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Google Shopping Ads Setup: Step-by-Step Guide

Anirban Sen

Updated: 6 days ago

  • Account Setup: How to create and connect Google Ads and Merchant Center accounts.
  • Product Feed Creation: Organize and optimize your product data for better ad performance.
  • Campaign Configuration: Set up and structure campaigns effectively.
  • Performance Optimization: Track results and make adjustments to improve ROI.

Quick Steps to Get Started:

  1. Create a Google Ads account and set up Google Merchant Center.
  2. Prepare your product feed with accurate titles, descriptions, prices, and images.
  3. Upload your feed and link it to your accounts.
  4. Launch your Shopping campaign with the right budget, bid strategy, and product group structure.
  5. Continuously monitor and optimize for better results.

Whether you're new to Google Shopping Ads or looking to improve your current campaigns, this guide has you covered.


Google Shopping Ads Tutorial 2025 (Beginners Guide)


Required Setup Steps

Before you can launch Shopping Ads, you'll need to get a few accounts and tools in place. Follow these steps in order to make the process smoother.


Create Your Google Ads Account

You can either use an existing Google account or create a new one specifically for your business.

Here's what you'll need to do:

  • Provide your company details and website URL.
  • Choose between "Organization" or "Individual" for tax purposes.
  • Enter billing information and set your time zone.
  • Turn on 2-Step Verification to secure your account.

A well-prepared Google Ads account makes connecting with the Merchant Center much easier.


Set Up Google Merchant Center

Google Merchant Center is where your product inventory lives. It ensures your products are displayed effectively across Google platforms.

"Merchant Center is a free tool that helps millions of shoppers on Google discover, explore, and buy your products." – Google for Retail

Steps to set it up:

  • Create an Account: Fill in basic business details.
  • Verify Your Website: Prove you own the website you’re linking.
  • Set Policies: Add your shipping and return policies.

For example, Beekman 1802 saw a 280% boost in ROI by syncing their Shopify catalog with Merchant Center. This shows how powerful the platform can be when implemented correctly.


Get Your Product Data Ready

Your product feed needs to include specific details to be effective. Here's a quick breakdown:

Attribute

Description

Product Title

Clear, descriptive name

Description

Detailed product information

Price

Current selling price in USD

Image URL

Link to a high-quality product photo

Product ID/SKU

Unique identifier

Availability

Stock status (in stock, preorder)

Brand

Manufacturer or brand name

GTIN/UPC

Global product identifier

Make sure this data is accurate and updated regularly. For instance, Best Buy saw a 33% jump in online ROAS after optimizing their product listings. Keeping your product data clean and precise is key to success with Shopping Ads.


Build Your Product Feed

With your accounts set up, the next step is creating your product feed. This feed determines how your products appear in Shopping Ads.


Choose the Right Feed Format

Your feed format plays a big role in managing your product data. Here are the most common options:

Format

Best For

Key Benefits

CSV/TSV

Small to medium stores

Easy to edit using standard spreadsheet tools

XML

Large catalogs

Handles detailed data and supports automation

Google Sheets

Smaller catalogs

Real-time updates with built-in error checks

For example, Kaufmann, a major retailer, reported a 44% revenue boost by using specialized feed optimization tools to manage their large product catalog.


Improve Product Details for Better Performance

Once your feed is ready, focus on refining product titles and descriptions. Better details can lead to better ad performance. A study by Search Engine Land showed that product titles with relevant keywords increased click-through rates (CTR) by 18%. When product titles matched exact search queries, CTR jumped by 88%.

Here’s how to optimize your product details:

  • Product Titles: Include key details like brand, material, color, and model number within the first 70 characters.
  • Descriptions: Highlight main features in 160–500 characters.
  • Images: Use clear, high-quality photos that accurately represent the product.
  • Attributes: Provide all mandatory and helpful details to make your listing stand out.

Another study by Searchmind found that updating product titles with targeted keywords resulted in a 38% increase in CTR and a 94% rise in conversions.


Upload Your Feed to Merchant Center

After polishing your product details, upload the feed to the Merchant Center to ensure your data is ready for ads. Follow these steps:

  1. Pick an Upload Method: Choose between manual upload, scheduled fetch, or Content API, depending on your workflow.
  2. Set Update Frequency: Decide how often Google should check for updated product data.
  3. Monitor Feed Health: Keep an eye out for issues like missing GTINs or incorrect pricing. Use Google's tools to fix recurring problems.

For instance, Plantorama saw a 46% jump in store visits and a 9% increase in conversions by keeping their product data accurate and up-to-date.


Set Up Your Shopping Campaign

With your product feed ready, it's time to launch your Shopping campaign. This step connects your product data to your advertising efforts, making your products visible to potential buyers.


Connect Your Accounts

Before starting your campaign, you need to link your Google Merchant Center account with Google Ads. This ensures that your product data flows seamlessly into your ads.

Here’s how to link them:

  1. Log in to Google Merchant Center.
  2. Go to the "Linked Accounts" section.
  3. Select "Google Ads."
  4. Enter your Google Ads customer ID.
  5. Decide between Business Manager or Merchant Center–only linking.

Choose Campaign Settings

Once your accounts are linked, it’s time to configure your campaign settings. These settings will help you manage your budget and ad performance effectively.

Setting Type

Description

Tip

Budget

Daily spending limit

Start small and adjust based on results.

Bid Strategy

Choose automated or manual bidding

Start with manual to learn, then switch to automated for scaling.

Location

Target specific regions

Focus on areas with strong sales potential.

Schedule

Control when ads run

Run ads during peak conversion times.

To get the best results, segment campaigns by user intent. This approach helps you refine your bids and improve your return on investment (ROI).


Structure Your Product Groups

"Product grouping lets you exercise granular control over bids, keep campaigns profitable, and prioritize your most relevant and in-demand products." - Ashwin Balakrishnan, Senior Marketing Manager, Optmyzr

Organizing your product groups is key to optimizing bids and boosting ROI. Here are three effective ways to structure them:

  • Category-Based GroupsGroup products by category. This allows you to set specific bids for each product type and track performance separately.
  • Brand-Based DivisionDivide products by brand, then further organize them by category. This setup makes it easier to adjust bids for different brands.
  • Performance-Based GroupingUse product performance data to guide your strategy:
    • Increase bids for high-performing products.
    • Maintain bids for average performers.
    • Lower bids or exclude underperforming products.

Improve Your Shopping Ads

Once your campaign is live, it’s crucial to keep refining it to maintain strong results. Use these strategies to get the most out of your Shopping campaign.


Check Your Results

Track your performance using key metrics and compare them to industry averages to spot areas for improvement:

Industry

Avg. CTR

Avg. CVR

Avg. CPA

Clothing & Apparel

0.76%

2.70%

$19.29

Health & Beauty

0.74%

2.78%

$35.89

Home & Garden

0.90%

1.31%

$58.00

Focus on these metrics:

  • Click-through rate (CTR): The average across industries is 0.86%.
  • Conversion rate (CVR): Shopping visitors typically convert at about 1.91%.
  • Cost per action (CPA): The average is $38.87 per conversion.

Use these benchmarks as a guide to evaluate your campaign. Check your metrics daily and compare them to these figures to find opportunities to improve.


Add Negative Keywords

Negative keywords help filter out irrelevant searches, ensuring your ads reach the right audience and reducing wasted ad spend.

"Negative keywords let you exclude search terms from your campaigns and help you focus on only the keywords that matter to your customers. Better targeting can put your ad in front of interested users and increase your return on investment (ROI)."– Google Ads Help

Here’s how to make the most of negative keywords:

  • Review Search Terms ReportExamine this report weekly to find irrelevant queries. Look for terms that drive high costs but no conversions, have many impressions but few clicks, or are unrelated to your products.
  • Choose the Right Match TypesMatch types determine how your negative keywords work:
    • Broad Match: Blocks ads if all specified words appear, regardless of order.
    • Phrase Match: Blocks ads if the exact phrase appears in the search, in the same order.
    • Exact Match: Blocks ads only when the query exactly matches the keyword.
  • Create Shared ListsBuild negative keyword lists to apply across multiple campaigns. Start with terms like "free", "cheap", or "review", which often signal low purchase intent.

Continuously refine your keyword strategy based on your results.


Test and Update Ads

Regular testing helps you fine-tune your campaign for better results. According to DataFeedWatch, "The product feed data is a foundation of every shopping campaign". Intelligent Reach also reported that their clients saw a 79% boost in impressions and a 109% increase in clicks over 12 months.

Focus on testing these key elements:

  • Product Titles: Try different formats and phrases to emphasize your product’s benefits.
  • Product Images: Use clear, high-quality images that represent your products accurately.
  • Bidding Strategy: Adjust bids during peak sales times and reduce bids for products with lower performance.

Keep experimenting and updating to ensure your campaign stays competitive.


Next Steps

Now that your campaign is optimized, it's time to take action.


Start Your Campaign

Before launching, double-check the following:

  • Make sure all products are approved in Google Merchant Center and that your budget, bids, and targeting options are properly configured.
  • Confirm that tracking is set up and ready to capture performance data.

Kick things off with a trial period. This phase is essential for gathering performance data, spotting trends, and fine-tuning your campaign settings as needed.

Once your trial period is underway, consider using these tools to improve your campaign's performance and monitoring process.


Helpful Tools

Here are some tools that can help maximize your campaign's success:

Tool Name

Primary Use

Key Benefit

Google Merchant Center

Managing your product feed

Real-time diagnostics for your feed

Google Ads Editor

Making bulk campaign edits

Simplifies large-scale changes

Performance Planner

Forecasting budgets

Offers insights into potential revenue

For those looking to take their optimization efforts to the next level, agencies like Senwired can assist with:

  • Fine-tuning product feeds to improve visibility.
  • Restructuring campaigns to achieve better ROAS (Return on Ad Spend).
  • Managing performance at the product level.
  • Developing strategies to stay competitive on pricing.

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