Product listing ads are online advertisements also known as Google shopping ads. PLA ads are reachable by e-commerce websites. This type of ad is cost-per-click and can be purchased through Google AdWords. Merchants purchase product listing ads because they only pay when users click. They don’t have to pay to sign up for ad networks. Therefore, this ad network is the most popular worldwide. But, there are also various smaller ad networks available.
How does it work? Here’s an example: A user searches for a yellow cap. If you target this keyword with your PLA, it appears on the side or above the search results. Google PLAs look like an organic search result.
Why use Product Listing Ads
- Product Listing Ads can be used alongside AdWords. This strategy obtains a significant share of the paid search results. This can be acquired by using both standard ads and product listing ads.
- To remain competitive, e-commerce websites cannot afford to ignore PLAs. The traffic generated through product listing ads is rising at an exceptionally fast rate.
- Due to lesser competition, product listing ads can enjoy a low cost per click (CPC). PLAs also have low cost per conversion.
Difference between Product listing ads and Google ads
You create and manage both Google ads and Product Listing Ads in AdWords. But, there is a section for Google shopping in the AdWords interface. This is where you will handle your PLA`s.
- Google shopping ads are only for online brand selling products. Whereas, Google ads can be used by different organizations and companies from retail businesses to blogs.
- The fee system for PLAs is based on the group you bid on (product categories or products). The cost of AdWords is based on keyword.
- You can bid on a category like “caps” or “caps under $30” in a product listing ad.
- You can bid on keywords like “buy the yellow cap for men” in AdWords ad.
Draw-Backs of Product Listing Ads
Product listing ads are only suitable for e-commerce websites because they have other drawbacks like:
- The sites have poor quality content.
- The industry is very competitive and may not produce enough return on investment (ROI) because of higher costs.
- It is difficult for a site to gain visibility as it only sells few products.
- Your ads will not show if your site is creating 404 pages.
How to increase ROI (Return on Investment)
- If your store starts selling more than 600 items, post more product listing ads. This idea can only work if you have a small store. But, a store with 5 to 10 items will not get much visibility until those products are exceptionally popular.
- As you learn how to use Google Shopping increase your budget successfully.
- If users leave your store within 10 seconds, Google will stop serving up your ads. Make sure the appearance and content of your online store are captivating.
- If your online store has small margins, then keep your budget low so it won’t blow your margins.
Link AdWords and Google Merchant
Create a Google Merchant and link it with AdWords to get started. Simply log into the Google Merchant Center account. Then, go to settings >> AdWords now type your AdWords ID and click “add”.
Shopping campaigns that are based on product data. Google will stop serving the ads if you remove the link to the account. By doing this you lose the ability to create any new campaigns in AdWords.
How to Set Up PLAs (Product Listing Ads)
Follow these steps to start creating your ads.
Step 1: Create an Account on Google Merchant Center
Simply go to the Google Merchant Center website and create a new account or signup for an existing account. Link the Google Merchant Center with AdWords by clicking the button in the upper right corner. Press the option “Account Linking.”
Step 2: Now Create a New Shopping Campaign
Go to Google AdWords >> Campaigns and select (+Campaign) button. Click on “Shopping” in the drop-down menu. This step initiates the shopping campaign.
Step 3: Create Campaign Name, Select Country and Select Priority
First, make a campaign name. Type it in the (campaign name box). Campaign type is already set to default (Shopping). Then, load settings from different options in dropdown. Select your country in the (Country of sale box) and Choose priority from low, medium, and high.
Step 4: Set Locations and Networks
(Google Search Network) is the default selected network. Choose the target country in your campaign. Or, you can choose the option to exclude the country from your shopping campaign.
Step 5: Set Up Your Bid, Budget and Delivery
You can select your bid manually and decide your budget. Hit save and continue button once you are completed.
Step 6: Setting Product Group
You can choose one product group or multiple product groups in the ad group creation option.
Step 7: View Your Campaign Status
Finally, complete all the settings and then view the status of your campaign in the main list.
Google Shopping ads are less frightening than they seem. As you import the product data into the system, it becomes simpler. It is up to you how you set up the budget. If you are new to Google Shopping ads, start with one product group. This strategy will make it easier for you to gain knowledge as you test out the platform. Notice which products aren’t performing. If you want to see the progress of your campaign, all the stats are in the dashboard. Pay attention to which products perform best.