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Google Shopping

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Google Shopping ads are product ads shown with an image, price, the shop’s name and often a product rating directly in the search results. Unlike text-based search ads, Shopping ads are visual and rich in information before anyone clicks.

For e-commerce, Google Shopping is often the most effective ad type. The person who clicks already knows what the product looks like and what it costs. The conversion rate can therefore also be higher.

Google Shopping requires more technical work than ordinary ads. A product feed has to be created and maintained, and optimisation works differently from search ads. With the right set-up, Google Shopping can become a profitable channel for online shops.

Why Google Shopping works

Shopping ads show the product visually

The image shows the product before anyone has clicked.

Compare

Text ad
“Women’s running shoes | Free delivery | Large sizes”
Shopping ad
[Image of the shoe], price: SEK 899, rating: 4.5 stars, shop: SportShop

The Shopping ad gives immediate visual information.

The price is visible before the click

With Shopping ads: The price is visible straight away.

This gives you

  • A higher conversion rate (qualified traffic)
  • Fewer visitors who leave immediately (they know what they will pay)
  • Lower CPA (Cost Per Acquisition)

Google Shopping makes it easy to compare products

Google often shows several Shopping ads for the same search query.

Example
Search: “Nike Air Max”
Result: four to eight Shopping ads from different shops with different prices and ratings.
For users
Easy to compare prices and find the best offer.
For shops
A chance to compete even if the price is not the lowest (through ratings, free delivery, fast delivery).

The Shopping ad shows more and takes up more space

The ad format has three strengths

  • Visually appealing (the image draws attention)
  • More information (price, rating, shop)
  • Takes up more space in the search results

How Google Shopping works

How the product feed works

Google Shopping is built on the product feed, a file that contains all the information about the products.

Required attributes in the feed

  • id (unique product ID)
  • title (product name)
  • description (product description)
  • link (URL of the product page)
  • image_link (URL of the product image)
  • price (price including VAT)
  • availability (in stock, out of stock, preorder)
  • brand (brand, required for new products except films, books and music recordings)
  • condition (new, used or refurbished, required for used and refurbished products)

Depends on the product

  • gtin (barcode/EAN, strongly recommended if the product has one)
  • mpn (manufacturer part number, required if the product has no GTIN from the manufacturer)
  • shipping (delivery cost)

Optional but valuable

  • product_type (your own product categorisation)
  • google_product_category (Google’s category)
  • sale_price (sale price where applicable)
  • custom_label_0-4 (your own labels for segmentation)
  • item_group_id (groups variants of the same product)
  • color, size, gender, age_group (for clothing)

Format: XML, TXT or Google Sheets. Usually XML.

How to set up Google Merchant Center

The product feed is uploaded to Google Merchant Center, where Google retrieves the product information.

How to do it

  1. Create a Merchant Center account
  2. Verify and claim the website
  3. Configure delivery and VAT
  4. Upload the product feed (or link to a feed URL)
  5. Google approves the feed (this can take one to three days)

Maintenance: The feed must be updated regularly (daily for large shops) so that prices, stock status and product information are correct.

In Sweden, Shopping ads and free product listings on Google must be placed through a Comparison Shopping Service (CSS). The shop can choose Google Shopping or another CSS and can use several at the same time. The choice affects how clicks are billed and which reports the shop receives. Read more on Google’s site.

How the Google Ads campaigns are created

Once the feed has been approved in Merchant Center, Shopping campaigns are created in Google Ads.

Campaign types

Standard Shopping
Basic Shopping campaigns with manual or automated bidding.
Performance Max
An AI-driven campaign that automatically optimises advertising across Shopping, Display, YouTube and Discover.

How they differ

  • Standard: More control, manual optimisation
  • Performance Max: Less control, AI-driven, often better results for smaller shops

How bidding works in Google Shopping

Unlike search ads, where bids are set per search query, Shopping bids are set per product group.

Product groups: Products are grouped in hierarchies (category, brand, product ID) and bids are set per group.

Example

  • All products: SEK 5
    • Shoes: SEK 8
      • Nike shoes: SEK 12
        • Nike Air Max: SEK 15

The more specific the product group, the more precise the bid control.

Automated bidding: Target ROAS (Return On Ad Spend) or Maximize Conversion Value lets Google adjust bids automatically based on the likelihood of a conversion.

How to optimise the product feed

The product title matters most for the ad’s visibility

The product title determines when the ad is shown.

How to do it

Structure the title: [Brand] + [Product type] + [Key attributes]

Example

  • Good: “Nike Air Max 90 Women’s Running Shoes White/Black Size 38”
  • Poor: “Nice shoes from Nike”

Why: Google matches the title against the search query. “Nike Air Max 90” in the title means the ad is shown to people searching for exactly that.

Tips

  • Put the brand first (if it is well known)
  • Describe the product clearly (running shoes, not just shoes)
  • Add key attributes (colour, size, material)
  • No more than 150 characters (the first 70 matter most)

How to write product descriptions

Descriptions have less influence than titles but are still important.

How to do it

  • Describe the product clearly (what is it, what does it do?)
  • Include key details (material, dimensions, features)
  • Avoid marketing language (“best”, “fantastic”) and focus on facts
  • No more than 5,000 characters (the first 160 are shown in some contexts)

What the product images should look like

Images decide whether people click.

Requirements

  • At least 500×500 pixels for all products from 31 January 2027. Google recommends 1,500×1,500 pixels or more.
  • A white background is recommended (the product should be clearly visible)
  • The product should fill at least 75 per cent and no more than 90 per cent of the image
  • No watermarks or promotional text in the image

Tips

  • Several angles if possible
  • Show the product in use (for clothing and lifestyle products)
  • High quality (blurry images get a lower CTR)

Categorise the products correctly

Correct categorisation helps Google match products to the right searches.

Google Product Category
Google’s standard categories (for example “Apparel & Accessories > Shoes > Athletic Shoes”).
Product Type
Your own categorisation (for example “Shoes > Running shoes > Women”).
Best
Use both. Google Product Category for Google’s systems, Product Type for your own organisation and bidding.

How price affects competitiveness

Shopping is often a price battle.

Consider

  • Is the price competitive?
  • If not, can free delivery or fast delivery make up for it?
  • Sale prices (sale_price) are highlighted in the ad

Note: Google suspends shops whose feed prices do not match the prices on the website.

How to segment with custom labels

Custom labels (0-4) are your own labels for segmenting products.

Use

custom_label_0
Margin category (high/medium/low)
custom_label_1: Season (spring/summer/autumn/winter)
custom_label_2: Bestseller (yes/no)
custom_label_3: Promotion (yes/no)
Advantage
You can steer bidding by segment, for example with higher bids for high-margin products.

How to optimise the campaigns strategically

Use negative keywords in Shopping

Negative keywords can be used in Shopping too.

Use
Avoid irrelevant searches that waste budget.
Example
If the shop sells new shoes, add:
  • Negative: “used”
  • Negative: “free”
  • Negative: “repair”

Prioritise the profitable products

Some products are more profitable than others.

Strategy

High-performing products

  • Raise bids
  • Increase visibility
  • Allocate more budget

Low-performing products

  • Lower bids
  • Pause if they never convert

New products

  • Test with medium bids
  • Analyse performance after one to two weeks
  • Adjust accordingly

How to adapt Google Shopping to the seasons

E-commerce is seasonal.

Example

Winter

  • Raise bids on winter products (jackets, winter boots)
  • Lower bids on summer products

Black Friday

  • Mark sale prices in the feed
  • Raise bids to hold your own against the competition

After Christmas

  • Lower the budget generally
  • Focus on returns and exchanges

How to optimise the shop for Shopping clicks from mobile

Many Shopping clicks come from mobile.

Make sure

  • That the website is optimised for mobile
  • That checkout works smoothly on mobile
  • That images load quickly
  • That product pages are clear on a small screen

A poor mobile experience makes visitors leave the page straight away, and then the clicks are wasted.

How Performance Max works for Shopping

Performance Max (PMax) is Google’s AI-driven campaign type.

What is Performance Max?

A campaign that automatically shows ads across several Google surfaces

  • Google Shopping
  • Display Network
  • YouTube
  • Discover
  • Gmail
  • Search (in some cases)

AI decides

  • Where ads are shown
  • Which products are shown
  • Which audiences are reached
  • How bids are adjusted

These are the advantages of Performance Max

Simple set-up
Minimal configuration is needed, and AI does the work.
Automatic optimisation
AI learns what works and scales it up.
Broad reach
Reaches people across several channels (not just Shopping).
Often better results
For smaller shops without a dedicated specialist, PMax often delivers better ROI than manual campaigns.

These are the disadvantages of Performance Max

Less control
Google’s systems control more of the bidding and placement than in Standard Shopping.
Limited steering
The channel report, search terms report and negative keywords give insight and some control. However, advertisers can only prioritise Google’s own surfaces (Search, YouTube, Maps, Gmail and Discover) as a group, not individually.
Requires data
Works best with a steady flow of conversions. Smaller shops may struggle at first.

When should you use Performance Max and when Standard Shopping?

Use Performance Max if

  • The shop is small or medium-sized (limited time for optimisation)
  • There is enough conversion data
  • You want to maximise reach across several channels
  • Google Ads expertise is limited

Use Standard Shopping if

  • The shop is large and has a dedicated specialist
  • You need detailed control over bids and product groups
  • You want to test specific strategies
  • You have the resources for ongoing optimisation

Recommendation: Start with Performance Max. If the shop grows and needs more control, you can add Standard Shopping campaigns alongside it.

What rules apply in Merchant Center?

Google is strict about the rules for Shopping. Violations can lead to suspension.

These are common causes of errors in Merchant Center

Price mismatch
The price in the feed does not match the price on the website.
Solution
Automate the feed so that the price always matches.
Incorrect stock status
The product is marked “in stock” in the feed but is sold out on the website.
Solution
Update the feed daily (or in real time for large shops).
Poor product description
Incomplete or misleading information.
Solution
Be clear and honest in descriptions.
Substandard customer experience
Delivery times that are too long, unclear returns policies, a poor website.
Solution
Google prioritises shops with a good user experience. Invest in the user experience.
Prohibited products
Google does not allow certain products (weapons, drugs, replicas and so on).
Solution
Review Google’s Shopping policies before you start.

How to handle feed errors and warnings

Google Merchant Center shows errors and warnings for the feed.

Errors (critical)
Products are not approved until the error has been fixed.
Warnings
Products are approved but may get less visibility.
Recommendation
Fix all errors immediately. Deal with warnings when time allows.

How to gain a competitive edge in Shopping

Product Ratings show reviews in the ad

Stars (1-5) are shown in Shopping ads if the shop has at least 50 reviews.

Advantage
The stars show the reviews in the ad itself.
How to get ratings
Use the Google Customer Reviews programme or an integrated review platform (Trustpilot, Feefo and so on).
Recommendation
Make collecting reviews a priority. It is one of the strongest competitive advantages in Shopping.

Free delivery can be shown in the ad

“Free delivery” is shown in the ad if it is configured in Merchant Center.

Advantage: Shoppers comparing products can see in the ad that delivery is free, which can make up for a slightly higher product price.

Strategy

  • If possible, offer free delivery above a certain order value
  • State this in the feed

Fast delivery can be shown in the ad

“Delivery tomorrow” or “Delivery within 2 days” can be shown if the shop meets the requirements.

Advantage
Fast delivery matters for impulse decisions.
Requirement
The shop must be able to guarantee the delivery time consistently.

Local Shopping ads show in-store stock

For businesses with physical shops, local Shopping ads can show “In stock at a shop near you”.

Advantage
Reaches people who want to collect straight away.
Set-up
Requires Local Inventory Ads integration in Merchant Center.

How to measure Google Shopping

Track these Shopping KPIs

Impressions
How often ads are shown.
CTR (Click-Through Rate)
The share of people who click. Track it per product and per product group.
CPC (Cost Per Click)
The cost per click. Varies widely by industry.
Conversion Rate
The share of clicks that become purchases.
CPA (Cost Per Acquisition)
The cost per purchase or lead.
ROAS (Return On Ad Spend)
Revenue divided by ad spend. The target is set based on the shop’s margin.
AOV (Average Order Value)
The average order value from Shopping traffic.

Analyse performance at product level

Which products perform best?

Review

  • Which products get the most impressions but few clicks? (Look at the image, price and title)
  • Which products get clicks but no conversions? (Look at the landing page, price and description)
  • Which products convert best? (Raise the bids on them)

Optimise: Put the budget on high-performing products.

How to avoid common mistakes in Google Shopping

Mistake 1: The product feed is poor

Problem
Incomplete titles, poor images, missing attributes.
Result
Low visibility, low CTR, poor performance.
Solution
Invest time in optimising the feed properly from the start.

Mistake 2: The feed is not maintained

Problem
The feed is rarely updated. Prices and stock status become wrong.
Result
Google suspends products or the entire account.
Solution
Automate feed updates (at least daily).

Mistake 3: Negative keywords are ignored

Problem
Budget goes to irrelevant searches.
Result
High cost, low conversion rate.
Solution
Review search terms reports regularly. Add negative keywords.

Mistake 4: The products are not prioritised

Problem
The same bid for all products regardless of profitability.
Result
Low-margin products take budget that should have gone to high-margin products.
Solution
Segment with custom labels and bid based on margin and performance.

Mistake 5: The mobile experience is poor

Problem
Awkward checkout on mobile, slow loading.
Result
High bounce rate despite clicks. Wasted budget.
Solution
Optimise the website for mobile. Test the checkout flow yourself on a phone.

How Google Shopping compares with other channels

Google Shopping or text ads in the search results?

Shopping

  • Visual (image and price)
  • Lower CPC (often)
  • Better for e-commerce

Search ads

  • Text-based
  • More control over the message
  • Work for services and B2B (Shopping is products only)

Strategy: Run both: Shopping for visual products and text ads for brand searches and services.

Google Shopping or ads on Facebook and Instagram?

Shopping

  • High purchase intent (people are actively searching)
  • Higher conversion rate
  • Lower CPA

Social media

  • Awareness/discovery
  • Reaches people who are not searching yet
  • Good for impulse decisions

Strategy: Shopping for people who are ready to buy. Social media to build awareness.

How we go from set-up to results

The process has six steps

1. Set-up

  • Create the product feed
  • Configure Merchant Center
  • Verify the website and policies
  • Link to Google Ads

2. Feed optimisation

  • Optimise titles for relevance
  • Improve image quality
  • Add all recommended attributes
  • Categorise correctly

3. Campaign launch

  • Start with Performance Max (simplest)
  • Set the budget and target ROAS
  • Let the AI learn (two to four weeks)

4. Optimisation

  • Review product performance
  • Adjust bids per product group
  • Add negative keywords
  • Test new products

5. Scaling

  • Increase the budget for high-performing products
  • Expand to more markets (for international e-commerce)
  • Test Standard Shopping for more control

6. Maintenance

  • Update the feed daily
  • Monitor Merchant Center for errors
  • A/B test images and descriptions
  • Adjust for seasonal variation

Contact us about Google Shopping

Carnaby helps online shops set up and optimise Google Shopping campaigns, from creating the feed to ongoing optimisation.

Contact us →

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