With the title, you already get the idea of which topic we will talk about today in our article. Yes, the topic is Google Shopping ads. Before we start discussing how shopping ads work, do you know what Google Shopping ads are and what they look like?
What are Google Shopping Ads
Google Shopping Ads is another format of the Google Ads platform. Google Shopping Ads are more advanced and powerful than all other types of ads. And they’re product-based ads that appear in product search results across Google and Google Shopping.
Here you can see two different types of ads. The first one is named PPC ads, and on the right, you can see the shopping ads. Also, you can see these types of ads at the start of the search results.
We also call these advertisements “product listing ads.” In short, PLAs. This ad appears in front of us every time after searching any product name. However, we can only see these ads if an advertiser runs them and targets our location. Otherwise we are not going to be able to see these ads.
Look at the picture. You can see how we got the ad after searching “women’s dress” in Google. Shopping ads are the combination of the product title, product price, seller name, and the review.
Sometimes the review can be missing, but every time you will be able to see a combination of the product name, seller name, and the product price.
So, I hope it’s clear to you how the shopping or product listing ads look!! Additionally, we can find these ads in several other locations, including Google:
- Google Search Network
- Google Shopping tab
- Google Display Network
- Youtube
In this place, we can see shopping ads. But do you know why many brands are choosing the Google Shopping ads?
Why is it so famous in the e-commerce market?
Latest industry data show that almost 30% – 36% of online shoppers start their product search from Google. On average, online shoppers take 20 days to complete a product purchase after starting their search.
Additionally, an interesting piece of news is that Google Shopping Ads generate approximately 80–85% of clicks in retail-focused Google Ads campaigns. From here, you can think about why, day by day, more sellers are choosing the shopping ads.
Additionally, Google Shopping ads are becoming increasingly popular because they reach nearly all networks, utilize backend artificial intelligence, and occasionally include partner networks. And day by day, the internet user number is going up.
Additionally, Google Shopping ads allow you to display many of your products simultaneously, along with their prices. As a result, users who visit your website after seeing these ads are more likely to convert compared to other ad formats because they already have clear visibility into the product and its price before clicking.
Another key advantage is that you already know where Google Shopping Ads appear. When someone searches using your product name or a relevant product-related query, your product has the opportunity to appear at the top of the search results page, increasing visibility and click-through potential.
For these two benefits, our conversion rate can go higher than the other ads. We can benefit more than other types of ads. Every time our ads secure the top position on the page, your product becomes visible to your traffic, allowing them to make a decision based on the displayed product price before they visit the landing page.
For those things, conversion rates increase fast. Great, now it’s time to learn how Google Shopping Ads work!
How Google Shopping Ads Work
The Google Ads platform also runs Google Shopping, or product listing ads. However, the product is sourced from the Merchant Center.
Google Merchant Center is a kind of warehouse. This is the first location where we upload our products. We upload our products as a product feed and then integrate the Google Ads platform with the Merchant Center. This procedure allows us to run Google Shopping Ads through the Google Ads platform using our product list from the Merchant Center.
After successfully running the ads, if someone searches for our product name, Google’s algorithms will select a relevant product from your store, create a Shopping ad for it, and display it to users alongside other ads during related searches. When the searcher clicks on the ad, it directs them to your product page. Google charges you for each click.
This procedure is how Google search ads operate. But do you know how Google calculates the cost for your ads?
How does Google determine the cost of your ads?
Google calculates the cost for your ads in two ways: when someone clicks on your ads, it’s called CPC. Additionally, when someone views your ads for a period of time, Google charges again, and this is referred to as CPE.
We already explain what Google Shopping Ads are, how they work, and what their benefits are. In a separate article, we will provide further details about the merchant center and the setup of shopping ads.
