Google Shopping Ads Explained

Google Shopping is a handy little tool used by savvy shoppers worldwide. It allows users to search for the product they need and easily compare the price without having to visit each individual website. These ads are seen at the top of Google results pages and more comprehensively when a user clicks on the ‘Shopping’ tab at the top of the main Google page. 

Google Shopping is an advertising platform, not an online marketplace. This means that the sellers you see displayed have actively listed a Google Shopping ad, with the goal of directly targeting a specific demographic. These ads are just for products, so you will not see services displayed for sale. 

Very impressively, Google Shopping ads now make up 76% of all retail search ad spend. That certainly suggests that they work very well for many brands. The reason why is obvious; these ads provide high-quality, qualified leads. Think about it; the user has searched specifically for your product and it is now being displayed to them at exactly the right moment for them to make the purchase. It’s a dream scenario! What’s more, the nifty filter function allows shoppers to be very precise in their search. It can be used to set search parameters such as price, brand and seller, which enhances the overall shopper experience. To help with decision making, product review scores are also displayed. This means if your product is particularly good then this is going to quickly be apparent to the shopper.  

One of the other good things about Google Shopping ads is that they don’t require any keyword research. Instead of you selecting which keywords to target, Google decides when your ad is shown based on your product information feed and your budget. 

Another benefit of using Google Shopping ads is that they display images, which the regular text-only Google Ads do not. This has obvious appeal for shoppers as they can see exactly what they’re getting, and they can make sure it matches up to their expectations before they invest more time in going through the purchasing funnel. 

When it comes to the cost of Google Shopping ads, there are a few different ways you are charged depending on your ad type. Product Shopping ads are charged using cost-per-click (CPC), which means that you only pay when someone clicks your ad. On the other hand, Showcase Shopping ads are charged using cost-per-engagement (CPE), which means that your pay when a user expands the collapsed ad and keeps it open for 10 seconds or more, or if they click on the expanded ad before then. You’re in control of your budget, so when you create your campaign you can set how much you pay for each click or engagement and that will be factored into the auction process for your ad to appear.