What is Google Shopping? 10 outstanding benefits of shopping ads

HT Vũ Ngọc 24 Apr, 2025 Google Marketing

What is Google Shopping Ads and why is it so HOT? Before diving deeper into what Google Shopping actually is, let’s take a look at some impressive statistics showcasing the benefits it brings to sellers:

Increases click-through rate by 35%
Reduces PPC costs by up to 25%
Cuts budget in half compared to Facebook Ads and regular Google Ads
Doubles revenue

Pretty compelling numbers, right? So what are you waiting for? Let’s dive into the world of Google Shopping Ads right now!

1. What is Google Shopping?

Google Shopping, also known as Shopping Ads, is a type of online advertisement provided by Google. It allows product listings to appear instantly based on the buyer’s search query, making it easy for users to view, compare prices, and select products directly from the Google search results page.

For shop owners, this is an incredibly effective way to sell products on Google, as your items are instantly shown to buyers who are actively searching for them.

Why is Google Shopping Ads so HOT?

Given consumers’ habit of researching products before making a purchase decision, Google Shopping is considered one of the most effective channels for product marketing and sales, with a high conversion rate.

See more products: Buy advertising accounts

2. How do Shopping Ads appear?

Imagine today’s weather is cold and you need to buy a pair of warm gloves. Like usual, you go on Google and type something like “winter leather gloves.” The result will look like this:

On a desktop interface

The top of the page displays the first five most relevant products. You can click the arrow to view more—up to 30 products.

On the right-hand sidebar (desktop):

This block shows nine more relevant product ads, including product name, price, and website. Users can browse through and click on any product to view more details.

On mobile devices

Three products are shown by default, and users can swipe left to see more.

In general, Google Shopping Ads offer a strong advantage over Facebook Ads or traditional Google Ads because they display visually rich product listings in prime positions on the search results page. These product ads are also tightly aligned with user intent, increasing the likelihood of a purchase.

Note:
Regardless of how attractive Google Shopping Ads may be, their visibility still depends on two key factors: your bid and your quality score, just like traditional Google Ads.

The difference is that the quality score for Shopping Ads is largely based on the landing page experience. The more clearly and thoroughly your product is described (and yes, it should include relevant keywords), the higher your chances of appearing in the ad results.

So just because you run a Google Shopping campaign doesn’t guarantee that your product will show up—especially if competitors are bidding on the same keywords. We cover this in detail in our article “How to Optimize Google Shopping Ads”, which you can check out to learn how to secure that coveted top ad spot.

3. The Effectiveness of Google Shopping Ads

As the world’s largest data collection, analysis, and processing engine, Google Shopping promises a Google-style shopping experience—fast, trustworthy, and accurate—while also optimizing your product advertising costs on Google. Here are some unexpected benefits for sellers:

Higher Click-Through Rates (CTR)

According to Google statistics, products listed through Google Shopping have a CTR of 34–35%, which is double that of traditional PPC ads.

One of the key reasons for this is that shoppers are shown comprehensive product information: visuals, reputable store details, etc. There’s no room for plain text in Google Shopping.

As you can see, Shopping Ads appear as high-quality images accompanied by clear, detailed product info. This visual content creates a stronger first impression, increasing the likelihood of a purchase.

Lower Costs (Reduced CPC)

Google Shopping campaigns tend to yield lower average CPC, helping advertisers save money and gain more traffic for the same budget. According to Google, some advertisers have seen a 25% reduction in CPC when switching to Shopping Ads.

Better Return on Investment (ROI)

Spending the same amount on Shopping Ads can earn you more compared to other campaign types. Advertisers say that improved CTR and CPC metrics help cut ad budgets in half or double revenue.

Smooth Mobile Display

Google reserves the top two positions on mobile search results for ads. With Google Shopping, up to 15 product ads are shown in a carousel, removing the pressure to fight for the #1 or #2 ad spots.

This boosts visibility, especially as users increasingly shift from desktops to mobile devices. Pretty great, right?

Easy Setup—Even for Large Inventories

Creating traditional Google Ads campaigns can be time-consuming, especially when dealing with many products. But Google Shopping is more convenient—just upload your products with titles, attributes, and descriptions to Google Merchant Center, and you’re set.

Automatic Updates for Product Info

Like a diligent assistant, Google Shopping automatically updates any product changes you make in Google Merchant Center daily. But before we go further, make sure to explore how Google Merchant works—what’s coming next gets a bit technical.

With auto-updates enabled, Google will update your Shopping campaigns once per day to ensure you’re not bidding on out-of-stock or discontinued products.

If you add new products to your site, they’ll be automatically included in your product feed the next day—no need for manual updates. This auto-update feature looks like this:

Illustration or explanation of auto-update feature

There are several auto-update options, which we’ll cover in an upcoming series.

Custom Labels

Google Shopping lets you assign up to five custom labels to better control and segment your campaigns. For instance, you might tag heavily discounted items for easier tracking and clearer reporting.

Better Reporting

Shopping campaigns allow you to track performance at the product level. Unlike traditional campaigns that rely on ad groups, Google Shopping links metrics directly to individual products. This lets you filter and analyze data based on attributes like:

Product category
Brand
Condition
Product type
Item ID
Custom labels

Competitive Metrics

With benchmark tools, Google Shopping gives you anonymous CTR and CPC data on competitors, helping you refine your bidding strategies and improve campaign efficiency from the start.

See more products: Buy advertising accounts

4. How Does Google Shopping Charge You?

When a user searches for a product using a keyword, Google scans its data and displays a list of matching products.
You are not charged for this display.
You’re only charged when someone clicks on your product to view its details.

5. Google Shopping Has Landed in Vietnam

Google Shopping is now officially available in Vietnam. Since it’s still relatively new, major e-commerce platforms like Shopee and Lazada are currently dominating the ad space.

Selling on Google has huge potential. Now that you understand what Google Shopping is, it’s the perfect time to learn how to launch your campaigns and optimize your ads to maximize profit.

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