In this Google shopping ads guide, we will walk you through how the platform works, and what are the best ways to leverage them to grow brand awareness and revenue.

What are Google shopping ads and how they work

Simply put, shopping ads are the products that appear on top of the page, above the SERPs.
How do they differ from ‘regular’ Google ads? Shopping Ads are based on your Google Shopping feed instead of keyword bids.

As shopping ads have proved so useful for shoppers and retailers alike, Google has steadily extended their reach. Now, shopping ads also appear under the shopping tab, on search partner websites, and even on YouTube. 

Each product listing includes the brand name/URL, price, and annotation (i.e Free Shipping, In Stock, etc.).

Shopping ads are set up and managed differently than ordinary search ads. With text ads, you create campaigns, ad groups, and ads focused around chosen keywords. These ads live within your Google Ads account and are managed through the Google Ads editor.

Shopping ad campaigns, on the other hand, are set up in Google Ads but the important data which includes the detailed product list lives within the Google Merchant Center. When you create a Shopping ad campaign, Google uses your feed, your website, and other factors to determine which search queries will trigger your ads.

This seemingly gives you a lesser sense of control compared to text ads. However, this isn’t necessarily true. It all comes down to knowing how to build a campaign structure that fits your desired level of control while still getting the best from Google. Don’t worry, we will dig into the step-by-step of setting up and optimizing shopping ads shortly.

Benefits of Google Shopping ads

There are many reasons to invest your time and money into shopping ads. Here are 4 ways this platform can benefit an eCommerce business:

Improved visibility and SEO

Google Shopping ads appear at “position 0” – above the highest ranking organic and paid search results. Organic search traffic takes a lot of time, effort, and sometimes luck to build, especially for eCommerce. Google Shopping gives you a shortcut to reaching relevant customers.

Improved lead quality

As we already mentioned, the users exposed to shopping ads are usually high intent. When they click on an ad, it’s with the intent to complete the purchase. This improves the quality of the traffic to your online store.

Boost brand awareness

Not everyone will end up clicking your ad. But even if they don’t, they still saw it and that’s something. Maybe the next time they need something they will click your ad or even go directly to your website because they remember your business.

Get to know your customers better

Google shopping offers extensive analytics about who’s clicking your ads, which product performs the best, and how your campaigns compare to competitors. This data alone is enough to make Google Shopping worthwhile.

How to Set Up Google Shopping Ads

There are two steps you must take before you can really start using Google Shopping – sign up for a Merchant Center account and verify your website.

Merchant Center is essentially the beating heart of Google Shopping. It’s where your feed lives and where you can set tax and shipping rules.

Signing up for Google Merchant is very easy. All you need to do is fill in some basic information about your business.

Once your account is created, it’s time to verify your website. This can be done in one of two ways: through an existing Google product installed on your website (i.e Google Analytics) or by adding a specific tag to your website’s code. This allows Google to make sure the store belongs to you. 

After your website is verified, you will have access to all the features of the Merchant Center. Your next step is to add your products. This can be done in two ways:

Manually – If you choose this option Google will guide you step by step through manually adding all the product details. This can be effective if you only have a few products but inefficient and time-consuming if you have a large inventory.

Create a Product Feed – You can do this by uploading a spreadsheet file that contains all the key details about your products. Alternatively, you can use the Merchant Center Content API to transfer your product data from another existing database like your website or a third-party service like Sellbrite.

These are the data points you must specify and optimize in your spreadsheets and/or product feed management tool:

• Product Title
• Product Type
• Description
• Product Category
• Global Trade Item Number (GTIN)

Product Feed Optimization Tips

As we mentioned earlier, with Google Shopping ads you don’t actively bid on your keywords. Instead, Google crawls your feed and your product details and decides what keywords your products are relevant for.

The data stored in your feed will power everything else on Google Shopping, including what search queries trigger your ads, where they are displayed, and which details are displayed. To put it even more plainly: Google Shopping ads depend on your Google shopping feed. That’s why following best practices and optimizing key elements of your feed is crucial for the success of your campaigns. Here are the most important elements:

1. Get specific in your product title

The title, along with the product image, is arguably the most important part of your feed. Your product title is what instantly communicates to shoppers what your product is. It also tells Google what your product is, so it knows when to show your product to searchers.

That means product titles should contain enough detail to attract shoppers and contain keywords your target audience is likely to search for. When crafting a product title you must include the actual name of the product as well as the top keyword that shoppers want to see, such as brand, color, size, model number, etc. For example:

Weak Title: Air Jordan for Men

Good Title: Air Jordan 1 Mid Light Gray Basketball Shoes

Note that there is a 150-character limit, and Google puts more weight on words that appear first in your title, so the sentence structure and word order should be considered carefully. If you’re using an automated feed tool you could create a rule that combines product name, brand, color, size, and more to form a strong and detailed product title.

A good formula would look like this:
Product+brand+keyword+extra specifications (waterproof, vegan-friendly, ethically sourced, etc)

2.  What to avoid in your title

Now that you know the best practices for shopping ad titles, let’s talk about what you should not do. Your product title should be detailed and enticing, yet simple and straightforward. It is not a promotional space, nor a place to experiment with gimmicks. 

A few things to avoid:

• Don’t put the price in the headline. Keep it in the dedicated prices attribute.
• Avoid symbols, HTML tags, and emojis. It will make your ad look spammy and unreliable.
• Resist the urge to write your title or parts of it in all caps.
• Don’t add promotional phrases like Limited Time Offer.

3. Optimize Your Images

Remember the only thing as important as the title is the images? Let’s face it, some shoppers won’t read a single word of your product description. You want to make sure your image is top-notch because they’ll base their click entirely on it. 

Google prefers product images with plain white background, but images with the product in its intended setting can work too. Remember your images will appear in a thumbnail, so make sure none of the important features is cropped.

Another thing that Google values is quality. Hiring a professional to take product shots is definitely recommended, to avoid harsh shadows, wrong angles, etc. Better resolution images in the best light will convert better. You can find the complete version of Google’s requirements and recommendations here.

4. Include categories and sub-categories

For your product category, you’re choosing from Google’s taxonomy. This field is optional, but we strongly recommend that you fill it out. The category helps guide Google in understanding what your product is so it knows when to show it to shoppers.

Note that if you don’t set a [google_product_category] on your spreadsheet, Google will automatically assign a category to your products. It’s always better to keep matters under your control and assign your own categories.

Once you’ve set your category, it’s time to get granular with sub-categories. Those are important because they can reach niche interests in your target audience.

In this sense shopping ads are similar to search ads – broad targets aren’t as good as defined ones. The more refined your audience is, the more successful your ads will be.

Instead of

Apparel & Accessories > Clothing > Dresses

Go for

Apparel & Accessories > Clothing > Dresses> Summer Dresses > Floral

Using subcategories sets up your campaign for hierarchies. Google is a fan of those because they organize massive amounts of information. A hierarchical chart of types, categories, and subcategories will help you keep your Shopping feed data easily manageable and optimized.

5. Sale price annotations

If your product is on sale, Google will highlight this fact. To prevent merchants from taking advantage of this feature and keep them honest Google will require you to have a base price that you charged for at least 30 non-consecutive days in the last 200 days before there was a price drop.

The new sale price must be at least 5% less than the base price, but no more than 90% less.

6. Put your top keywords in the product type

The product type field is free-form, meaning you can do whatever you like with it. So why not take an opportunity when it’s handed to you? Use the long tail and short tail keywords you would like your products to be triggered by in the title, description, and most importantly the product type. That way, it will rank for relevant queries. Product type isn’t visible to shoppers, only to Google.

7. Add the right link

Your product link should redirect customers to your product page, not to your homepage. Note that there is also a mobile_link attribute. Take advantage of it!

If you have more than one image, use the additional_image_link attribute. While your main image should be as straightforward as possible, it would be a good idea to use more interesting angles for the additional ones. Do NOT, however, add any text or logos to your image.

A Few More Best Practices

1. Remove unprofitable ads

Not every ad will produce the results you hope for. It’s important to consistently measure performance and weed out the ads that don’t do well. That means that they get a ton of traffic but hardly any conversions or the ones that get really, really expensive conversions.

2. Use negative keywords

While you don’t get to bid on keywords in Google shopping you do have the opportunity to set negative keywords, and we recommend that you take advantage of it. This feature makes it so you don’t appear for certain search queries that are unrelated or irrelevant to your products.

If you see there is a lot of traffic on your page but poor conversion rates, it might mean you should take a look at your negative keywords. Setting the right ones can cut out a lot of traffic that lands on your page accidentally and eats away at your advertising budget.

3. Create ad groups

Ad groups help you see the bigger picture of your campaigns. They give you insight into whether some products perform well across various audiences and where there might be room for improvement.

For example, you can have an ad group for different types of shoes, such as boots, high heels, sandals, and sneakers. Then break it down even further into women’s boots, sandals, and sneakers. The deeper you subdivide your products the more data you can abstract about individual product ad performance.

4. Create remarketing lists

Retargeting lets you reach people who have visited your site before. They have already shown interest in your products, but for some reason left without making a purchase. Those users are already familiar with your brand, and research shows they are 70% more likely to convert than cold audiences.

Final Thoughts

Getting started with Google Shopping Ads will require some time and patience. To get the most out of it, you will need to pay attention to detail, but the effort is worth it. Product listing ads connect buyers and sellers in a very efficient way. Making them a must-have platform for eCommerce sellers.

Male sure your Shopping feed is consistently optimized, neat and tidy. If you follow best practices Google will essentially do the heavy lifting for you. And if you run into any kind of trouble, we’re happy to give you a hand!

How to Calculate Your Customer Retention Rate

Before we dive into it, it’s important to make sure you calculate your current customer retention rate correctly. To do this you will need 3 pieces of data:

1. S= Existing number of customers at the start of the time period
2. E = The number of total customers at the end of the time period
3. N = The number of new customers added within the time period

Once you’ve got those numbers, insert them into the formula:  [(E-N)/S] x 100 = CRR
According to Omniconvert, the average customer retention rate for eCommerce brands is around 30%.

The most helpful metrics to pay attention to when you track your customer retention rate are:

1. Repeat customer rate
2. Purchase frequency
3. Average Order Value (AOV)

Strategies to Increase Customer Retention

1. Post-purchase communication

Since we’re talking about customer retention, it makes sense to focus on what happens after the customer hits the ‘buy now’ button. Let’s say a customer just bought a pair of shoes off your site. As great as the product may be, they probably won’t come back if the customer experience is mediocre, and that includes the post-purchase part of the journey.

Communicating with your customers post-purchase is key to retention. Have you ever heard the phrase pre-parcel anxiety? It’s the stress that shoppers experience after they paid for a product, and while they wait for their package to arrive. It’s caused by feeling ownership of something but not having it in your physical possession.

Considering this, the worst thing you can do is ghost your customers right after conversion. Make sure they get a confirmation message right on the thank you page and send them a more detailed confirmation over email. Notify them when their tracking number is created, when the order is in the mail, and when it arrives.

Whether you opt for push notifications or emails, ongoing communication will make your customers feel more at ease until their package arrives. Plus, it will strengthen trust and transparency in your brand.

2. Automate When Possible

Automating processes will enhance the customer experience and make life much easier for you. The post-purchase communication we just discussed, for example, can be automated through tools like Mailchimp or Klaviyo.

Another step to make things easier for you and your customers is to automate returns. According to Sendcloud’s report, the majority of customers will check return policies before placing an order. When you automate eCommerce returns, you can make a workflow that makes processing a return a breeze.

For example, a customer gets in touch to return an item. In real-time, AI bots pick up the customer’s intent, check if their products are eligible for a return, update your CRM, CMS, and courier, and send the customer a prepaid return label. That’s much more efficient than chatting to a customer service representative, then having to wait for days until the return request is processed.

Of course, investing in a number of different automation tools can be costly. Deciding what you want to prioritize and invest in really depends on the size and churn of your business.

3. Start a loyalty program

Loyalty programs are a great way to increase your CRR because they motivate customers to purchase more often to earn rewards. So it’s a profitable exchange for both you and the customer, where everyone benefits from the repeat purchases.

Ultimately, there is no limit to what can be done when it comes to loyalty programs so you can unleash your creativity. You can encourage customers to take part by giving them welcome points when they create an account, for example. You could start rewarding them on their second purchase, or after they spend a set amount of money.

Not only will you increase your revenue that way, but you will also up customer loyalty and engagement. 

4. Go all in on email marketing

Speaking of customer engagement, email marketing plays a critical role in converting and retaining customers. Shopify data shows that in comparison to other marketing channels, email has the highest conversion rate at 4.29%, followed by search.

However, it’s vital that each message you send adds value to your customer’s experience. Otherwise, you run the risk of ending up in the spam folder. 

A great way to start is with follow-up emails. For example, a week after a customer’s first purchase you can send a thank you email, and make it even more impactful by recommending products related to the initial purchase. After the initial follow-up, make sure to send personalized messages regularly, to notify shoppers about promotions, new products, or upcoming sales.

If you have any products that are perishable, consumable, or otherwise have a set lifespan, it’s a good idea to send well-timed emails to keep your brand top of mind when the customer runs out and needs to re-purchase the product.

Not all emails have to be promotional. You can leverage email marketing to send customers valuable, relevant content. You can curate links to articles, how-to guides, or videos that might resonate with your customers, as part of your newsletter.

5. Nurture your customers on social media channels

Social media has enabled brands to connect with their customers on a daily basis and get real-time feedback from them. During the customer’s first purchase, or through email marketing, you can encourage them to follow your social media channels.

Social media campaigns that engage your followers and create a sense of community around your brand have proven to be one of the best strategies to retain customers.

Some ways to achieve that include:

• Hold contests on special occasions
• Share relevant and useful content your customer base would be interested in 
• Engage with your customers through your posts’ comment sections, and answer all direct messages quickly
• Share exclusive discounts and offers only for your social media followers

6.  Leverage user-generated content

User-generated content is a brilliant retention strategy for two reasons – it makes your customers feel recognized and appreciated when you post their content to your brand account and you get quality content and higher engagement. It’s a win-win situation.

You can start by creating a hashtag with your brand name or another keyword that resonates with your brand and ask your followers to post content with that hashtag.

An example of a company that made stellar use of UGC is GoPro. They recently put out a #GoProSnow challenge. The best images were featured on GoPro’s Instagram page which has around 17 million followers – a great way to gain visibility for their customers.  

7. Personalize the customer journey

The entirety of the customer journey should be personalized in the same way your email marketing and customer support interactions are. Your customers should feel as though you understand exactly what they need even before they do. 

There are various ways to leverage personalization in your customer journey:

• Use a CRM tool to segment your customers based on their demographics, online behavior, and pain points. Each of these groups can be targeted with custom messaging and emails. 
• Offer personalized recommendations on your homepage or other product pages.
• Identify customers who have abandoned their carts or haven’t made a purchase in a long time. Send personalized emails or launch a retargeting campaign to re-capture their attention.

8. Offer a subscription plan

Subscription plans aren’t suitable for every eCommerce business, but if you sell a product that’s consumable, or that otherwise needs to be regularly restocked, subscriptions can be an incredible source of recurring revenue.

Traditionally, subscription plans were reserved for supplements, food, and beauty products. However, with a bit of creativity, you can come up with a subscription plan for almost any type of product. To be successful, a subscription plan needs to offer two things:

• Personalization – One of the main benefits of the longevity of a subscription plan is that it allows the brand to get to know the customer really, really well. Over time, you can reach high accuracy in your personalization.
• Value – It’s not the overall price but rather the value for money that is the key factor that makes subscribers stick around.

Take subscription-based cat litter brand Pretty Litter, for example. They market themselves as the world’s smartest cat litter because the crystal changes color when your cat might be having an illness, making it easy to tell when something is wrong with the cat’s health. The company’s Head of Business Intelligence, Joe Barger, suggests what you actually gain from subscribing to Pretty Litter’s service is:

• Convenience – no need to worry about when to refresh the litter or carrying heavy bags around
• Peace of mind – a daily check of whether your cat is healthy

Once you figure out how you can offer your customers value through a subscription plan, the sky is the limit.

Final Thoughts

Yes, reaching new audiences and capturing new customers is exciting, but for an eCommerce business, retaining existing customers ultimately results in greater ROI.
Focus on building relationships with past customers through email marketing and social media, pay attention to their needs and preferences, and consistently think of ways to make them feel seen and appreciated. Your customer retention strategies will have a substantial impact on your business growth.