The price monitoring service that will improve your Google Shopping campaigns – try ROAS Booster and maximize your profits from product ads!
- 20 March 2023
The importance of Google Shopping ads on the e-commerce market
Google Shopping ads are the main source of generating sales for many online stores. Some studies prove that Google Shopping has a 30% higher sales rate than standard text ads. Thus, it is a basic tool for buyers in which the user can browse and compare the offers of various sellers.
The effectiveness of the Google Shopping system is based on a clear presentation of the product already at the stage of search results, parameterized with the user’s preferences. The advertiser can analyze user preferences in his Google Ads panel. Source: support.google.com
The importance of price in Google Shopping Ads
One of the key factors determining the purchase is the price. According to research conducted by Hubspot, price, next to product quality, is the most important purchasing factor in 2022. When deciding to buy, we cannot be sure about the quality of the product – judging by the description and photo, the price remains an obvious and unchanging element in the analysis of offers on Google Shopping.
Product price still dominates consumers’ purchasing decisions according to the State of Consumer Trends Survey report. Source: blog.hubspot.com
What is ROAS Booster?
At Dealavo, we have created a complementary service to those we already provide – monitoring the prices of competitive products for our clients’ products. ROAS Booster is a module that optimizes campaigns within the Google Shopping advertising network. Dealavo is a tool that scans the prices and assortments of your competitors on selected sales platforms and directly in stores. Thus, our specialists can provide you with data on which products are currently the most attractive in terms of price.
How to implement price monitoring in your Google Shopping campaigns?
To be able to use Google Shopping price monitoring automatically in your Google Ads, follow these steps:
Step 1: Transfer your pricing data to Google Merchant Center
After obtaining price data in Dealavo, the next step is to send it to Google Merchant Center (there, it will be transferred to Google Ads). For this purpose, our specialists will create and provide you with an individual Supplemental Feed, and (if you have problems with the implementation) ) – we will guide you through the entire process.
Step 2: Name your feed and choose how often you’ll get pricing updates
We encourage you to define the feed with the Dealavo brand. Therefore, you will know that it comes from analyses we delivered.
Step 3: Define high-margin products
It is known that your profit is affected not only by the number of sales but also by the level of margin you achieve on them. When you provide us with information about your purchase costs, we will be able to supplement your feed with a so-called Custom Label where we can assign different levels of profitability to your products.
Step 4: Create Google Ads campaigns
Create your Performance Max campaign (you can also use other types of campaigns associated with Google Shopping) including a link to the previously configured product feed marked with fitting Custom Labels.
Choose your advertising strategy in Google Ads
Ready for unexplored opportunities that a newly configured campaign opens up for you? Now, remember that your point of analysis is the effectiveness of sales at the level of labels. You can go to the Products Group tab and analyze the effectiveness of sales, or go deeper – the number of views, number of clicks, and ROAS.
Use Google Reports to analyze custom label data, and if your Google Analytics account is linked to Google Ads, that’s just great! You will get even more data.
Nevertheless, at a basic level, you can analyze data from Google Ads. To do so, use Google Reports.
When a custom label changes – e.g. fluctuate between different profitability levels – then previous data remains the same.
Choose an advertising strategy for your e-store
Strategy No. 1: Prioritization of several campaigns – attractive prices vs. less competitive prices
An effective strategy for using Google Shopping / Performance Max consists of identifying and prioritizing the factors that have the greatest impact on consumer conversion rates. Depending on these elements, it can be related to keywords or more diverse characteristics such as price level, sales availability, and stock levels. By strategically deploying Google Shopping campaigns from the lowest-priced products upwards, companies can optimize their results while not excluding any of their product offerings from potential customers. You can decide on the “strength” of the campaign and the allocated budget.
Strategy No. 2: Set your bids manually based on the competitiveness of your prices
By creating product groups with custom labels that you use for a given price level, you will be able to adjust the max CPC bids in your campaigns.
Please note that this tactic only works with manual bidding. Product grouping doesn’t affect Smart Bidding.
The key is to always set higher prices for the product group with the most conversions.
If you increase prices on your most expensive products, and not on the cheapest, the most competitive products will be shown less and less. As a result, your revenue along with overall ROAS will decrease.
Strategy No. 3: Try different types of Performance Max campaigns (and more)
The introduction of the PMax campaign made quite a buzz in the advertising market. Google convinces us that these types of campaigns are more effective than the previous “manually” controlled ones and Smart Product Campaigns.
What is an advantage for Google may be a disadvantage for others. The introduction of PMax is another step made by Google that convinces us that Google focuses more on the end customers of its services, i.e. advertisers. Agencies that mediate in setting up campaigns are put on the back burner.
The disadvantage of PMax from the point of view is the lack of basic information about ad targeting and “giving everything to Google”. What we consider proof is the fact that initially, the PMax campaign itself included brand targeting (now it can be excluded). That inevitably caused its conversions and artificially increased ROAS.
Therefore, experimenting with Performance Max campaigns at different product price levels provides the basis for optimizing sales. And Dealavo with its ROAS Booster module makes that possible.
Why does using ROAS Booster from Dealavo give you more opportunities than competitor analysis performed by Google?
As you can easily guess, no one has more data on product prices in Google Shopping campaigns than Google itself. So what makes Delavo different and why do we say it has a different perspective? Because Dealavo monitors many sources on the basis of which users make their own purchasing decisions.
Let’s look at the following case. You would like to buy new shoes. You have the desired brand, type, and size. You know that the products are offered in a very competitive market. Of course, you check prices on Google Shopping. But you have a number of other platforms, such as Amazon, where you can also compare prices. Does Google optimize your ads for product prices on other marketplaces? It seems not. Dealavo, on the other hand, provides you with price updates on regularly monitored platforms and markets. What’s more, it can monitor the platforms and stores that you suggest during the Dealavo configuration.
Google’s suggestions are based on data that Google monitors in its auctions. Dealavo, on the other hand, monitors advertising platforms and even specific online stores according to your preferences. Image source: support.google.com
That’s not all – you can point out several other use cases of ROAS Booster from Dealavo that will help you optimize your campaigns better than Google. Look at the following cases:
Optimization No. 1: Identify non-competitive products
Google uses historical data to learn your campaigns. It may happen that uncompetitive products will be eliminated in auctions at the “learning” stage. Thus, even if you change their price, Google should take some time to relearn that these products are attractive – you are not sure whether the sale introduced today will work with a greater promotion in Google Shopping. Especially if you want to intervene quickly and get rid of product inventory, you need a ROAS Booster from Dealavo that will “convince” Google to mark profitability faster.
Optimization No. 2: Identify products that will sell, even without competitive pricing
Just because your products are more expensive than your apparent competitors it doesn’t mean you can’t keep selling them.
What if lower-cost competitors are out of stock or have a long shipping time? What if their website is terrible?
What if we just don’t care that we’re more expensive at that particular moment because we know we’re going to have a big sale this weekend? Shouldn’t we be bringing users to our website and then using remarketing?
You cannot be sure whether Performance Max will take this into account. However, ROAS Booster “forces” Google to do so.
Optimization No. 3: Test manual bidding
There are many strategies for running Google Shopping. Smart Shopping with Performance Max campaigns is one of them. It is worth setting your own bidding strategies for your products and seeing whether you can achieve better results than with automatic campaigns. If you don’t test it, you won’t know.
Competitive prices are the key to success
Price is the main factor that determines whether customers choose to buy from you. Obtaining this data and using it in your Google Shopping campaigns can give you a significant competitive advantage.
Learn how to increase your ROAS by 29% in a month!
As proven by the results of the campaigns we conducted, e.g. with Adrenaline.pl, Agrosimex, and Adsright – with ROAS Booster you have a better chance to outperform your competitors and increase the profitability of your ads by optimizing targeting to the most important sales factor – the price.
