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Google smart shopping is a feature that was introduced to enable the streamlining of advertising efforts so as to maximize return on investment. This feature is innovative and employs algorithms equipped with machine learning to automate optimization of ads and bids based on search history and behavior.
While this feature is very effective, it is essential that it is optimized to get the maximum ROI. In this blogpost, we will look into some compelling reasons why you should consider optimizing Google smart shopping campaigns for the best returns on investment.
The algorithms used in smart shopping systems require all the sales data to ensure right targeting of Return on Ad Spend (ROAS). While the smart feature automatically accounts for all online sales, the offline sales falls through the cracks. There is no denying that a significant portion of sales occur offline through phone calls or cross-device methods. Standard shopping ads features provide the option to invest in a specific tactic that fits the overall marketing strategy, focusing on dominating certain key funnel or brand terms. This tactic ensures that sales occurring offline are taken into account. When you optimize your Google smart shopping campaign, you can ensure that this data of offline sales is also accounted for.
Another reason to optimize Google smart shopping ads is the lack of data included in the smart shopping system. This can pose significant issues for businesses as the system becomes a “black box” without audience data, search term data, or channel data. As a result, troubleshooting becomes difficult, and even Google may not be able to assist in addressing issues that may arise. This lack of transparency can be frustrating for businesses that have invested in smart shopping, and therefore, optimization is necessary to ensure that campaigns are running smoothly and effectively.
Google smart shopping feature targets the top three audiences in the remarketing pool. It then looks into the performance of these efforts to determine the amount of money to be spend on remarketing ads. To ensure that the right amount of money is allocated to the right remarketing effort, it is necessary to ensure that the right data is available. Such data can only be obtained by optimizing the campaign through controlled tests carried out on a single product type. The findings of these tests will provide valuable insights to strike the right balance between remarketing and bid prospecting to maximize ROI.
Optimizing Google smart shopping ads is important because it gives you an idea of how your ads are displayed for high value keywords or search terms. The smart shopping feature tends to be more focussed on achieving ROAS goals, this would lead to reduced budget allocation to high value search terms. Regular optimization will ensure that the high performing keywords and high value brand terms are not overlooked in the ads and PPC campaign.