E-commerce marketing
Google Ads
for online stores.
For an online store, Google Ads mostly means Shopping ads: the product listings with a photo and price at the top of the results. They run from your Merchant Center product feed, through Standard Shopping or Performance Max campaigns. The feed decides which searches you can show for. The campaign decides how much you pay. Since October 2024 neither campaign type gets automatic priority for the same products: the one with the higher Ad Rank serves.
The feed is
your keyword list.
Shopping ads have no keywords. Google reads your product feed and decides which searches each product matches. So the feed does the job keywords do in a search campaign, and a vague feed shows for vague searches.
Titles matter most. Google says shoppers usually notice only the first 70 or fewer characters of a title, out of 150 allowed, so put the words people search first. 'Linen Sheet Set Queen White, Stonewashed French Flax' beats 'The Coastal Collection, Queen'.
Prices must match the product page, and in Australia the price should include GST. A mismatch gets products disapproved, often right when a sale starts.
- Most-searched words first in every title: product type, then brand, size, colour, material
- A GTIN (barcode number) for every product that has one
- Clean images: the product on a plain background, no text or badges
- Sale prices in the sale price field, not the title
- Shipping costs and returns set up in Merchant Center
Performance Max,
Shopping, or both.
Standard Shopping shows your products in Shopping results only, with the most control: bids by product group, a full search terms report and negative keywords. Performance Max uses the same feed but also shows across YouTube, Display, Gmail, Discover and Maps, with Google deciding where the money goes. During 2025 it gained a search terms report and campaign-level negative keywords, so the gap is smaller than it was, but Standard Shopping still gives finer control.
Until late 2024, Performance Max won whenever both campaigns covered the same product. Google changed that in October 2024: now the campaign with the higher Ad Rank serves. Running both on the same products just makes them compete, so split products between them instead.
Answer the questions below for a starting set-up.
Campaign set-up check
Performance Max,
Shopping, or both?
There's no single right answer, and anyone who says 'always PMax' or 'never PMax' is selling a habit. Answer six questions about your store and it suggests a starting set-up, and what to watch.
Start with
Set it up like this
Profit,
not ROAS.
ROAS (return on ad spend) is revenue divided by ad cost. It ignores what the products cost you. A 400% ROAS on a product with a 20% margin loses money on every sale, before shipping and returns even come out.
Work out break-even first: 1 divided by your margin. At a 40% margin, break-even ROAS is 2.5, so a target of 2.5 only covers the ads. The e-commerce hub has a calculator for it, with shipping and returns included.
| Margin after product cost | Break-even ROAS | What a 4.0 ROAS means |
|---|---|---|
| 20% | 5.0 | Losing money on every sale |
| 33% | 3.0 | Some profit, before shipping and returns |
| 50% | 2.0 | Healthy, with room to grow |
Separate new customers
from old ones.
People who already know you search your store name, and Google will happily charge you for those clicks and count the sale. It makes any campaign that includes brand searches look better than it is.
Report brand and non-brand results separately, and if you can, new and returning customers. Then you can see what the ads found, not just what they touched. Cause testing goes a step further and measures what would have happened without the ads.
Plan for the
Australian peaks.
Click Frenzy, Black Friday, Cyber Monday, Christmas cut-off dates, Boxing Day and the end of financial year all change how people search and how much clicks cost. Automated bidding learns from the past, so tell it what's coming: raise targets before the peak, not during.
Get the feed ready a fortnight early. Sale prices, stock levels and shipping cut-offs that are wrong in peak week cost the most. The hub's retail calendar has the dates.
What I see most often
Where online stores
leak ad spend.
- 1
Titles written for the website, not the search
Collection names and clever product names that nobody types. The feed shows for searches the store never meant to pay for, and misses the ones it wants.
- 2
One campaign, every product, one target
A $9 accessory and a $900 best seller fighting for the same budget with the same ROAS target.
- 3
Brand sales counted as wins
The account looks profitable because most of the sales came from people searching the store name.
- 4
A sale that broke the feed
Prices changed on the site, not in the feed. Products disapproved for price mismatch on the busiest weekend of the year.
The honest bit. Google Ads won't fix a product people don't want, at a price they won't pay. If competitors sell the same item for less, the ad just shows that faster.
Questions
people ask.
What is Google Shopping?
The product ads with a photo, price and store name that appear in Google results and the Shopping tab. They run from a product feed in Merchant Center, not from keywords.
Should I use Performance Max for my online store?
It depends on how many sales you get, how good your feed is and how much control you need. Since October 2024, the higher Ad Rank serves when PMax and Standard Shopping cover the same products. The set-up check on this page suggests a starting point.
What ROAS should an online store aim for?
Start from your margin: break-even ROAS is 1 divided by your margin after product costs. Anything above that is profit before your other costs. A good target is whatever leaves you profit after shipping and returns, not a number from someone else's account.
Do Shopping ad prices need to include GST?
Yes. In Australia, Google says the price in your feed should include GST, and it must match the price on the product page.
How long should product titles be?
Up to 150 characters, but Google says shoppers usually see only the first 70 or so. Put the words people search first.
Related
Keep
going.
- IndustryEcommerce customer acquisition
- IndustryMarketplaces vs your own store
- ExampleStore teardown: one sale, six stages
- IndustryWhat to budget for an online store
- HubE-commerce marketing
- ServiceGoogle Ads management
- MethodSpend Curve
- LabHow much does Google Ads cost?
- IndustrySEO for online stores
- IndustryAdvertising rules for online stores
Get a free
Google Ads audit.
Takes a minute. Audits come back within 1 to 2 business days. For anything else, I'll get back to you as soon as possible.
What happens next
- 1I'll ask for read-only access, or just your website for a search audit.
- 2I go through it and write up the 3 biggest fixes.
- 3A 20-minute call to walk you through it. No pitch unless you ask.
