Everything you need to know about Google Shopping ads

When consumers need something, they often go online right away. As a business, you want your products and services to be visible there. Google Shopping ads make that possible. In this blog, you’ll learn how it works, what the pros and cons are, and how to set it up successfully.

What is Google Shopping?

Advertising on Google is important for many businesses. Do you have an online store? If so, advertising through Google Shopping could be a good option for your business, in addition to advertising through Google Ads. Google Shopping ads are the product ads you see above the search results. There’s also a separate tab called Shopping where you can find more products. For an online store, this is the most important way to advertise: it makes your products immediately visible, including the name, price, image, and a brief description. Google Shopping works through the Google Merchant Center. Listing your products here is free; you pay for the product ads at the top of Google. 

Online shopping has been on the rise in recent years. In 2024 , nearly 13 million Dutch people over the age of 12 had purchased something online in the past three months. 

The Google Shopping ads for the search term “buy red shoes”

The Google Shopping ads under the "Shopping" tab for the search term "buy red shoes"

How much do you pay for Google Shopping ads? This depends on several factors. Just like with Google Ads, you pay per click when your ads appear in the search results. You set a maximum amount you’re willing to pay, including your bids and the corresponding strategy. Depending on your settings, your products may or may not be displayed. Visibility depends not only on your bid, but also on your ad’s quality score: the higher it is, the less you pay. 

What are the pros and cons of Google Shopping ads?

Before you get started with Google Shopping ads, you’ll naturally want to know all the pros and cons. Here they are: What are the benefits?

• Your products will appear right at the top of the search results when consumers enter a search query that’s relevant to your product offerings.
• Since you're at the top, you'll get more clicks on your products.
• Your product is immediately visible. This leads to a higher purchase intent, meaning that clicks that result in a purchase are often more valuable since people already know what they’re buying. 
• It's relatively easy to sign up for Google Shopping and start using it. 
• The cost per click (CPC) is often lower than for text ads, for example.
• You can run ads at the product level, allowing you to create highly targeted ads.

What are the drawbacks?

• Because Google Ads displays far more product ads than text ads, competition is significantly higher. As a result, the click-through rate is often lower. 
• Setting up and uploading your products for Google Shopping ads can be a lot of work. 
• You can't add keywords like you can with Google Ads. Google Shopping uses information from your feed for that purpose. 

Setting up Google Shopping: How do you do it?

To set up Google Shopping ads, you'll need the following: an online store with products, a Google Merchant Center account and a Google Ads account. In short, what are the steps you need to take? 

• Set up your Google Ads and Google Merchant Center accounts completely.
• Create a campaign, including ads. First, make sure your product feed is set up correctly and that Google Merchant Center is linked to Google Ads. 
• Keywords are selected based on the feed you've uploaded. Almost every platform offers a way to implement this via a plugin or extension. 
• Make sure your targeting is accurate. Take location, demographics, and device type into account. 
• Check the auction house and the quality score. Choose a bidding strategy and your cost per click.
• Keep optimizing your ads to achieve the best results. Take a close look at your ad’s quality score, as it helps determine your position in the search results. Also check the data in Google Analytics and the dashboard within Google Shopping itself for more insights. 

It’s important that your online store is set up properly. This includes clear images and complete product information. You’ll want to include as much relevant information as possible in your product feed. 

Design your ads to stand out and grab attention. Think of compelling headlines, clear images, and sufficient product information. Here are a few extra tips: for example, set up negative keywords (irrelevant keywords) so you don’t show up in searches for those terms; advertise specific products rather than everything; organize your ads into ad sets for different target audiences; and use Google Shopping ads for retargeting. 

JKC is here to help you

Are you looking for a partner who can help you develop your marketing strategy and take care of the work for you? JKC would be happy to get started for you. We’d love to work with you to determine how best to use advertising for your business and target audience. 

Looking to outsource ads like Google Shopping ads? We work with you on your marketing!