How to Create Highly Effective Google Ads for Your eCommerce Business

Published: 8 May 2023

Updated: 29 January 2024

How to Create Highly Effective Google Ads for Your eCommerce Business

As an eCommerce business owner, you know how important it is to drive traffic to your website and increase conversions. One of the most effective ways to achieve this is through Google Ads. Google Ads have become increasingly popular in recent years, as they offer a highly targeted and measurable way to reach potential customers. With the right strategy and execution, Google Ads can help you increase website traffic, improve conversion rates, and ultimately grow your business. In this article, we’ll explore how to create highly effective Google Ads for your eCommerce business.

Table of Contents:

  1. The Popularity of Google Ads
  2. Types of Google Ads Campaigns
  3. Google Ads Strategies for Your eCommerce Business

The Popularity of Google Ads

Google Ads has become an increasingly popular advertising platform for eCommerce businesses in recent years. According to Oberlo, in 2022, Google’s ad revenue was projected to reach $224,47 billion, with search ads making up most of this revenue. This trend is expected to continue in 2023 and beyond, making it clear that businesses need to have a strong understanding of Google Ads to compete in the digital marketplace.

One reason for the popularity of Google Ads is its effectiveness in reaching potential customers. A study by WordStream found that the average click-through rate (CTR) for Google Ads in the search network is 3.17% for search ads and 0.46% for display ads. This may seem low, but compared to the average CTR for organic search results, which is just 1.17%, it becomes clear that Google Ads can drive significant traffic to an eCommerce site.

Market share of leading search engines

Statista: Market share of leading search engines

Another benefit of Google Ads is its flexibility in targeting specific audiences. With advanced targeting options, businesses can hone in on their ideal customers based on factors like location, demographics, interests, and behaviors. This can lead to a higher ROI as the ads are being shown to people more likely to be interested in the products or services offered.

Additionally, Google Ads can be a cost-effective way to advertise. Unlike traditional advertising methods, where businesses pay for ad space regardless of its effectiveness, Google Ads operates on a pay-per-click (PPC) model. This means that businesses only pay when someone clicks on their ad, making it a more efficient use of advertising budgets.

Types of Google Ads Campaigns

There’re several types of Google Ads campaigns available for eCommerce businesses, each with its unique features and benefits. The following are the most popular types of Google Ads campaigns used to increase sales for eCommerce businesses:

  1. Search Ads campaigns. These campaigns are the most common type of Google Ads campaign and involve displaying text ads on Google’s search results pages. Search ads campaigns are an effective way to target users who are actively searching for products or services related to your eCommerce business. They allow you to bid on specific keywords related to your business, ensuring that your ads are displayed to users who are most likely to convert.
  2. Google Search ads

    Google Search ad example

  3. Display Ads campaigns. Display ads campaigns involve displaying image or video ads on websites within Google’s Display Network. These campaigns are useful for increasing brand awareness and reaching a wider audience, as they allow you to display your ads to users who may not be actively searching for your products or services.
  4. Display ad example

    Display ad example

  5. Shopping Ads campaigns. Shopping ads campaigns allow eCommerce businesses to display product listings, including images and pricing information, at the top of Google’s search results pages. These campaigns are highly effective for eCommerce businesses as they allow users to view product information and pricing before clicking through the website to make a purchase.
  6. Google Shopping ad example

    Google Shopping ad example

  7. Video Ads campaigns. Video ad campaigns include displaying videos on YouTube and other websites within Google’s Display Network. These campaigns are useful for increasing brand awareness and engaging with potential customers through storytelling and other creative elements.
  8. Discovery campaigns. Discovery campaigns are a relatively new addition to Google Ads and are used to show ads across Google properties such as the Google Discover feed, Gmail promotions tab, and YouTube home feed. These campaigns can be particularly effective for eCommerce businesses looking to reach new and potential customers actively seeking similar products or services.
  9. App campaigns . App campaigns are used to promote mobile app downloads and can be particularly effective for eCommerce businesses with a mobile app. These campaigns allow you to promote your app across Google properties such as Google Search, Google Play, and YouTube.
  10. Local campaigns. Local campaigns are used to promote physical store locations and can be particularly effective for brick-and-mortar eCommerce businesses. These campaigns allow you to promote your business across Google properties such as Google Maps and Google Search, helping to drive foot traffic to your store.
  11. Smart campaigns. Smart campaigns are designed to be easy to set up and manage, using Google’s machine learning algorithms to optimize ad performance automatically. These campaigns can be particularly effective for eCommerce businesses that are just starting with Google Ads or have limited resources for ad management.
  12. Performance Max. Performance Max campaigns are a newer addition to Google Ads and aim to combine the benefits of multiple campaign types into one. These campaigns allow you to promote your business across multiple Google properties, including Search, Shopping, YouTube, and more.

Google Ads Strategies for Your eCommerce Business

Keyword Research

Keyword research is the foundation of effective Google Ads campaigns. Conducting thorough research to identify the right keywords can make or break the success of your campaigns. Start by identifying the keywords most relevant to your products or services, and then use tools like Google’s Keyword Planner to identify other relevant keywords that your target audience may be searching for. Use a mix of broad match, phrase match, and exact match keywords to ensure your ads are shown to the right audience.

Google Keyword Planner

Google Keyword Planner

Ad Copy

Creating compelling ad copy is crucial for driving clicks and conversions. Your ad copy should be tailored to your target audience and highlight the unique value proposition of your products or services. Use emotional triggers and persuasive language to entice potential customers to click on your ads. Test multiple ad copy variations to see which performs the best, and use A/B testing to optimize your ad copy continuously.

Ad copy example

Ad copy example

Ad Extensions

Ad extensions are an excellent way to maximize the effectiveness of your Google Ads campaigns. They’re additional pieces of information that can be added to your ads to make them more informative and compelling for potential customers. Ad extensions can help increase click-through rates, improve ad relevance, and provide more information about your business.

There’re several types of ad extensions available in Google Ads, including:

  • Sitelink extensions: This extension provides links to specific pages on your website, allowing users to navigate directly to the most relevant pages
  • Callout extensions: Callout extensions allow you to add additional text to your ad, highlighting specific features or benefits of your products or services
  • Structured snippet extensions: This extension provides more detailed information about your products or services, such as styles, brands, or models
  • Call extensions: This extension allows you to include a phone number in your ad, making it easier for potential customers to contact you directly
  • Message extensions: With message extensions, users can send you a text message directly from your ad, allowing for quick and convenient communication
  • Location extensions: Location extensions show your business address and phone number, making it easier for customers to find and contact you
  • Promotion extensions: This extension allows you to highlight specific promotions or offers in your ads, such as discounts or free shipping

When choosing which ad extensions to use for your eCommerce business, consider which ones will be most relevant to your products and services. For example, location extensions can help drive foot traffic to your store if you have a brick-and-mortar store. If you’re running a promotion, promotion extensions can help increase sales. Additionally, regularly testing and optimizing your ad extensions can improve their effectiveness over time.

Bidding Strategies

Choosing the right bidding strategy is essential for achieving maximum ROI with your Google Ads campaigns. The most common bidding strategies include manual CPC, automated CPC, and target CPA bidding. Choose the bidding strategy that best aligns with your campaign goals and budget, and use bid adjustments to optimize your bids based on factors like device, location, and time of day.


Retargeting is a powerful technique for increasing conversions and ROI for eCommerce businesses. Use retargeting to target users who have previously interacted with your website or products and show them ads tailored to their interests and behavior. Use dynamic retargeting to display ads that showcase specific products or services that users have viewed on your website, and use retargeting lists for search ads (RLSA) to show ads to users who have previously searched for specific keywords.

How retargeting works

Instapage: How retargeting works

Tracking and Optimization

Tracking and optimization are critical for maximizing the effectiveness of your Google Ads campaigns. Use conversion tracking to monitor your campaigns’ performance and identify improvement areas. Use Google Analytics 4 to gain insights into user behavior and identify trends and patterns that inform your campaign strategy. Continuously optimize your campaigns based on the data you collect, and use testing and experimentation to identify new opportunities for improvement.


Effective Google Ads campaigns can be a game-changer for eCommerce businesses looking to increase their online presence and drive sales. By following the tips and strategies outlined in this article, you can create highly effective Google Ads campaigns that deliver measurable results. Don’t be afraid to experiment and try new tactics, and continuously optimize your campaigns based on the data you collect. With the right approach, Google Ads can be a powerful tool for growing your eCommerce business.

Unlock the Power of Google Ads for your eCommerce Business

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