Why should you use Google Shopping Ads?
Why should you use Google Shopping Ads?
Many people still start their product search on Google. So with advertising on Google, you can be right where your potential customers are.
In these search results, there are text-based search ads where you have to write the ad text and add keywords manually.
But there are also shopping ads, where Google does much of this work for you. Its algorithms automatically pull the data from your store, create ads for your products, and match them with relevant search queries.
While Shopping Ads can take more time initially (to set everything up), they require much less ongoing effort afterwards.
This is the main reason I advise businesses to start with Google Shopping. Compared to Search Ads, there's less that can go wrong, which means you will not use up your ad budget as quickly without anything to show for it.
Reason 1: The only way to appear at the top of Google search results.
Another big difference between Shopping and Search Ads is visibility.
Take a look at this screenshot of a typical Google search results page to better understand what's going on:
Google Shopping ads in Google search results.
The Google search results
As you can see, there's not much room left for organic results.
But search ads are also moved further down the page.
Shopping ads get the top spot in search results because their visual format attracts the most clicks.
More clicks mean more profit for Google, but it also seems to work for retailers.
More and more retailers are shifting their advertising budgets from search to shopping ads. According to a study by Merkle, Google Shopping spending is up 38% over last year, while search ads are down 12%.
google ads spend by ad format 2019
Google spend by ad format 2019 - source.
Google Shopping now accounts for 65% of all Google Ads clicks and 89% of clicks on non-branded Google search ads by retailers.
Shopping ads were also more profitable over the same period, bringing advertisers 12% more revenue per click than desktop search ads for non-branded keywords.
Reason 2: Show vs. tell
If you want to buy new Nike Air Max shoes, would you rather click on the Nike search ad or one of the Shopping ads?
Google Shopping Ads vs. Search Ads
Google Shopping Ads vs. Search Ads
Nike did a good job with the search ad, but it only describes the product. The shopping ads show actual products. And if one of them is exactly what you were looking for, chances are pretty high that you will click on it.
These product ads can also be helpful when consumers do not know exactly what they are looking for. Many of them use them as a research tool to find out about different product types, models, colors, prices, and the stores where they can buy them.
Reason 3: Intention vs. Interruption
For most of its history, advertising has been focused on interruption.
That means you are doing something else, like watching a YouTube video, when a video ad pops up:
Example of a YouTube ad by Purple Mattresses.
YouTube ad from Purple Mattresses
When this ad from Purple popped up, I had no intention of buying a new mattress. But maybe I will at a later date. And maybe this ad will help me think of it then.
Compare that to Shopping Ads, which are intent-based. This means that the ads appear when people are actively looking for a solution.
If I search for "Nike Air Max 270", that's a good time for retailers to run ads on that exact shoe:
Google Shopping ads product detail
Detailed Google Shopping mobile ad
Click-through rates and conversion rates are much higher with this type of ad.
This is also reflected in the cost of a click on one of these ads. A glance at a YouTube ad might cost a few cents, while a click on a product ad can easily cost 10 times that.
If all this has piqued your interest, let us take a look at how Google Shopping actually works.
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