In a previous blog, we spoke about the complexities of Google shopping campaigns for the fashion industry, its challenges, and best practices to maximise ROI. Here we revisit Google shopping with a focus on Smart shopping covering the pros, cons, and latest developments. Show
What is smart shopping?Smart shopping was first announced by Google in May 2018 and separates itself from standard shopping campaigns by automatically optimising ad delivery to achieve an advertiser’s defined goal value i.e. ROI target. Google takes your product feed, campaign objective, budget and country settings and uses its machines learning to do the rest. Google’s algorithm decides where and when to serve your ads, how much to bid, and which audiences to target. Pros of Smart Shopping:
Cons of Smart Shopping:
Summary of Smart Shopping Pros & ConsSmart Shopping campaigns have been considered a way for Google to grow revenue across its shopping product, but also across Display and YouTube. Smart shopping, however, has most definitely made shopping more accessible to smaller advertisers, and in early testing, advertisers who used Smart Shopping campaigns drove over 20% more conversion value at a similar cost. There have been several success stories since which show a significant uplift in ROI, but of course, each advertiser is different and smart shopping campaigns may not work for everybody, either an uplift in ROI has not been seen, or due to the nature of the business or products sold, Smart campaigns are not feasible. Like all things in digital, testing is key. If you are keen to try Smart Shopping campaigns and the cons mentioned above are not a concern, we would recommend A/B testing standard campaigns vs Smart with a specific product group initially rather than your whole catalog. Many of the same principles exist in terms of set up, however, for a refresher we have included a checklist below.
According to Google, it is best to leave smart campaigns running for at least 2-3 weeks before evaluating performance. Remember to compare like for like performance, especially as smart campaigns do not separate by placement. What is new with Google Shopping?Google recently announced for searches on the Google shopping tab, merchants will now be able to show products listings for free. Retailers will continue to be able to show their paid ads alongside these new free organic listings, however as on the main search page they will appear primarily towards the top and bottom of the pages, and non-paid (organic) listings will take the remaining real estate within that tab. This will be rolled out later this month, and initially in the US. Whilst this was already on Google’s road map, the impact Coronavirus has had on retailers has pushed this forward. This is not, however, the first time Google has offered these listings for free. Back in 2012, this ad space was free, before Google made this a paid ad space with Google shopping. The recent changes appear to have come to rival eCommerce giant Amazon. As the change does not affect the Google search results page, we do not expect to see a huge impact on current Google shopping advertisers.
Download this guide to take it with you on the go - access these tactics again at any time. Google Shopping glossary for beginnersIf you’re only starting out with Google Shopping, let’s first go over a few key terms you should get familiar with before diving deeper into the article. If you’re experienced with Google Shopping - feel free to jump to the next section. Google Merchant CenterThis is your hub for all things Shopping ads. Upload your products and manage your campaigns. This is where Google’s system will pull the information it uses to place and bid on your ads. Product FeedYour product feed is a file often in a .txt, Google Sheets format. It holds all the data and information about your products like:
A fully optimized product feed can make or break your campaigns as this is where all information for your ads will be pulled from. Shopping campaignsYour Shopping campaigns are the listings you set up in your Google Merchant Center account. They show your products in a visual format, with additional information contained in your product feed. The main difference between them and Search ads is that Shopping ads contain images and have their own dedicated Shopping tab on Google’s search engine site page. Smart Shopping CampaignThese campaigns are identical to your regular Shopping campaigns on the surface, but underneath the hood, they are run by Google’s machine learning. We’ll cover everything you need to know about them in the next section. What are Google Shopping Smart Campaigns?Smart Shopping takes machine learning to then next level with Google Shopping. It’s also 100% automated. In fact, standard Shopping campaign management involves long and tedious work when setting priorities, product groups, bids and negative keywords. With Smart Shopping Campaigns, this work no longer needs to be done. There are no targets, audiences, or placements to be set. The system shows the right products in the right place at the right time. It also chooses the targeted audience. Those decisions are based on the chances the ads have to convert into sales. Where Smart Shopping ads showThis type of campaign is pretty much self-driving and requires very little maintenance. Smart Shopping Campaigns' core features have an expanded reach across all Google networks and use the 'maximize conversion value' smart bidding strategy.
It may also interest you: Discovery Ads for eCommerce How to create Smart Shopping CampaignsSetting up Smart Shopping campaigns is fairly straightforward. Let’s take a look at what you’ll need beforehand and go through the process step by step. 1. Meet basic requirementsBefore you dive into creating your campaigns, you’ll need a Merchant Center account linked to your Google Ads account, and a product data feed. Check to make sure that your feed can be updated once a month (30 days) at a minimum. Google states that you should have at least 20 standard Shopping conversions in the last 45 days. Of course, the more data you have the better. But it's not a hard requirement, so don't let that stop you from getting started. Remember to also:Recommendations for better performanceYou can start your campaign without these, but Google indicates that your spend (and therefore the reach of your ads) might be limited without them.
Once someone visits your website you’ll be able to track the specific events which will be used to make personalized remarketing ads. Google provides the specific code needed on their help page as well as how to set these up. Adding it to your site correctly is really important. However, it's not as easy as just copying and pasting code to your site. If you don't feel comfortable adjusting code then it would be best to enlist a programmer for help with this part or contact Google's tech team to help. During the set-up process, you’ll be able to email the exact code needed to your web developer. Here are some general requirements: The global site tag has to be added to every page of your website, and the event snippet can be added to the pages where you want to track what site visitors are doing. For example, this could be on your product pages, shopping carts, or anywhere you want to see how shoppers are interacting with your services. You can place the event snippet anywhere, but it needs to be below the global site tag. Each business type has its own specific event parameters that should be substituted in the code. You can find them all here to make sure you’re using the right one for your vertical. 2. Have a remarketing audienceUse remarketing lists and keep adding to them as your campaigns go on. You should have more than 100 active users or visitors within the last 30 days for them to work properly. You won’t need to create a new list if you already have one associated with your Google Ads account. But if not, let’s go over how to add one. How to create remarketing lists
3. Have your assets ready to goAssets are additional pieces of information and images about your business. They’ll be stitched together in different combinations to create ads. This is done by Google automatically. The better individual assets perform, the more they’ll show up. It’s all part of how Google’s machine learning works in order to serve the best performing ads. Then these ads are shown to people who have gone to your website but haven’t shown signs that they had the intent to buy something. An example of this could be someone who visited your store but didn’t add anything to their shopping cart. Unlike with Search ads, the way Display ads choose who to show your ads to is based on how they’ve interacted with your website in the past. For example, if a visitor to your site showed a lot of interest in a particular product then that’s most likely what they’re going to be shown from your catalog. The assets needed include:Logo Images
Text This text will be used to create ads. You can get inspiration from copy that already performs well on your website. Keep these limits in mind: Short headlines: 25 characters or less Long headlines: 90 characters or less Descriptions: Used for single-product ads and automatically pulled from your copy when there’s room in the ad.
Final URL Video Note: Before you start, it’s important to understand that it will probably be close to 45 days before you start seeing results. So, give it some time before you make changes to your campaigns. This is because machine learning is at play, and it needs time to collect data from your products. 4. How to set up your Smart Shopping campaign in 14 stepsDon’t forget about the priority a Google Smart Shopping campaign has over a regular Google Shopping campaign. So if you are advertising the same products via both, Google will choose the ads from the Smart Shopping campaign to display to the potential customers. This is why we advise deactivating the regular campaign to not lose the resources. Pro tip: You can exclude items in your product feed that you don't want to include. There are many reasons for wanting to do this, like having out of stock or seasonal items. If you're using a third-party tool like DataFeedWatch then you can exclude products through feed-based rules. How Google Shopping Smart Campaigns WorkSmart Shopping creates ads by utilizing feeds submitted through Google Merchant Center. The process is the same as standard Shopping and standard dynamic display ads. With machine learning, Smart Shopping campaigns merge insights from Google and retailers. The goal is to maximize revenue or achieve the advertiser’s target return on ad spend (ROAS). Remarks include such indicators as:
The process through which Google chooses when and where to show your ads is 100% automated by its algorithm. As said above the right time, place, and product shown are based on the likelihood of the viewer to convert. Is Smart Shopping for you?Google Smart Shopping is an advanced, highly automated way to manage Google Shopping ads. But you may be debating whether it’s the right move for you. Smart Shopping is definitely a great solution for:
At the same time, users should remember that Smart Shopping means the need to sacrifice full control over the campaign and a limited possibility to monitor and analyze data. Smart Shopping Campaigns may not be the best choice if:
Here are some other potential drawbacks you’ll want to consider before deciding to move forward:
Go Back to the Top or Smart Shopping vs. standard ShoppingThe difference is automation and data It’s worth knowing that Smart Shopping and standard Shopping run on two distinct codebases and are managed by two different engineering teams in separate Google offices. But the actual differences between them are almost entirely automation and data. Google doesn’t provide data on audiences, search terms or placements in Smart Shopping campaigns. The other main distinguisher is how much control you have over each campaign. Can you run both? Yes! You can run both campaigns at the same time. But there are some situations where one is more tailored to your needs than the other. Let’s take a look at some scenarios and whether or not Smart Shopping is the right choice: If you include your whole product catalog in a Smart Shopping campaign, Google recommends you pause your existing regular Shopping and Dynamic Remarketing campaigns. In fact, although it is said that Smart Campaigns have priority over existing campaigns for the same products, we still recommend you follow Google’s advice. This is in order to avoid ad over-serving and wasting budget. Expert tactic: Combining the two for the best of both worlds.
If you’ve been debating about whether losing out on valuable data is worth the convenience of Smart Shopping, then this tip is for you. The team at Searchmind came up with a plan to incorporate Smart Shopping into their clients’ Shopping strategies while still receiving the data they were used to getting. How it works Their solution was to utilize Smart Shopping at the top of the funnel of their Shopping strategies, letting it be a way to brand and market. That way their clients could keep the rest of their standard Shopping campaigns as is while discovering how Smart campaigns work for them. The main drawback of this method is in the event something goes wrong. In that case, the lack of data and insight into how your budget was divided (remarketing or new shoppers) makes it tricky to assess how to prevent it in the future. Go Back to the Top or Strategy for budget and targetsThe only control you have as a merchant over bidding is setting your daily budget (mandatory) and a target ROAS (optional). That’s why it’s so important to choose these wisely. By default, Smart Shopping campaigns use a maximize conversion value bid strategy. It aims to drive the most revenue possible at a given budget. It also takes into account your target ROAS goal if you provide it. Target ROASSetting a target ROAS is optional, but should you be using it? This is the return on ad spend percentage you want to see from your ads that you communicate to Google. Google's recommendation: don't add one (or if you do, not an extreme one) because it may limit how its machine learning works. You can let it be at first and then after a few weeks of testing and getting results see if you want to change it. Don’t set it too high because then Google might stop sharing your ads if it can’t achieve that ROAS. You might find out that some products are better staying in a separate campaign with a higher or lower budget. Automated bidding - How Smart Shopping Campaigns Aim at RevenueAutomated, or ‘smart’ bidding strategies use machine learning to automatically set bids based on the expectancy of a search term converting. To capture the unique context of the search, the algorithm uses a wide range of auction-time signals. It takes into consideration the device used and operating system, as well as location, time of the day, remarketing list and language. It’s quite an attention-grabbing, interesting shift in how Google approaches automated bidding strategies. Google implies its effort to find new solutions tailored to retailers. Online retail space becomes more and more competitive and Google definitely doesn’t want to be left behind Amazon. Smart Shopping Campaigns allow for another bidding strategy, which targets ROAS. It still aims at conversion value but with more control over the ad spending. This strategy is more likely to be used by those advertisers who need to meet strict ROI targets. Conversion goalsBy default, your campaign will have the goal of making as many conversions as possible within the given parameters (your budget, if you set up a target ROAS, etc.). When it comes to picking additional conversion goals, you have a few options. There are a few different supported combinations you can choose:
New customer conversion goalWondering how the system distinguishes new users? There are three kinds of data taken into consideration and for the highest accuracy Google recommends utilize all three: Google’s Native Data: This will happen automatically when advertisers select the NCA target and it uses a 540-day validity period based on its own data Self-Reported Data: New customers may be tagged with a combination of the Global Site Tag and new customer parameters. First-Party List: Advertisers can upload their customer list to Google Ads. Since the bid strategy of Smart Shopping Campaigns is to maximize conversion value, it will rely on the Total Conversion Value you calculate. Case study In February 2019 Google published a case study with the European company Studio Moderna. Their goals were to increase their revenue and profit while making overall improvements to their current Shopping campaign. At this time, Smart Shopping was relatively new (less than a year old). They made a great candidate for a case study since they were selling a wide variety of common household items across Central Europe. Studio Moderna went all in on testing in their Polish and Czech markets and paused their existing Shopping campaigns there for 30 days. To make the results even more clear, they also used the same exact budget amount they had been using before. At the end of the test, their goals were met. Their revenue increased by 76%, their conversions by 79%, and the overall ROI by 2.6X. Because of this, they decided to use Smart Shopping as the default for all of their campaigns where available. Dynamic prospectingGoogle talks about dynamic prospecting in their help pages, but you may not have heard of it before. They define it as bringing “user information and product information together to show your best product at the right time to the users who would be the most interested.” How is it different from dynamic remarketing? Dynamic remarketing targets the shoppers and customers you already have with the goal of achieving the highest possible value from them. But dynamic prospecting’s goal is to get you new customers. It works to show your ads both to people who have already looked at your website and those who haven't. It recommends specific products to someone who is more likely going to be interested in them. When it’s useful This method is useful for advertisers who are new and don’t have an existing customer base, or those who are wanting to target a different audience than you have previously. How does it factor into your campaigns? Google has access to a ton of demographic related data about shoppers (age, interests, household income, etc.) collected through apps and third-party data. With this data in mind, your products are evaluated for relevancy, how they perform, and other undefined factors to decide who is best suited to see your ads. The point is to intrigue potential customers by showing them items people similar to them are interested in and turn those ads into conversions. How to add dynamic remarketing
Check out this video for an interesting take on this topic as well as seeing Smart Shopping in action: Go Back to the Top or 5 keys to a successful Smart campaignSince Smart Shopping campaigns are automatic, it’s important to give Google all the information it needs to maximize the effects of machine learning. Start with one product categoryGoogle suggests you start by targeting only a specific product group, so you can leave the others running in normal shopping campaigns in the meantime. This is in order to not disrupt your normal Google Ads activities and performance. Optimize for new customersUsing the newly added customer acquisition target allows marketers to set a separate conversion value for new customers to inform about Google's automatic bidding. Targeting new customers is beneficial because while your existing customers might have made a purchase anyway, new customers equal the possibility of additional continued purchases. Evaluate performanceWait a minimum of 30-45 days before looking at the data and drawing conclusions. If you are happy with what you see, you can add other product groups until you eventually add the full product catalog. If not, pinpoint what’s not working well and where you can make changes. It could be that your headlines, ad copy, or images could use an update. Another diagnostic route to take is researching the prices of your competitors and seeing how you compare or if your discount strategy needs adjusting. Segment your productsForget about the old campaign priorities and product over-segmentation. Create only one Smart Shopping Campaign targeting your whole product catalog. Google will do the job for you in deciding what product to show at the right time and place. Segment your products in several product groups, even within the same campaign and even when you are targeting the whole catalog. This way you can get granular reports and will be able to gauge campaign performance based on how product groups are doing. Have a fully optimized product feedThis is one of the few areas you have full control over. If you already have a Shopping product feed that is fully optimized, then you already know what to do. In the next sections, we’ll look at optimization measures you can take specific to Smart Shopping. Smart Shopping Optimization ft. Kasim AslamSmart Shopping is a powerful tool to use in your eCommerce strategy. Let’s talk about some best practices and how to optimize your campaigns for smooth sailing. Be sure to always:Run a brand campaign You should see your branded search increase as a result of a successful Smart Shopping campaign. It protects your brand and leads to better conversion path tracking if you don’t rely on organic searches. Run a dynamic product remarketing campaign Include a lifestyle ad in the Smart Shopping ads Make sure you never:Increase budgets until day 30 (at a minimum) Scale at a rate faster than 10% of daily spend Check out our video below where we explain how to scale your campaigns in a sustainable way: Start with a ROAS goal While it may be tempting to add a ROAS goal right away, you should wait until 45 days after the start of your campaign. The reason behind this is to give Google an adequate learning period to work with your products and budget. Pause your campaigns Keep your campaigns running so that you don’t disrupt the automation and machine learning. You must have a robust product feedYour product data feed should be as detailed as possible and fully optimized itself. Here are some tips and key areas to focus on. Descriptive titles Robust product descriptions Examples of relevant information are:
Relevant product details The more information Google has to work with, the better. This can help give your products a leg up when it comes to Google choosing which products should be shown. You can add additional attributes when they're optional like color, size, and product type. Lots of imagery (lifestyle images especially) Making your campaigns visually appealing is important because you want to catch people's attention and give them a reason to pay attention to your ads. Studies have shown that lifestyle images perform better as they do exactly this and allow people to envision having the product themselves. Optimize your feed regularly based on what's selling In some instances, Shopify will automatically track all conversion actions as a conversion value (add to cart, checkout, purchase, etc.) Consider using these unique tactics:
By following and maintaining these optimization guidelines, you'll be on your way to running successful campaigns. Go Back to the Top || Kasim Aslam on LinkedIn || Solutions 8 Data feed optimization for Smart ShoppingAn important aspect of optimizing Smart Shopping is feed optimization. Feed health is important since Google uses this information to determine when and where your products show up in searches. Monitoring for warnings and errorsCatch any feed or item issues, and make sure the feed is updated regularly. Use tips from our 10 Most Common Google Merchant Common Errors article to keep your feed healthy and to avoid errors, warnings and notifications. By using DataFeedWatch, you can catch any potential issues in your feed before sending it over to Google. This is done through the Feed Review feature. If any warnings, errors, or suggestions are found, you'll be given information on how to fix or improve them. This way you don't risk getting any warnings on your Google Merchant Center account.Use Feed Rules for Testing TitlesFirst, set up products for your test and control groups using custom labels in your feed. Then, in the Merchant Center, set up your title test via Feed Rules. Analyze performance by comparing:
Using a third-party tool like DataFeedWatch can help you easily optimize all of your product titles. You'll be able to create rules to combine elements of your feed and arrange them in the order you'd like. You can also set up A/B tests from the app. For example, if you're selling apparel, you might set up your titles like below: Then your new titles would be shown as 'Nike Womens Yellow Shoes', for example. Test Smart Shopping with Custom LabelsUse custom labels in your product feeds to segment and test products to learn which ones perform better in Smart versus standard Shopping campaigns. It’s suggested to use custom labels to isolate higher performing or popular products with segments such as:
If you're using a third-party feed management tool like DataFeedWatch then you can segment your products by creating rules. For example, you can create a rule to separate products by profit margin. Here's how it would look: Go Back to the Top or The Pros and Cons of Smart ShoppingThere are a lot of opinions when it comes to using Smart Shopping, so it can help to see a pros and cons list to decide if and how you want to use it. Let's take a look. The Pros:
The Cons
In summaryThe key to adding value and getting more out of your Shopping efforts starts with understanding how Smart Shopping works. Google is giving advertisers more and more access to machine learning but that doesn’t necessarily mean better results. What does it mean in a nutshell? Surely less time spent managing accounts and possibly better results. At the very least it gives a chance to A/B test campaign performance and go from there. The mysterious nature of Smart Shopping campaigns makes some advertisers hesitant to try them, however the potential lift in performance makes them worth testing. Additional recommended reads:8 Steps to Run Your Vehicle Ads on Google 8 Tips to Optimize Your Smart Shopping Campaigns
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