How Google Shopping Ads Can Drive More Traffic and Sales

01 Aug 2020
Mike Patel
Mike Patel
How Google Shopping Ads Can Drive More Traffic and Sales

If you’re an Ecommerce website owner and want to start using Google Shopping Ads, it can seem like a daunting task. Not only there are a lot of different components to the process, but since everyone is hopping on the Google Shopping bandwagon, competition is fierce.

However, as this platform continues to grow and command attention, it’s imperative that you make it work for your business. Today we want to talk about how Google Shopping can help you get a higher ROI (Return On Investment) on your marketing budget, and what you can do to improve those numbers even more.

A Brief Overview of Google Shopping

In case you weren’t familiar already, Google Shopping is a paid advertising platform. Companies pay Google to show up in search results for particular products, which helps drive traffic and sales to their sites.

If you’ve searched for anything online recently, chances are that you’ve noticed these ads show up before or next to standard search results. Typically, there is an image of the product and a price so that you can compare options and find the best one for you.

These ads show up in regular search results, but there is also a Shopping page on Google itself, which allows more companies to appear.

How Google Shopping Ads Drives Traffic and Sales

According to recent research, the conversion rate for these ads is 30 percent higher than standard pay-per-click marketing campaigns. There are a few reasons for this number.

  • First, shoppers are shown images of the products instead of text, which helps them compare options.
  • Second, each ad directs the customer to the landing page for the product, which encourages that person to buy it immediately.
  • Third, Google allows shoppers to organize the results by various metrics (i.e., price, product listing, etc.), all without having to go to a different site.

Overall, by making comparison shopping more accessible and more comfortable for the consumer, businesses can get more qualified traffic. Since leads can see the product and the price immediately, they are much more likely to buy once they click on a link.

How You Can Maximize Your Traffic and Sales

Although just being in the results page for Google Shopping can improve your bottom line, there are a few ways that you can “hack” better results for your business. Here are a few suggestions we know will work.

  • Optimize Site Content With Your Ads

As with everything else Google does, keywords drive search results. For example, if you sell chew toys for dogs, some of your primary keywords will be “dog chew toy” “chew toys” “squeaky chew toys,” and so on.

However, Google takes a more comprehensive approach to ranking ads. The keywords for both the ad and the landing page on your site have to match, so be sure to optimize both for maximum potential. If there is a discrepancy between the two, it can impact your ranking and your overall traffic. Also read, optimizing Google shopping ads for selling success

  • Segment Your Campaigns

Overall, the goal is to drive as many people to your site to buy products, right? However, considering that you’re paying for each ad and every click, you want to be strategic about how you do it. Rather than uploading a bunch of products and running a single campaign for your digital storefront, segment your campaigns to focus on specific products.

Using our dog chew toy example, maybe you run a campaign on squeaky toys and another on bones. Because these toys are unique enough to warrant specific searches, you don’t want them bundled together and eating up your daily ad budget. Also, if one type of toy converts better than another, you want to focus your attention so that you get a higher ROI for that product.

  • Value Bids According to Profits

Another way that e-commerce companies misuse Google Shopping is setting identical bid prices for all of their products. However, if one item is more profitable than another, you can afford to have a higher bid since you’ll make more money on each sale.

According to recent data, the average conversion rate is 3.78 percent on desktop devices, and 1.14 percent on mobile. Realistically, you want to use the higher percentage to come up with a bid price so that you’re more competitive.

If one product has a profit margin of $10 and another has a margin of $20, the bid prices will be $0.38 and $0.76, respectively (10 x .038 and 20 x .038). By adjusting your bid based on these numbers, you can maximize your ROI and focus your attention on products that will improve your bottom line.

  • Be Smart About Google Shopping

As with any marketing tool, you don’t want to assume that it will work immediately. Be sure to analyze your results and see how well your campaigns are doing. If you’re not getting the traffic or sales you want, make some changes and see what will improve the numbers. This is a powerful digital marketing tool, but only if you use it strategically.

Mike Patel
Mike Patel linkedin

Mike Patel is the Founder and CEO of ioVista, a leading digital commerce agency specializing in eCommerce solutions. With a strong background in business and technology, Mike Patel has been at the forefront of driving digital transformations for businesses. He has successfully navigated the ever-changing landscape of eCommerce, helping companies leverage the power of online platforms to grow their brand, increase revenues, and optimize their digital presence. Under his leadership, ioVista has become a trusted partner with major technology companies: Adobe/Magento, Google, BigCommerce, Shopify, and Yahoo. He is dedicated to staying ahead of industry trends, adopting cutting-edge technologies, and continuously improving strategies to provide clients with a competitive edge. Mike’s commitment to excellence and client satisfaction is evident in every project ioVista undertakes.

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