a while doubled my reviews.

4. Showcase scarcity.

We prefer scarce resources. Taylor Swift gigs sell out in seconds not just because she’s popular, but because her tickets are hard to come by.

Swifties aren’t the first to experience this. Back in 1975, three researchers proved how powerful scarcity is. For the study, the researchers occupied a cafe. On alternating weeks they’d make one small change in the cafe.

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On some weeks they’d ensure the cookie jar was full.

On other weeks they’d ensure the cookie jar only contained two cookies (never more or less).

In other words, sometimes the cookies looked abundantly available. Sometimes they looked like they were almost out.

This changed behaviour. Customers who saw the two cookie jar bought 43% more cookies than those who saw the full jar.

It sounds too good to be true, so I tested it for myself.

I sent an email to 260 subscribers offering free access to my Science of Marketing course for one day only.

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In the control, the subject line read: “Free access to the Science of Marketing course”

For the scarcity variant it read: “Only Today: Get free access to the Science of Marketing Course | Only one enrol per person.”

130 people received the first email, 130 received the second. And the result was almost as good as the cookie finding. The scarcity version had a 15.1% higher open rate.

Email A/B test results

5. Spark curiosity.

All of the email tips I’ve shared have only been tested on my relatively small audience. So, I thought I’d end with a tip that was tested on the masses.

Back in 2012, Barack Obama and his campaign team sent hundreds of emails to raise funds for his campaign.

Of the $690 million he raised, most came from direct email appeals. But there was one email, according to ABC news, that was far more effective than the rest. And it was an odd one.

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The email that drew in the most cash, had a strange subject line. It simply said “Hey.”

The actual email asked the reader to donate, sharing all the expected reasons, but the subject line was different.

It sparked curiosity, it got people wondering, is Obama saying Hey just to me?

Readers were curious and couldn’t help but open the email. According to ABC it was “the most effective pitch of all.”

Because more people opened, it raised more money than any other email. The bias Obama used here is the curiosity gap. We’re more likely to act on something when our curiosity is piqued.

Email example

Loss aversion, social proof, consistency, scarcity and curiosity—all these nudges have helped me improve my emails. And I reckon they’ll work for you.

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It’s not guaranteed of course. Many might fail. But running some simple a/b tests for your emails is cost free, so why not try it out?

This blog is part of Phill Agnew’s Marketing Cheat Sheet series where he reveals the scientifically proven tips to help you improve your marketing. To learn more, listen to his podcast Nudge, a proud member of the Hubspot Podcast Network.

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