Product Listing Campaigns (PLA)

Google Shopping is one of the advertising options available in Google, particularly recommended for online stores selling consumer products such as clothing, shoes, accessories, electronics, tools, furniture, and more. With Google Shopping, we have the opportunity to advertise specific products and display them at the top of the search engine. Our product will appear in Google search results after entering a keyword, for example, “black high heel shoes.”
The product ad in Google Shopping is presented with a photo, price, description, and store name. After entering a keyword, the customer receives all relevant information along with a link to the online store where they can purchase the product.

It doesn’t matter if you’re just starting with your own online store and all your focus is on selecting the best platform that meets the needs of both you as a seller and your customers, or if you’ve been selling your products online for a while—either way, it’s worth incorporating Google Shopping into your marketing strategy. The main reason for this is that one of the most important factors customers consider when making a purchase is the price of the product.

Google Shopping allows users to compare offers based on price. This is an excellent solution for those who have already decided to buy and are looking for the right product, wanting to see what prices are offered by different sellers. Sometimes, the price range for a product can be quite large. The most competitive brands constantly monitor their competitors’ prices so they can respond to them in real-time. Google Shopping allows our products to stand out among those offered by competitors. If our prices are competitive or we offer additional customer benefits, such as cheaper or faster delivery, it’s worth highlighting our products and adding them to price comparison tools.

A product campaign can be conducted for a store with one product or 30,000. Depending on the size of the store and the number of products offered, the process of creating and optimizing the campaign will vary. However, Google Shopping allows advertising for both larger and smaller players.

For an online store, there are virtually no drawbacks to advertising through Google Shopping. Below are some of the undeniably biggest benefits:

Product Presentation in a Visual Format (Image)
Customers shop with their eyes, and this statement will come as no surprise. When searching for the right product, even though we find plenty of additional information, including a detailed description of its appearance, dimensions, functionality, or features, we will still ultimately judge it based on the image. Whether a particular cabinet will fit the style of our kitchen or if a specific shoe will match a wedding dress, we’ll decide based on the picture, not the description. Therefore, products that appear at the top of the page after a user enters a keyword or phrase are frequently viewed in the initial stage of the search. It is also based on these that the consumer decides to proceed to the seller’s website.

Product Price Presentation
When faced with multiple offers for the same product, the consumer will most likely make their final decision based on price. The price comparison tool in Google Shopping allows for a quick and clear comparison of both the price and the product image, which plays a crucial role in the customer’s decision-making process.

Source of Precise and Cost-Effective Traffic
By clicking on the advertisement for our product, the user knows exactly what to expect when redirected to our website. For the seller, this is a profitable move, as it is highly likely that the person clicking on the product is genuinely interested in it. This type of advertising for online stores is, therefore, much more precise and cost-effective than search network ads.

Products Tailored to Specific Customer Queries
The algorithm for displaying product ads differs from the one used for text ads. Here, we do not have keywords; instead, we use a product feed, based on which products are matched to specific user queries. By displaying an ad to the user, we are certain that it is a product they are looking for, or at least one whose name or related phrase they have entered.

Precise Results Analysis
By attracting the right users to our site through well-targeted ads, we have the opportunity to precisely measure the results we achieve. Using appropriate measurement tools, such as Google Analytics, we can easily determine the customer’s purchasing journey, what forms of promotion are interesting to them, and where on the website they encounter problems or difficulties in pre- and post-sale service. At Verseo, we also offer weekly or monthly reports on actions and results, allowing our clients to monitor their profits in real-time and improve customer experience on their websites.

To start a product campaign, it is necessary to connect your Google account with Google Merchant Center and Google Ads (AdWords). Google Merchant Center is a tool that allows you to upload information about your store and the products you offer to Google and other Google services.

The first step is to create a Gmail account or use an existing one. It’s best if the account is already connected to Google Analytics.
Next, you need to register on the Google Merchant Center website. Pay attention to the country of the store and the language in which the ads will be displayed. Then, reserve and verify the store’s website (URL).

However, this method is not always sufficient. If the above method doesn’t work, try one of the following: upload an HTML file, add a meta tag to the homepage, or add the Google Tag Manager container code. Account integration may sound complicated, so if you want to learn how to do this step by step, visit here.
After setting up the account, you can create and upload product data, for example, in a data feed format or using the Google Content API for Shopping.

A data feed is a list of products that uses attribute groups to uniquely define each product offered on the seller’s website.

Attributes can have standardized values or include previously defined terms. This is not the case for attributes related to the “identifier” or “title” of products, as they may contain custom values. The uploaded product feed contains a range of product information. These include basic details such as title, description, size, color, and price, as well as more complex details such as [maximum_energy_efficiency_class] or information on whether the product is in bulk packaging.

Using these attributes when creating detailed product descriptions will make it easier for users to search for products and allow advertisers to better match their ads to customer searches.
The required product information for advertising includes:

• id [identifier]
• title [title]
• description [description]
• link [link]
• image_link [image_link]
• availability [availability]
• price [price]
• google_product_category [google_product_category]
• brand [brand]
• gtin [gtin]
• mpn [mpn]
• condition [condition]

The quality and quantity of the product information you submit help match the product to user searches. The campaign will only achieve the desired results if each product is described appropriately, based on accurate and complete data. Therefore, not only the basic and most common information, such as the title or description, matters, but also those that will help distinguish your offer from other advertisers and more accurately match user searches, thus meeting their expectations.

Correct Product Feed Format
The supported product feed formats are text (.txt) and XML (.xml). Depending on the number of products, appropriate formats are recommended. Small sellers are usually advised to use the .txt format, as it does not require advanced technical knowledge, making it easier to obtain. A .txt file can be easily created using a spreadsheet editor or by generating a spreadsheet from a pre-filled template provided by the seller, or by uploading an existing spreadsheet.

For online stores offering a large number of products and using advanced e-commerce platforms managed by specialists, it is possible to obtain a data file in XML format.

The product file can also be categorized, and products that, for example, are not intended for sale at the moment or need to be excluded from the product campaign for other reasons can be filtered out. Additionally, it is possible to manage the bids for individual products, for example, based on the season, the revenue generated by a particular product, or the actions of competitors.

Due to differences in the quality of descriptions, titles, and information sent to Google Merchant Center, as well as the business objectives of the advertising business, it is sometimes impossible to manage every product.

Online stores with a few or several products typically have a clearly defined target audience, and their products appear for specific customer searches. Therefore, each offered product can be equally important in business terms and bring similar profits. However, in the case of larger stores with thousands of products, varying in price and characteristics, it is suggested to identify the most important products and ensure that they receive the most views, clicks, and conversions.

Product campaign optimization also relies on monitoring the best-performing products and other factors affecting sales performance, such as return on investment. It may turn out that previous assumptions about a specific type of product or category were incorrect, and previously excluded solutions may become the most profitable.

Product ads appear to customers at different stages of the shopping journey. Some customers may already know the advertiser’s brand, while for others, this may be their first time visiting the store’s website thanks to the ad. Each of these customers may make a different decision, sometimes one entirely different from what the seller might expect. For example, thanks to Google Shopping ads, a user who has never heard of a given company might decide to purchase products that are less frequently bought by regular customers, who directly visit the advertiser’s website in search of specific products, bypassing those they are unfamiliar with.

The required budget for a Google Shopping campaign depends on the competitiveness of the industry and the products being advertised. Initially, it is up to the advertiser, after a preliminary analysis by a Google Ads specialist, to determine the total and daily budgets. It is recommended that the daily budget be selected based on advertising goals and the average amount the advertiser wants to spend each day on the ads. A budget that is too small may deplete quickly, causing ads to stop displaying and preventing the desired outcomes from being achieved.

Once the monthly budget is set, it is easy to calculate the daily budget by dividing the monthly budget by 30.4 (the average number of days in a month).

Billing Models in Product Campaigns
The choice of billing model is typically made by the Google Ads specialist, who adjusts the appropriate models and their bids depending on the goals set by the advertiser. In Google Shopping, there are three goals, each with associated billing models:

1. CPC Billing Model (Cost-Per-Click)
   Maximizing clicks within the budget
   This goal is chosen when the aim is to maximize clicks on the ads and drive as many visits to the website as possible. This often leads to an increase in clicks for products with low traffic, ensuring that the budget is spent efficiently.
2. eCPC Billing Model (Enhanced Cost-Per-Click)
   Maximizing conversions while controlling bids
   If the goal is to maximize conversions, the enhanced CPC model is recommended. In this model, manually set bids are automatically adjusted upwards or downwards to get as many conversions as possible for each click.
3. ROAS Billing Model (Return on Ad Spend)
   Maximizing the number or value of conversions while maintaining a predefined return on ad spend
   This model is chosen when the goal is to maximize the number or value of conversions while achieving the expected return on advertising spend. In ROAS billing, bids are automatically set to maximize conversion value within the target return on ad spend.

Depending on whether the advertiser wants to attract visitors to the website or increase revenue by maximizing conversion value, the appropriate goal is selected. Before making a decision, the Google Ads specialist analyzes various factors and discusses with the advertiser to fully understand the business’s and marketing goals.

How to Define the Goal of Your Google Shopping Campaign
The choice of campaign goal will have a significant impact on the analysis and interpretation of the results achieved. It is crucial to consider the primary business objectives of the online store, as well as whether the brand is already widely recognized or is just entering the market.

The goals and billing models mentioned above can be applied at both the ad group and campaign level, meaning that advertisers don’t have to choose a single goal and billing model for the entire advertising campaign. Different billing models can be tailored to specific product groups that the advertiser wants to promote.

How to Determine the Budget for a Shopping Campaign
The budget for a shopping campaign is typically set by the advertiser at the beginning. However, after reviewing the initial proposal and having preliminary discussions with a Google Ads specialist, advertisers often decide to adjust the budget.

The initial consultation provides both parties with the opportunity to better plan the campaign structure and its execution. During this discussion, the Google Ads specialist gains a deeper understanding of the advertiser’s industry, target audience, and other business specifics.

At the same time, the advertiser receives a wealth of information about the performance of Google Shopping ads, recommended tactics, and potential adjustments to their website to achieve the best results. After analyzing the available information, the budget—both total (monthly) and daily—is set.

It’s important to note that determining the budget doesn’t mean it can’t be changed later. The Google Ads specialist will continuously communicate with the advertiser to respond to changes like high and low seasons or other factors affecting the business.

Google Shopping is one of the best advertising options for an online store. Of course, the decision depends on the industry and the products offered in the store.

When deciding to advertise online, it’s worth considering different available channels to reach customers not only in search results but also across other platforms like social media, YouTube, or Google’s Display Network. For online stores selling consumer goods such as clothing, shoes, furniture, sports equipment, or kitchen accessories, advertising on platforms like Facebook or Instagram has become one of the most common forms of advertising, even among smaller players.

Combining several channels allows advertisers to not only maximize results but also accelerate brand awareness, build loyal followers, and showcase the “behind the scenes” of the business.

Both small e-commerce businesses with just a few or a dozen products, and large online stores with a vast product catalog, can benefit from advertising through Google Shopping. To properly prepare for this promotional model, there are several steps to follow, outlined below:

Account Linking
The Google Merchant Center account must be linked with the Google Ads account. If these accounts are not connected, Google will prevent the creation of a product campaign.

Verification and Website Reservation
Google must be notified about who the authorized owner of the website is and which website should be linked to the Google Merchant account.

Product Feed
Proper preparation and uploading of the product feed, as well as regular monitoring of product approval status.

Account Settings and Monitoring
Selecting the appropriate settings for uploading and updating product status/quantity in the campaign, and continuously monitoring the account to detect issues with individual products.

Campaign Settings
When building the campaign, choose the appropriate settings: define the goal and priority of the campaign, adjust the budget to the number of products, and set the method for displaying ads.

Budget Settings
Set the daily budget for the product campaign based on the type and number of products being advertised.

Campaign Priority Settings
Use campaign priority settings when advertising the same products via different product campaigns. This allows the system to know which campaigns should be prioritized and which products should be displayed more frequently or less frequently.

Product Feed Segmentation
Proper segmentation of the product feed, which allows for effective campaign optimization and adjusting bids for specific products. It is recommended to break down the product feed as much as possible (by product types, brands, or categories).

Adjusting Product Bids
Adjust bids for clicks on specific products based on their potential and sales value.

Setting Bids
Set bids based on the estimated cost per click (available, for example, in the keyword planner). If bids are set too low, ads may appear in less visible positions or may not be displayed at all.

Negative Keywords
Regularly and precisely add negative keywords using both broader and narrower match types.

Remarketing List
Set up a remarketing list, which allows you to adjust bids for users who have visited the e-commerce website at least once and are searching for the same products again. (The remarketing list will activate after gathering at least 1,000 cookies.)

To launch a product ad, many variables must be considered, especially for larger stores with many types, brands, and product categories in their portfolio.

Inadequate planning, setup, and execution of the campaign may result in underutilizing the full potential of the ads, leading to overspending and achieving worse results than expected. Therefore, it is recommended to consult a specialist before making a final decision.