In 2024, Google Shopping ads will account for almost 76.4% of retail search ad spending and are estimated to generate 85.3% of the total clicks on these campaigns.
Do you know why consumers love such ads? Because they can tell right away whether you have the product they have been looking for. Ultimately, converting them into leads.
Jump to:
Understanding Google Shopping Ads
Investing In Google Shopping Ads
Working of Google Shopping Ads
Types of Google Shopping Ad Campaigns
Creating Google Shopping Ads Campaign
Setting Up Google Ads Account For Your Business
Google Merchant Center Account
Do you want your products and services to show up on potential consumer searches?
You can do that by using Google Shopping Ads in 2 effective ways, i.e., performance max campaigns and standard shopping campaigns.
In this detailed guide, we’ll help you figure out the type of campaign that would suit your business and help generate better ROI.
Saddle up, time to do some digging…
Understanding Google Shopping Ads
Ever searched for an item on Google before buying it?
Let’s say you want to buy a Tuxedo for an upcoming event. You search it on Google, and a featured page with several options pops up.
The page you are looking at right now is the Google Shopping ads. It lets the retailers advertise their products. Therefore, whenever a consumer searches for a product that you might offer, Google will add your product along with your competitors (if they are pro at running these campaigns) in that product section via Google Shopping Ads.
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By clicking on the ad, Google directs you to the product page. The above image shows Tuxedos from different retailers with their titles, prices, and other relevant information.
If you don’t see an ad, you can also go to the shopping section of Google to review the potential and most relevant options.
Investing In Google Shopping Ads
While there are many other ad formats, why go for Google Shopping Ads?
Think like a potential buyer; when searching Pura Car Diffuser, will you click on the search ad?
Or a Shopping ad?
You can see that with shopping ads, you can communicate product information better.
Working of Google Shopping Ads
It is where Shopping ads save you time searching for good keywords. You don’t need to add text or any targeting phrase, just a product feed. It is a file containing all the information on the retailer’s product, like product description, title, image, reviews, price, and more, required to create the ad automatically.
Types of Google Shopping Ad Campaigns
You can show your Shopping Ads using three types of campaigns (we’ll talk about two in detail because Google has disabled the Smart Shopping Campaign, oops, sorry):
- Standard Shopping
- Smart Shopping
- Performance Max
Although both campaigns differ greatly, they seem similar when it comes to the shopping ads part. You provide Google with the product feed in both campaigns. Google auto-generates the ad and puts it up; if the potential buyer likes your ad, they click on the ad and land on your website. And in return for all this, you pay Google for that click.
Cost of Google Shopping Ads
You have to pay for every click, just like search ads. The CPC for Google Shopping ads is $0.66, with a conversion rate of 1.91%. Not to mention, the CPA is also low for all clicks from Google ads, i.e., $38.87.
Note here that whether your Shopping Ads generate better results than these stats depends solely on the performance of your ad campaigns.
Creating Google Shopping Ads Campaign
Time to gather all the tools you need before going live with the campaign and starting with the 4-must ingredients, i.e., e-commerce store, Google ads account, Google Merchant Center, and finally, the product feed.
First, you need to set up your Google Ads account and Merchant Center and link them. The easy and fun part!
HOWEVER…… the next part (creating product feed)….. can be a little tricky.
Let’s start with the toppings first…..
Setting Up Google Ads Account For Your Business
Setting up a Google Ads account is a piece of cake. In just a few easy steps, you can set up your account.
Business Information
The sign-up begins with the information about your business, specifically the company’s name and URL. This step fast-paces your campaign setup process by allowing Google to create a personalized sign-up process for your business.
Check out our guide on Geo-Targeting: Harnessing Local PPC: A Guide to Geo-Targeting for Enhanced Campaigns
Linking Existing Accounts
You can link your existing accounts, like your Google Business profile account, to optimize your campaign better. Linking accounts like YouTube Channels lets Google do the hard work by generating suggestions for relevant keywords and campaign headlines.
Billing Process
Here is the information regarding the billing process. You must select the country, time zone, account type, and payment method and submit. After submitting the information, you’ll set up your account.
The next step will be the campaign setup. We will discuss it in detail in the following sections.
Creating Product Feed
Now it’s time for the tricky part; although we wanted to discuss it at the end but we like to spoil the fun.
Before creating the product feed, you need to understand what it is and what value it holds.
Well, in simple words, a product feed is the main ingredient of your Shopping Ads. It is like a digital listing of the products you want to sell online—a big data sheet with the product title, description, URL, price, and image.
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You must be thinking, oh well, that sounds like an easy data entry task on Excel; however, it’s not. Google is very particular about the format and information you provide, as errors can lead to Google declining to advertise your products.
To create a product feed, you have two options: use an app/tool or create it manually on a spreadsheet. Though you must buy a subscription for the tools, it’s worth it and better than the manual option.
Google Merchant Center Account
Before setting up your campaign, you must set up your Google Merchant Center and add your product feed.
Why do you need it?
If you want your product to reach the right customers, then you need a Merchant Center. Moreover, with its thorough reporting tools and other features, you can boost your sales.
Let’s start with the setup part:
You need a Gmail or Google Account to sign in. To make things easier, the Merchant Center will guide you on the next steps. You don’t have to complete the process in one go. Take breaks and resume from where you left off.
- The first step is to fill in your business information. It will ask for the business name, address, legitimate phone number, social profiles, information related to customer support, and branding information like a logo.
- Next, the onboarding process will ask for customer checkout information whether you choose Google, your Local Store, or your Website.
- Link the third-party account associated with your business. This helps the Merchant Center optimize your account accordingly.
Yes, it can be a long, time-consuming, and tiresome process, but it will help you sell your products better.
Adding Product Feed To Your Google Merchant Center
In this step, you must add your product feed to your Google Merchant Center Account.
Follow the steps below, and you are good to go:
- Login to your Google Merchant Center ➡️ Go to the Menu ➡️ Select Products ➡️ and from the drop-down Menu, select Feeds.
- It will direct you to the page with all the product feed overviews associated with your Merchant Center.
- You don’t have to upload any product feed if your e-commerce store is connected to the Merchant Center Account. If the product feed is labeled “Content API, “both are connected. You must manually upload the API feeds if you still need to set up.
Manually Adding The Feed:
- You can start the manual process by electing the blue (+) button.
- From there, Google will guide you on the next steps.
After uploading the feed, it’s time to check whether all products have been processed successfully. To check the feed, select Diagnostics on your Google Merchant Center account.
If you see the products highlighted in red, that means they require your urgent attention. Fix the errors right away, as postponement can lead to a suspension of your Google Merchant Center Account.
Fill in the shipping and tax details information along with the product feed, and you are all set up there.
Choosing Campaign Type
As already discussed, with Google Shopping ads, you have two ways to set up your campaigns: standard shopping and performance max campaigns.
Let’s explore both.
Performance Max Campaigns
It is not recommended for small businesses because of the budget constraints and the expensive reach. Large or Medium companies can benefit from this type.
This type of campaign features automation and works on predefined constraints and goals. There is no need for manual adjustments and product group management. It automatically generates ads for different networks associated with Google, like Discovery, YouTube, Display Networks, etc.
You can maximize revenue by boosting product list visibility across various platforms.
Read the latest Google Ads trends: 7 Revolutionary Google Ads Trends To Look Forward To In 2024
Standard Shopping Campaigns
Advertisers have been using the standard shopping campaigns for a long time now. With these campaigns, you have an edge or, let’s say, more control over your campaigns. If something is not working with your marketing goals, you can adjust it manually. No doubt, it offers more control over your Shopping ads but also requires you to invest considerable time and a deep knowledge of the workings of the Google Ads platform.
Also, it is somewhat manual. You can use Google’s smart bidding feature to manage the bidding process.
Performance Max vs. Standard Shopping
Instead of being in two minds, weigh the pros and cons of both types of campaigns and choose the one that best fits your business goals. To make it easier, we have aligned some major differences between the standard shopping and performance max campaigns so that you can have a clear picture of what you are actually stepping into.
Let’s get started:
- With placements available on the Search Network, Display Network, YouTube, Gmail, Discovery, and Maps, Performance Max provides various options. Advertisers can reach a wide range of people on a variety of platforms thanks to this broad reach. Conversely, Standard Shopping is restricted to the Search Network, even when Search Partners are included.
- Performance Max offers flexible options with optional aims for bid strategy, such as maximizing conversions or conversion value. On the other hand, Standard Shopping provides bid methods, including Manual CPC, Maximize Clicks, and Target ROAS.
- The degree of control varies greatly; Standard Shopping offers exceptionally high accuracy, whereas Performance Max campaigns offer reduced control.
- Compared to Performance Max, where campaign transparency is lower, Standard Shopping offers marketers a clearer perspective of their campaigns.
- Performance Max has a relatively small optimization potential, whereas Standard Shopping has a very high potential.
- Interestingly, Performance Max has dynamic remarketing, which expands its functionality; Standard Shopping does not have this capability.
Overall, as each option offers distinct qualities suited to various aims, the decision between Performance Max and Standard Shopping should be informed by the particular requirements of the advertising plan.
Set Up The Google Ads Shopping Campaign
The final nail in the coffin was setting up the Google Shopping Ads Campaign. You’ll create a viable campaign and sell your products online like a pro in a few easy steps.
What are these steps?
Read on to find out
Sign In and Access Campaigns:
- Log in to your Google Ads account.
- On the left side, find and click on “Campaigns.”
Create a New Campaign:
- Click the plus button to add a new campaign.
- Choose “New campaign.”
Select Shopping Campaign Type:
- Pick “Shopping” as your campaign type.
- Click “Next” to proceed.
Enter Campaign Details:
- Give your campaign a descriptive name.
- Choose the Merchant Center account where you uploaded your product feed.
- Specify the country where your products will be sold and shipped.
- The “Inventory filter” is optional; you can skip it for now.
- Select your bidding type.
- Set a daily budget, indicating the maximum amount you will spend on ads daily.
- Leave “Campaign priority” as is unless you are running similar campaigns.
- Decide whether you want your ads to appear on Google search partner web properties.
- Choose the devices (mobile or desktop) where you want your ads to display.
- If applicable, set up geotargeting by specifying the locations where you want your ads to appear.
- If you’re not selling in physical stores, ignore “Local inventory ads.”
Save and Continue:
- After filling in the details, click on “Save and continue.”
Create Ad Group:
- Choose the type of ad group – for beginners, select “Product shopping ad.”
- Enter a name for the ad group.
- Set your bid for the ad group.
- Click “Save.”
Product Groups:
- You’ll initially see only one option on the product groups page: “All Products.”
- Leave it as is; you can create more specific product groups later.
You Are Done!
- You’ve successfully set up your first Google Shopping Ads campaign!
Remember, this is a simplified guide, and as you get more comfortable with Google Ads, you can explore advanced settings and optimizations.
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Final Thoughts
With this post, we aimed to provide you with a thorough understanding of Google Shopping Ads and how to use them to your company’s advantage.
You’ve started launching your product advertising by learning how Google Shopping advertising operates and how to put them up and improve them.
Although daunting, you can ace setting up the campaign by following the guide properly. But if you still need help, Ad Labz is here! We are a Google Ads-certified agency and can create pro Shopping Ads campaigns for your business. Moreover, to sweeten the deal further, we offer comprehensive customized plans to boost your business growth and sales. Contact us and invest in your business future.