Google ad vs google shopping which one is better for you?
It comes as no surprise to know that Google is one of the most popular and most used search engine on the internet today.
Google currently processes over 40,000 search queries every second. That equates to 3.5 billion searches per day and 1.2 trillion searches per year worldwide.
After seeing those numbers, it should be easy to see why so many businesses use Google Ads to promote their products.
For every $1 a business spends on ads through Google, they make on average $2-$7 in profit.
Knowing that you need to add Google to your marketing campaigns is one thing; knowing what type of ad to choose is another.
This article will talk about what a Google Search and Google Shopping ad are, their benefits and effectiveness, and how they compare to each other.
Google Search Ads, also known as Text Ads, allow you to use search results to promote both your products and services. The ads do not contain an image in its basic form, but they offer additional ad extensions that can.
When you are on a Google search result page, you will usually see Google Search ads as the top four and bottom two results. This might be slightly different on mobile devices. The results will be distinguishable by the word "Ad" on the left-hand side of the ad's text.
The anatomy of a Search Ad contains:
· Headlines 1-3
· The word "AD"
· Display URL
· Ad Description
The Google Search Ad extensions give the advertisers a chance to show more content which brings more opportunities to highlight prospective specials and unique selling factors.
Example: The location extension gives the shoppers information on physical locations and opening hours, which are very useful for a brick-and-mortar store.
An added benefit on the advertisers' side is choosing when you want your listing to show by bidding on keywords. If you are on top of your keyword game, you can select specific keywords used by shoppers who are closer to the purchasing part of the buyer's journey.
Unlike Google Shopping Ads, Search Ads are grouped with the organic search results, which usually gives them a high chance of being clicked on either by mistake or on purpose.
When it comes to bidding, Search Ads let you bid on specific keywords that you want your ad to show up for. You select the keywords that will work best for your product and then decide the maximum amount you're willing to pay.
Search Ad costs depend on many factors, but on average, you can expect anywhere from $0.50–$0.70 per click ( CPC ).
Google Search Ads are best used for:
· Brand awareness
· Keyword targeting
· Lead generation
· Website visits
Google Shopping Ads are responsible for over 70% of non-branded sponsored clicks for shops on Google result pages.
Google Shopping Ads will appear at the top of the result page in a shopping carousel and the dedicated Shopping tab.
The anatomy of a Shopping Ad contains an:
· Store name
The goal of Google Shopping Ads is to visually meet the three primary needs that a customer has:
1. How much the product costs
2. Name of product
3. What the product looks like
Around 30 Shopping Ads can be shown on Google's desktop version and up to 15 on the mobile version.
Shopping Ads take care of a lot of the legwork for you. Its algorithms will automatically collect the data from your business, create advertising for your products, and match them with relevant search queries. So while setting up Shopping Ads takes more work upfront, they require less effort in the long run.
When it comes to bidding, it works a bit differently than Search Ads. With Shopping Ads, you are bidding on the product itself instead of the keyword. After you have selected the product you want to push, you then choose the bid for all the products in the ad group or choose the maximum bid for each item. When you have an ad group for each product, you will have full control over the product bidding and keywords.
The average CPC for Shopping Ads is $0.66, which is less than a Google Search Ad, but it also comes with a lower conversion rate of 1.91%.
Google Shopping Ads are best used for:
· Advertisers with a large selection of products
· Products that are ready to be shipped
· Niche Products
Both ad types are created and run through the Google Ads platform and designed to do the same thing, drive traffic to the advertisers' website and turn into sales and leads.
They operate on a pay-per-click (PPC) basis, which means the advertiser is only charged when someone clicks on their Text or Shopping ad. The advertiser determines how much they pay and how much they are willing to pay each click to stand out from the competition. The two ad kinds are comparable in this regard.
They are often placed right next to each other on the Google search result page.
The major differences between the two ad options are how they are seen on a search result page. Both the appearance and placement of each ad are slightly different.
While Google Search Ads take up a lot of real estate on the search result page, it has a slight disadvantage to Google Shopping Ads. The difference is that Google Shopping Ads can be found in other locations like the Shopping tab, Google Images, Google Maps, and Google Lens.
Unlike Google Search Ads, Shopping Ads do not allow advertisers to bid on certain keywords. Still, they allow advertisers to create detailed title descriptions and use negative keywords to help show your ads to the right customers.
Negative keywords are words that you do not want your ads to show up for. These keywords can be set up at the account, campaign, or ad group level. Account-level negative keywords are best for words you don't want your ads to show up for, while the campaign and ad group level is good to ensure the right ad is showing up for the right search.
There is no quick answer to this question. It boils down to factors like:
· What industry you're in
· What type of website do you run
· What do your profit margins look like
· How much competition do your products have
· What the average CPC is for each item
· What the demand for your products are
· How aware people are of what you sell and your brand
Google Search Ads are best used to get in front of shoppers ready to make a purchase.
Google Shopping Ads are best used to boost traffic to your e-commerce store and increase your sales.
According to a study done by Clutch, 49% of people said they were more likely to click on a Text Ad versus 31% who said they would more likely click on a Shopping Ad.
Technically you can run both types of ads at the same time. One will not cancel out or compete with the other. If you can't decide between the two, don't. Instead, test both in your ad campaigns to see which one best serves your business.
Google reports that shoppers who saw both a Text Ad and a Shopping Ad from the same business were 90% more likely to click the ad and visit the business's website.
Reasons to select Google Search Ads
If you are a service-based business like a cleaning company or a used car lot, you can't advertise on Google Shopping. Therefore, Google Search Ads are the one for you.
If you are a business with a physical location, Google Search Ads might be the better choice because you can include your location, phone number, opening hours, etc.
If the product you are advertising will violate Google's policies regarding images, then choose Search Ads because the image will be hidden from initial viewing.
Reasons to select Google Shopping Ads
If you are selling a niche product that doesn't normally generate a lot of searches, it's probably best to stick to Google Shopping Ads because of the ability to include a detailed title.
If you have many products to sell, Shopping Ads give you the ability to showcase them more.
If you have high-quality images and a substantial number of reviews for your product, Google Shopping Ads is the format that will best showcase those features.
ThinkGoogle.com has a collection of case studies regarding Google Shopping Ads. Let's look at one:
Name of Business
Farfetch is a London-based online boutique that sells men's and women's fashion.
· Boost the company's appeal in the retail space
· Reach a larger number of fashion lovers worldwide
· Upgraded its Product Listing Ad (PLA) campaigns to Shopping campaigns
· Organized product groups by category and brand
· Created a separate campaign for top-trending and best-selling products and set it to high campaign priority
· Increased conversion rate 13%
· Increased CTR 3%
· Decreased CPA 20%
· Decreased CPC 6%
To learn more about the campaign and get all the case study details, click here.
Product searches are the first step in everyone's online shopping journey. If you want your products to have the best chance of being seen, Google Ads should be a significant part of any advertising campaign for anyone looking to expand their e-commerce business.
To ensure you know what shoppers are searching for and are on top of the latest shopping trends, check out our competitive monitoring tools for eCommerce Entrepreneurs.
Read The Ultimate 2022 eCommerce Competitor Analysis Guide in 8 Steps to learn more about digital competitor analysis.