Why your company should prioritise Google Shopping

Background – what is Google Shopping?

Google Shopping is a growing ad format which gives companies the opportunity to promote products with images in the search result and to drive quality traffic to the website. For many e-commerce businesses, Google Shopping represents a considerable share of online sales. In the US Google Shopping ads win 85% of the paid search clicks.

Although it has proven to be successful in many cases, there are companies that aren’t particularly familiar with the format. Others might not have enough knowledge to work with Shopping in an effective way.

How does Google Shopping work?

Google Shopping is feed-based advertising and promotes products from a company’s inventory by showing price and images in the search result. To start advertising, a feed with products has to be uploaded in a platform called Google merchant centre. This platform has to be linked to a Google Ads account.

Google shopping campaigns are created in Google ads interface, based on the feed structure. Instead of keywords, product groups are used for bidding. For example, a campaign could consist of a main product category with subcategories set as product groups. Prices and stock statuses are updated on a daily basis. The way the feed is structured regarding attributes such as product categories, brands, colours and sizes, determines how the campaigns can be organised. If a feed doesn’t contain enough attributes, there are possibilities to add customer labels through additional platforms such as Lengow and Productsup.

Use Google or CSS

Google recently made Shopping ads on Google search results pages in the EEA and Switzerland available to all approved Comparison Shopping Services (“CSSs”), following the European Commission’s decision in 2017. This means that an advertiser could choose either Google Shopping or a different CSS.

Since other participants were allowed, CPC prices for CSSs have become lower, making it a more inexpensive alternative. However, advertisers using other CSSs won’t get help regarding Google Shopping from Google ads support.

Why use Google Shopping?

  • Since users receive information about the products such as price, colours and extra features already in the search result, they know what to expect when clicking on the ad. This results in traffic of high quality.
  • Once a well-structured feed is in place and the advertising is up and running, the campaigns can be managed quite easily in the Google ads interface
  • Google Shopping campaigns are compatible with a lot of functions in Google ads interface and with third-party tools such as Search ads 360.
  • Broad reach – several products can be shown in the search result at the same time.
  • Profitable ad format. Studies have shown that Shopping ads tend to have up to a 30% better conversion rate than comparable text ads.

Conclusions

Google Shopping is an increasingly important ad format that retailers should have good knowledge about. A tailored feed is essential and can be time-consuming and demanding to create, but usually pays off when it comes to result and time invested in campaign management. It has become more inexpensive to use other CSSs than Google since other participants were allowed.

When done right, advertising via Google Shopping can entail a lot of pros such as quality traffic, good conversion rate and broad reach.

Get in touch!

Blog

Elevating Loyalty within Luxury

Why should you care about loyalty in the luxury industry? Because loyalty programs within the luxury industry are not just beneficial; they’re critical for cultivating enduring connections with high-value consumers. By: Karin Rise on February 19, 2024 | Reading time: 5 minutes Access programs have emerged as a powerful tool in the realm of luxury […]

Read more

Blog

Picking the right social media marketing mix for your business

In today’s complex landscape, the discussion around “the right channel mix” is a hot topic. With different channels offering diverse benefits across the funnel, it’s fundamental to understand where to allocate your budget to drive your business outcome. Putting all eggs in one basket can be costly, and spreading thinly across many might not be […]

Read more

Blog

Understanding your audiences’ search intent

A lot of organic traffic but high bounce rates and low conversion rates? Then, your content likely does not align with your visitors’ search intent. By: Olof Strömbäck on February 5, 2024 | Reading time: 5 minutes Understanding search intent is a valuable tool in optimizing your online presence and ensuring you deliver the right […]

Read more
A decorative image with a wooden monkey.

Blog

Is Leveraging Intent Data in your B2B Marketing a Game Changer, or a Risky Business?

One of the biggest trends for B2B marketing in 2024 is definitely AI-powered personalization. Keeping quality in mind, AI will allow us to create even better CRM programs, more powerful demand generation, and more precise account-based marketing. By: Carl-Johan Färnström on January 29, 2024 | Reading time: 5 minutes Producing personalized content is now easier […]

Read more