Product Listing Ads | Technology Glossary Definitions

What are product listing ads?

Product listing ads (PLAs), or Google Shopping ads, are paid advertisements that provide product-specific information to web users. PLAs operate on a cost-per-click (CPC) model and appear in product feeds across Google properties, including Search, Shopping, and Images.PLAs are generated using product data and include images, prices, and reviews to facilitate data-driven decision-making. They provide more details than text-based ads and are tailored to specific products and categories. PLAs may appear above text ads and search results or under the Shopping tab on Google Search.

Search advertising software places these ads on different platforms and is a valuable tool used to attract internet searchers. These systems target relevant keywords to improve search rankings and increase brand visibility for interested users.

Tip: Product listing ads that appear on social platforms, such as Facebook and Instagram, are called dynamic product ads.

Product Listing Ads Software

Software that mention product listing ads as a feature or term.

How to set up product listing ads

PLAs allow shoppers to view products before even reaching a company’s website. Early visibility helps increase conversions and return on investment (ROI).

AdWords and Merchant Center Accounts. The first step to building product listing ads is creating and linking a Google or Bing Ads account to a Merchant Center (MC) account. This can be done by following the instructions on Google and providing essential business information, such as company name and website URL.
Create PLA ad campaigns. Businesses must be authorized as a store and verified by Google to create PLAs. Connecting the website with Google Analytics is an easy way to get a business verified to run PLA ad campaigns. Companies can promote new campaigns with product inventories from the Google Merchant Center.
Upload products and set targets. Google simplifies choosing relevant keywords by automatically listing inventory information for PLAs. Marketers can also manually pick keywords through an automated feed. When uploading products, companies should think about the product hierarchy and grouping for optimized results. Product targeting helps businesses set different bids on certain products.
Choose a bidding approach. Product listing ads are similar to competitive auction ads. The bidding strategies and CPC depend on the products and industry. Businesses should place higher bids on the most essential products as bidding values can influence the ad’s position.
Track campaign performance. Monitoring performance reports and statistics linked to Merchant Center data ensure that product targets match the feed. Consistent tracking is important as an attribute gap can prevent ads from running for particular targets.

Prerequisites of product listing ads

PLAs are valuable in lead qualification and generation. However, there are specific determinants to decide whether Google Ads are the best way to market products.

Product sales volume: A major facet of PLAs is improved product visibility, which can be affected by low product amounts. PLAs are not the right product marketing choice for businesses that sell less than 500 products total.
Budget: Ad bidding is expensive. Companies that have a slim advertising and marketing budget may not be able to leverage PLAs to their benefit.
Site quality: PLAs lead users directly to product pages; therefore, ensuring proper website quality standards is important. Evaluate mobile sites to guarantee a good quality ranking for product listing ads.
Market competition: PLAs help brands gain a competitive advantage. However, a high level of industry competition can hamper the visibility that products receive.

Benefits of product listing ads

PLAs impact marketing, branding, and sales efforts. They can be advantageous to businesses looking to build an online presence and sell more products. Here are more ways PLAs can benefit a business:

Enhance brand visibility. Product listing ads increase brand and product awareness by placing them at the forefront of the business. The ads reach a broader and more relevant audience due to their prominent search result positioning. PLAs provide a business with free exposure, as businesses only pay when users click on their ads.
Provide seamless user experience. Since PLAs target the right audience, they add value to the customer experience and make shopping convenient. Users can directly reach product pages and review prices and photos without hassle. Including detailed business information in product listing ads can help drive customers down the sales funnel quicker.
Increase conversions. Product listing ads can bring in more website traffic and improve click-through rates (CTR). These rates also impact conversions, as people are likely to click on products they want to buy.
Refine product management. PLAs provide insights into which products garner the most attention from searchers. This information helps develop product management plans. Product listing ads can be tied with several other product marketing tools to improve the product lifecycle. Businesses that want to improve overall products use product management software and PLAs to enable efficient ideation, product pricing, and customer delivery.

Best practices for product listing ads

PLAs are a business asset for several reasons. Here are some things to keep in mind when building and implementing them.

Product segmentation. It’s always a good idea to group products based on bid values. Maintain relational product structures using types and categories for similar item attributes. Segmenting products helps capture the complete inventory, optimize bidding practices, and align spending with product management.
Optimize product data feed. Product listing ads work best when they have the necessary information required by customers. Include the business's name, use Google Product Categories to form distinct types, and develop custom labels for positive CTRs and ROI.
Align campaigns with branding efforts. With PLAs, businesses can differentiate between branding and non-branding campaigns. Creating two distinct shopping campaigns helps maximize brand-related search traffic. Doing so ensures streamlined brand campaigning and helps with financial planning.
Regularly review Merchant Center settings. The Google Merchant Center is the best source to identify errors and report warnings on product data feeds. Implementing a regular check on MC settings guarantees accurate product displays and a good quality score with Google.
Invest in ad enhancement. Product listing ads are customizable according to business needs. Adding special offers, online promotions, product ratings, and Google Customer Reviews to products helps customers make more informed decisions.

Aayushi Sanghavi

Aayushi Sanghavi is a Campaign Coordinator at G2 for the Content and SEO teams at G2 and is exploring her interests in project management and process optimization. Previously, she has written for the Customer Service and Tech Verticals space. In her free time, she volunteers at animal shelters, dances, or attempts to learn a new language.