There may be some of you who may be wondering which of the two is best: Google Shopping or Google Ads. However, the short and simple answer to this is none. The reason for this is because users can run both campaign types simultaneously and make the most of their advertising efforts. One does not have to exclude the other to work.

You probably know what Google Shopping is all about so let me explain to you how the bidding system for Ads work.

How Does Google Ads’ Bidding System Works?

The entire system basically starts with a keyword or query. As soon as someone places an input on Google, the search engine will start querying advertisers to obtain a keyword that matches certain ad groups. If Google identifies one or more advertisers who are bidding on the terms and are deemed relevant for the search query, then the auction begins.

Ads that are ranked the highest will receive the first ad position on Google. But just because you increased your bid on your ad doesn’t mean that you immediately get to secure the top spot. Each advertiser that has a keyword matching the search query are automatically included in the auction.

The performance of each advertiser depends on the rank of their ad. The top-performing ad rank will immediately show up at the highest order, which is then followed by the second, third, fourth, and so on. After your ad is included in the auction, Google takes into account a couple of factors: the maximum bid as well as the quality score.

Every time an ad is seen as eligible for a search appearance, it is put through the auction which then determines if the ad is to be displayed or not and in what position it comes up on the page.

Basically, here’s how the ad auction works:

  1. Every time a user does a search, the Ads system locates all of the ads connected to the keywords matching the search.
  2. Based on those ads, the system picks out only those that are eligible and takes out those that aren’t like ads focusing on a different country or those that are rejected.
  3. From the ads that remain, only those having enough ad ranking may appear.

 

How to Optimise Your Google Shopping Ads

Now that you know how Google Ads work, it’s time to take a look at how we can optimise our Shopping Ads to get the best possible ROI. Here are three ways you can effectively optimise your Google Shopping campaign performance.

 

1. Exempt Search Queries

Although there aren’t keywords to bid on in Google Shopping Campaigns, search queries trigger Product Listing Ads or PLAs.

It’s possible to find these search queries under the “Dimensions” tab within “View: Search terms” or within the “Keywords” tab upon selecting “Details” and then the “Search Term > All”. Some experts prefer reviewing search queries in the Keywords tab as it allows them to exclude them straight from the interface.

 

What you want is to look for queries that aren’t able to convert but were able to get at least 50 clicks in the last 30 or so days. Another thing to look at is the queries that have the highest cost per conversions and/or the lowest rates of conversion. Knowing which queries to exclude is subjective, so make sure you analyse according to your goals.

 

2. Boost or Suppress Products

Similar to search queries, it’s possible to see the performance of individual products via the “Dimensions” tab. One can see the items that are generating conversions at reasonable rates and those that aren’t.

What you want is to bid higher on products that perform well as you will be giving it more exposure when doing so. At the same time, you may want to lower the bids on products that haven’t been performing well or even exclude them from the equation altogether.

 

3. Identify the Top Brands

It’s also possible to view the performance by brand through the “Brand” report located in the “Dimensions” tab. Similar to individual products, one can see which of the brands right now are performing worse or better than others. Your goal here is to subdivide your product’s category based on their specific brand.

For instance, if you sell shoes, you might want to place a bid on the Adidas brand simply because it provides a high-profit margin. You can then go ahead and exclude anything else within that accessories product label. This approach should result in any “shoe” based search to produce a product listing that contains an Adidas product.

 

Summary on Optimising Your Google Shopping Bids

The tips that are mentioned in this article are just a few of the things you can do to optimise your Google Shopping campaigns. It’s crucial that you first understand how Google Ads work so you know how to make the most of its bidding system, especially in conjunction with your Google Shopping ads.

[Guide] Google Product Ad Listing Campaigns

[Guide] Google Product Ad Listing Campaigns

Google Shopping Advantages   Ever since Google Shopping Ads were introduced in 2010, it has steadily turned into an essential aspect of successful e-commerce marketing. The ads have proven time and time again that they can be more effective compared to...

read more
How to Build an Ecommerce SEO Strategy

How to Build an Ecommerce SEO Strategy

Setting up an e-commerce website is one thing, but getting to rank organically in search results is a major task in itself. To be effective in e-commerce, a more focused approach is necessary.  Here are e-commerce strategies that remain effective and relevant in...

read more
Best Website Hosting for E-Commerce Brands

Best Website Hosting for E-Commerce Brands

The role of an e-commerce website is to facilitate business transactions online, and it involves a lot more bandwidth than your regular site. E-commerce sites are typically larger and require more resources to complete. Some of the most popular e-commerce websites...

read more

Get Your Free Marketing Audit

Uncover your goals
Receive a strategic growth plan
Access our advanced research team
No cost, no obligation