E-commerceGoogle Ads

4 Ways To Create an Effective Shopping Ad Campaign

D38 | Shopping Ad Campaigns FT IMG

Promote your online brand, boost traffic to your e-commerce store, and find better-qualified leads by creating effective Shopping Ad Campaigns. But do you know what fits your brand the most? Here are the 4 ways you can create your Shopping Ad campaign.

But before you create your Shopping campaign, make sure you meet the requirements.

  1. Google accounts – you will need to set up accounts with Google Merchant Center and Google Ads and link them together.
  2. Policies – you need to make sure that your type of business, products, promotions, and website meet the requirements and follows the shopping ad policies before you begin advertising.
  3. Product data – you need to update your product data at least every 30 days. This data should meet Google’s standards for data quality to provide users the best shopping experience.

4 Types of Shopping Ad Campaign

Smart Shopping campaigns

The Smart Shopping campaigns is the best approach if you’re looking for the easiest setup and the least amount of work. This campaign needs a few inputs to get started like an approved feed, daily budget, geographic targeting, and your desired ROAS. How does it work? Smart Shopping gets your impressions and clicks from potential buyers while taking into consideration your daily budget and targeting your ROAS.

D38 | 4 ways to build your Shopping campaigns
Photo source: Google Support


Smart Shopping campaigns generally work pretty well with optimised feeds. The advantages are that the setup is so easy and the ongoing management is almost non-existent. Smart Shopping campaigns comes with dynamic remarketing ads therefore a set up for a standalone dynamic remarketing campaign will not be needed. Make sure to check in from time to time for feed issues and adjust the ROAS targets occasionally.


Smart Shopping campaigns will not be effective if you like to control everything. There are less data visibility and fewer levers to pull in order to optimise the performance such as you cannot add negative keywords, run a search term report, and have more than one ad group.

Smart Shopping campaign setup

D38 | 4 ways to build your Shopping campaigns
Photo source: Shopify SG

Create a new campaign, choose Sales as the campaign goal, select Shopping as your campaign type, choose your Merchant Center, select the countries where your goods are retailed, then click Smart Shopping as the campaign subtype.

Type the name of your campaign, set the daily budget, and give specifics about ROAS targets.

D38 | 4 ways to build your Shopping campaigns
Photo source: Shopify SG

Afterwards, choose your product groups. “All products” comprises all approved products in your feed. Otherwise, you may opt to choose certain products based on the Category, Brand, Product Type, Custom label, or Item ID.

Insert images and your logo so Google will be able to build dynamic remarketing ads for you. Make sure to visit the Google Merchant Center for feed metrics and Google Ads for the performance metrics.

Assisted Smart Shopping campaign (part human, part robot)

D38 | Shopping Ad Campaign 1 Smart Shopping 2 Smart Shopping by Zato
Photo Credits: Zato

This setup uses a standard shopping campaign and offers access to normal areas of control like network, bid type, and also allows Smart Bidding.


You will have some control but you’re letting the machine bid optimization. You’ll also be able to add negative keywords, launch various ad groups in one campaign, select your networks, and more. Another benefit available is more data visibility, together with a search term report, which isn’t accessible for Smart campaigns.


There are not many cons to this campaign. To enable target ROAS, the account needs to have generated at least 15 conversions for the past 30 days. And If it did not meet the conversion threshold, manual bidding should begin that will transition to Smart Bidding later.

Assisted Smart Shopping campaign setup

Pick Sales as your campaign goal, then Shopping for campaign type, choose your Merchant Center account, pick your country to sell products, and select Standard Shopping as the campaign subtype.

D38 | 4 ways to google shopping ad
Photo source: Shopify SG

Type the campaign name, click Target ROAS as your bid strategy, and key in the desired ROAS.

D38 | assisted shopping desired ROAS
Photo source: Shopify SG

To improve efficiency, uncheck the Search Partners as well as YouTube, Gmail, and Discover. Click Single Product Ads and choose how you want to part the first ad group by choosing All Products or split it by attributes, such as Category, Brand, ID, or Custom label.

When to use Showcase Shopping ads

Showcase Shopping ads show wider, higher-in-the-funnel search demands. It displays searches of a product collection that might help a consumer find more specific products.

Unfortunately, Showcase Shopping ads don’t work for all product categories. Furniture, Apparel, Accessories, Electronics, Home Decor, and a few other categories are only allowed for Showcase Shopping ads.

The no-risk, lower-reward approach (free listings)

If you like to eliminate with no risk at all then this approach suits your campaign ad. It is where you only take advantage of free listings and/or commission-based listings through Shopping Actions.

D38 | The no-risk, lower-reward approach (free listings)
Photo source: Shopify


There’s no foreseeable risk with this approach because you either don’t pay at all for free listings or you pay a practical commission with Shopping Actions if Google closes a sale for you.


The visibility will be fairly limited, free listings don’t show mostly in noticeable placements across Google. With Shopping Actions (commission-based), there will be better than free listings. But then again, unless the product is selling really well, Google will more likely show either traditionally paid listings or Shopping Action products that have proven sales.

How to set up free listings and Shopping Actions

When adding a new feed, you can pick your destinations. Shopping Actions are the commission-free listings that let shoppers Purchase on Google. Choose the destinations where you want it to appear. The default is for all destinations to be selected, therefore needing you to deselect any destination you do not want.

D38 | Free listing
Photo source: Shopify SG

Driving foot traffic with Local inventory ads (LIAs)

If you have a traditional street-side business, you can use the local inventory ads to direct shoppers to it. These ads are shown next to standard Shopping ads and are shown when a buyer is close to your physical store. Local inventory ads stand for “Pick up today” or something similar message.

D38 | Driving foot traffic with Local inventory ads
Photo source: Shopify SG

Four basic steps in setting up the local inventory ads:

  1. Enable LIAs in Google Merchant Center
  2. Produce and submit a local inventory feed
  3. Request inventory verification
  4. Enable local inventory ads in the shopping campaigns

Google will need you to verify the in-store inventory and may prefer to do so in person or via phone call. For more details on local inventory verification setup, check this out Google help article.

Click here to know more about the Google Shopping Ad Campaign.

Amplify your Shopping Ads campaigns now. Increase traffic and sales to your e-commerce store.  Contact us and we will help you set up your Shopping Ad Campaigns and reach your online business goals.

About D38 Ecommerce Agency

D38 is a South East Asia-focused e-commerce agency that provides end-to-end e-commerce solutions to grow your business in the digital space and generate ongoing monthly revenue. Our e-commerce solutions range from website development, store management, logistics, CRM, customer loyalty programs, automated email marketing, SEO, marketing tools, product press-release (PR) to reputation management – helping international companies simplify e-commerce management across ASEAN Economic Community (AEC).

Our team consists of certified Shopify eCommerce experts, designers, developers, content creators, and strategists working together to support and provide a seamless online shopping experience for our clients’ eCommerce websites.

We also have a market-specific digital channels team focusing on providing support for LINE Thailand and Japan, Naver for Korea, and ZhaoVN for global Chinese readers for social news and updates.

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