How important is Google Shopping for retailers in 2019?

Written by Run2.
· 3 minute read

Every year it seems Google Shopping becomes ever more prominent in the marketing strategies of retailers worldwide. In 2018 alone, 87% of all retail clicks through Google Ads came from shopping ads. Retailers are fast moving away from search dominated campaigns in favour of Google Shopping Ads. It’s become common to see retail accounts where the majority of the budget is being spent on shopping campaigns.

But why are retailers choosing Google Shopping over Google Search ads? It’s simple. Google Shopping is cheaper, versatile, generally has better ROI’s and gives your products better visibility¬†on Google.


What is Google Shopping?

Google Shopping is an advertising service incorporated within the Google Ads platform. It allows advertisers to have visual product visibility on Google and helps users to easily search for products they’re interested in purchasing and compare product pricing from various different retailers. Google Shopping campaigns are managed through two platforms, Google Ads and Google Merchant Center (Centre!). In Google Ads, you can create campaigns, manage bids, budgets and make other optimisations based on performance data. Google Merchant Center is used to determine which products you want to advertise, your product information, images and data. You can also include your shipping rates in Google Merchant Center and run any product promotions you may have.


It’s a cost-effective way to showcase your products on Google

Generally, Google Shopping Ads are much cheaper than traditional Google Search Ads. For all of our clients using Google Shopping Ads, we see a cost-per-click anywhere between 50% and 90% cheaper compared to Google Search Ads. This cheaper CPC can help improve poor ROI’s and also help to pick up the slack where Google Search Ads may not be working so well. The big difference between the two campaign types is that Google Search uses keyword targeting that you determine. Google Shopping automatically crawls your product information for keywords, this means you have less control over your targeting. The lack of keyword targeting means your product titles and descriptions have to be keyword rich and negative matching is absolutely essential for any Google Shopping campaign.


You can determine whether your products are competitively priced

It’s a great way to determine whether your product pricing is competitive enough. In 2019, shoppers are more price sensitive then ever and brand loyalty is a thing of the past. Consumers have more control over their shopping experience and purchasing power. With just a quick search, users can compare your product pricing against that of multiple other retailers. In some cases, it may be more effective to amend your product pricing rather than amending bids. Your ROI and total revenue may improve by reducing your prices.


New Google Shopping formats continue to improve product visibility

Google recently launched a new Google Shopping Ads format called ‘showcase shopping’. Showcase Shopping Ads allow you to show multiple products for broad, nonbranded commercial searches such as ‘gym tops’ or ‘smartphones’. Showcase Shopping Ads still appear in the same location on Google, but it allows you to show a variety of your products that are relevant to the broad search term. One of the benefits of Showcase Shopping Ads is that a user can browse various products of yours for free in the shopping tab. You’ll only be charged if they click onto your site.


CSS for countries within the European Union can benefit your business

Google’s CSS (comparison shopping service) allows you to easily showcase your product pricing against your competitors. It also allows consumers to easily make informed decisions about which products provide the best value for money. This is great for retailers that have competitively priced products, however, it isn’t great for retailers that cannot afford to keep reducing their prices to stay competitive with large retailers. CSS is only available to use in EU countries.


Your competitors are using Google Shopping Ads!

In 2018 alone, 87% of all retail clicks came through Google Shopping Ads. That’s a lot of search presence and a lot of money being spent on Google Shopping Ads! An 87% share of the Google Advertising space means a lot of, if not all of your competitors are heavily investing in Google Shopping Ads. Google Shopping Ads spend¬†grew 34% YoY from 2016 – 2017, just another testament of how popular it’s become and the value retailers see in Google Shopping.