A Complete Guide of Google Shopping Ads in 2021

A complete guide of Google Shopping Ads

The eCommerce industry is booming with the current market situation. However, the economic balance of the world has been changed with not less than an epic boundary. 

Google Shopping Ads are a great tool that drives traffic notably and converts users seamlessly. You just need to invest some time and effort to get started, but it eventually works. Google automates the whole process and displays the ads to the right people at the right moment.

But the automation of Google led some advertisers to think that they don’t need to control the Ads. But unfortunately, it’s not true and they must control some critical ad settings. 

Google is the search engine where billions of people search various topics, including products. Users are also searching product-related videos and information, comparing images, etc. It has become necessary for the retailers to take part in Google to improvise their business. 

So in this article, we will take you through a complete guide of Google Shopping Ads. We will cover all the necessary aspects of Google Shopping Ads that you need to know. It will undoubtedly allow you to redefine your Google Shopping campaign. 

What is Google Shopping?

Before informing further about Google Shopping Ads, we should make it clear that it is not advertising. Merchants and advertisers still think Google Shopping and Google Shopping Ads are both the same. 

Google Shopping is a comparison shopping engine for shoppers who are looking to shop online. For retailers, it is an advertising tool to display products to shoppers in an attractive way. Consumers can easily search and compare products from the vast marketplace. 

When a user searches for a product that you are selling, Google will show Ads relevant to your products. Well, not only your products but Google will also display your competitor’s ads as well. Users are redirected from Google to your product page after clicking your Google Shopping Ads. 

Google Shopping ads

Google Shopping Ads generally appear before the text ads and other organic search results. The image above will give you an idea of product ads which were known as Product Listing Ads. The Ads are represented on top of the page due to the user’s search query “Jordan one White.” 

Google Shopping Ad includes eye-catching product images, title, description, retailers name,  etc. On top of product information, user ratings and retailer information are also crucial for conversion. The ads are displayed across different google networks such as search, images, YouTube, etc. 

Google Shopping was initially launched in the USA but currently supported in over 40 countries. In association with Google Shopping Ads, Google Shopping has reached the top ranking. It is currently one of the most popular shopping engines out there in the market.

How Does Google Shopping Operate?

Keywords and search queries are the two most important aspects of Google Shopping Ads. Contents displayed on Google, free product listing, or search result is managed by anything searched on the search bar. Google’s algorithm matches the search results with the user’s input.

When it comes to Google Shopping Ads, keywords are not focused like previous text Ads. Instead, retailers and advertisers are now bidding on the products. It allows its product to get the desired position in Google. However, there is immense importance of keywords on Google Shopping.

Google Shopping ads Functionalities

To be eligible in the Google Merchant Center, the product information should be included in a product feed. Product feed includes all the product information such as name, price, description, etc. Google uses all this information to influence the output of user’s search queries.

Why Should You Use Google Shopping Ads?

People mostly use Google as their search engine to search for anything on the web. So, advertising on Google means being displayed in a ground full of customers. 

Text-based google ads appear on google search results. In these Ads, you have to add the keywords and create the ad copy manually. You can create Standard or Smart Shopping ads to get the best output from your Google Shopping campaigns.

But Google Shopping Ads does a lot of tuning for your product representation. The algorithm pulls your online store’s information and attractive crafts Ads. It also matches the ad with the relevant search queries. 

It takes more time to set up Google Shopping Ads completely. But it requires less time and effort to maintain and get the output. 

This is the main reason why we advise online store owners to focus on Google Shopping Ads. Compared to any other advertising strategy, Google Shopping Ads has a better success rate. We indicate that you will get a better outcome in sales compared to the ad budget. 

Rank on Top of the Google Search Results

The vast difference between Google Shopping Ads and Search Ads is the visibility of the product. The below image portrays a typical Google search results page which gives you a clear idea. 

Google Search Result

In the image, you can clearly understand that there is less room left for organic search results. 

Google Search Ads are getting a lower position on the search result’s page. Whereas Google Shopping Ads are displayed in a top position in the search result due to their visual appeal. 

The number of retailers is increasing on Google Shopping Ads compared to Search Ads. According to research, ad spend has notably increased by 38% on Google Shopping Ads. It decreased by 12% for Search Ads.

Google Shopping now accounts for 65% of all Google Ads clicks and for 89% of non-branded Google search ad clicks of retailers. 

Google Shopping Ads are bringing increased profits in the same period. Advertisers are gaining 12% more revenue per click compared to Search Ads for non-branded keywords.

Comparison between Display Ads vs. Search Ads

If you are willing to buy Nike Air Max Shoes, will you click on Nike Search Ad or Google Shopping Ad? 

Google Display Ads vs. Search Ads

Well, Nike described the product simply within the Search Ad. In contrast, Google Shopping Ads displayed the products. If you are precisely looking for this, there is a high chance that you will click it. 

These ads are even helpful If you are not sure what you are precisely looking for. It can also be used for researching different product models, color prices, types, etc. Moreover, you can compare the stores as well. 

Comparison between Intent and Interruption

If we look at history, we can come to a point and describe advertising as interruption-based. It means that you were engaged watching YouTube videos when video ads popped up. 

Showing Google Ads on Youtube

For example, when the ads displayed on the image popped up, I didn’t intend to buy them. But later, this ad may come to mind at some point at first while buying a new mattress. 

Google Shopping Ads are more intent-based for a good reason. It will show up when people are actively looking to buy a product or a solution. 

If you search for  “Nike Air Max 270”, the shoes related to that exact shoe will be displayed by Google.

Nike AirMax shows on Google Shopping Ads

These types of Google Shopping Ads undoubtedly have higher click-through and conversion rates. The cost of a click in one of these ads is obviously higher than the standard search ads. It generally costs 10x higher than the YouTube Ads. 

After learning all these about Google Shopping ads, let’s learn how Google Shopping actually works.

How Does Google Shopping Work?

As we mentioned before, Google Shopping Ads works differently compared to regular search Ads. Google creates a particular file called Product Feed which Google’s algorithm understands. It contains all the necessary product information such as title, images, price, etc.  

The product information included in a product feed is matched with relevant search queries. Google also creates Google Shopping Ads based on this information. People will see the Ads, including the image and price of the product, with some additional information. 

When someone likes what they see, they click the Ad and redirect to the shop owner’s website. Google charges your account for each click on Google Shopping Ads. Let me provide you with a simple example. 

Say you are selling mobile phone accessories via your online shop. To increase your sales, you have launched a Google Shopping campaign. The steps will be following:

  • Provide your mobile accessories information in a Product Feed file. 
  • Someone is searching for “iPhone 12 Max Pro Back Cover” in the search bar of Google. 
  • The algorithm of Google will select an iPhone 12 Max Pro Back Cover from your store. 
  • Google will then create a Google Shopping Ad for the selected product and display it to the searcher. 
  • The searcher will see Google shopping ads along with other ads and click them.
  • The searcher will then be redirected to your website, where the product is available. 
  • Google then charges you for the click made on the Google Shopping Ad. 

How Does Google Shopping Help your eCommerce Business 

Google Shopping is a great medium to attract more customers or shoppers. It is impressively cost-effective and profitable when you know how to utilize it. 

You can control Google Shopping Ads in a better way because you can manage the whole campaign. Optimizing the campaigns in numerous strategies is up to you. 

Free product listing has become that Jam on the Jelly when paired with Google Shopping Ads. Together these programs can grow your online business in ways you want. But these are the main benefits: 

Broader Reach

Google Search engine is the top-ranking search engine that holds over 91% of the market share. So it is by far the best medium to get a broader reach for the online shop owners. 

Qualified Leads 

There are numerous personalization options in Google Shopping campaigns and Ads. Google Shopping Ads applies an intent-based strategy. Traffics attracted by Google shopping ads are dedicated to clicking and buying specific products. 

Increased ROI 

With proper management, Google Shopping Ads can produce high profitability. The surface on the Google platform provides retailers the opportunity to lure more shoppers. It even takes zero payment when a shopper clicks the product listings.

Improved Technologies

Google Shopping Ad works best when it’s combined with other Google platforms. It works in a targeted way to reach more shoppers and increases sales uniquely. Retailers can access surfaces such as Google Assistant via Google Shopping. 

Google Shopping Ads Cost 

Like search Ads, you must pay Google each time a user clicks your Google Shopping Ad. The typical cost of the Ads is mentioned below. It allows retailers to reach shoppers available on Google Home devices. 

Surface across Google and  Buy on Google ( Formerly known as Shopping Action ) are not fully available in the worldwide marketplace. Still, Google is gradually expanding globally over time. We are emphasizing more on Google Shopping ads rather than other Google platforms. We are also revealing the ways retailers can maximize their campaigns. 

Google Shopping Ads benchmark

The image above displays the average Cost Per Click (CPC) for each of the different categories. The average cost of CPC is $0.66, which is a bit higher compared to Google Ads. But the average cost of Google Ads is $1.16 for online eCommerce stores. 

The average conversion rate of Google Shopping is 1.91% which is lower than the Google Ads averaging 2.81%. Google Shopping Ad clicks are inexpensive, with a lower CPA cost of $38.87. Compared to the cost of $45.27 of all google Ads clicks, it is lower. 

All these statistics represent the average costs of Google Shopping Ads click. But the performance of your Google Shopping campaigns is in your control. With proper optimization, you improve your Google shopping campaign output incredibly. 

Ways to Add Your Products on Google Shopping

The first step is to turn your online store’s products into ads to promote the products. The process will take you through four major components:

  • Your online store and its products, 
  • The Product Feed, 
  • Google Merchant Center Account,
  • Google Ads account

These elements are core functionalities of Google Shopping Ads. In the next section, we will guide you through the process of creating a Google Shopping campaign. 

Creating Product Feed 

A product feed is the powerhouse of Google Shopping campaigns and Google Shopping Ads. It is a file with a spreadsheet or other formats. It contains all the necessary product data for Google. 

Google has its requirement of product information and format of the file. So it’s not always easy to create a perfect product feed. Google disapproves the feed file, and you won’t be allowed to create an Add. After adjusting the error on the file, you will be able to advertise again. 

There are different methods of creating a product feed file for Google Shopping Ads. You can generate a feed file by using a plugin, tool, etc. You can also create the product feed file manually in a spreadsheet, but it’s time-consuming. 

We are mainly focusing on one of the biggest eCommerce platforms named WooCommerce. In WooCommerce, you can integrate the CTX Feed plugin on your website’s backend to generate the feed file. 

CTX Feed plugin – Create an Optimized Product Feed for Google Shopping Ads

CTX Feed Banner

CTX Feed is one of the best product feed generator plugins. You can create the most optimized and error-prone google product feed file with this plugin. The plugin is fantastic because it includes a pre-built google shopping template. 

All the necessary settings of a google product feed are crafted on this plugin. Your website’s WooCommerce product information can be turned into a tuned feed file. Within a few clicks, your feed file will be ready for Google Merchant Center. Amazing, isn’t it? 

To learn more about CTX Feed and product feed generation, you can visit this link. Install plugin to generate product feed and Shopping Ads. 

With our mentioned plugin, you can create a product feed and transfer it into the Google merchant center. The listed apps will also indicate if there is something wrong with the product feed. You are required to make some adjustments to your feed file if there is something wrong. 

Setting Up Google Merchant Center 

After creating your product feed, you can sign up and start the journey with Google Merchant Center. After signing up and creating the account, you have to go through the verification process. The verification process can be done using Google Analytics, Google Tag Manager, or adding meta tags on your site. 

Uploading the Product Feed on Google Merchant Center

Now you can upload your product feed on Google Merchant Center. As we are focusing on WooCommerce stores, you can visit this link to learn more. With our previously mentioned plugin- CTX Feed, you can easily export your product feed.  

Uploading the Feed on Google merchant center

We do not recommend manual upload of product feed because it is time-consuming and not worthy. With the CTX Feed plugin, creating a feed file for large inventory takes only a few clicks. 

After uploading your product feed on Google Merchant Center, you can head over to Diagnostics. This section provides you a clear idea about your feed files’ health.

Google Merchant Centge Diagnostics

You may encounter some errors in your product feed file after uploading it for the first time. Resolve the issues by following the instructions provided by Google. It is recommended to fix all the errors because they may suspend your account. 

Other Configurations

Google also requires you to provide the shopping cots and price comparison information. Click the wrench icon on the top bar named “Shipping and returns.” Now provide the shipping information according to your shipping methods.

Other configuration on Google Merchant Center

If you are selling products in the USA, configure the tax settings. If your online store is located outside of the USA, then you can skip this setting. By clicking the wrench icon in the top bar, select “Tax.” Now You can provide the tax-related information according to your location. 

Tax Settings on Google Merchant Center

Creating Google Shopping Campaign

After your products are approved, create a Google Shopping Campaign inside Google Shopping Ads. To complete this step, create a Google Ads account which is free.

Creating Google Shopping Campaign

In the dashboard of Google Shopping Ads, you can create a Shopping Campaign. Click the plus sign, which is displayed on the “Campaigns screen.” 

Now select the “Create a campaign without a goal’s guidance” option on the next screen. Then select “Shopping.”

Selecting Shopping campaign on Google Shopping Campaign

Standard Shopping VS Smart Shopping campaigns 

After selecting Shopping to create the campaign, you will be given an option to create a Standard or Smart Shopping campaign. 

Standard Vs smart shopping option on Google shopping ads

Innovative shopping campaign shows shopping ads on the Google platform. These ads can appear on other platforms such as YouTube. Your Ads will get more exposure in this type but not ideal for active shoppers. 

The bidding strategy is different in these two shopping campaigns. You can get the max CPC for products on standard shopping campaigns, but it is automated on advanced options. The automated process optimizes the CPC rates and maximizes the conversion rate. 

If you want better control over your campaign, then a standard shopping campaign is your option. 

Finishing the Campaign Setup 

Adjust the general settings of your campaign after selecting the campaign type. Simply provide the name of your campaign, set a budget, bid strategy, and the ad location. 

Fishing the campaign setup on Google Shopping ads

After you are done with the configuration of the Google Shopping Ads group, include additional information. Finally, hit the “Save” at the bottom of the page. 

Now your Google Shopping campaign is ready and good to go. You are ready with one campaign, Google shopping ads, and one product group. Now you can utilize the ads and get the outcome as we have mentioned. 

Google Shopping Ads Best Practices 

Create a properly structured google Shopping campaign to get the best out of it. We can say, to make it short, create one campaign, one ad group, and one product group.

Create product groups by utilizing the product attributes such as product ID, price, brand, etc. You can add information like sales volume or margin to your campaigns via custom labels. 

Another good idea is to utilize the product attributes to filter the inventory. It helps you to set up campaigns based on brand or product type. You can copy your website’s structure to optimize your campaign. 

If you can apply our mentioned tactics to your campaign, it will be highly effective. You will be able to run multiple campaigns with similar structures having the same products. It will let you target any search terms that match your Google shopping Ads. 

Some other tactics include Keyword optimization on Google shopping Ads. You can always make improvements in your product attributes as well. 

Final Words 

Currently, eCommerce platforms and Google Shopping campaigns are strongly correlated. It is proven that Google Shopping ads are bringing a high conversion rate and sales output. Retailers are getting more and more interested in utilizing it every day. 

After implementing the Ads, you won’t get the result right away. There is always scope for improvement. In this article, we have provided a complete guide to Google Shopping ads. 

You will be able to set up your campaigns shortly and implement Google Shopping Ads as well. With our mentioned improvement strategies you can take your shopping journey furthermore. 

2 thoughts

  1. Google shopping ads is awesome and all but how do you track it? There’s old tutorial saying there is a “Conversion” tab at the campaign settings. But, I don’t find any.

    1. To Monitor and optimize your Shopping campaigns check this link.
      To track conversions of your Ads check this link. If you are looking for something else please let me know.

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