Reports suggest that Alphabet Inc.’s subsidiary Google will now allow product ads in image search results and these ads will include a link to buy the product being searched. This move is aimed at encouraging buyers to use Google as their first option to find a suitable product, rather than any other popular e-commerce website such as Amazon. With an increasing number of consumers using their mobile devices for online transactions, the popularity of e-commerce apps is on the rise. Consumers are now bypassing Google search and looking for products directly on e-commerce apps. Google is looking at ways to bring users back to its platform and an ad-on-image search that provides an option to buy the product should be tempting for users. Google is also expanding ads for local retailers, which will allow consumers to not only make purchases for in-store pickup, but to check inventory status as well. We believe that, in the era of e-commerce apps, these initiatives will help Google maintain penetration and attract traffic on its platform.
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