Understanding Google Shopping: Key Features, Benefits & Best Practices
Google Shopping has come a long way since it was first launched in 2002.From humble beginnings as Froogle - which indexed product data based on certain search terms - the platform has transformed in over a decade to the paid advertising model you see today, where retailers upload their product data through Merchant Center for integration into their Google ads.While the concept of Google Shopping has remained the same, the way it is set up has been updated to create a more streamlined and user-friendly buying experience for both shoppers and advertisers. In this article, we delve into the continued evolution of Google Shopping, the different types of ads, and strategies to optimise your campaigns for the best results.
What Is Google Shopping?
Google Shopping allows users to search for, compare, and purchase physical products from various sellers who have paid to advertise their items.
Typically displayed as thumbnails across the network - including Google Search, Maps, YouTube, and Images - this feature highlights a product’s price, along with the styles and colours that best match the user’s query, helping to drive more qualified traffic to your website.
Did you know that Google serves as a discovery platform for 49% of shoppers?This underlines the pivotal role it plays in introducing new products, so you’re missing a trick if this campaign type hasn’t already been factored into your e-commerce strategy for Pay-Per-Click (PPC).
What Are Google Shopping Ads?
Google Shopping uses a cost-per-click (CPC) system, meaning you only pay when a user clicks your ad.
It takes information from your product feed uploaded through Google Merchant Center, such as images, product title, price, and company name to dynamically generate ads and target them at upper-funnel shoppers across Google search who are interested in buying what you have to offer.
So, instead of bidding on keywords, the product data you provide, combined with automated bidding strategies, will determine when your ads are shown.
Formerly known as Product Listing Ads (PLAs), Google Shopping ads are designed to promote products only. By featuring rich product images alongside your prices, you’re providing searchers with a clear idea of what to expect before they click through, creating an edge over your paid competitors.
Google Shopping Ads vs Performance Max
In 2022, Google’s automated campaign type Performance Max replaced Local and Google Smart Shopping as the primary method for creating and optimising Google Shopping campaigns by utilising asset groups composed of various media types related to a particular product or sets of products.
This change came after the discontinuation of Google Smart Shopping campaigns, which were the first fully automated campaign option introduced that was powered by Google’s AI. These campaigns allowed businesses to advertise their products using automated bidding strategies and machine learning algorithms for ad placement, ad variations, and audience targeting.Google Shopping Performance Max builds on the basic features of Smart Shopping campaigns with five possible conversion goals; Sales, Leads, Website Visits, Local Store Visits, and Promotions. It also supports a wider range of ad formats, including Display and Shopping, for an optimal omnichannel approach.
How To Create A Google Shopping Campaign
There are currently two Google Shopping campaign types; Standard Shopping and Performance Max.
Google’s Standard Shopping campaigns require a good chunk of time to set up and manage in comparison to Performance Max. Now, once you’ve uploaded your product feed, Google automatically uses the information, removing the need to create individual ads or ad groups for each product.
Check out our step-by-step guide below for launching a successful campaign.
Step 1: Create A Google Merchant Center Account
To kickstart the process, you’ll first need to create a Google Merchant Center account.
Step 2: Create A Product Feed
Next, you’ll need to produce a product feed to upload to Merchant Center, which is a spreadsheet containing all your product data. You may already use an e-commerce platform with tools, apps, or plug-ins that can automate this process, or you can consult Google’s product data specification for guidance.
Step 3: Upload Your Product Feed To Google Merchant Center
After creating your product feed, upload it to Google Merchant Center by selecting the ‘Products’ option in the left-hand menu, and then ‘Add Products.’ Choose ‘Add Products From File,’ and specify the country and language for your product ads. Finally, enter the URL for your product feed or upload it directly from your computer. Once this has been completed, your products should start to be added automatically.
Step 4: Create And Launch Your Google Shopping Campaign
To build your campaign, you’ll need an active Google Ads account. Begin by setting a campaign objective - which can include no goal’s guidance - and select the Shopping campaign type. Link your Google Merchant Center account before proceeding with either Standard Shopping or Performance Max as your campaign subtype. Depending on your choice, you may need to manually adjust some settings, such as bid strategy and daily budget, before setting your campaign live.
Google Merchant Center
We couldn’t conclude this article without offering a brief overview of Google Merchant Center (GMC).Google Merchant Center is a platform where retailers can upload product data to power their Google Shopping ads. It is free to use, enabling you to store the essential product information required to generate and serve your product ads to potential customers online. Therefore, without a fully optimised Merchant Centre account, Google Shopping campaigns wouldn't exist.Ultimately, with the Performance Max campaign type taking precedence in the rise of automating Google Shopping campaigns, strategies like bucketing your bestsellers into their own asset group is just one example of a best practice to boost your visibility in search results, allowing you to allocate more budget to these products and prioritise them over your other campaigns.Read our handy guide - ‘10 Best Practices For Google Shopping Campaigns’ - for more tips on how to drive additional traffic and sales via your website.