How Google Shopping Works…

Here is a simple guide to explain how Google shopping works…

Overview of Google Shopping:

Google shopping management in terms of Ads is run through the Google Ads platform, whereas management of the feed in run through Google Merchant Centre. Google Merchant Centre has the option for agencies to manage multiple clients in the same way as Google Ads.

In Merchant Centre, the product feed needs exporting from the website in the form of a CSV, XML or TXT feed. Most e-commerce CMS platforms have a plugin that will do so. For proprietary CMS websites, as long as they sell products in the form of e-commerce then we will need to create manual feed. TXT is best for this, but it will need creating in Excel.

In Merchant Centre, you can diagnose any errors in the feed. You can also manage offers, discounts and other settings in Merchant Centre.

In Google Ads you can manage negative keywords, product grouping, bids and Ad Extensions.

The key stage that seems to be missed at present is an understanding of how to optimise the feed. This is very simple and uses very similar methodology to SEO. 

Keyword Research should inform which words should be used in Product Title and Description. This is not necessarily the same as what it pushed to the feed, but it might be, so make sure to check. You also need to ensure that the product information on the page is optimised. In essence, you need to make sure that the products are optimised for the correct keywords. Don’t stop with keyword research, you need to make sure that you check the search query info on Google Ads and Merchant Centre to include the search queries that produce the highest revenues, highest average transaction values and the best conversion rates.

Additionally, third-party ad extensions such as do improve CTR and offers to improve conversion rates. 

As a side note, for e-commerce websites, include a discount code in the Search Ad and you will see higher conversion rates and possible higher transaction values. 


As with Search Ads and (with SEO) you need to work out the margin and ensure that you are bidding appropriately. Each and every product has a different performance, sometimes with conversion rates and average transactions varying widely. Even similar products can perform very differently, so make sure that you bid appropriately for maximum ROI. Also, make sure that you review the keywords for negatives to be added, as well as to ensure that the most relevant and highest performing search queries are used in the product title and description.