Setting up the bidding and the budget dedicated to Google Shopping is a step that takes place very early in the configuration of a campaign. SEA. Cost per click, or "CPC", is at the heart of the how Google Shopping workslike Google Ads. This is the cost that the advertiser pays each time a user clicks on his ad.
The company can choose to determine the CPC itself or let Google's algorithms do it. This amount largely determines the referencing of paid advertising. However, this does not mean that high CPCs should always be chosen. There are tips to reduce this cost, and limit Google Shopping expenses.
Cost Per Click as the operating principle of Google Shopping
The cost of a Google Shopping campaign is determined primarily on a Cost Per Click ("CPC") basis. that you choose. Quite quickly, when configuring your advertising campaign, Google asks for a "maximum cost-per-click bid". This is simply the maximum amount you are willing to pay for a web user to click on your Google Shopping ad.
The positioning of your ad in the search results depends very much on the level of this auction. This does not mean, however, that you should bid on very high Cost Per Click. Google Shopping also takes into account other factors when ranking your sponsored link, such as the relevance of your product data to the user's request. You can also change this bid along the wayThe results you see as your ads are shown.
Finally, it should be specified that Google Shopping works at Cost Per Click for all ads, except for the "Showcase Shopping". These are effectively billed at Cost Per Commitment ("CPE"). This means that the advertiser pays when an Internet user develops his Showcase Shopping ad and leaves it displayed like this for more than 10 seconds. It also pays if the consumer clicks on the ad within 10 seconds.
Read also : How to (well) use Google Shopping?
How to influence the cost of a Google Shopping campaign?
Several factors impact the cost of a Google Shopping campaign. On the one hand, you can choose to set up your Per Click Costs manually or automatically. This last method lets Google judge the most strategic cost per click to position your ads. This "optimal" amount depends on your competition's bids, the time during which your ad is displayed, but also on the quality score that Google assigns you.
The quality score that Google assigns to an advertiser is a score from 1 to 10, which directly influences the CPC you pay, and therefore the cost of a Google Shopping campaign. This quality score depends on, among other things:
- From your landing pages. Your e-commerce site must reflect your Google Shopping ads in every respect. The landing page should therefore only show the product of the ad. It must also display the same price. In addition, landing pages provide a pleasant user experience. This means that they load quickly and adapt to mobile web navigation.
- of the capacity of your ad to be based on your keywords and product attributes that you entered when you added your products to Google Shopping.
To reduce the cost of a Google Shopping campaignYou can also choose to invest on keywords with low search volume. The approach is simple for niche markets, but less so for mass markets. In the latter case, it is more strategic to bet on keywords with long trails of 3 or 4 words. This type of keywords generally leads to more specific queries, on which the CPC bids are lower.
The cost of a Google Shopping campaign also depends on the number of products in your product feed. The more products you submit to Google Shopping, the more you pay for the clicks they generate. In any case, don't hesitate to rethink your bids as the Google Shopping campaign unfolds. The return on investment of the advertising campaign must be commensurate with your budget investment.
A maximum budget for a controlled cost
No matter which cost-per-click bids you choose, the cost of your Google Shopping campaign remains under control. That's because it's the advertiser who decides on his daily budget. This is the maximum amount he wants to dedicate to Google Shopping each day.
Advertisers remain completely free to determine this spending limit according to their commercial objectives. This budget can be adjusted at any time. The simplest thing to do is to start small and to adjust thereafter, according to the first results of the diffusion of your campaign.
Google has announced that its Google Shopping platform will become free in 2020. This is already the case in the United States since April 2020.
If this measure effectively applies to other countries in the world, advertisers will be able to submit more products to the trading platform. Competition will therefore also become tougher.
Free Google Shopping will lead to increased competition among advertisers. In order to continue to appear in Google Shopping's top search results, it will therefore be necessary to continue to bid on costs per click and costs per engagement.
Google offers several tools that help advertisers estimate a strategic cost-per-click bidding level, including the Bid Simulator and front-page bidding estimates.