Google Shopping ads are visual ads that appear when a user searches for a product on Google.
Here is an example of Shopping ads when a user searches for: [pour over coffee].
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Screenshot search for [pour over coffee]. Annotations by the author, Google, Aug 2022
This ad format is uniquely attractive. Displays additional information relevant to online shoppers, such as product titles, images, prices, special offers, vendor names, local availability, reviews, and more.
What is the difference between Google Shopping Ads and Google Text Ads?
Google Shopping ads appear below the search bar, just like text ads, but since they are not just text, they attract more users’ attention.
There are some differences in how each ad format is managed, which we’ll cover next.
Campaign types
To run Shopping ads, advertisers must enable certain types of Google Ads campaigns – such as a Shopping campaign, Smart Shopping campaign, or Performance Max campaign.
This differs from search text ads, which are placed by enabling a search campaign.
Note that in summer 2022, it will be Smart Shopping Campaigns Upgraded automatically to Performance Max campaigns, and Smart Shopping campaigns will end. The process is expected to be completed by the end of September.
Much has been written about Performance Max campaigns, which are highly automated and can serve ads across multiple Google ad channels.
But since that’s not the focus of this post, when we talk about Performance Max here, we’ll focus on the part that places Shopping ads on search results pages.
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Image from Google, August 2022
targeting
Targeting also differs between search campaigns and shopping campaigns.
Advertisers choose the keywords to display ads in search campaigns.
For Shopping ads, Google decides which product to display for a particular user’s query based on the product data from the feed.
Data such as title and description MPNand product category automatically matches generated ads with relevant keywords instantly.
Account structure
Advertisers can organize their Shopping ads using product groups in shopping campaigns or groups list in Performance Max campaigns to tell Google which products to include in different campaigns, ad groups, or asset groups.
Structuring things helps advertisers show more relevant creatives in Performance Max and set better bids and budgets across all types of Shopping campaigns.
Below is an example of organizing products into two separate Performance Max campaigns.
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Photo courtesy of Optmyzr.com, August 2022
Here’s another simple example.
Let’s say an advertiser sells both TVs and HDMI cables.
Cable carries a higher margin than TVs, so it can be added in a separate campaign with a more aggressive target return on ad spend (ROAS) than the TVs campaign, which has a lower margin.
Of course, cable will be an oversell for many TV buyers, but segmenting the products on a margin basis means that a user looking directly for cable can get a different quote than those looking for TVs who may or may not add some cable to their purchase. .
The text ad structure is simply based on campaigns with ad groups.
The ad group contains the keywords and the ads, so the advertiser focuses on enhancing relevance by writing ads closely related to the keywords.
Ad groups are combined into campaigns, where budgets and bid targets are usually set.
Keeping inventory matching with the right campaigns, product groups or lists can be tedious with both text and shopping ads.
advertisements
The image below shows what Google’s text and Shopping ads look like on a search.
At the top, you have the Google Shopping ads. Below them, you can see text ads.
In some cases, Shopping ads appear on the left side of the search results page.
Text ads are created by combining responsive search ads and Additional advertising information.
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Screenshot of search [ultraboost 2022]Annotations by the author, Google, Aug 2022
Shopping ads, on the other hand, are dynamically generated using data from different feeds from your linked Merchant Center account.
- Title, price and image come from a file Product feed.
- Local availability and store pickup availability come from Local repository feed.
- Promotions and special offers come from Promotions feed.
There are also ways to change prices by region while also implementing regional availability for landing pages on your website.
It is recommended that advertisers use all available advertising channels.
For this reason, ecommerce advertisers should run both Shopping ads and text ads (and possibly several other types of ads on Google).
Text ads can be made more dynamic using ad customizers or third-party solutions that generate responsive search ads (RSAs) from structured business data.
landing pages
In search advertising, keywords specific to specific products usually lead to product detail pages (PDPs), while keywords for more general product category searches usually lead to product listing pages (PLPs).
This is an example:
- specific: Adidas Ultraboost 22. Landing page in different sizes and colors for this specific sneaker.
- qualitativeRunning shoes. The landing page displays all different types of running shoes.
bids
Whereas search campaigns can choose from all Different bid strategies – Including increased revenue or target return on ad spend (tROAS) – Shopping ads must always use one of the two automated bid strategies listed above.
After all, the goal of Shopping ads should be to sell products, and these bid strategies are more aligned with that goal.
However, advertisers should carefully consider how their bid strategy relates to business results.
For example, “conversion value maximization” is equivalent to maximizing revenue, and revenue maximization occurs when profits are zero. This may not be a desirable outcome for profit-focused advertisers.
This is where TROAS comes in and can be used as a leverage to improve profitability. But knowing the right TROAS that balances volume and profitability for each order can be challenging; It’s a standalone art form and something covered here.
Are Google Shopping ads worth it?
If you are in the e-commerce or retail business, the short answer is yes!
Google search is part of the customer journey for many online buyers.
Shopping ads allow you to be there as potential customers are looking for things to buy.
Google Shopping ads offer many other benefits that other Google campaign types don’t.
Shopping ads offer the highest visibility in Google’s SERPs
Shopping ads provide higher brand visibility with more impressions.
And since it’s all displayed at the top (with photos, reviews, and branding), more people can see your products.
Shopping ads have a higher CTR
As shown in the screenshots above, Shopping ads have the highest priority to appear over text ads and organic results.
This means that Shopping ads drive a significant amount of clicks – which is indicated in Merkel performance media report for the third quarter of 2022where “the majority of respondents in the survey [reported] CPC experience and clicks increase year to year across text ads and shopping ads.”
Are Google Shopping ads free?
Although there are paid Shopping ads, Google announced in 2020 that businesses can list their products for free on Google Shopping.
This is different from Google Search, which is the default place a user goes to when they go to google.com.
Google Shopping lives on shopping.google.com Or it can be accessed by clicking on the “Shopping” tab of the main Google search engine results pages (SERPs).
Google Shopping works similar to Google Search and contains a mixture of paid and organic listings, with the paid listings displayed on top.
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Screenshot of search [men’s athletic pants]Annotations by the author, Google, Aug 2022
Even though paid listings get the most impressions, you should not ignore setting up free listings.
Google allows your potential customers to view your products across Google sites, such as the Shopping tab, YouTube, Search, Images, and Google Lens.
To be eligible for free listings, be sure to follow the instructions listed at This page.
conclusion
Shopping ads, whether placed through Shopping campaigns or Performance Max campaigns, can drive a lot of activity for merchants – so they need to be part of your strategy.
But there are big differences between how you optimize search ads and Shopping ads, so it’s worth recognizing the differences and approaching each campaign type differently.
More resources:
- Getting started with free product listings from Google Shopping
- Google offers retail search for e-commerce websites
- Top 10 Pay Per Click Trends To Know In 2022
Featured image: Prostock-studio / Shutterstock
