What are the key differences between Google Ads Shopping Ads and Product Listing Ads?
Google Ads Shopping Ads and Product Listing Ads are two of the most commonly used platforms for online advertising today. Google Ads Shopping Ads are an online platform that helps advertisers create and manage dynamic ads that promote products and services across the Google Ads network. Product Listing Ads (PLAs) are display ads presented to customers on online retail marketplaces, such as Amazon and eBay, that showcase products with an image and price, and link back to an individual online retailer’s website.
Both platforms are incredibly popular yet distinctive in their approach to advertising. PLAs are ideal for those who are looking to attract customers to their website directly from an online marketplace while Shopping Ads are more tailored to focused on driving traffic to specific products with the potential for more customer-specific results. Shopping Ads target shopping queries by allowing manufacturers, retailers, and other businesses to show product-specific ads to potential customers on Google Search, Google Images, YouTube, and more. They show product information like price and availability so customers can quickly identify the perfect product and be efficiently directed to an online store or retailer’s website to purchase the product.
PLAs provide an opportunity for online retailers to generate visibility to specific products within larger marketplaces. Products are displayed in the form of an ad, along with pricing and a product image, underneath the merchant’s listing on the search results page. The merchant pays on a CPC (cost per click) or CPA (cost per action) basis, so they have full control over their budget, and they can target specific keywords for their products.
In short, Google Ads Shopping Ads allow brands to promote specific products on the Google network, while PLAs appear on marketplaces like Amazon and help merchants promote their products directly from the marketplace. Both offer unique advantages for marketing teams, and it is important to know the key differences between Shopping Ads and PLAs so you can make an informed decision for your own online advertising efforts.
Table of Contents
1. Shopping Ads vs. Product Listing Ads Targeting
2. Shopping Ads Features vs. Product Listing Ads Features
3. Shopping Ads Cost Model vs. Product Listing Ads Cost Model
4. Shopping Ads Attribution Model vs. Product Listing Ads Attribution Model
5. Shopping Ads Ad Formats vs. Product Listing Ads Ad Formats
6. Shopping Ads Ad Performance vs. Product Listing Ads Ad Performance
7. FAQs
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Shopping Ads vs. Product Listing Ads Targeting
Shopping Ads and Product Listing Ads both allow you to target customers based on their past and current behavior. With Google Shopping Ads, you can target customers based on their device, location, purchase activity, online and offline research activity, and more. You can also segment your campaigns by audience and reach through more customized Ad Groups, targeting a specific product or audience segmentation. The targeting capabilities with Product Listing Ads are less flexible than Shopping Ads, but they can still be tailored in several ways. You can target by device type, geographical locations, interests, age and gender demographics.
The key difference between Shopping Ads and Product Listing Ads targeting is the level of customization and precision. Shopping Ads are more precise and enable retailers to reach specific audiences and market more efficiently. Shopping Ads also provide better reporting and are able to provide more accurate insights, making Shopping Ads superior to traditional PLAs.
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Shopping Ads Features vs. Product Listing Ads Features
Shopping Ads and Product Listing Ads are two types of Google Ads that are used to promote products online. Each type of ad has its own set of features that are tailored to the goals of the advertiser and the types of products being advertised.
Shopping Ads promote products directly from an e-commerce store, and they are designed to streamline the process of product discovery. Shopping Ads feature images of the products that are being advertised along with prices. They also feature descriptions of the products that allow users to compare items and make informed decisions. Shopping Ads are optimized to show more frequently to users who are likely to convert. Advertisers are able to customize Shopping Ads with features like color themes, promotional messages, and incentives.
Product Listing Ads are designed to promote items across multiple retail outlets. These ads feature the image of the product, the price, and the retailer from whom the item can be purchased. In addition, Product Listing Ads can include reviews and ratings from other users who have purchased the item. Product Listing Ads are optimized to show up more frequently to users who have indicated an interest in the type of product being advertised.
The key differences between Google Ads Shopping Ads and Product Listing Ads come down to targeting, features, cost model, attribution model, ad formats, and ad performance. Shopping Ads are tailored to the needs of individual e-commerce stores, while Product Listing Ads are designed to promote items across multiple retail outlets. Shopping Ads feature images, prices, and descriptions of the products being advertised. Product Listing Ads feature the image, price, and retailer from whom the item can be purchased, in addition to reviews and ratings from other users. The cost model for Shopping Ads is based on a cost-per-click basis, and Product Listing Ads are billed on a cost-per-thousand impression basis. Shopping Ads are attributed to the original impression while Product Listing Ads are attributed to the click that leads to the sale. Shopping Ads feature text ads and visuals, while Product Listing Ads only feature visuals. Shopping Ads have higher click-through rates while Product Listing Ads tend to have higher conversion rates.
Shopping Ads Cost Model vs. Product Listing Ads Cost Model
The cost model for both Google Shopping Ads and Product Listing Ads are based on a “pay-per-click” (PPC) basis, meaning that the advertiser must pay when a user clicks on a listing. However, there are some notable differences. For Shopping Ads, the advertiser can use a bid strategy to set a daily maximum budget, and the cost per click is determined by the other advertisers bidding on the same spot. For Product Listing Ads, the cost per click is determined solely on the possession of quality data. This means that, different stores are competing according to different sets of inventory and prices, so it’s possible to effectively lower the CPC to win more auctions.
With Shopping Ads, there is a possibility of additional costs associated with the use of Google Ads Merchant Center for a more advanced ad performance. On the other hand, there are no additional costs associated with Product Listing Ads purchase as it does not require the use of Google Ads Merchant Center.
When it comes to cost models, it’s important to note that Google Shopping Ads are user-targeted, and Product Listing Ads are driven by data reliability, which can make them more competitive in certain markets. With Shopping Ads, all relevant searches are targeted, and advertisers must bid for each and every spot which increases costs. With Product Listing Ads, advertisers have the advantage of cheaper CPCs when more reliable data is being used.
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Shopping Ads Attribution Model vs. Product Listing Ads Attribution Model
Shopping Ads attribution models provide a way to measure the performance of a shopping ad campaign. Shopping Ads provide different models of measurement, such as last-click attribution, first-click attribution, and position-based attribution. On the other hand, Product Listing Ads offer just one type of attribution model, which is last-click attribution.
Shopping Ads attribution models allow for more accurate and comprehensive measurement of the impact of an ad on a conversion. For example, position-based attribution takes into account the position of the ad in the clickstream, which is valuable for understanding how effective an ad placed higher up in the clickstream is in terms of conversions. On the other hand, Product Listing Ads only measure the conversion that happens through a click on the ad and ignores any lines of ads that are clicked first, on the way to purchasing.
The key difference between Shopping Ads and Product Listing Ads is that Shopping Ads provide more models and flexibility in terms of attribution. Furthermore, Shopping Ads allow for better understanding of where traffic is coming from and how an ad contributes to a conversion. Shopping Ads allow for better optimization of ad campaigns based on the insights taken from the different types of attribution models. Ultimately, Shopping Ads provide more tools and flexibility to measure the impact of a campaign and optimize based on the data.
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Shopping Ads Ad Formats vs. Product Listing Ads Ad Formats
Shopping Ads and Product Listing Ads (PLAs) have several key differences in their ad formats. Shopping Ads are mostly image and text-based ads. These offer several aspects for the advertisement such as the price, store brand, product image, and the ability to advertise multiple products at once. In comparison to Shopping Ads, PLAs display primarily one image and some additional text-based information. This type of ad does not have as much flexibility on information that is being presented to the customer.
Shopping Ads also have the advantage of being able to take up more space on the search engine results page, allowing for greater visibility to customers. In comparison, PLAs are usually limited to the bottom of the page and do not reach as many customers. Shopping Ads also feature product ratings, allowing customers to see more detailed information about the products before making a purchase decision. Product Listing Ads do not feature product ratings and are solely dependent on the marketing text or image to get the customer’s attention.
When comparing Shopping Ads and Product Listing Ads, it is important to keep in mind that Shopping Ads is primarily for larger advertisers as it is typically more expensive than Product Listing Ads. Shopping Ads also has a unique benefit of being able to drive foot traffic to stores due to its features of providing store addresses and inventory updates. Product Listing Ads, on the other hand, are generally more affordable for smaller businesses and offer a flat-fee payment model.
Both Shopping Ads and Product Listing Ads are valuable tools for marketing and advertising. It is important to consider the differences between the two before deciding which one is the right option for your business. By understanding these differences, you can more effectively decide which type of ad is better suited for your needs.
SEO Success Story
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Shopping Ads Ad Performance vs. Product Listing Ads Ad Performance
Ad performance for both Shopping Ads and Product Listing Ads is a critical factor in determining which type of ad is best suited for a business. Shopping Ads are generally given higher priority by Google and tend to produce higher click-through-rates and higher conversion rates. Shopping Ads leverage their click-through-rates to optimize ad campaigns and generate more clicks and conversions. Product Listing Ads are optimized by revenue and provide more immediate returns on ad campaigns.
One of the key differences between Shopping Ads and Product Listing Ads when it comes to ad performance is Shopping Ads are priced on a Cost-Per-Click (CPC) basis, while Product Listing Ads are priced on a Cost-Per-Acquisition (CPA) basis. Shopping Ads are designed to maximize revenue and optimize ad campaigns for a given CPC budget. Product Listing Ads, on the other hand, provide more immediate returns and are designed to offer a return on investment (ROI) within a given acquisition cost budget.
Shopping Ads also provide a number of other advantages when it comes to ad performance, including an automated feed that optimizes ad campaigns on a dynamic basis, more customization options, more detailed data reporting, and integration with the Google Merchant Center. Product Listing Ads are better suited for businesses that don’t have the resources to create a robust feed or require more immediate returns on their ad campaigns.
It is important to understand the different types of ads available and to use the right type of ad for the right type of advertising goal. Shopping Ads will likely provide better performance and longer-term returns, while Product Listing Ads are better suited for businesses that need to generate more immediate returns.
FAQS – What are the key differences between Google Ads Shopping Ads and Product Listing Ads?
1. What are the main differences between Google Ads Shopping Ads and Product Listing Ads (PLAs)?
Answer: Google Ads Shopping Ads enable advertisers to display product images, descriptions, prices and other pertinent information in the search engine results while Product Listing Ads (PLAs) display an image, the product title, the store name, the price, and the product ID in the search results.
2. What types of products can appear with Shopping Ads?
Answer: Shopping Ads are well suited for physical products that can be sold online, including apparel, electronics, books, jewelry, home goods and other products.
3. How are Shopping Ads priced?
Answer: Shopping Ads are cost-per-click (CPC) model so advertisers only pay when a person clicks their ad.
4. What kind of information is needed to create Shopping Ads?
Answer: When creating Shopping Ads, advertisers must provide a product data feed with product name, description, image, price, and identifier (e.g. unique ID, global trade item number, brand, and condition).
5. How can advertisers target customers using Shopping Ads?
Answer: Advertisers can target customers by device type, location, user bids, and product categories.
6. What type of information can appear with PLAs?
Answer: Product Listing Ads (PLAs) display an image, the product title, the store name, the price, and the product ID in the search results.
7. How are PLAs priced?
Answer: PLAs are cost-per-impression (CPM) model, meaning advertisers pay for each time their ad is shown in the search engine results.
8. What kind of information is needed to create PLAs?
Answer: When creating PLAs, advertisers must provide a product data feed with product name, description, image, price, and identifier(s).
9. What type of targeting options are available for PLAs?
Answer: Advertisers can target customers by device type, location, and user bids.
10. How are Shopping Ads and PLAs tracked?
Answer: Both Shopping Ads and PLAs are tracked using conversion tracking code which is embedded on the advertiser’s website. This code collects data and tracks conversions such as sales, add-to-cart events, and website visits.
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The Challenge: Increase new dental patients with better organic visibility and traffic.
