How to Improve Google Shopping Ads ROAS with Dynamic Pricing

Estimated reading time: 6 minutes

What is Google Shopping Ad? How Does it Work? 

Google Shopping is a comparison shopping platform that allows retailers to advertise their products to searchers in a visually appealing way. 

What I mean is, if a person searches for a product you sell, Google will show relevant shopping ads for your product, and those of your competitors.

Google ads are one of the most featured sights on the page in Google searches. The products you list in Google Shopping will be more visible and accessible.

If the user clicks on your ad, Google will take it to your product page.

Therefore, you must organize the images and titles that stand out in the search in an attractive way.  And after that, of course, here comes the price- the most affecting reason for the purchase choice. But we’ll get into that afterward.

Going through and testing is one of the most applicable ways to see which is best for your products and online store.

Why You Should Use Google Shopping Ads?

1: Rank top of the Google Searches 

Google Shopping ads are a good option to increase your visibility in Google searches. If you’ve noticed, they immediately draw attention to the first part of the page. An increased number of retailers are spending budgets on Shopping Ads. More clicks mean more returns on investment.

2: Get clicks by highlighting your product image, title, and price.

It is also helpful when customers aren’t exactly sure what they’re looking for. Many of them use search tools to learn about different product models, colors, prices, as well as the stores they can purchase from. 

That’s why you should reflect the outstanding product features correctly. It has great importance to follow the pricing strategies of your competitors and to determine the best practicable prices that are profitable for your online store.

Google Shopping Ads Practices 

Checking your Google Shopping ads analytics is very important. By making changes and keeping prices dynamic, you can make your results rank better. Evaluate your sales statistics and use the methods that bring the best outcomes for your products.

You can follow the ROAS data of your ads. If you apply different strategies to productive and non-productive products, your sales rates will increase. 

It is also an option to give up selling products with low advertising returns, but you can improve the situation by trying various methods. For example, change the price and the title or the product image. 

Maintain the status of products with good advertising returns. It is also very important to realize what you do well. Analyze the track your competitors closely and you may want to increase the price accordingly.

Optimize your Google Shopping Ads with Pricing

Your price has by far the biggest impact on determining how high you will show up in the Google Shopping results.

The product with the lowest price gets first place in Google Shopping most of the time.

As a bottom-line fact, in some cases, a %5 decrease in price can lead to a %60 percent increase in impressions and clicks.

It’s up to your strategy. Dropping your price might lead to more sales subsequently. Think that, you can maximize your advertising earnings with dynamic pricing.

No one can tell you whether a low price or a higher price might result in more profit for your online store. The only way to tell will try a different price and see what happens. That’s why it is very important to stay dynamic in pricing. 

Also, higher conversion value over cost can be your target. Conversion values can help to track and optimize your campaign and this can be a guide for your business. 

You can use the target return on ad spend (ROAS) strategy in your set of tactics to maximize your conversions. A further benefit of setting conversion values aims to help your business make well-informed and analyzed decisions according to target strategies.

Pause the products that are not getting a return on ads. However, concentrating on those products and seeking why they are not profitable is another great option. 

Highly important to catch these products. Thus, you can renew the advertising returns of those products by changing the price or by trying different images and titles.

Keep your prices dynamic and make percentage increases or discounts. Observe how Google shopping ads’ return on ad spend changes. Thus, continue by increasing your profits within the competition in ecommerce with ideal optimization.

How to describe ROAS (Return on Ad Spend)?

ROAS is basically the ad revenue earned based on total advertising spending. It is a good way to see how your overall advertisement is performing and analyze what is the best performing for your business. 

ROAS = Ad revenue / Ad spend x %100.

What is the ideal return on ad spending? How much ROAS you can get from Google Shopping ads? Are you happy with yours?

A good return on ad spend value depends on your profit margin.

Checking your return on ad spends for each of your products can provide you with a deep understanding of your store’s productivity.

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What is Target Return on Ad Spend (Target ROAS)?

Your target is very important. If the target ROAS is too high and then you’re getting fewer impressions.

Google will be going to optimize a very narrow audience for you. Because of the unmatched target and outcome. If you notice that the products are less visible, you should lower the target ROAS slightly. So that you can receive more action and increase your power of reaching out to your audience. 

Target ROAS is a Google Ads practice that shows the rate of return you aim to earn as a result of your ad spend. In a simple way, you tell Google how much money you want to earn for every $1 of ad spend, and Google returns this result for you.

Make seasonable changes on your target ROAS to keep it dynamic. You can change the prices by checking the efficiency of your products.

It will be a great convenience for you to progress by having these useful statistics. Now, determining your store’s pricing strategies will be so much easier on the way to maximizing profits.

Improve your Google Ads ROAS with Dynamic Pricing

There are many ways that you can increase your Google Ads ROAS. However, while the price is the most important of these methods, it does not have enough attention to consider. 

If you think about a product you want to sell, for example, a t-shirt. To point out an important aspect; price comes first among the factors that buyers pay attention to most. The fact that you can sell this product at the right and perfect price gives you so many advantages over your various competitors.

Make good use of the analytical data that Google Shopping provides you. Increasing the prices of the products that are on the rise, applying discounts, and keeping your prices dynamic rather than fixed should be the most logical choice you should apply. Monitor the price changes of your competitors instantly with Prisync and make the changes that fit your dynamic pricing strategies without wasting any time. So, your goals will be more attainable this way. 

Increase the ROAS of your ads with dynamic prices in Google Shopping ads. Stay close to your target return on ads. Prisync will provide the best help for you on pricing strategies for sure.