Customer Match helps advertisers with targeted ads to users
Mobile devices have become crucial to Google (GOOG) as users have started to shift from PCs to mobile. In the last few months, Google has experimented with new tools for advertisers to provide them with more value for their ads.
Late in 2015, Google launched its Customer Match product, which allows advertisers to provide Google with a list of customer email addresses. Google matches these customers with signed-in customers on Google Search, YouTube, or Gmail.
This product allows Google can provide users with relevant and targeted ads. Targeted ads not only help advertisers with better conversion rates, but they also help Internet companies with better ad monetization.
Until now, Google has managed to grow its ad revenues at a healthy rate, as the chart above shows. However, it will need to keep innovating in this market, as it builds on Customer Match.
Facebook and Twitter already provide similar product features
The benefits of Customer Match is accessible for advertisers as well. Google noted that specialty retailer Williams-Sonoma (WSM) experienced a 50% increase in revenue from the use of Customer Match. This kind of ad product is similar to what Facebook (FB) already provides to its users—the Custom Audiences program. Facebook accounts for 5.4% of the PowerShares QQQ Trust, Series 1, ETF (QQQ).
Custom Audiences enables marketers and advertisers to use basic user data, such as email addresses, to segment current and prospective customers on Facebook and target them with ads.
Similarly, Twitter’s (TWTR) Tailored Audiences product allows businesses to provide Twitter with a list of its customers’ email addresses, people who have visited their websites, or people who have taken some action on businesses’ mobile apps.