Google Smart Shopping Guide - Oxedent

Google Smart Shopping: Complete Guide 2021Posted by on

Should you trust Google’s AI for the best results in online advertising? Let’s put Google’s Smart Shopping campaigns to the test.

If you’re running online advertising campaigns for your e-commerce business, the previous couple of years might have been quite a ride for you. However, the most intriguing is yet to come with the introduction of the Google Smart Shopping.

Google has always done its best to ease the campaign management burden for Google Ads users with several automated solutions – from bidding options to responsive ads and more and the same continues for the launch of Google Smart Shopping.

Smart Shopping offers all the latest automation solutions and machine learning technology to online advertisers. All the tedious work involved in campaign management like building product groups, bidding, negative keywords setting, campaign level management can be avoided. In theory, you no longer need to go through the labor-intensive process of manual maintenance (well, that’s what they are driving towards).

The new campaign structure is self-driving and requires the least maintenance. It can expand your reach across several Google networks to give you maximized conversion value due to ‘smart bidding’. In essence, Smart Shopping automates the campaign management needed to run an enhanced e-commerce business.


What is Google Smart Shopping?

Smart Shopping is one of the newest campaign types for Google shopping campaigns and unlike other standard shopping campaigns, Smart Shopping campaigns use machine learning as well as algorithms for bid placement or automated placement.

As small or medium e-commerce businesses have several other important aspects of campaign optimization to consider (limited time, resources, budget), Smart Shopping campaigns can produce a 20% rise in returns over standard campaign performance.


Introduction to Smart Shopping Campaigns

The goal of Smart Shopping campaigns is to simplify advertising products on the Google Ads platform through the use of automated bids and ad placements.

  • Smart Shopping offers your business the ability to generate PLA (product listing ads) even with minimum assets and inputs required for an eCommerce business.
  • Smart Shopping can pull product creative from existing product feeds in the Merchant Center linked to your Google Ads account.
  • Smart Shopping utility machine learning to serve suitable combinations of both text and visual ads to prospects across search, display, YouTube, etc.
  • Smart Shopping campaigns works better when you have more than 100 conversion data with conversion value. More historical conversion data you have better ROAS it generates.


How Does It Work?

Google Smart Shopping campaigns are automated for the optimization of your business goals. Optimizing ad delivery automatically across several ad networks of Google, they can enhance an advertiser’s potential to meet defined goals including conversions, ROAS, etc.

Bids or placements are adjusted automatically depending on the likelihood of ad clicks resulting in the defined goals of the advertiser. This is similar to conversion optimization on Facebook.

Smart Shopping ads can run on multiple networks as well as on the search network. Ad placements can be shown on the display, shopping, YouTube, and Gmail, but there is a restriction, in that you can’t exclude any specific network or break out network placements.

Smart Shopping Placements - Oxedent

How Is It Different from Standard Shopping?

Here is an evaluation of both Google Standard Shopping campaigns and Smart Shopping campaigns that will guide you in which one to opt for:

Standard Shopping Smart Shopping
Complete control over your campaigns Quick and automated
Works manually but more complex Easy setup procedure
Labour intensive and time consuming Time saving
Full control over device and location targeting Minimal control over device and location targeting
Demands knowledge and experience A broader range of ad types
Freedom to choose keywords Exposure in multiple networks
Allows you to set negative keywords No chance of adding negative keywords
Allows for bid adjustments No bid adjustments possible
Granular analysis of data No granular analysis of data

Advantages of Smart Shopping Campaigns 

Besides the drawbacks, there are several compelling reasons to use the Smart Shopping campaign.

  • Smart Shopping campaigns are incredibly easy to setup
  • Save a lot of time for you to focus on other important matters
  • Encompass a number of ad variants
  • Quick exposure across the display network and Google shopping
  • Utilizes automated bidding strategies and machine learning

If you set up shopping feed for your eCommerce website, Smart Shopping campaigns can be the easiest way to get started with any eCommerce brand in the ecosystem of Google.

Unlike traditionally complex shopping campaigns, Smart Shopping campaigns are much easier to implement. Be it the product catalog, group or structure of your campaign, bidding options location targeting, negative keywords, or inclusion-exclusion of search terms. All these are highly complex in the conventional method, but if done in Smart Shopping, it can be triggered in a matter of minutes.


Smart Shopping Campaigns Best Practices

As with any online advertising campaign, you need to test and apply, rinse, and repeat, for the best performance appraisal of your ad campaign.

With the rise of Google and its ever-increasing portfolio of online advertising options, it can be confusing as to which is right for your business.

Here are some recommendations for you:

  • Start Small – Smart Shopping campaigns tend to have priority over existing campaigns for identical products, hence the smart ones may disrupt the normal activities and performance of these ads. You should start with a particular product group, leaving the rest in a normal shopping campaign mode.
  • Testing is Must – Performance evaluation can be done very quickly. If you are satisfied with this performance, proceed further and add other product groups to get to the stage of having a full product catalog running through the system.
  • Avoid Duplicates – In the event that you are adding the whole product catalog within a single Smart Shopping campaign, you should pause your existing shopping and dynamic remarketing campaigns.
  • Segmentation of Products  If you have a big catalog of different products, you might face problems. There might be strong competition between some products that result in higher CPCs and lower ROI. If you are willing to use the target ROAS strategy, you should segment products in individual groups to see separate ROAS values.
  • Stay Single – No, we are not advising you on your relationship status! Keep aside old campaign priorities and over-segmentation of products and go for a single, Smart Shopping campaign to target the entire product catalog. Google does all the jobs on your behalf to show products at the right time, with prices.
  • Strategize Wisely – Think tactically before selecting bidding strategies as this can have a significant impact on your campaigns. You can get maximized ROI within a specific budget with maximized conversion values, but an ROAS strategy will stick to the target set by you. Hence your strategies should be robust ones.
  • Adjustment of Tactics – Segmentation of your products in individual groups in the same campaign can also be done even when you want to target the entire catalog. You can thus get granular reports and easily measure your campaign performance based on the performances of the product groups. You can also separate those products with a high or low budget and keep them in a different campaign.

Before Starting Smart Shopping Campaigns

Before you set your campaign live make sure you’ve met the following requirements:

  • You should have a Google Ads account and a Merchant Center account
  • You need to have the Merchant Center account approved and uploaded with your product data feed
  • The conversion tracking tag should be installed on your website
  • You must check that your conversion tag is manually set to track transaction-based conversion values
  • Your website should have a remarketing global site tag
  • Your website needs to be tagged for dynamic remarketing [Know how to tag for dynamic remarketing]
  • At least 20-30 conversions are required over a period of 45 days across your existing standard Google shopping campaign
  • Your audience list should consist of at least 100 active users
  • You should have a banner image for building brand awareness

Apart from these criteria, you must also:


Getting Started with Google Smart Shopping Campaigns

Set Your Smart Shopping Campaign

Before creating your first Smart Shopping campaign, it is important to be aware that these campaigns run as both display network remarketing ads and shopping campaign ads. So, if you are already running either of these campaign types, pause them before launching a Smart Shopping campaign. Google then recommends you target all available products through a single Smart Shopping campaign.

Smart Shopping campaigns approach is very different from the normal approaches you have for shopping campaigns. And one critical thing to keep in mind, the more information Google gets to work with; the more effective their algorithms will be in working your campaign to optimize it and drive better results.


How to set up a Smart Shopping campaign

Step by step setup process


Campaign Setup 

  • Create a new campaign in Google Ads
  • Select a goal (Sales)
  • Choose “Shopping” as the campaign type
  • Select the “Merchant Center account”
  • Select “Smart Shopping campaign” in the Campaign subtype section

Oxedent Smart Shopping Campaign - Sales

Oxedent Smart Shopping Campaign - Shopping

Oxedent Smart Shopping Campaign - Merchent Center

Oxedent Smart Shopping Campaign - Smart Shopping

While being consistent with Google’s recommendations, all the products in your merchant feed will be selected automatically and included in your campaigns. You can make necessary changes if you wish but the inclusion of all the products in one single campaign helps Google algorithms track all listings viewed by people when they visit your website, and this data is used to optimize your campaigns performance. Hence, you should go with this default option unless you don’t want to include all your products.


Smart Shopping Campaign Settings

  • Give the campaign name
  • Give your daily budget
  • Select the bid strategy (Maximise conversion value)

Smart Shopping Campaign Setting - Oxedent


Choose your daily budget as per your business requirements. I recommend starting with a medium-sized budget. Considering you’re already running your Shopping campaign and for Smart Shopping I would suggest using 50% of your existing campaign. So, if you’re already spending $100/day, then a $50/day budget is good enough while you’re in the testing phase.

Bid Strategy

Under Bidding, go ahead and choose the “Maximize Conversion Value” strategy and enter a target ROAS. If You’d set a target ROAS of 500% – then for every $1 you spend on ads, you’d like to get 5 times that in revenue.


Choosing Product Groups and Assets

Product Group

Smart Shopping Campaign Product Group - Oxedent

Google will ask you to set up the first product group. Unlike when you want to assign a particular product type to the campaign, you can leave this space blank so that all the products get added to the product group.

You can create product groups later, even when the campaign has started working. You can also view the ad preview panel to see how your ads would look on all the networks.



Google Smart Shopping Assets - Oxedent

You need to add a business logo on the Merchant Center that will be used for ads on the display network. You also need to add a short and long headline, ad description, and a final URL. All this information is important for ads on the display network, Gmail, and YouTube ad campaigns.

In Smart Shopping, Google automatically can create ads for you according to the way customers interact with your website. While setting up your Smart Shopping campaign, you need to upload a number of creative assets and some initial headlines, as well as ad descriptions for Google to use.


Click Save and it’s ready. All set and ready to go with your first Smart Shopping campaign!


Pro Tip: When you are new to Google shopping, you should do some additional things while setting up a Smart Shopping campaign:

  • Conversion Tracking: Setting up conversion tracking is important as Google algorithms need to extract important data that helps make your campaigns more successful. Therefore, you need to set up the transaction-specific tracking method. At least 20 conversions need to be achieved in 45 days for a Smart Shopping campaign to work well.
  • Site Tag: You should add a global site tag to your website that will allow Google to track visitors on your website. At least 100 users must be tracked for a Smart Shopping campaign to obtain enough data for optimization.


Pitfalls of Smart Shopping Campaigns

Although they look great at first glance and might sound foolproof in theory, Smart Shopping has some limitations:

  • Unavailability of Negative Keywords: Negative keywords are not available in Google Smart Shopping, despite being a crucial aspect of traditional shopping campaigns. So you may feel uneasy losing control of the ability to remove keywords from your campaign. You could also end up losing valuable budget on irrelevant traffic.
  • No Location Targeting: Location targeting is not present in Smart Shopping. You can select the country of sale only, but you cannot target a specific city or region, nor can you exclude a city.
  • No Ad Scheduling: Google will automatically figure out suitable times and days for your budget spend. Hence you don’t have the option of scheduling ads. For instance, if performance is poor in a certain period of time, you have no other way than to leave it on Google either to run or stop showing the ads.
  • Device targeting: You are unable to select the device type for showing ads. If, for example, the majority of your target audience is mobile users, you still have to pay for ads to be displayed on laptops and desktops.
  • Bid adjustments are not available: Bid adjustments are way too crucial for the optimization of campaign performance and to get the most out of your ad budget. But unfortunately, bid adjustment options are unavailable for Smart Shopping.
  • No Audience Targeting: You should have an audience list of at least 100 users for a Smart Shopping campaign, but you cannot decide your audience for targeting. It will be chosen automatically by Google depending on its machine learning algorithms. Google will select the best audience for you at the lowest cost.
  • No Network Placements: The performance of your ads varies across different networks. While display ads have lower CTR and low conversion rates, ads running on Gmail and YouTube have better performance with regards to conversion optimisation. But you don’t have the option of excluding undesirable networks, hence you have to pay for unwanted clicks from irrelevant search traffic.
  • Granular Reporting: Due to the absence of in-depth reporting, you cannot analyse data gathered from ads on the display network, shopping, YouTube or Gmail to check the origin of your sales.


Moreover, a number of columns are also unavailable, such as:

  • Search Impression Share
  • Click Shares
  • Search Abs Top Impression Share
  • Search Lost in Budget
  • Search Lost in Rank

Apart from search, Smart Shopping ads run on multiple networks. Therefore, the data might be inaccurate as it would refer to only search networks. And this leads to the biggest drawback of Google’s Smart Shopping campaigns. That is, you will not be able to report the performance on the display network individually to shopping, Gmail, and YouTube. The ads running on these platforms also perform differently. This can lead to worse performance than your usual regular shopping campaigns as the reporting gets affected by ads on all the networks.

But again, you can see performance improvements while comparing your Smart Shopping campaigns with all other existing shopping and dynamic remarketing campaigns.


There are a number of other pitfalls too:

  • No shared budgets
  • Not supported by Google Ads editor which is very annoying for account managers of large accounts.

The crucial point of Smart Shopping is that you will lose manual control with such campaigns. Google’s AI is the driver in every regard. This means you need to trust Google in its automation and ensure it is fed with enough data to thoroughly test and report, thus improving its processes.


Key Tips & Insights for Your Smart Shopping Campaigns

  • Budget Selection: You should select a budget depending on the historical data of the daily spends on your existing standard shopping and display remarketing campaigns. This will allow the campaign to maximize your conversion value automatically within a selected budget.
  • Target ROAS: You can set optional ROAS to stay within a specific ROAS goal. If no target ROAS is set, Google will set maximize conversion value goals depending on your budget.
  • All Product Inclusion: You need to target all available products within a single campaign to get the maximum performance from your campaign and to measure performance comparisons in the simplest manner.
  • Feed Optimization: Feed optimization is best practice when running shopping ads and is applicable for Smart Shopping campaigns.
  • Experiment with ROAS: If you have a ROAS set, it might restrict your volume as well as your ability to splurge your full budget. So, try to decrease or eliminate ROAS, then set and check if this increases your conversion values.
  • Pre & Post-Testing Framework: After the implementation of a Smart Shopping campaign, gauge the performance, and compare it to the time when you had standard shopping and dynamic remarketing running.
  • Testing: If you have any doubts about including all your products, you can test and check with specific product groups to see the performance levels of the campaigns. You can also choose to test in specific markets of the world if you decide to sell your products in multiple geographies.


Conclusion: Is Smart Shopping for You? 

The reality is, it depends.

Regarding performance data, the results are a mixed bag and the only way to find out whether Smart Shopping is worth it is through testing. Test your new Smart Shopping campaigns across a wide range of products to check if they generate significant and improved results. There might be pros and cons but you need to check the overall results. At times, performance might decline, or at times you may see healthy improvements compared to existing shopping campaigns and dynamic remarketing campaigns.

Traditional shopping campaigns have proven to be the most profitable for eCommerce businesses and you can experience a strong performance from the meticulous control you have over your campaigns. Without this control, you are blind to what is working and what is not, with no control over doing anything to change it. As a result, you can lose sales and your competitors can outperform you with relative ease.


But should you give Smart Shopping a try? Most definitely!

Trial and error have always been an essential part of every successful Google Ads campaign. And the most attractive USP for Smart Shopping campaigns is that they can save you tens, if not hundreds, of hours overtime.

For beginners – those who don’t know about advertising on shopping platforms, and are not experienced in running campaigns, Smart Shopping campaigns can be your best friend. Try and test one area of your product catalog, and go from there. Similarly, if you want the easiest way to run Google shopping, try Smart Shopping campaigns as a zero maintenance approach that will save you considerable time and a steep learning curve.


Finding this scary yet appealing? 

We are just a call away. Talk to Oxedent and we will help you scale your business and dominate your competitors with better results for your eCommerce business.



How We Have Helped RT Wall Stickers with Smart Shopping Campaigns and Boosted Conversions by Almost 135%



  1. Increase conversion values
  2. Improve ROAS
  3. Lower cost per conversion



Switched to Smart Shopping campaigns from the standard Google shopping campaign setup with a maximise conversion value bid strategy.



  1. 135% increase in ROAS
  2. 2x increase in conversion values


RTwallstickers.co.uk is located in Torbay, South Devon, and provides products across the country and internationally. It has grown to become a major market player, specializing in high-quality bespoke designs which they turn into amazing wall decals. They genuinely enjoy creating designs and artwork and offer a wide range of ideas for accenting homes and office walls.

RT Wall stickers previously used various platforms to sell their products across the UK and we originally helped them run their first successful online advertising campaigns by setting up and managing standard shopping, achieving a strong number of conversions as well as an impressive number of clicks and impressions with a manual CPC bidding strategy.


Their ads ran on both Google search and shopping networks. But RT Wall Stickers were keen on making more enhancements to their online campaigns and wanted to test the waters of Smart Shopping. So, after just under a year of using standard shopping, we replaced their traditional campaigns with Smart Shopping to combine search, shopping, remarketing on GDN (Google Display Network), and YouTube.

Through the effective running of Google Smart Shopping campaigns, RT Wall Stickers was able to reach potential customers and generate profit in their UK business within a few months and delivered an increase in their revenues, double the conversions, a 2x increase in conversion values as well as double ROAS.


RT Wall Stickers tried both standard shopping and Smart Shopping campaigns for 10 months each, keeping the average cost equal for both campaign types and we have seen the following results:

RT Wall Stickers - Oxedent Case Study

The Outcomes:

  • Decrease in ad spend
  • Reduction in cost per conversion
  • Increase in no. of conversions, clicks, and impressions
  • Increase in conversion value

The results have surpassed their expectations and hence, RT Wall Stickers have made Google’s Smart Shopping campaigns their default campaign type. RT Wall Stickers experienced overwhelming success from this strategic change and the company is seeing rapid growth as a result.


Robbie Tucker, CEO of RT Wall Stickers says overwhelmingly…

“Smart Shopping campaigns have helped us to reach our goals much more effectively with the minimum spend. We really had a quick win with Smart Shopping. One thing I love about Oxedent’s Google shopping management is they focus on sales value and ROAS, not just clicks and impressions.”


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Urmila GuptaView all posts

Urmila Gupta

Urmila writes blogs and articles for businesses and writing-challenged clients of Oxedent. She is a grammar freak and doesn't forgive your vocab errors! She has been developing content for many years now and contributes to the creative level of the articles to provide her clients the most out of those. Urmila pens down her passion in every blog she writes.

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