How To Optimize Your Google Shopping Ads Like a Pro

Google Shopping Ads optimization is one of the most important ways for you, as a brand, to position yourself strategically in front of a huge audience.

What’s the first thing you notice when you enter an offline store? For me, it’s how they neatly organize their best products, right where they grab the attention of anyone who enters the outlet. In the same way, Google Shopping ads enhance your visibility by placing you at the top of Google SERP, increasing the click-through rate, and reaching the right audience with targeted campaigns!

While this might be the case, most brands struggle with it, as optimizing your products perfectly for the merchant center can get a bit tricky if it’s your first time!

If that’s you, well, not a thing to worry about right now. The team and I have compiled a detailed guide on Google Shopping Ads optimization, featuring expert tips, strategies, and a few insider tricks.

All you need to do is sit back and read while you sip your morning tea!

Off we go then!

Optimize Your Product Feed for Maximum Performance

Before we delve into the subject, we need to understand what your pain point is.

Most businesses or brands struggle because they do not optimize their product data.

Understanding Product Data for Google Shopping

Product data is the detailed information about each item that you want to advertise on Google Shopping Ads. Why is this so important? Well, Google uses the information from your product feed to determine whether to show your ads or not.

What’s a product feed?

A product feed is a digital file that lists all your products and their attributes, such as title, price, image, description, and more. This feed is submitted to Google Merchant Center, which then shares the data with Google Ads to create Shopping campaigns. The quality of your product feed directly affects how often your ads appear, how relevant they are to shoppers, and how likely they are to convert.

An optimized and updated product feed ensures that you cost-effectively improve your click rates. How? By reaching the right audience at the right time. Google matches your ads to user searches using this information.

Accurate and complete feeds receive more impressions and clicks. At the same time, mistakes or missing data can lead to disapproval or less frequent display of your products.

Here are the components of a well-structured feed:

• Titles: They must be descriptive and clear names (e.g., “Nike Air Max 90 Running Shoes – Red, Men’s Size 10” rather than “Red Sneakers”). It is always better to add brand, product type, model, color, and size.
• Images: Use professional, clean photos against a white background, and if possible, from multiple angles (minimum 800×800 pixels) to maximize product visibility.
• Descriptions: Keyword-dense descriptions that describe features and benefits.
• GTINs/MPNs: These are musts for branded items. They let Google match your products more precisely, resulting in better positioning and higher conversions.
• Prices: Be competitive! Use the sale price field to promote sales and drive more clicks.

Now, there are a few aspects in each of these attributes that you must keep a close eye on.

Key Product Attributes That Affect Performance

1. Images: The First Impression Counts

Images are the most impactful aspect of your Google Shopping Ads. They are, first and foremost, what shoppers notice. They have the power to make a person click your ad or scroll over it. Quality images not only improve click-through rates (CTR) but also establish credibility and professionalism.

Best Practices for Google Shopping Ads Images

• Use a neutral white background: This retains focus on your product and satisfies Google’s preferred standards.
• High resolution: Use a minimum of 800×800 pixels for best clarity. Google’s minimum requirements are 100×100 pixels for non-clothing and 250×250 for clothing, but it’s always better to be a point above that, as higher resolution gets noticed more.
• Reveal the complete product: Don’t crop off any bits of the item. The full product should be seen, and the image should reflect exactly what’s for sale.
• More angles: Use secondary images to depict different perspectives, close-ups, or the item in use (lifestyle photos). This gives consumers a 360-degree view of your product.
• No watermarks, logos, or text overlays: Google does not allow these, as they take attention away from the product and can result in disapproval.
• Match the image to the product variant: If you have multiple colors or styles available, make sure each variant has its corresponding image.

2. Product Titles: Optimize for Relevance & Clicks

Titles are what Google uses to find your products when users enter a relevant search query, and consumers use them to understand what you offer. This makes it extremely important to include the relevant keywords while framing your product titles.

Here are a few best practices you must follow:

• Provide key information: Begin with the brand, followed by the product type, model, major features, color, size, and any distinctive identifiers.
• Use keywords naturally: Research what your target audience is searching for and use those keywords in your titles. Stuffing the keywords will only make it look awkward with no results.
• Structure it properly: Place the most essential information first, as Google will shorten titles exceeding 70 characters.
• Be descriptive and specific: Use unique titles. Don’t write “Laptop – Silver, 16GB RAM.” Instead, write down specifications and functionalities.

For example:

Instead of – “Phone – Black, 128GB”

You can use: “Samsung Galaxy S23 – 6.1” AMOLED Display, 128GB, Phantom Black – Factory Unlocked”

3. Price & Sale Price: Remain Competitive

Price influences the buying decision completely! Also, Google Shopping users tend to be price-conscious and look at multiple listings. A survey by Statista revealed that more than 83% of respondents compared prices on various sites before making a purchase.

Best Practices for Pricing:

• Compete fairly: You must first compare your price to competitors using Google’s Price Benchmark Report. If your price is higher than others, your ad could receive fewer clicks or impressions.
• Highlight the discounts: If your store is having a sale, complete the “sale price” field. Google will show the original price crossed out and the sale price beside it, which gains more attention and can enhance conversions.
• Be honest: Make sure the price in your feed is the same as on your site to prevent disapprovals and loss of trust.
• Monitor and adjust periodically: Pricing is dynamic. You need to keep a close eye on your competitor’s deck! Regularly review your prices and adjust them according to market trends and competitor activity.

4. Other Product Features to Stand Out

Although not always required, adding additional attributes can give your ads a completely unique touch. This will help customers to make quicker decisions.

Important Additional Attributes:

• Color: This is particularly relevant for clothing, furniture, and accessories. Consumers frequently browse by color.
• Size: Providing accurate dimensions enables customers to purchase the correct size, especially for clothing, footwear, and home appliances.
• Material and Features: Emphasize distinctive benefits such as “100% organic cotton,” “waterproof,” or “energy-efficient.”
• Shipping & Return Policies: Show benefits such as “Free Shipping” or “Easy 30-Day Returns” in your ad or product description to establish confidence and minimize buying reluctance.

For instance, if you simply quote a “casual black shirt”, it does not add any value to you as a brand, nor to the customer who sees it. Instead, mention the attributes that make your t-shirt stand out. Like: “Men’s Cotton Crewneck T-Shirt – Charcoal Grey, XL – 100% Organic Cotton”

Common Product Feed Errors and How to Fix Them

Google Shopping Ads optimization is a must if you want to make the most out of it. Even minor errors can result in disapproved products, lowered visibility, or unnecessary ad spend. I have listed a few of the most prevalent product feed errors, their causes, and step-by-step fixes.

1. Price and Availability Inconsistency

Google verifies whether the prices and stock on your feed match those on your site. If it varies, for instance, your feed reports “in stock” at $29.99, but your site indicates “out of stock” or $34.99, Google can disapprove the product or suspend your listing.

This error might have happened due to multiple reasons:

• If you made price or stock changes on your site but forgot to update them in your feed.
• Manual feed uploads don’t reflect real-time updates.
• Flash sales or promotions have ended, but your feed hasn’t been refreshed.

How to Fix:

• Automate Feed Updates: Use a feed management tool or plugin that syncs your website and feed in real time.
• Double-Check Before Uploading: Manually verify key details, such as price and stock, before submitting your feed.
• Schedule Regular Audits: Compare your feed and website data regularly to catch discrepancies early.

2. Incorrect or Missing Product Attributes

Google requires specific fields, such as title, price, image, GTIN, and brand, that cannot be left blank. Incomplete or poorly formatted attributes may cause disapprovals or low-performing ads.

Typical Attribute Mistakes:

• Missing GTIN/MPN (product-specific identifiers)
• Incomplete or unclear titles/descriptions
• Missing or poor-quality images
• Missing shipping or tax data

How to Correct:

• Complete All Required Fields: Double-check before proceeding. Ensure that all products have all required attributes completed appropriately.
• Obey Google’s Rules: Use Google’s attribute rules for every field.
• Use Diagnostics: Go to the Diagnostics tab in Google Merchant Center to identify which products are missing or have incorrect attributes and correct them individually.

3. Incorrect Product Categories

If you classify your product under the incorrect Google Product Category, it may not appear in relevant searches or may be displayed in unrelated searches.

Why It Happens:

• Speedy feed setup or unfamiliarity with Google’s taxonomy.
• Application of broad categories rather than precise ones.

How to Fix:

• Use Google’s Taxonomy Guide: Select the most precise and relevant category for each product.
• Automate Category Mapping: Utilize feed tools that assist in mapping your products to the correct categories.
• Review Frequently: Audit your feed after introducing new products or altering it to ensure proper categorization.

4. Invalid or Absent Identifiers (GTIN/MPN/Brand)

Google uses one-of-a-kind identifiers, such as GTIN, MPN, or brand, to connect your products with buyer searches. Inaccurate or missing identifiers restrict your product’s visibility.

How to Fix:

• Provide Correct Identifiers: Always add correct GTINs, MPNs, and brand names for branded products.
• Remove Duplicates: Don’t use duplicate GTINs or the same identifier for various products.

Quick Note:

You can use Google Merchant Center Diagnostics to fix errors:

• Visit Products, and go to Diagnostics to observe an error breakdown, warnings, and notifications.
• If you click on each error, it will provide information and Google’s suggested solution.
• Resolve errors first, and then resubmit the feed after making the necessary repairs.

How to Leverage Product Categories and Custom Labels

Before we proceed, it is essential to understand why accurate product categorization is crucial for Google Ads optimization.

Google Product categories are used to organize and classify your products according to Google’s taxonomy.

What’s Google Taxonomy?

It is a long list of categories that Google uses to classify and segment the products in a shopping feed. There are more than 6,000 categories that ultimately help users find what they are looking for with minimal effort.

By classifying the products into accurate categories, Google can easily understand you as a brand and what exactly you sell. This leads to:

• Search Alignment: The products appear for the correct search query, thereby reaching the intended customers.
• Ad Performance: It improves visibility and increases the click-through rates.
• Cost Efficiency: There will be no wasted ad spend on irrelevant clicks. Why? Because your products reach high-quality leads.

So, How do Custom Labels Work?

Custom Labels are individual fields in your product feed that allow you to organize and segment products in any way you like. You can include a maximum of five custom labels per item (custom-label-0 to custom-label-4). Note that their values are visible in your Google Ads account, but not to customers.

These labels can refer to various aspects, including seasonality, sales status, profit margin, stock quantity, or promotional campaigns.

The best part is that you can apply distinct bidding strategies to each group, which in turn optimizes your budget and return on investment (ROI).

For example, you can label products as “Summer,” “Winter,” or “Back to School” to raise bids during busy seasons.

Here’s how you do it:

• Choose what’s most important for your business.
• Add the labels to your feed for each product.
• Configure product groups within Google Ad.
• Adjust bids and budgets.

That’s it!

Optimize Your Google Shopping Campaign Structure

An organized campaign structure acts as the foundation for your Google Shopping ads. With a proper and organized structure, you get autonomy over budget, bidding, targeting, and reporting.

Let’s first understand the hierarchy. Google Shopping campaigns have a four-level hierarchy: Campaigns, Ad Groups, Product Groups, and Products.

• Campaigns: Establish overall objectives, budgets, bidding strategy, and targeting (place, language, etc.).
• Ad Groups: Group similar products and initiate initial bidding.
• Product Groups: Split ad groups by attributes such as category, brand, item ID, or custom labels. Here, you regulate bids at a detailed level.
• Products: Your items within your feed.

Each level gives you more control over how ads are displayed and how much money you spend.

Next, let’s look at the two types of Google Shopping campaigns…

Standard Shopping vs. Performance Max (Smart Shopping)

There are mainly two types of shopping campaigns: standard shopping and smart shopping (previously called Performance Max).

Standard shipping campaigns give you complete control over how your ads run and how much you bid. Smart shopping campaigns, on the other hand, use Google’s AI to make most of the campaign settings automated. Google determines where and how to display your ads, manages bids, and reaches audiences across all Google properties (Search, Shopping, YouTube, Gmail, and beyond).

Key Differences, Advantages, and Limitations

Standard Shopping Campaigns

• Manual Control: You place bids on every product category and can manually change them as desired.
• Audience Targeting: You can add audience lists (such as remarketing) and manage bids on them.
• Negative Keywords: You can prevent your ads from appearing on non-relevant or low-quality search queries.
• In-Depth Reporting: View precisely which search terms engaged your ads and how every product was campaigned.
• Customization: Organize campaigns by product type, price, margin, or season.

Advantages

• Maximum control and transparency.
• Can be optimized for a particular product or keyword.
• Suited for advanced tactics and optimizations.

Limitations:

• It takes more time to manage.
• Might need more expertise and ongoing oversight.

Smart Shopping (Performance Max) Campaigns

• Automation: Google’s AI places bids, selects placements, and targets audiences on your behalf.
• No Negative Keywords: You cannot omit individual search terms.
• Limited Reporting: You get less insight into which search terms caused your ads.
• Simple Setup: Simply choose products, determine budget, and Google will take care of the rest.
• Wider Reach: The ads can be displayed on Search, Shopping, Display, YouTube, Gmail, and Discover.

Advantages:

• Saves a ton of time and effort.
• Increases reach across several Google channels.
• Suits advertisers who have limited time or experience.

Limitations:

• You get less control and visibility.
• More challenging to troubleshoot or optimize per product.
• No negative keyword available.

Best Strategy?

Do both! Use Standard Shopping for your high-priority items, and Smart Shopping for the rest or to test new items.

Example of a Campaign Structure

Segmenting Your Campaign for Better Performance

Segmenting, here, refers to the categorization of the campaigns into meaningful groups according to their performance, goals, and attributes. This helps you get a clearer picture of your budget and the optimization strategies you must focus on.

Here’s why you should segment your Google shopping Ads campaigns:

• Maximize ROAS: You can allocate more budget and bid higher on high-converting products, while reducing spend on low-performing ones.
• Improve Relevance: Aggregate products with similar attributes or objectives to display the correct products to the proper audience at the correct time.
• Simpler Optimization: Examine performance closely, making it easy to identify winners and losers and implement changes quickly.
• Improved Budget Control: Stop wasting your money on underperforming employees and ensure your top products receive the recognition they deserve.

Common Segmentation Tactics

• One Campaign Fits All: All products are packaged into a single campaign.
• Segment by Best Sellers: You create separate campaigns or product groups for your top-selling products.
• Segment by Product Attributes: Organize products by brand, category, product type, or other characteristics.
• Segment by Profit Margin: In this method, the products are segmented by their profit margins (high, medium, low).
• Segment by Performance Tiers: Here, you categorize products into high-, mid-, and low-performing groups based on conversion rates or return on ad spend (ROAS).

Smart Bidding Strategies for Maximum ROI

So, what’s smart bidding? It is Google’s set of automated, AI-driven bid strategies that aim to make advertisers achieve the best possible outcomes with their Google Shopping ads. This approach removes the guesswork of manual bidding and releases greater return on ad spend (ROAS).

Bidding Models

1. Manual CPC (Cost-Per-Click)

You set bids yourself on each product group or item.

• It’s best for beginners building data or advertisers who desire total control.
• You get total control over how much you pay per click.
• But it is time-consuming and doesn’t use Google’s AI to optimize for conversions.

2. Enhanced CPC (ECPC)

A semi-automated approach that increases your manual bids up or down depending on the probability of a conversion.

Google considers auction-time signals (such as device, location, time of day, and browser) to adjust your bids on each search.

• Incorporates a layer of automation but allows for some manual control.
• It is suitable for shifting from manual to smart bidding.

3. Target ROAS (Return on Ad Spend)

A sophisticated Smart Bidding strategy where you define a target ROAS, and Google’s machine learning automatically adjusts bids to drive maximum conversion value at that target.

Here, Google forecasts each possible conversion’s value and bids higher on likely high-revenue searches, lower on lower-value ones.

• It drives maximum revenue for your ad investment.
• It is entirely automated and data-driven.
• But needs a minimum of 50 conversions per month to get the best results.
• Best for: Established campaigns to maximize revenue, not clicks or conversions.

How Smart Bidding Operates: Chief Signals and Transitions

Google’s artificial intelligence considers many different signals to optimize your bids in real-time automatically.

• Device: Dials up or down for phone, desktop, or tablet use.
• Physical Location: Accounts for the city or geographic area, even within your location targeting on the larger level.
• Location Intent: Picks up whether someone is searching for merchandise in a location, not where they happen to be.
• Time of Day & Day of Week: Increases or decreases bids depending on when users are most likely to convert.
• Price Competitiveness: Bid more aggressively for Shopping if your product is competitively priced compared to others.
• Seasonality: Bids are higher during busy shopping times or holidays.
• Product Performance: Tends to favor best-selling or high-margin products.
• User Context: Utilizes browser, app ratings, and other context signals to estimate the probability of conversion.

Priority Bidding Structure for Google Shopping

One of the stronger methods to improve ROAS is to segment by search intent and product performance and then use distinct bidding strategies:

• High-Intent Searches: Offer more for brand or product search terms that convert more.
• Low-Intent Searches: Offer less for generic searches to save cost and enhance efficiency.
• Product Performance: Raise offers on best sellers or high-margin items, lower for low-performers.
• Price Rank: Use custom labels to segment products by how your price ranks against competitors and modify bids based on that.

Leverage Negative Keywords to Filter Out Irrelevant Traffic

This is a relatively underused technique in Google Shopping Ads optimization. Unlike search ads, Google Shopping Ads don’t use traditional keywords to target campaigns. Instead, you can tell Google the search terms you don’t want to show your products for!

For instance, say you sell scented candles. You wouldn’t want your product to show up for keywords like cheap candles, as it can devalue your brand’s identity. By adding negative keywords like “cheap” or “hiking boots,” you prevent your ads from showing for those searches.

How to Find Negative Keywords

The best way is to search for the search queries that triggered your ads. You can use the Google Search Terms Report to identify the terms.

Here’s how you do it:

• Open Google Ads and go to your Shopping campaign.
• Click on the “Search Terms” report. This report shows the exact phrases people used before clicking your ad.
• Look for irrelevant or low-intent queries. Examples: “free,” “cheap,” “used,” “DIY,” unrelated product types, or competitor brands.
• Add these terms as negative keywords.

It’s that simple! Next…

Subdivide Negative Keywords for Better Results

Negative keywords are not all made equal. For more accurate filtering, you can use various match types:

• Phrase Match: Your ad is blocked if the exact phrase appears in the search.
  For instance, adding “cheap” as a phrase match will prevent “discount Nike shoes” from appearing, but not “cheap Nike running shoes.”
• Exact Match: Only blocks your advertisement if the search term exactly matches it.
  Adding [Nike hiking boots] as an exact match, for instance, blocks only those searches, not related ones.

Track, Analyze & Improve Campaigns Over Time

Now, say you have launched your Google Shopping ads. What’s next? It is not a one-time thing! The real result happens only when you go back and track the performance so that you can make changes as and when needed.

Key Metrics to Monitor

To understand what’s working and what’s not, here are a few key metrics you should track when you do Google Shopping Ads:

• Click-through rate (CTR): This is the percentage of people who click on your advertisement after viewing it.
• Conversion rate: This is the percentage of clicks that turn into sales.
• Return on Ad Spend (ROAS): Revenue produced for each dollar spent on advertisements. ROAS guarantees the profitability of your campaigns.
• Impression Share: The proportion of available impressions in which your advertisements were displayed.

Now there’s one more thing left to do…

Conducting A/B Testing for Ongoing Enhancement

Split testing, sometimes known as A/B testing, is a technique for determining what truly appeals to your audience.

Here’s how to use Google Shopping with it:

• Test Product Images: Compare plain white background photos with lifestyle photos showcasing the product.
• Try different product titles by emphasising unique selling points, adding new keywords, or rearranging information.
  For instance, compare “Wireless Bluetooth Headphones” and “Noise-cancelling Wireless Headphones – 40-Hour Battery.”
• Try Various Prices or Promotions: To find out what increases conversions, provide discounts, package offers, or free shipping.
• Test Bidding Strategies: Once you have sufficient data, compare the manual CPC with the target ROAS.

FAQ

1. What are Google Shopping ads?

   Google Shopping ads are visual product advertisements that show the image, price, and store name of your product to customers looking for similar products at the top of Google’s search results and Shopping tab.

2. How do I optimize my Google Shopping feed?

   To maximise your sales, use clear product titles, thorough descriptions, excellent photos, precise pricing, appropriate categories, and personalised labels. Use GTINs to improve matching, update your feed frequently, and correct mistakes in Google Merchant Centre.

3. Are Google Shopping ads worth it?

   Yes indeed! Google Shopping ads work very well for online retailers. Compared to other ad formats, they increase visibility, draw in high-intent consumers, and frequently result in higher click-through and conversion rates.

4. How much do Google Shopping ads cost?

   The average cost per click is $0.66, with prices varying by industry and competition. Depending on the product category, costs can range from $0.34 to $1.39.

5. What is the difference between Google Shopping ads and search?

   While search ads are text-based and are triggered by keywords you bid on, shopping ads show product images, prices, and store names based on your product feed.

    

   

Conclusion

Google shopping ads optimization is not a one-time thing. You need to constantly monitor and improve your performance.

And remember to cut down on wasted spending. You should try new things, improve your targeting, and employ negative keywords.

It’s time to take action right now! Why don’t you contact us for a consultation and let our experts handle it while you watch your sales soar?

Hari Gopinath

Director of Digital Marketing

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With over 14 years of experience, Hari Gopinath brings expertise in digital marketing and e-commerce marketing. He specializes in SEO, SEM, and building conversion-focused strategies that drive traffic, sales, and revenue. Hari has successfully led multi-channel campaigns and has worked with global clients across diverse industries to build scalable, ROI-driven digital solutions. In his free time, he enjoys exploring new marketing trends and screenwriting.