How to Achieve a 550% ROAS with Google Shopping Ads
how much money you make from every dollar you invest in your ads. Every marketer aims to have high returns on their ad spend. Achieving a high ROAS with Google Shopping Ads requires employing some strategies and understanding your target audience.
Google Shopping Ads is one of the most effective ways to increase sales from any product catalogue. With an average cost per click (CPC) of $0.66, it has proven to be a profitable investment for many businesses.
So, if you own an online store or work for one, you’ll want to sit tight for this read! In this guide, we’ll explain what ROAS means and explore simple ways to make your Google Shopping Ads more effective so you can make more sales.
What are Google Shopping Ads?
Google Shopping ads are advertisements created with the product details you provide in your Merchant Centre account and are displayed to people looking for similar products. They show detailed product information, like pictures, prices, and the seller’s name.
When you search for a related product, these ads appear at the top of the Google search page. If this is your first time investing in Google Ads, you should try it for great results.
What is Return on Ads Spend (ROAS)
ROAS is a metric you use to analyse your Google shopping campaigns. It accurately tells you the amount you earn for every dollar you spend on ads. You need to monitor your ROAS to save money on irrelevant search terms. The higher your ROAS, the better your business.
To calculate ROAS, use this formula:
Advertising revenue / Advertising costs
Assume you spend $100 on an advertisement and generate $800 in revenue. This means your ROAS is (800/100) = 8. For each dollar you spend on ads, you’ll earn $8.
In the next section, we will discuss some strategies for optimising your ads so you do not overspend, get a better ROAS, and increase your profits.
Strategies Used to Maintain High ROAS
Feed optimisation
Your Google shopping feed is the basis for your shopping ads. To improve your ads, start by ensuring your feed is in good shape. Google uses this feed to access your product catalogue and gather essential details about your products to show in the ads.
First, create a feed to which you can upload your product details, and then upload this feed to Google Merchant Centre to create your Google shopping ads.
The feed you created gathers your product details, such as the product ID, name, description, link, image link, price, category, and global trade item number (GTIN). This feed helps you update your products so that customers can easily find them on Google.
Campaign structuring
Structuring a Google shopping ad campaign has proven to be challenging for retailers. Here are some strategies that can help you structure your campaign effectively.
1. Select the products you want to advertise
Selecting the products to advertise is a necessary step before developing your campaign. Consider which products are widely used or frequently purchased by customers.
Carry out market research to determine how well that product is sought after, its profit, and how well it can compete with other products.
2. Create groups based on the products and their characteristics.
After selecting the products you want to advertise, the next step is to group them. Grouping your products will help you tailor your ads to your target audience, enabling you to create ads that they’ll find helpful.
You can also group your campaigns based on price by using custom labels. Custom labels are optional tags you can add to your product details. These tags can include information like price, best sellers, seasonal products, and more, helping you enhance your shopping campaigns.
3. Create an ad and choose a bid strategy
The next step in your campaign structure is to create ads for your products. Humans are drawn to visuals, so use clear, high-quality product images in your ads to entice them.
After gathering your resources, choose how you want to bid for ads, depending on your goals and budget. You can manually control the cost of your ads or automate them to get the best results for your campaigns.
Most clicks come from mobile devices because people spend more time on them, but conversion rates are usually higher on desktop computers, based on research. Using this information, you can lower the bid for mobile clicks, which will likely improve the performance of your campaign.
4. Monitor and adjust your campaigns to improve your performance
After placing your ads on Google Shopping, you should monitor your campaign to determine its performance.
Identify the ads that generate more traffic and convert more by monitoring your campaign on Google. Use the insight to optimise your ads and bid strategy to enhance your ads.
You can use A/B testing to test different ad copy, images, and keywords to see which ones convert more. Additionally, you can experiment with various bidding techniques to see which is most economical and generates more sales.
Target keywords
Next, you must know your target audience and the words they use when they search for similar products you offer.
Use negative keywords to prevent clicks and impressions that degrade the quality of your ads. Negative keywords prevent your ads from appearing in searches unrelated to your products, which helps you save money on advertising. Long-tail keywords can also help you save money and reduce competition.
Such keywords also provide a higher post-click conversion rate. For example, someone looking to buy shoes using the keywords “blue size six tennis shoes” is more likely to buy the pair than someone looking for “tennis shoes.”
Track your conversions
Conversion is an important metric when optimising your ROAS, so you must keep tracking and monitoring it. The best practice for monitoring your conversion is to analyse your ads channel individually instead of overall. This will help you accurately track your conversions to know where you’re making sales from.
Monitoring conversions and testing channels are complementary. This will help you compare your ROAS for different campaigns and platforms to know which gives you a higher ROAS.
Include a special offer or deal
To increase the number of people who see your Google Shopping ads, offer discounts or special deals. Tailor this offer to your products and customers to improve your customer experience.
Additionally, you can entice customers to buy from you by offering discounts or special offers. By offering price discounts, you immediately address a typical problem customers face. As a result, your product looks better and draws in more potential buyers.
Offering promotions with benefits like free shipping or free returns is another way to add value to your products and it encourages repeat business. This will let your customers know they get a good offer without risk. By doing this, you can attract more customers and increase sales.