Google shopping has been beta tested over the last few months in New Zealand and now it’s here to stay. While Google shopping has been around for a few years in other countries, it’s recent arrival in New Zealand is an exciting addition to any clients’ Adwords account.

What is Google Shopping?

Google shopping ads show in search results just like regular Google Adwords ads. However, the difference is that they are targeted ads showing specific products based on your keyword search. This includes product information such as price, colour, size, availability and more. These ads allow users to shop directly from Google search results, increasing the probability that they’ll click your ad, and perhaps make a purchase.


Google Shopping in Google Search Query Example


How Does Google Shopping Work?

Google shopping ads make use of two platforms: Google Adwords and Google Merchant Centre.

The platform requires you to upload your product data into the Google merchant centre, which then feeds into your Google Adwords account where you can control where to show ads.

When users make a search that contains product ads and targets keywords you’ve identified for your ads, then Google shopping ads will populate in search results.

Depending on whether you’re able to use manual or automatic product feed submissions, you will either have to go back into your Google Merchant Centre shopping feed regularly to update your product information. However, in most cases, you will be able to sync your product attributes with the Google Merchant Centre API, which means that your product data will update automatically. This can save you a lot of time and allow you to get a much wider reach for all of your product range.


Can I Use Google Shopping?

To use Google shopping, users need to be able to buy a product directly from your website. Google’s regular Adwords policies also apply, such as the restrictions around prohibited content. With Google Shopping, there are additional strict guidelines around counterfeit goods for sale.


What’s the Impact of Google Shopping in New Zealand for Search?

Google shopping in New Zealand will no doubt have a strong impact on the dynamic of search for e-commerce stores.

Currently we’re seeing higher click-through rates and lower cost per clicks (CPC’s) than regular search ads. However, keeping in mind that Google shopping isn’t serving 100% yet, we are yet to see its full impact.

It may be considered a great time to begin using Google shopping as it is yet to be realised by some competitors within the New Zealand market, providing a real opportunity to get lower CPC’s while this category remains less competitive.

It is expected that as more competitors begin using Google shopping, CPC’s may rise in turn. However, it is moreover possible that conversion rates will heighten as users are taken to deeper links for products, as opposed to generic category options related to a keyword search (alike to regular Google Ads). Having full coverage across all of your products is advantageous as this will give you the best chance of gaining as many incremental clicks as you can, whilst in turn benefiting from a lower cost per click rate.


Ryan McMillan


Ryan McMillan

Tuesday, 7th March 2017