Business

May 23, 2024
6 mins read
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6 mins read

Google Shopping Ads For E-commerce Businesses

Google Shopping Ads For E-commerce Businesses

Mary loves gardening and has her raised garden bed ready for planting. Unfortunately, she is out of her favorite organic seeds. So, what does Mary do? Like 63% of all consumers whose shopping journey begins online, she turns to Google. After all, Google has an 83.8% search engine market share.
A quick search displays text-based organic seed store Google Ads at the top of her Search Engine Results Page (SERP). However, the result that captures Mary’s attention the most is the Google Shopping Ads carousel at the top of the page.

The world’s largest search engine will also place product listing ads on the top right side of the SERP.

Additionally, you will find your Google Shopping Ad images on the Google Shopping tab. But that is not all. The Google Display Network and platforms like YouTube or Gmail also display Google Shopping ads.

What Are Google Shopping Ads?

Google shopping campaigns advertise individual e-commerce products on the world’s largest search engine. This feature automatically generates shopping ads that display your online product’s image, price, and description to shoppers. Google product listing ads display other product parameters like size, color, or material.

Are Google Shopping Ads And Google Ads The Same?

Both advertising features function via a Google Ads or AdWords account. However, unlike text-based Google Ads, Google Shopping Ads display your product information like price, star ratings, shipping costs, and other useful shopping data on the SERPs.

That said, some Google Shopping ads are organic listings. The Google Merchant Center can generate free listings for your e-commerce shop if you correctly configure your product feed. You only need to opt-in for organic listings via your Merchant Center account. Organic Google Shopping adverts appear at the back after Google has displayed the competitively priced sponsored results.

What are the differences between physical shopping and shopping online?

Physical shopping and shopping online are closely linked.In this digital age, having visibility online before consumers even visit physical stores is advantageous.

Before heading to physical stores, many consumers first check out products online, including where to buy and what brands are available. This step can increase their willingness to visit physical stores. 

Benefits Of Google Shopping Ads For ECommerce Businesses 

One of the primary advantages of shopping ads is that when consumers actively search for products, shopping ads appear at the top of the search results, which is prime real estate and easily noticed. These ads typically feature images and text, including information such as price and color, making it easier for consumers to click through. Clicks on these ads often result in higher conversion rates because consumers have already shown interest in the product and are likely more willing to make a purchase. In other words, the quality of traffic brought by shopping ads is significantly higher compared to general display ads.

Some advantages you may want to consider when compare shopping ads with other forms of digital ads:

  • Google Shopping Ads are a budget option with low cost per click. In contrast, the average Google Ads CPC for the home and home improvement niche is $5.75. Art, travel, and real estate industries have the lowest Google Ads CPC at an average of $1.46 CPC. So, an organic seed online store Google Shopping Ad is 8.7 times cheaper than its text-based Google Ad alternative.
  • Google Shopping Ads are visually appealing, a feature that enhances their conversion rate. Consequently, sectors that have high optics features like HVAC, climate control, travel, entertainment, food, and gardening enjoy a low-cost higher CTR. As an illustration, your online organic seed shop Google Shopping Ads will enjoy a 0.90% click-through rate for a tiny fraction of your AdWords budget.
  • Google Shopping Ads have an average 1.91% conversion rate depending on the industry, because they draw in qualified traffic from the web, so more ROI for your Ad budget spend.
  • Google Shopping Ads display crucial product information on the SERPs, eliminating shoppers’ friction when opening multiple eCommerce pages. So, at least 85.3% of all AdWords clicks originate from Google Shopping Ads. As a result, these ads consume over 76% of all ad spend.
  • Google Shopping ads have a broad reach displaying on a wide range of Google Partner sites and the Display Network.
  • Google Shopping ads tracking has valuable reporting tools that you can use to optimize your campaigns for high ROI.
  • Google Shopping Ads are mobile-friendly and optimized for 60% of online traffic that visits the web using handheld devices.

A Case Study :During the pandemic, are there any changes in performance for a home goods store campaign we managed. 

Due to the impact of the pandemic from 2020 to 2022, there was a significant increase in demand for online shopping. According to GA's data, there was a growing trend in online shopping during this period. Consequently, this client performed relatively better compared to other stores during the pandemic. This might be attributed to shopping ads, as they maintained relatively stable conversion rates during this time. Despite market factors potentially leading to decreased purchasing power among consumers, this client was able to stay steady and attract more consumers in a competitive environment.

What are the future prospects for shopping ads?

During the pandemic, many people shifted to online shopping to avoid crowds, and this trend may continue. People may rely more on online shopping to fulfill their daily needs, including food, home goods, clothing, and more. With the continuous development of artificial intelligence and big data technology, advertising platforms can more accurately target their audience, improving the effectiveness and efficiency of ads. This will make shopping ads even more attractive.

There you have it, many reasons why you should get started with Google Shopping Ads for a high return on your AdWords budget. Are you ready to start your Google Shopping campaign? Leave us a comment and let us know.

 

 

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