Google Shopping Bidding Strategies – The Ultimate Guide
By Sarah Michelle
Google shopping Ads has been around for more than 19 years, and in that time it has evolved from a small, experimental project to the most powerful shopping tool on the internet.
In 2022, Google Shopping is set to grow as:
Shoppers are shifting window shopping online
Consumers are in search of better value
Consumers are looking for delivery options
Consumers take time to decide who to purchase from
Consumer demands keep changing.
What are Google Shopping ads?
Google Shopping ads or Product listings Ad (PLAs) is an advertising program that allows advertisers to target certain product categories and products based on customer queries.
For example, when a shopper searches for “plants” on Google, you can advertise that product on Google Shopping to appear on the search results pages. When a shopper clicks on your ad, you can show them more information about your product and collect their information for future marketing.
Why are Shopping ads important?
Google Shopping Ads have many advantages and there are multiple reasons why they are so powerful.
They allow businesses to reach shoppers where they’re looking – and even when they’re not.
They give businesses the chance to speak to their target audience directly through Google, rather than just Google Search results.
They also offer businesses the ability to showcase their products with attractive images and videos, as well as detailed product information and prices.
Lastly, Shopping Ads allow businesses to track how many people have clicked on their ads and converted into customers.
What are the benefits of Google Shopping ads?
1. Lower cost per conversion (CPC)
By advertising directly on Google, you will be able to increase your return on ad spend significantly compared to Adwords search ads.
As shoppers are not searching for businesses by name, they are more likely to click on an ad that matches their search query.
Therefore, you can expect a lower CPC (cost per click) when advertising on Google Shopping.
2. Larger reach
Google Shopping ads can be displayed on both the Google Search Network and the Google Display Network. 85% of Google ads and Google shopping campaigns are served by Google Shopping advertising.
The Google Search Network includes Google.com and other websites that show Google search results. The Google Display Network has millions of websites that partner with Google to show ads.
3. You can reach your target audience directly through Google
You can easily find the right people at the right time with beautiful image and video-rich product listings.
You will be able to reach your customers where they search - on Google.com and across millions of websites in the Display Network, as well as in Android apps.
4. Detailed product info and prices
Google allows you to provide an abundance of information about your product, including high-resolution images, videos, titles, descriptions, and pricing. This helps shoppers learn more about your product before clicking through to your website.
5. Increased brand awareness
As Shopping ads are prominently placed at the top of Google search result pages, you will be able to increase your brand awareness.
Customers often rely on the search engine results page (SERP) to guide trustworthy sites that offer the product they’re looking for, making your ad even more relevant and beneficial.
6. You can track how many people have clicked on your ads and converted into customers
You can track your performance on Google Shopping to know which ads are performing better. You can then use that data to optimize your campaigns for even better results.
7. Showcase your products in rich, beautiful images and videos
Google Shopping Ads allow you to include images and videos of your products, increasing the attractiveness of your ad. This will help customers learn more about your product before clicking through to your website.
8. Increased return on investment (ROI)
As mentioned earlier, Shopping ads have a lower CPC than regular Adwords search ads. In addition, the high visibility of Shopping ads often leads to higher click-through rates (CTRs) and conversion rates, resulting in a higher ROI for your business.
Best bidding strategies for Google shopping
You can either use manual bidding or automated bidding for your Google Shopping ads. No matter what you choose, though, be sure to regularly monitor and adjust your bids so that you aren’t paying more than you need to for each conversion.
Manual Bidding - This is the strategy where you have complete control over setting bid prices per product. You can do this by setting a maximum bid price, which is the most you’re willing to pay for a click on your ad, or you can set a target cost-per-acquisition (CPA), which is the amount you want to spend for each conversion.
Automated Bidding - With automated bidding, you let Google set the bid prices for you. Google will automatically adjust your bids to get as many conversions as possible while staying within your budget.
Which bidding strategy is best for you?
Both manual and automated bidding have their benefits, so it depends on what works best for your business. If you want more control over your bids, manual bidding is the right choice. But if you want Google to be responsible for your bids, automated bidding can save you time and effort.
Here are some tips on how to scale your Google Shopping Ads strategy:
Refresh Your Bids At least Once an Hour
Shopping campaigns are unique in that the auction is continuous. This means that your bid price can change at any time, so you need to be sure to check your bids frequently and adjust them as needed.
Be Aware of Your Position on the Search Page - Since Shopping ads are placed above the organic search results, it’s important to know where your products are placed in the SERP. Always remember that higher positioning on the page means more sales.
Test And Retest Your Bids
As with any other type of advertising, it’s essential to test different bid amounts to see what works best for your business. Try different bids and targeting methods to see what gives you the best results.
Stay Competitive When Bidding
Since the competition for shopping ads is so high, it is essential to make sure your bids are always as competitive as possible. If you let your bids fall too far behind, you could lose out on valuable traffic and conversions.
Bid on Product Category Terms
One of the best ways to ensure that as many people see your ads as possible is to bid on product category terms. This will ensure that your ads show up when people search for products in your category.
Use Price Filters to Control Your Bids
Price filters allow you to set a maximum bid for each product price range. This means that your ads will only show when the product’s price falls within that range.
You can use this feature to ensure that you don’t overpay, which is especially important if there are products in your campaign with meager prices.
Choose the Best Time to Bid
Since Shopping campaigns are ongoing, you can try different times of the day to see what gets you the best results. Try bidding at different times and see if your conversions increase or decrease.
Track Your Results and Adjust Your Bids
As with any other type of advertising, it is crucial to track your results and make changes as needed. If you see that your conversion rate is low, try increasing your bids. If you see that your cost-per-acquisition is high, try decreasing your bids.
Shopping campaigns can be an effective way to get your products in front of more people and make sales. With the right strategy and a little bit of time and effort, you should see some great results.
Remember to keep track of your results and adjust your bids in Google ads as needed to get the most out of your campaign.