7 Google Ads Optimization Tips for eCommerce ROI

1. Keyword Strategy: Use long-tail keywords for better conversions and lower costs. Add negative keywords to block irrelevant searches and refine match types to control spending.
2. Ad Copy & Extensions: Write clear, relevant ads with strong calls-to-action. Use extensions like sitelinks and promotions to enhance visibility.
3. Smart Bidding Tools: Leverage Target ROAS and Enhanced CPC bidding to optimize for conversions and profitability.
4. Audience Targeting: Utilize remarketing, Customer Match, and in-market audiences to reach the right shoppers.
5. Product Feed Optimization: Fine-tune product titles, descriptions, and images for better performance in Google Shopping.
6. Performance Max Campaigns: Automate ads across Google’s platforms with machine learning while tracking key metrics.
7. Analytics & Tracking: Use eCommerce tracking and Google Analytics 4 to monitor performance and refine strategies.

Quick Comparison of Key Tips

Use these actionable tips to navigate rising ad costs and boost your eCommerce ROI.

Google Ads eCommerce Optimisation Tutorial

Build an Effective Keyword Strategy

If you want to get the most out of your eCommerce Google Ads campaigns, having a solid keyword strategy is a must. The right keywords can mean the difference between a successful campaign and wasted budget.

Target Long-Tail Keywords

Long-tail keywords are longer, more specific phrases that often attract customers who are ready to make a purchase. These terms typically have less competition, cost less, and convert better. Real-world examples back this up:

• Marketview Liquor increased their revenue by 95% by focusing on specific wine varietals and regions instead of general terms like "wine" or "liquor".
• Furbo, a smart dog camera brand, improved their ROAS by 76% by targeting niche pet care-related phrases.

Want to find effective long-tail keywords? Here's how:

Once you’ve identified your keywords, take it a step further by filtering out irrelevant ones.

Add Negative Keywords

Negative keywords are essential for blocking irrelevant searches and saving your budget from being wasted. This is especially important since advertisers only see about 50-70% of the search terms that trigger their ads.

To manage negative keywords effectively:

• Check search terms weekly to find irrelevant ones.
• Organize negative keywords into themes.
• Apply exclusions at the campaign or ad group level.
• Update your lists regularly based on performance insights.

With irrelevant terms out of the way, you can focus on fine-tuning your match types for better results.

Choose the Right Keyword Match Types

Using the right match types ensures your budget is spent on searches that actually lead to conversions. For eCommerce campaigns, experts suggest relying on exact and phrase match for the majority of your keywords (around 95%).

Here’s how different match types compare:

When starting a new campaign, try exact match for short, focused keywords to maintain control over your budget and relevance. Once you see which keywords perform well, expand to phrase match for those terms. If you want to explore new opportunities, consider using Dynamic Search Ads instead of broad match - they’re often more effective for uncovering valuable search terms.

Create Better Ads and Extensions

Ad copy and extensions play a major role in the success of eCommerce campaigns. Here’s how you can craft ads that grab attention and drive results.

Write Clear Ad Text

Your ad copy should directly address your audience’s needs and match their search intent. According to recent data, improving your Ad Strength from "Poor" to "Excellent" can lead to a 12% boost in conversions on average.

Here’s what makes ad copy effective:

For example, Swoop, a Canadian airline, saw a 71% revenue increase by integrating top-performing keywords into their responsive search ads.

Set Up Ad Extensions

Once your ad copy is ready, enhance it with extensions (now called "assets") to make your ads more visible and informative - at no extra cost. These are especially effective for eCommerce:

• Sitelink Extensions: Guide users to specific pages like product categories or sales. Keep text under 25 characters for better visibility.
• Price Extensions: Show product prices directly in your ads to attract buyers who are ready to purchase.
• Promotion Extensions: Highlight limited-time deals, promo codes, or discounts to create urgency.

Test Different Ad Versions

After setting up your ads and extensions, test different versions to optimize performance. Google Ads’ ad variations feature makes this process simple. Follow these steps for successful testing:

• Focus on testing one element at a time, like the headline, description, or call-to-action.
• Run tests for up to 84 days to gather reliable data.
• Track key metrics such as conversion rate and ROAS.

For example, MyFlightSearch used responsive search ads with enhanced Ad Strength and Smart Bidding to achieve a 14% increase in conversions while cutting cost per booking by 15%.

Also, remember that 83% of landing page visits now come from mobile devices. Use shorter headlines and strong calls to action to ensure your ads perform well on mobile, offering a smooth user experience.

Use Smart Bidding Tools

Smart Bidding leverages Google's machine learning to analyze data signals and adjust bids in real time, helping eCommerce businesses maximize their return on investment (ROI). Here are three strategies tailored specifically for eCommerce.

Set Target ROAS Bids

Target ROAS (tROAS) bidding uses artificial intelligence to forecast conversion value and adjust bids automatically. To use tROAS effectively, make sure you meet these key requirements:

For example, KitchenLab, a premium kitchenware retailer from Sweden, demonstrated the power of smart bidding. Over three months, they reduced advertising costs by 35%, boosted traffic by 18%, and improved their ROAS by 46%.

Try Enhanced CPC Bidding

Enhanced CPC (ECPC) lets you retain manual control over bids while optimizing for conversions. It adjusts bids based on the likelihood of a conversion, making it especially useful for campaigns with limited data or when entering new markets. Google has also removed the previous 30% adjustment cap, allowing for greater flexibility in bid optimization.

Adjust Bids by Device and Location

Refining bids based on device and location performance can further fine-tune your strategy. For instance, if your base bid is $1.00, you might increase bids by 20% for mobile devices (to $1.20) or decrease them by 50% for underperforming locations (to $0.50). These adjustments can also be combined for more precise targeting.

Keep in mind that with Smart Bidding, manual adjustments for devices or locations are treated as targeting signals rather than direct bid changes. A fashion brand based in New York City tested various bid adjustments alongside tweaks to product titles. The result? A 10% drop in average CPC and a 25% increase in ROAS.

Target the Right Audiences

Reaching the right audience is key to improving eCommerce ROI. Below are three strategies to help you connect with potential customers. When paired with smart bidding tactics, precise audience targeting can make your campaigns even more effective.

Set Up RLSA Campaigns

Remarketing Lists for Search Ads (RLSA) allow you to display personalized ads to users who’ve already visited your site. To use RLSA, your website must have at least 1,000 active cookies. For instance, Clarks used RLSA to segment visitors based on their shopping habits. They created specific ads for cart abandoners and product browsers, which boosted their conversion rates from 0.68% to 4.5%. Adjust your bids for different audience groups, such as users who abandoned their carts or previous customers.

Use Customer Match Lists

Customer Match helps you target your existing customers on Google platforms using their contact details. A great example is Guitar Center, which saw a 60% increase in click-through rates and a 50% improvement in conversion rates by using Customer Match. Similarly, The Children's Place achieved a 287% ROI increase, a 153% rise in conversion rates, and a 237% boost in click-through rates.

Add In-Market Audiences

In-market audiences focus on users actively searching for products like yours. To get the best results, choose specific product categories and combine in-market segments with demographic and location targeting. You can further refine your approach by excluding users who don’t convert and creating separate ad groups for different product categories. Customizing your ad copy and landing pages for each audience segment will improve relevance and drive more conversions.

Improve Your Product Feed

A well-prepared product feed is key to succeeding on Google Shopping. Fine-tuning elements like images, titles, and descriptions can improve visibility and boost conversions.

Fine-Tune Product Images and Titles

Product titles play a major role in ad performance - second only to images in importance. The highlights that titles are often the top priority when optimizing data feeds.

Here’s how to make your titles stand out:

• Highlight essential details in the first 70 characters.
• Include the brand name, product type, and key attributes.
• Use relevant, specific keywords drawn from search data.
• Add specifics like color, size, or material to make titles more descriptive.

A study by Searchmind, an SEO and PPC agency, found that swapping out generic terms for precise ones in product titles increased click-through rates by 38% year-over-year, reduced bounce rates by 9.32%, and nearly doubled conversions with a 94% jump. Alongside titles, ensure product descriptions are equally clear and compelling.

Craft Clear Product Descriptions

Think of product descriptions as your online sales pitch. They should deliver detailed, accurate information to help customers make confident decisions. For instance, sports equipment retailer Zoobgear revamped its product listings to make them more relevant and easy to understand. This adjustment, paired with optimized titles, resulted in a 250% increase in clicks.

Keep Product Data Up-to-Date

Accurate and current product data is a must for running successful campaigns. Here’s how to stay on top of it:

• Sync product details with changes on your website.
• Use Google Merchant Center’s automatic updates via the Content API.
• Implement structured data markup to ensure correct pricing.

For seamless updates, connect your e-commerce platform directly to Google Merchant Center. This keeps everything consistent and accurate.

Set Up Performance Max Campaigns

Performance Max campaigns rely on Google's machine learning to automate ads across multiple channels. These campaigns are designed to improve eCommerce ROI by complementing prior optimization efforts.

Create Asset Groups

Asset groups are the backbone of Performance Max campaigns. Each group should focus on a specific product category or theme to ensure your messaging reaches the right audience.

Each asset group should include:

• Headlines: Write at least 15 unique headlines that emphasize key product benefits and features.
• Descriptions: Craft 5 or more detailed product descriptions.
• Images: Upload up to 20 high-quality images in different formats, such as Landscape (16:9), Square (1:1), and Portrait (4:5).

When designing image assets, make sure the main content stays within the central 80% to avoid distortion. Maintain consistent branding by using the same colors, fonts, and logos across all assets.

Set a daily budget between $50 and $100, and ensure it's at least three times your target CPA.

After setting up your asset groups, shift your focus to tracking performance metrics.

Track Key Metrics

Keep an eye on these metrics to measure and refine your campaign's success:

Let your campaigns run for at least six weeks to allow the algorithm to optimize. During this time, use the Insights tab to review asset performance ratings and audience trends. This data can guide adjustments to your targeting and asset strategies.

To help the algorithm perform better, provide clear audience signals, such as:

• First-party customer data
• In-market audience segments
• Affinity audiences
• Custom interest targeting

Leverage these insights to fine-tune your campaigns as they progress.

Measure Results with Analytics

Tracking analytics precisely is key to getting the most out of your Google Ads campaigns. It helps you monitor performance and make informed decisions about your strategy and budget.

Install eCommerce Tracking

eCommerce tracking helps pinpoint which ads drive the most sales. If you're using Shopify, the Google Channel app can automatically set up conversion tracking. However, always double-check to ensure it's working correctly.

To set it up manually, use Google Tag Manager to install the tracking code. Set the conversion category to and include conversion values to capture revenue details. Extend your conversion window to 90 days to track delayed purchases.

Connect Google Analytics

Integrate Google Ads with Google Analytics 4 (GA4) to better understand customer behavior. Some metrics to focus on include:

• ROAS (Return on Ad Spend): How much revenue you earn per ad dollar.
• Engagement Rate: Measures user interaction with your site.
• Add to Carts: Indicates purchase intent.
• Abandoned Checkouts: Shows where users drop off in the buying process.

Keep in mind that data synchronization can take 24–48 hours. Also, enable auto-tagging in Google Ads to ensure seamless tracking between platforms.

Review Performance Weekly

Make it a habit to evaluate your campaign's key metrics every week. Focus on:

• CTR (Click-Through Rate): Aim for 3–5% on Search Ads and at least 1% on Display Ads.
• CVR (Conversion Rate): Target 2–4%.
• Quality Score: Higher scores reduce costs and improve ad placements.
• CPC (Cost Per Click): Monitor spending efficiency.

If performance dips, experiment with new ad headlines and descriptions, optimize landing pages for faster load times, and add negative keywords to filter out irrelevant traffic. Scale up ads that perform well and pause those that don't. Regular reviews like this help you refine your approach and boost your return on investment.

Wrapping Up

Achieving success with Google Ads in eCommerce requires a focused, data-driven approach. Regular updates and testing are key, as shown by Inflow's clients who saw a 76% boost in PPC revenue using Performance Max campaigns.

To improve your campaigns, focus on precise keyword targeting, engaging ad copy, and making use of smart bidding tools while keeping a close eye on analytics. These steps help ensure your campaigns stay on track and deliver results.

Here are some practical tips to keep things running smoothly:

• Check key metrics on a weekly basis.
• Experiment with ad variations, audience targeting, and bid adjustments based on performance data.
• Keep your product feeds accurate and up-to-date.
• Regularly review and fine-tune your audience targeting.

Related Blog Posts

• How to Reduce Google Ads Spend Without Sacrificing Sales
• eCommerce Analytics: Key Metrics for Google Ads Success
• Q&A: Top Google Ads Performance Issues Solved
• Checklist for Running A/B Tests on Google Ads