Google Shopping serves many businesses as an effective platform to advertise products with high visibility and targeted outreach. The service is now part of the Comparison Shopping Service (CSS) model, which gives businesses the opportunity to advertise their products through third-party providers such as Adference, Feedprice, or Producthero and leverage competitive advantages. Instead of purely text-based ads, Google Shopping enables businesses to engage customers directly through product images, prices, and other specific details. Buyers with purchase intent are reached directly at the right moment, namely when they are searching for specific products on Google.
The advantages of Google Shopping go far beyond traditional ad placement: In the new "Products" tab of Google Search, relevant product information – such as price and seller – is directly integrated. The advantage for the customer lies in the easy overview, as they can compare products from different sellers on a single page without having to click through multiple websites. Previously, offers in the "Shopping" tab ran exclusively through Google Shopping itself. Today, the search results show greater variety through the integration of external providers (CSS). However, the filtering options are somewhat more limited than before, which simplifies the user experience but makes it less detailed.
In this article, we guide you through the essential steps for setting up and optimizing a Google Shopping campaign. Additionally, we provide you with tips and proven best practices to unlock the full potential of your campaign and ensure targeted outreach to your audience.
What is CSS and why is it relevant?
Google Shopping has been part of a "Comparison Shopping Service" (CSS) since 2017, which was created as a result of an EU ruling. The EU imposed a fine of 2.4 billion euros in 2017 because Google abused its dominant market position and disadvantaged competitors.
In response, Google founded the virtual company "Google Shopping Europe" (GSE), which now operates as a kind of independent provider within the Google Shopping environment. Today, in addition to Google, other CSS providers such as Adference, Feedprice, or Producthero can be used.
CSS and its impact: The introduction of CSS also affects click prices (CPC): External CSS providers often offer click prices that are 20% lower than regular Google Shopping. For the same placements, shops pay less through CSS providers, giving them advantages in the auction.
CSS advantages for shop operators
By using an external CSS, shops benefit from reduced click prices. These price savings result from the "virtual bid increase" in the auction, where the CPC increases by up to 20% – without the shop actually paying this price.
Prerequisites: What do I need for a Google Shopping campaign?
For your Google Shopping campaign to start successfully, some basic prerequisites must be met. These include the right accounts and a cleanly structured data foundation:
Google Merchant Center and Google Ads Account
To create a shopping campaign, you need a Google Merchant Center and a Google Ads account. Both accounts must be linked together so that product data from the Merchant Center can be seamlessly used in Google Ads for campaigns. The linking is done in the Merchant Center under "Settings" > "Linked Accounts".
Note: Google has replaced the classic Merchant Center with the new Merchant Center Next. Since September 2024, all merchants have been migrated to the new platform, which offers a simplified user interface and new features.
Website requirements for Shopping ads
Google has high requirements for websites participating in Shopping campaigns. Your website must be SSL-encrypted to guarantee user security. Additionally, return conditions, complete purchase processes, and clear billing information should be clearly visible.
Product information and data quality
For Google Shopping, the accuracy and quality of your product data is crucial. Google Shopping's system works by first matching your product title with users' search queries. If the title and search term are relevant, the other fields are checked to evaluate ad relevance and quality.
Important fields for Google Shopping:
- Title: The title should contain clear relevant search terms.
- Description: Detailed product information that describes important features in an appealing way.
- Price: The stated price must match the website price exactly.
- Product image: High-quality images to engage users and increase visibility.
- Availability: Current availability information to display only available products.
Step-by-step to a Google Shopping campaign
A successful Google Shopping campaign starts with the correct setup of accounts and the product feed.
Account linking: Connect Google Merchant Center and Google Ads
To link Google Merchant Center and Google Ads:
- Access the Merchant Center and sign in.
- Click on the gear icon and select "Linked Accounts".
- Enter the Google Ads account number and confirm the link in Google Ads.
Set up conversion tracking
Conversion tracking helps you monitor the performance of your ads. Create conversions under "Tools and Settings" in Google Ads and integrate the HTML tag on your website (e.g., via Google Tag Manager).
Create and optimize product feed
The product feed contains information about all products to be displayed in your campaign.
Choose feed method
In the Merchant Center under "Products" > "Feeds", you can choose between Google Sheets, scheduled fetch (e.g., XML file), and the Content API.
Tip for optimizing product data: If titles and descriptions in the shop backend are not optimal for ads, you can specifically adjust them in the Merchant Center.
Add advanced product attributes
Use attributes such as sale_price_effective_date for special offers or unit_pricing_base_measure for quantity units to improve the level of detail and visibility of products.
Submit and check feed
Upload the feed in the Merchant Center and regularly check for errors and warnings.
Set budget and bidding strategies
Budget and bids are crucial for the performance of your campaign.
- Choose campaign type and goal: For example, select "Shopping" as the campaign type.
- Activate Smart Bidding: Dynamic bid adjustment to maximize revenue.
- Set daily or lifetime budget: A daily budget is suitable for continuous campaigns, while a lifetime budget optimally supports time-limited promotions.
- Determine campaign priority: If multiple campaigns advertise the same product, you can set a priority.
Audience segmentation and targeting options
Audience Layering and location targeting
Use Custom Audiences and location targeting in Google Ads to specifically address relevant target groups.
Ads for local inventory
If you have physical stores, activate the "local inventory" option in the Merchant Center and ensure that product data is marked as "local".
Feed management and automation
Automation and monitoring help secure data quality and optimize ad performance.
- Set up automatic feed updates: API-based updates keep data current.
- Monitoring tools for error tracking: Use external tools like Channable for advanced monitoring functions.
Analytics and advanced optimization
Optimize your Google Shopping campaign through targeted measures: Use A/B tests for product images and titles to increase click and conversion rates. A detailed structure of product groups and subgroups enables more precise budget control by allowing you to invest specifically in profitable segments. Additionally, you can gain valuable information about traffic sources through URL tracking and final URL parameters and further improve the efficiency of your campaign.
Conclusion: Who is Google Shopping suitable for and when are alternatives worthwhile?
Google Shopping offers a powerful platform particularly for online shops with physical products to specifically address buyers with purchase intent and increase visibility.
- Suitability of Google Shopping: Ideal for businesses with a broad B2C product portfolio such as fashion or electronics.
- Alternatives to Google Shopping CSS: For shops with high cost awareness, CSS providers like Adference or Feedprice offer cheaper click prices.
- Products to be advertised with caution: Health products, financial services, and digital products are subject to specific rules.
Would you like to optimize your Google Shopping campaign? Our SEA experts support you with a customized strategy. Contact us for a non-binding initial consultation.
