Google Shopping: What It Is and How It Works (2024)

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Google Shopping: What it is and how it works 2020
Google Shopping ads are great for driving traffic that converts. They require some initial effort, but then Google automates most of the work involved in creating and displaying these ads to the right people.

But this automation is also why advertisers feel like they don’t have control over what appears and where it appears. In this post, I’ll show you how you can take back some of that control over your shopping ads.

I'll cover everything from setup to optimization, and share poland phone number data resources that will help you further refine your Google Shopping campaigns .

Let's get started!

What is Google Shopping?
Google Shopping is a comparison shopping engine, a service that allows retailers to advertise their products to users who have online shopping websites in a visually appealing way.

This means that if someone searches for a product you sell, Google will show relevant Google Shopping ads for your products and those of your competitors.

If the user clicks on your ad, Google will take them directly to the product page.

Google Shopping Ads Example
The image above shows product ads (formerly known as product listing ads or product listing ads) for the search query “jordan one white” at the top of the page.

Each Google Shopping ad includes an image, product title, price, retailer name, and sometimes retailer-specific information like shipping costs or reviews.

Google Shopping is currently supported in over 40 countries . It is not the only comparison shopping engine, but by far the most popular.

Why should you use Google Shopping?
Many people continue to search for their products on Google. So advertising on Google allows you to be right there, where your potential customers are.

In these search results, there are text-based ads, where you have to write the ad copy and manually add keywords.

But also shopping ads, where Google does most of the work for you. Its algorithms will automatically pull data from your store, create ads for your products, and match them with relevant search queries.

Shopping ads may take a little longer to set up initially, but they require much less effort later on.

This is the main reason why I recommend stores start with Google Shopping . They have fewer hassles than search ads, which means you’re less likely to blow your ad budget with no results.

How Google Shopping Works
As seen above, Google Shopping Ads are very different in the way they work than regular search ads.

First, Google's algorithms process a special file called a product feed (more on that later) that contains all the data about your store's available products (such as titles, descriptions, images, price, etc.).

Google uses this data to match your products to relevant search queries and create real-world ads.

People will see shopping ads relevant to their search queries, showing an image of the product, along with the price and additional information (such as reviews).

If someone likes what they see, they will click on your ad which will take them to your website.

In return, Google will charge you for that click.

Let me give you a simple example. You sell cell phone accessories and launch a Google Shopping campaign to increase your sales.

Provide Google with your product data in a product feed
Someone Googles “iPhone 11 wireless charger”
Google's algorithms select an iPhone 11-compatible wireless charger from your store, create a Shopping ad for it, and show it to the user along with other ads.
The user sees the ads and clicks on yours
The user is taken to your product page
Google charges you per click
How much do Google Shopping ads cost?
Similar to search ads, you pay every time someone clicks on one of your shopping ads.

Let's take a look at the typical cost of these clicks.