Setting Up Ads on Google Shopping

Is your advertising budget melting away while orders are nowhere to be found? Or have you just opened an online store and can’t decide on your first advertising channel? Then it’s time to figure out what Google Shopping is — and why this format deserves your attention.

For Ukrainian e-commerce, this is one of the most effective channels in terms of ROI. Judge for yourself: a regular search campaign tries to catch the user with text — a headline and a couple of lines of description. But shopping ads immediately show an image, price, and sometimes even a rating. Visually, they win. And, more importantly, they attract those who have already decided to buy and are simply comparing options.

In this article, we’ll break down how Google Shopping works from the inside, what you’ll need to launch, and how to get the most out of it. No abstract advice — only practical tips you can apply right away.

What is Google Shopping?

Imagine this: someone types “buy Nike Air Max sneakers” into a browser search. And even before the usual links appear, right before their eyes is a carousel with photos of specific pairs, prices, and online store names. That’s Google Shopping — an ad format that displays product listings directly on the search results page.

Essentially, it’s a showcase of your online store built right into the search engine itself. Not a dry text ad, but a full-fledged product card. Sometimes ratings or shipping information are pulled in as well. A person can instantly evaluate whether the offer is interesting or not. And all of this — before clicking through to the site.

Why does this work so well in Ukrainian e-commerce? Because a user who types a specific product into the search bar is already “hot.” They’re not reading reviews out of curiosity — they’re comparing and choosing where to buy. And these ads catch them right at that moment.

Incidentally, in Ukraine, the service became available in 2018 — much later than in the US or European markets. But it caught up quickly. Today, for many online stores, it’s the main source of paid traffic. In some niches, according to experts, up to 80% of traffic comes specifically from shopping campaigns.

Important: this platform is not a marketplace. You don’t sell within Google. The buyer clicks on the card, goes to your online platform, and places the order there. Google acts solely as an advertising platform — the link between you and the buyer.

How does Google Shopping work?

The entire mechanics of how Google Shopping works rests on three elements. They are connected in a single chain — and if even one link is configured poorly, the whole result suffers. Let’s break them down one by one:

1. A Product Feed. This is a structured file (XML, CSV, or a simple Google Sheet format) where each item from your store is described. Names, prices, photos, stock availability, links to product pages, brands — everything is collected in one place. Think of this file as a catalog you submit to Google. No feed — no ads. Period.
2. Merchant Center. The finished feed is uploaded here. The platform checks your information, compares it with what’s on your website, and decides whether to allow you to show ads. For example, if the submitted document lists a price of 2,400 UAH, but the site shows 2,600 UAH, this discrepancy will lead to rejection.
3. Advertising Campaign. This is configured in Google Ads. Here you set your budget, choose a bidding strategy, and configure geo-targeting. But there’s an important difference from regular search ads: you don’t manually select keywords. Google itself determines which search queries to show your offer for — based on the contents of your feed.

How does this look in practice? Let’s say you sell electric kettles. Your feed states: “Bosch TWK3A014 1.7L Red Electric Kettle.” A user types “buy red Bosch electric kettle” — the algorithm matches the query with the feed information and displays your card in the top search results. Sounds simple. But the quality and completeness of your feed determine how often and how accurately Google Shopping will show your products to your audience.

Advantages of Google Shopping Ads

So why has Google Shopping advertising become so popular among online store owners? There are specific reasons — and each one directly affects sales:

• Visual presentation. The user immediately sees all the necessary information. No need to guess what’s behind the link — everything is right in front of them. Compare this to a regular text ad, where the headline could say anything, and the real offer is only revealed after clicking. In our case, clicks are deliberate — which means the traffic is higher quality.
• Cheaper cost per click. Compared to search ads, the cost per click in shopping campaigns is typically 20–40% lower. The logic is simple: you’re not fighting over a vague keyword — you’re showing a specific product to a person who is searching for exactly that. “Junk” clicks are noticeably reduced.
• Prime placement in search results. Product cards appear at the very top — above text ads, above organic results. On mobile, they can take up a good half of the screen. Honestly, it’s harder not to click on them than to click.
• Data updates without advertiser involvement. If the feed is set up correctly and synchronization is enabled, prices, availability, and specifications are pulled in automatically. The price changed by 50 UAH? No need to go into the ad account and change anything manually.
• Quick start even with a huge catalog. A ready-made feed and automatic export from your CMS — and you can launch a campaign literally in a day. It doesn’t matter whether you have 50 items or 50,000. The feed is generated from the store’s database, not compiled manually. For comparison: classic search promotion for the same assortment would require at least a week of preparation.
• No need to mess with keywords. In regular search ads, you spend hours gathering semantics, grouping queries, and adding negative keywords. Here, the algorithm takes over this work. Moreover, it picks up not only popular phrases but also long-tail low-frequency queries like “buy red Bosch kettle 1.7L with delivery to Kyiv.” And such queries, by the way, often convert the best.

Tip: Google Shopping ads integrate perfectly with other channels. For example, a person saw your product in Shopping, got interested, but didn’t buy. Then you “retarget” them through dynamic remarketing — and they come back ready to place an order.

When does product advertising work well?

Google Shopping is a powerful tool, but not perfect. In some niches, it fires on all cylinders; in others, it’s better not to waste the budget and look at alternatives. Let’s figure out where product advertising truly delivers results:

1. You sell physical goods. This is the starting point. Shopping is designed for selling specific products — electronics, clothing, cosmetics, furniture, auto parts, home goods. If your business is services, online courses, or subscriptions, this format simply won’t work.
2. The product is searched for by specific queries. When searching for “Samsung Galaxy S24 Ultra 256GB Black buy” a person has already decided — they don’t need reviews and comparisons, they’re choosing where to place an order. At this moment, a card with a photo, price, and store name works perfectly. The rule is simple: the more precise the query, the higher the conversion from product advertising.
3. Prices are at or below competitors’. This is tough. Product ads sit next to each other in the search results — the user can glance at three to four offers from different stores at once. If a competitor is 200 UAH cheaper and offers free shipping, the click will go to them.
4. Medium or large catalog. A store with 500–5,000+ items gets the maximum benefit from product campaigns. The algorithm finds buyers for dozens of different products, creating a steady stream of orders. With an assortment of 10–15 items, the campaign will still launch, but the scale will be noticeably reduced.
5. The product looks good in photos. Seems like a small thing — but it’s surprisingly often forgotten. Stylish sneakers, a bright gadget, a beautiful cosmetic set — all of these catch the eye and get clicks. But a gray industrial pump on a white background won’t evoke much emotion. You can advertise such products in Shopping, but the CTR will be different.

Attention: there’s another less obvious scenario — seasonal spikes. Before New Year, March 8, Black Friday, people massively search for gifts and discounts. Here, product advertising can generate 2–3 times more sales than in regular months.

Where does Shopping perform poorly? This could include unique handmade items where there’s no established demand. Expensive B2B solutions with a long sales cycle. Anything that people generally aren’t used to searching for directly on Google. In these cases, it’s wiser to choose other channels — targeted social media ads, content marketing, or direct sales.

What do you need to launch Google Shopping ads?

Before diving into ad settings, you should make sure your site is ready to work with Google Shopping. The system checks sites quite thoroughly, and if indicators are poor, your Merchant Center account will be blocked. And this can happen right before a campaign launch or some time after.

Online store requirements

Here’s what must be in order:

• The site must allow placing and paying for an order online. Google needs the buyer to be able to go through the entire journey — from the product card to payment — without leaving home. If there’s only a “Submit a request” form without the ability to pay immediately, that’s a problem.
• Contact information. Phone, email, physical company address — all must be present on the site and be accurate. Moreover, one method of contact is not enough.
• Pages with delivery terms and return policy. They must be written in clear language and easy to find. Don’t hide them in the “footer” in 8-pixel font — the moderators will notice.
• SSL certificate. All pages where users enter personal data — cart, checkout — must work over https. Otherwise, don’t bother trying.
• Up-to-date product information. Prices, availability, and descriptions on the site must match the feed. For instance, if the feed lists a kettle at 1,800 UAH, but the site shows 2,100 UAH, Google will notice, and the product will be rejected.
• No prohibited categories. Counterfeit goods, alcohol, tobacco, medical products, gambling items — none of these can be advertised. If your catalog contains such items, exclude them from the feed in advance. Otherwise, you risk losing your entire account.

Attention: for our market, Google recommends using Ukrainian in your ads. This is due to the legislation on the state language. Formally, Russian-language ads are allowed, but it’s better not to test fate and prepare content in Ukrainian.

Accounts you’ll need

To launch product advertising, you’ll need two accounts:

• Merchant Center (GMC) — where the necessary data is uploaded;
• Google Ads — where the advertising campaign is created and managed.

How to set up Google Shopping: step-by-step guide

Let’s move on to practice. We’ve put together a step-by-step guide to setting up Google Shopping ads, which even a beginner can use to launch their first campaign. Try to follow the order — this way there’s less chance of missing something.

Step 1. Creating and setting up a Google Merchant Center account

This platform is essentially the “warehouse” for your feed. This is where you upload it, and Google then uses this information to create ad cards.

Registration

Go to the Merchant Center website and click “Get started.” Log in with your Google account — better to use a business one rather than a personal one. Enter your company name, country (Ukraine), and your online store URL.

Important: an account for one store is created only once. You cannot change the domain after registration, so carefully check all fields before clicking “Done.”

Site verification and domain confirmation

The next step is domain confirmation. Google needs to make sure the site actually belongs to you. There are several ways to do this:

• Add a meta tag to the homepage code;
• Upload an HTML file to the site’s root directory;
• Confirm via Tag Manager or Google Analytics;
• Use a DNS record.

Choose the option that is technically easiest. If you already have Google Analytics connected, this method is probably the fastest.

Step 2. Creating a product feed

This is the heart of the entire system. Without it, setting up Google Shopping is simply impossible. A feed is a structured file where each row describes one product using special attributes.

Required attributes

Here are the attributes that must be filled in without fail:

• id — unique identifier.
• title — name. Google uses this to match with search queries. Be specific: not just “sneakers” but “men’s Nike Air Max 90 sneakers black”.
• description — description. Include key characteristics: material, purpose, features.
• link — URL of the product page on your site.
• image_link — link to the main image. Background should be white or light, no watermarks or logos.
• price — price in “1299.00 UAH” format. Must exactly match the amount on the site.
• availability — availability: in_stock, out_of_stock, or preorder.
• brand — brand.
• gtin or mpn — global trade item number or manufacturer part number. If the product doesn’t have a GTIN, provide MPN and brand.
• condition — condition: new, refurbished, or used.

This is the minimum set. But the more information you provide, the more accurately the system can match your product with customer queries.

Additional attributes worth using

• sale_price — discounted price. If you’re running a promotion, make sure to include this attribute. Google will show the crossed-out old price and the new one — this increases click-through rates.
• product_type — your own product categorization.
• google_product_category — category from Google’s classifier.
• custom_labels (custom_label_0 — custom_label_4) — custom labels. Perhaps one of the most underrated tools. They allow you to segment offers by margin, seasonality, popularity — however you like. For example, custom_label_0 = “high margin”, custom_label_1 = “summer 2026”. These labels are later used when creating campaigns for more precise bid management.
• shipping — shipping information.
• color, size, material, gender, age_group — for clothing and shoes, these attributes are mandatory.

Feed upload methods

The feed can be submitted to Merchant Center in several ways:

• Via Google Sheets — convenient for small stores with 20–50 items. Create a spreadsheet on the same Google account, fill in the attribute columns, connect to GMC.
• File upload (XML/TXT) — a classic option for medium and large stores. The file is automatically generated by CMS or a plugin.
• Automatic transfer via URL — you provide a link to the file, and Google fetches it on a schedule (e.g., once a day).
• Content API — for large projects with thousands of products and frequent price and availability updates.

Tip: if prices or assortment change frequently on your site, be sure to set up automatic updates — at least once a day. This will help avoid product rejections due to price discrepancies.

Step 3. Linking Merchant Center and Google Ads accounts

Without linking the accounts, you won’t be able to create a shopping campaign. The process is simple, but people often forget about it.

In Merchant Center, go to Settings → “Linked accounts” → find Google Ads and send a linking request. Then log into the second service and confirm the request. That’s it — accounts are linked.

After linking, the information from your feed will become available in Google Ads, and you can use it to create campaigns.

Honestly, this is one of the easiest steps. But if something doesn’t work out — make sure you’re using the same Google profile (or have admin rights in both services).

Step 4. Handling rejected products

So, you’ve uploaded the feed. And now the “fun part” begins — some products have been rejected by Google. Don’t panic, this is a normal situation, especially on the first upload.

Rejected products are displayed in Merchant Center on the “Diagnostics” tab. The reason for rejection is also indicated there. The most common issues:

• Price mismatch. This is the most common error. Even a difference of a few kopecks can lead to rejection.
• Low-quality images — too small, with watermarks, or text overlays.
• Missing required attributes (e.g., GTIN not specified for branded items).
• Description or title not matching the actual product on the page.
• Incorrect format — for example, price listed without a currency code.

After fixing the errors in the file, upload it again. Google will automatically review the previously rejected items.

Incidentally, if the number of rejected products exceeds a certain threshold, the system may suspend the entire account. So monitor the diagnostics regularly — at least once a week.

Step 5. Creating a shopping campaign in Google Ads

Here we are — how to launch ads. Log into Google Ads, create a new campaign, select the “Sales” objective, and set the type to “Shopping.”

Next, you’ll be offered two options.

Standard Shopping Campaign

This is the classic approach. You get full control: you set bids yourself, group products, add negative keywords, and analyze search queries. Ads appear in search results and on the “Shopping” tab.

For beginners, this format is more suitable — you can see exactly what’s happening: which queries bring in customers, which offers perform better, where money is being wasted. No automated format offers this kind of transparency.

When creating a standard campaign, you need to:

• Set a budget. Start with a comfortable amount. For a small online store in Ukraine, 200–500 UAH per day is a perfectly reasonable start to gather statistics.
• Choose a bidding strategy. To start with, “Maximize clicks” with a max CPC limit works well. Later, when you’ve accumulated conversion data, you can switch to “Target ROAS.”
• Configure geo-targeting. Specify the regions you deliver to.
• Create groups. By default, all products go into one group. But it’s better to segment them immediately — by category, brand, type, or using custom labels.

Important: when segmenting, scroll through the list to the end and make sure all the necessary groups are selected. Otherwise, Google will only apply the segmentation to the first 50 groups and disable the rest from showing.

Performance Max

This is a relatively new campaign type with maximum efficiency, which replaced Smart Shopping in 2022. Its essence is maximum automation. Google itself decides where, when, and to whom to show your product. Ads run not only on Shopping but also on search, YouTube, Gmail, the Display Network, Discover, and even Google Maps.

Sounds tempting? Yes. But there are nuances.

Performance Max is, by and large, a “black box.” You don’t see exactly which search queries trigger your ads (only aggregated reports are available). You can’t manually manage bids for individual items. And you don’t always know which channel is actually driving sales.

For Performance Max to work effectively, you need:

• A minimum of 30 conversions in the last 30 days in your Google Ads account. Without enough data, the algorithms simply can’t learn.
• High-quality assets: images, videos, headlines, descriptions, logos.
• A properly filled feed — this is the foundation, just like in standard shopping campaigns.
• Audience signals — remarketing lists, customer data. They help the algorithm quickly “understand” who to show ads to.

Which format to choose?

There’s no single answer. But here are some guidelines.

If you’re just starting out and want to understand things — start with a standard shopping campaign. It will give you transparent reporting and control. If you already have experience and enough conversions — try Performance Max for scaling.

You can also use both options simultaneously. A standard shopping campaign as the main campaign with higher bids. Performance Max as an additional one for reaching new audiences and retargeting.

Step 6. Optimization after launch

Launching a product campaign is just the beginning. Then comes working with data, and that’s what determines whether the marketing activity will be profitable.

What to look at in the first few weeks?

After launching, check:

• Product status in Merchant Center. If some items are rejected — investigate the reasons. Often it’s small things: missing GTIN, price mismatch, image issues.
• CTR (click-through rate). If it’s below 1%, you might need to improve photos or rewrite titles in the feed.
• Cost per conversion. If it’s higher than planned — consider whether your targeting is too broad.
• Search queries (for Standard Shopping). Always check which queries trigger your products. Some of them will be irrelevant. For example, you sell branded leather bags, but they show up for the query “grocery bag.” Add such phrases as negative keywords — and your budget will be spent more wisely.

What work should be done regularly?

• Work with bids. Not all products are equally profitable. If you have high-margin items — raise their bids. For low-margin or low-conversion products — lower them. This is exactly what custom labels are for: they allow you to split the entire catalog into meaningful groups and manage each one separately.
• Improve the feed. This work never ends. Change titles to better match search queries. Update descriptions. Make sure images are high-quality and appealing. Add sale_price when running promotions — a crossed-out price on the card really does increase CTR.
• Monitor competitors. Google Ads has a “Price comparison” report — you can see how your prices compare to competitors. If you’re more expensive on most items, your click-through rate will be lower.
• Don’t change everything at once. Changed your budget — wait a week. Changed your bidding strategy — give it two weeks to learn. Constant changes confuse the algorithm.

Tip: get in the habit of checking the “Diagnostics” tab in Merchant Center once a week. There, Google shows all issues — from feed errors to policy violation warnings.

What problems do beginners face when launching Google Shopping?

Even if Google Shopping was set up by professionals, sometimes difficulties arise with this type of campaign. Here are the most common ones:

1. Products rejected in Merchant Center. The first thing to do is go to the “Diagnostics” section and check the reason. Usually it’s data discrepancies (price, availability), image issues, or missing required attributes.
2. Account suspended. Most often the cause is a violation of Merchant Center policies. Check if any of your products fall into prohibited categories (weapons, tobacco, medical products, gambling). Also, suspension can be caused by missing return policy and privacy policy pages on your site.
3. Ads are showing, but no sales. The issue may not be with the ads but with the site. Check how user-friendly the product page is: does it load quickly, is there a “Buy” button, does the mobile version work? Also, compare your prices with competitors. If you’re selling the same product 20% more expensive, you’ll get clicks but no purchases.
4. Performance Max spends the budget but few conversions. Give the campaign time — at least 2–3 weeks. If the situation doesn’t change after a month, check your conversion settings (are purchases being tracked correctly?), review audience signals, and try segmenting products into groups.

How to improve the effectiveness of Google Shopping ads?

Launching a campaign is only half the battle. The real work begins later: when you look at the numbers and understand what can be improved. Here are some recommendations that actually affect results:

• Work with negative keywords. Yes, in shopping campaigns you don’t manually select keywords. But Google shows you which queries generated clicks — and you should review this report regularly. Found something irrelevant — exclude it. For example, you sell new laptops, but some clicks come from the query “used laptop.” Add “used” to your negative keywords — and stop paying for people who definitely won’t buy anything from you.
• Segment your products. Advertising your entire catalog with one campaign and one bid — that’s not a great strategy. Divide your assortment by category, margin, popularity. For bestsellers and high-margin items, you can raise bids. And for low-profit products, lower bids or remove them from ads altogether. For example, if you run an electronics store: it makes sense to spend more on flagship smartphones with good margins, but hardly on cheap accessories with a 30 UAH margin.
• Optimize the feed on an ongoing basis. This isn’t a “set it and forget it” task. Improve titles, add additional attributes — color, size, material, google_product_category. Make sure photos are up-to-date and high-quality. One telling fact: according to research, proper title optimization can increase impressions by 100–150%.
• Set up bid adjustments. See that conversions from mobile devices are noticeably lower — reduce the bid for smartphones. Notice that sales are more active in the evening — raise bids for that time. Google Ads allows you to adjust bids by device, time of day, and geography. Seems like a small thing, but together it significantly affects profitability.
• Connect remarketing audiences. People who have already visited your site buy much more readily. Add a remarketing audience to your shopping campaign and increase your bid for it — this is one of the most effective optimization techniques.

Please note: Google recommends waiting at least 6 weeks after launch before making radical conclusions or seriously restructuring your campaign. The algorithm needs time to gather statistics and “learn.” Hasty changes in the first few days are one of the most common mistakes beginners make.

How much does Google Shopping ad setup cost in Ukraine?

It’s important to separate two things here: the cost of the setup itself and the advertising budget.

If you’re doing everything yourself — the setup is formally free. Registering in Merchant Center and Google Ads doesn’t cost a penny. You only pay for clicks on your ads. But “free” is a relative term, because you’ll have to spend time preparing the feed, setting up accounts, fixing errors, and optimizing. For a person without experience, this can take anywhere from a few days to a couple of weeks.

If you decide to order Google Shopping ad setup in Ukraine from a specialist or agency, the cost of a turnkey launch starts from approximately 5,000–8,000 UAH (from 15,000 UAH for Google Partner companies). Monthly campaign management is usually from 4,000–10,000 UAH, depending on catalog size and number of campaigns. Some agencies work for a percentage of the ad budget — typically 10–15%.

As for the ad budget itself — 5,000–10,000 UAH per month is enough to start with, to gather basic statistics and understand which products work. The average cost per click in shopping campaigns in Ukraine is usually lower than in regular search ads. And the conversion rate is typically higher — after all, the user has already seen the price and photo before clicking. The campaign budget can then be scaled based on profitability data.

Tip: don’t chase cheap setup. A poorly prepared feed or incorrect campaign structure can end up costing more — through wasted ad budget and a blocked Merchant Center account.

Common mistakes when setting up Google shopping campaigns

Everyone makes mistakes in shopping campaigns — beginners and those who have been setting up ads for years alike. But some mistakes are especially costly. Here’s what to pay attention to first:

1. Discrepancies between the feed and the site. Perhaps the most common reason for product rejections and account suspensions. The feed shows 2,500 UAH, the site already shows 2,700 UAH. Google will notice. And quickly. Set up automatic feed updates and make it a habit to regularly check for discrepancies. Especially after mass price changes or promotions.
2. Low-quality photos. Blurry images, watermarks, text overlaid on images, busy backgrounds — all of this reduces show chances and kills click-through rates. Photos should be clear, on a white or neutral background, without extra elements. By the way, Google may simply reject a product with an image that doesn’t meet requirements — and you might not even immediately understand why impressions dropped.
3. Generic titles. “Women’s dress” is not a product name — it’s more of a hint at one. The algorithm won’t figure out who to show it to, and will show it rarely. Add brand, color, size, material, season — everything that helps Google more accurately match the product with the customer’s query. The difference between “Nike sneakers” and “Nike Air Max 90 men’s white size 43 sneakers” is the difference between a dozen impressions and a thousand.
4. Wrong or empty categories. Google has its own product category taxonomy. If you specified the wrong category — or didn’t fill in the google_product_category attribute at all — your product may be shown to a completely wrong audience. Use Google’s official classifier and choose the most accurate match.

Google Shopping training marathon: