How to Use Google Ads for eCommerce [Ultimate Guide]

Google Ads for eCommerce

Whether you’re an online or even offline business, Google Ads is the premier online advertising platform you should use. The following guide will teach you how to use Google Ads for eCommerce to get more sales.

According to Hanapin Marketing’s State of PPC report for 2019-2020, 74% of marketers say PPC is hugely beneficial for their business.

As it offers text, video, display, and product ad formats, Google Ads has been one of Google’s top earners for over two decades. Over 7 million advertisers invested $10.01 billion in PPC ads in 2017 alone.

We will cover the following:

  1. PPC Terms You Should Know About
  2. How to plan your Google Ads budget according to your business goals.
  3. What are Google Ads campaign types available, and which ones are the best for you?
  4. What is Ad Quality Score, and how to improve it?
  5. What are the metrics you should use to measure your campaign results?

Let’s break down the different fields you’ll need to be squared away to start Google Ads off on the right foot.

Before anything else, let’s look at the jargon used in the PPC industry to ensure we are all on the same page and you will be able to make the most from our guide insights.

1. PPC Terms You Should Know

PPC terms and acronyms can be difficult to digest at times. That’s why we’ve described the most important of them so you can quickly speak the industry’s language!

  • Ad Copy – In PPC advertising, ad copy is the headline, text, and URL implemented in the online ad. You should use it to persuade users to click through to a website.
  • Click – In PPC, a click is registered when someone clicks on one of your ads.
  • Click-Through Rate (CTR) – A way of measuring the success of an online advertising campaign. You can determine the CTR by dividing the number of users who clicked on an ad by the number of impressions.
  • Conversion Rate – Conversions divided by clicks represent the rate at which a click on your ad resulted in a conversion or desired action.
  • Cost-Per-Click (CPC) – The amount of money an advertiser pays search engines and other Internet publishers for a single click on its advertisement brings one visitor to its website.
  • CPM – The cost per 1,000 impressions.
  • Daily Budget – An amount set for each ad campaign to specify how much, on average, you’d like to spend each day.
  • Impressions – Number of people who see your PPC ad.
  • Keyword – A word or phrase a Web user types into a search engine, and you set your PPC ad to display.
  • Keyword Bid – The highest amount of money you’re willing to pay for each click on your PPC ad.
  • Landing Page – The webpage that a Web visitor lands on when clicking through your PPC ad.
  • Long Tail Keywords – A specific keyword phrase that consists of 2 or more words. Most advertisers use long-tail keywords to target customers at or near their buying stage.
  • Negative KeywordsGoogle defines negative keywords as “A type of keyword that prevents your ad from being triggered by a certain word or phrase. Google will not show your ads to anyone searching for that phrase. This is also known as a negative match.”
  • Quality Score – A ranking system that Google uses based on relevancy to determine bid price.

2. Google Ads budget

When you start with Google Ads, you should remember that it’s an investment. The less you decide to spend then, the more limited your opportunities will be.

It’s mandatory to focus on your return on investment (ROI), not your ads’ cost. This way, you will be testing the actual profitability of your campaigns.

Eventually, you will know what keywords bring you conversions and which landing page message works best for your shop.

2.1 How much should I spend on GoogleAds?

The right amount to spend on Google Ads depends on your niche, business, goals, and capability. If you are an owner of a small eCommerce brand, you may want to start with a smaller budget. However, you should make sure that the amount is high enough to gather essential data and metrics so you can improve your ads and make them highly profitable.

For example, Wayfair, whose budget is well over $6M/month on Google Ads, according to SEMrush, found out the effect of adding “Free Shipping” in their ad copy in one day. A small furniture retailer should run the ads for several weeks for conclusive details.

Generally speaking, as an eCommerce retailer, you should spend at least $2K monthly on Google Ads. CPCs (cost per click) rates will vary depending on your vertical.

For example, if you’re an apparel retailer, you’ll most likely see much higher CPCs than a retailer of pool accessories, where competition is inherently less.

Wayfair is spending more than $6.3M/month on Google Ads.

Wayfair is spending more than $6.3M/month on Google Ads.

Remember that you can’t be an effective Google Ads advertiser without owning enough data. And the only way to get a lot of data or sufficient sample size to make campaign modifications confidently is to continually test and work through a reasonable budget dedicated to PPC ads.

2.2 How do I set my Google Ads budget?

To set your budget on Google Ads, simply navigate the “Campaigns” tab, click on the plus sign, and select “New Campaign.”

Set up your daily Google Ads budget

Set up your daily Google Ads budget

Select the appropriate campaign type and select “Select Campaign Settings.” From here, you can scroll down until you see “Daily Budget.” Simply enter your daily budget, or use a shared budget. Remember that you can modify your budget later or whenever you need it.

2.3 How does GoogleAds charge me?

Google Ads utilizes pay-per-click (PPC) advertising and will charge you ONLY when someone clicks on one of your Google ads.

This is an excellent advertising method because these ads can drive high-quality traffic to your eCommerce website at a reasonable price when functioning efficiently.

PPC advertising is great because, when functioning as it should, only customers with a clear buying intent will click on your ads, meaning a higher chance of getting conversions (sales).

2.4 How to manage my Google Ads budget?

There are several ways to manage the PPC budget effectively, including:

  • Setting budget limits – When creating a new campaign, you can limit that campaign to a specific daily spending limit. Since this can only be done on the campaign level and not the ad group level, you should create a separate campaign to run ads with a different budget. This is a good strategy for a product category that may receive many clicks and not necessarily convert well.
  • Ad-scheduling allows an advertiser to modify bids by the time of day. For example, let’s say you’re a furniture retailer, and the data shows that 80% of your sales are made between 3 pm and 8 pm. You can increase bids during this time slot and reduce bids between 11 pm and 5 am.
  • Improving quality score – Google Ads determines your ads’ quality score by your landing page’s quality, CTR, ad copy, and keywords’ relevancy. Quality score and bidding alone determine your ad rank. By improving your quality score over time, you can effectively reduce CPCs for keywords. We’ve written a detailed chapter on improving your ads’ quality score in this guide.

3. Campaign Types

To begin advertising with Google Ads, you must create a campaign. The Google Ads network offers various campaign types to choose which best suits your goals.

3.1 Google Shopping

Google Shopping is an eCommerce platform powered by Google Ads and Merchant Center.

Google Ads is where your shopping campaigns live, and you set your budget, manage your bids, gain insights, and make optimizations based on performance. On the other hand, Google Merchant Center is where your product feed—the details of products organized in a format Google likes it stored.

It is an incredible tool to grow your online business with the Google Search engine’s help and tools.

3.1.1 What is Google Shopping?

Google Shopping is a powerful tool composed of Google Ads and Google Merchant. Google ads function as the platform for your actual shopping campaigns. It is where you will manage your budget, bids, cost per click, and quality score. Google Merchant is the tool that allows you to upload your actual listings.

On the Google Shopping network, Google decides when and where your product listing and ads may appear. They do this by considering your bids, site, and other factors before deciding which search queries will trigger your ads.

So Google has all the power to abide by its policies to create the most successful ads.

3.1.2 How to be successful with Google Shopping?

Google Shopping may be hard to crack, but it is relatively easy if you know your way around it. Take note of the following when developing your business.

  1. Successful Bidding – Bidding is a complex idea, but it is essential to experiment with your bids to find the most successful combination.
  2. Feed Maximization – Knowing that Google considers your feed when deciding on ad placement, you must optimize your eCommerce website. Ensure your products, descriptions, images, and prices are updated and visually appealing.
  3. Monitor to Optimize – One of the main benefits of Google Shopping is the ability to monitor your performance. After taking into account your data, it is essential to continue to work to optimize your budget.

If leveraged effectively, Google Shopping can be the most impactful Google Ads tool for e-commerce businesses. It will take you a tiny bit of effort to get every piece in the puzzle working correctly, but it’s worth it.

3.2 Google Search Campaigns

A quality search campaign for your eCommerce website is crucial as it shows a customer’s consideration of your products. Be creative but precise with your keyword selection to create a successful search campaign.

3.2.1 What are Search campaigns?

Search campaigns are the ad campaigns that Google show on the search pages. The search network includes ads that appear in Google search results.

You must strategically select your keywords to get the most out of your search campaigns and have them appear on multiple platforms.

There are two main types of ads on the search network:

1. Text ads & dynamic search ads: Text and dynamic search ads are the most shared ads on the search network and are great for companies just starting their advertising campaigns.

Text ads for the buy kitchen cabinets google search.

Text ads for the buy kitchen cabinets google search.

As you can see in the picture above, these campaigns show ad extensions, allowing businesses to provide customers with additional information, such as discount codes and validity, location, or phone number.

Check our Google Ads Text offer to find out how this can work for your eCommerce brand.

2. Shopping ads: Shopping ads are considered “sponsored ads” and are displayed with a link to the company’s products.

Sponsored listings/ Shopping ads when you search for headphones keyword

Sponsored listings/ Shopping ads when you search for headphones keyword

Check our Google Shopping ads offer to find out how this can work for your eCommerce brand.

3.2.2 When should you use Google Search campaigns?

The most effective use of search campaigns is with a limited budget. That said, it’s a great starting point for many companies, primarily as they aim to familiarise themselves with pay-per-click (PPC) advertising.

The search network allows you to measure how effective your PPC efforts are, hence; enabling you to make changes and target different areas as necessary.

Additionally, if your eCommerce business sells products that one may only search for when needed, the search network will be best for you.

These campaigns target customers who are specifically searching for your products. On the other hand, remarketing ads show to those who may have already browsed for or purchased your product.

It’s all about your company goals and your target market. You should step into the customer’s shoes for effective PPC campaigns and think as he would!

3.3. Google Display campaigns

Google Display Ads are text, image, or video ads on the Google Display Network, a group of digital properties owned by Google (like Youtube and Gmail) and 3rd party websites.

The Google Display Network reaches 90% of all internet users worldwide and consists of ad space on over 2 million sites and 650,000 apps.

You can make your company stand out and advertise so those who see your ad want to know more about your company, brand, or products!

3.3.1 What are Display campaigns?

Display campaigns attract potential customers through appealing, attractive image formats. It would be best if you use display campaigns mainly to develop more brand awareness. These ads aim to connect your products with the right audience.

This strategy connects your display campaigns to people who are more likely to purchase your products based on trends.

Display ads are meant to entice customers by using appealing images. They allow you to get ahead of the purchase cycle by showing people your products before searching for them.

Foreign Policy is part of the Google Display Network (GDN)

Foreign Policy is part of the Google Display Network (GDN)

They are also helpful in reminding people about products that they have previously shown interest in and products related to ones that have been previously purchased.

3.3.2 When should you use display campaigns?

Display Campaigns can be tricky, as they are usually shown to potential customers when they aren’t necessarily in a shopping mood.

Users may search for news articles, blog posts, etc.; these campaigns will grab and guide them to your website. At the very least, display campaigns aim to get viewers to think about your product and come back to visit your store later. Hence, they are great for making potential customers familiar with your brand and product line.

If potential customers have started to think about your products more after viewing your ads, your display campaigns are doing their job. They are also great when featuring an appealing image, such as a product you may offer.

3.4.Google Remarketing Campaigns

Remarketing can be a beneficial form of advertising when used correctly. Think strategically with your campaigns and grab your potential customer’s attention!

3.4.1 What are remarketing campaigns?

Remarketing Ads are a particular type of display ad that appears on other sites to people who have visited your website and have left with or without making a purchase.

For instance, I got an ad on after browsing several cooking machines on the store.

Dynamic remarketing ad based on website browsing history by

Dynamic remarketing ad based on website browsing history by

These ads’ scopes are to reconnect interested buyers with your products and remind them of what you offer. This is done to incentivize a sale and increase brand awareness.

Remarketing is strategically done to make your products accessible to people most likely to buy them.

You should try to see if Remarketing Ads work for your business. Some companies work wonders, but it’s hard to generate a good return from them for others.

3.4.2 Static vs dynamic remarketing

Stating remarketing includes standard, static ads for your website that are being shown to previous visitors. However, dynamic remarketing takes this one step further by showing ads of the specific products these visitors viewed while on your site.

The goal is to remind past visitors about the exact products they were interested in, again encouraging them to make a purchasing decision.

Dynamic remarketing is a great tool to optimize your marketing budget by bringing customers to your store with a greater chance of making an actual purchase.

Dynamic remarketing helps you build leads and sales with messages tailored to your audience, proven to yield higher conversion and click-through rates.

A good start is to target visitors most likely to convert: shopping cart or checkout abandoners. You may expand from there if you get good results with those.

Both static and dynamic retargeting contribute to increased customer loyalty and sales.

3.4.3 Remarketing strategies for cross-selling and up-sell

Cross-selling is a marketing strategy that involves selling a complementary product to a past buyer. For instance, if a buyer buys a new phone, cross-selling offers the same buyer a protective case for the phone simultaneously.

On the other hand, up-selling occurs when you encourage customers to buy a better or more expensive product than they had in mind earlier to increase their purchase value.

For example, a customer interested in a bedside table is probably also interested in a complete bedroom.

Now, there are many remarketing strategies that you can use for both cross-selling and up-selling. The first thing to do is to create a targeted list of these past buyers. Since you already have their contact information, setting up a list based on preference and general buying behaviour will help you retarget them in the future.

After setting your list, you should run your ads and remind your buyers why they chose you in the past to solidify your brand promise.

Once you have all those in place, you should also embrace personalized ads and include gifts if possible.

3.4.4 Remarketing on cart abandonment

If you run an eCommerce business, you will face cart abandonment from time to time. In simple terms, cart abandonment is when your website visitor leaves your page before making a purchase or carrying out the action you expect.

As there are different types of cart abandonment, there are various reasons why people abandon. There can be booking, form, and browse abandonment. And the reasons for these can include expensive shipping, slow shipping, not being ready to buy, lousy site navigation, and many more.

Using Google to remarket is simple if you already run Google ads. All you have to do is add a piece of remarketing code called pixel or tag that will instruct Google to add your website visitors to remarketing audiences. You can also add the remarketing code to all the pages of your website if you want.

3.5 Youtube ads

According to BrandWatch, YouTube is the world’s second-largest search engine and the second most visited site after Google. It has 1.9bn users, and YouTube accounts for two-thirds of Millennials’ premium online video watched across devices.

3.5.1 What are Youtube ads?

Advertising on YouTube offers many targeting options and the versatile use of various advertising materials to carry out effective campaigns.

3.5.2 What are the video formats you can use on Youtube ads?

Even if you haven’t created a video ad for your e-commerce business yet, you can still advertise on Youtube with non-video ad formats through overlay ads, display ads, and sponsored cards.

Non-Video Ad Formats

  • Overlay ads – YouTube overlay ads are banner advertisements that you’ll often see running along the bottom of a video. They can be simple text ads or visual banners.
  • Display Ads – Display ads appear above the video suggestions list. They can be managed within Google Ads, allowing you to double up with the Display Network for maximum reach.

Video ad formats

Google offers an attractive option with TrueView video ads. Here, costs only arise after playing the video ad according to the cost per view (CPV) principle.

  • TrueView Ads – TrueView ads are the skippable ads that appear at the beginning of YouTube videos. Effective TrueView ads include a clear call to action from the start of the video.
  • TrueView in-stream video ads – The video ads are shown before or while someone watches a video. After 5 seconds, the viewer can skip the advertising video with one click or continue to watch it. Costs only arise if the visitors watch the video for at least 30 seconds.
  • TrueView in-slate video ads – This ad format appears in front of YouTube videos from partners that run longer than 10 minutes. Viewers can choose one of three possible promotional videos or opt for commercial breaks during the video instead. Cost only arises when the viewer chooses to watch your video.
  • TrueView in-search video ads – The video ad appears directly above or to the right of the search results. Cost only arises when the viewer clicks on your video ad to watch the video.
  • TrueView in-display video ads – With this ad format, your video will appear to the right of another YouTube video or on the Google Display Network pages that correspond to your chosen target group. Costs only arise when the user clicks on the video to watch it.
  • Click to Play video ads – The video display is shown with a static start picture in the network display. The user can click the video to play it to play the video within the advertising space. If the viewer clicks on the current video or the displayed URL, he will be redirected to the external website. Costs are charged per click on the website (CPC) or impressions on the start image (CPM).
  • True View for Reach – You can display this ad format to the right of the search results on Youtube or to the right of a played video on YouTube. Costs arise when the video has been clicked and watched (CPV) or per 1000 impressions of the start image (CPM). If you choose the TrueView accounting model, you can choose between the variants In-Search and In-Display.

3.5.3 What are campaign targeting options on Youtube?

To keep the wastage as low as possible and target advertising media precisely to the target group, Google offers various targeting for YouTube campaigns.

Here there are:

  • Targeting by category on Youtube – Youtube assigns videos and channels to specific categories. This way, you can target campaigns according to specific YouTube categories.
  • Targeting videos on YouTube – You can target YouTube campaigns to specific videos, or you can also exclude individual videos or channels.
  • Targeting by YouTube channels – YouTube advertising can be aligned to thematic channels or excluded from individual channels.
  • Targeting by age – If Youtube can determine the target group of a campaign, then it can target campaigns accordingly.
  • Remarketing for YouTube campaigns – You can target former visitors to your company website through advertising on YouTube.
  • Alignment by topic – Your campaigns can also be tailored to thematically appropriate content. The video ad will only appear there.
  • Alignment based on interests – Youtube can tailor campaigns to the users’ interests. Video ads can appear for these audiences, even watching a video on a different topic.
  • Life events targeting – With Life events targeting, you can reach people graduating from college, getting married, or having a baby. Targeting your audience by life event allows you to reach people in the important moments of their life and market accordingly.

Here is a complete list offered by Google with the Youtube targeting options.

4. Google Ads Strategy

Now that you see the campaign types you can launch, the first thing you’ve got to do next is to figure out which of those are relevant to your eCommerce business at this point and which ones you should schedule for later.

We suggest running these different campaigns types in Google Ads step by step, in the following order:

  1. Google Shopping Ads
  2. Search Ads
  3. Remarketing Ads
  4. YouTube Ads
  5. Display Ads

Your campaign structure will differ if you’re running text ads vs product ads, but the structure for the former carries over the same principles for the latter.

Let’s say you’re a furniture retailer. A fundamental way to break out your campaigns would be by product category since they’re typically a nice, general place to start tracking performance. So you would have one campaign for Beds and another for Tables. From there, you can segment those out more granularly with ad groups.

For example, your Beds campaign may contain an ad group for Wood Frame Beds and another for Water Beds (do they still have those?). This hierarchical structure will allow you to better track conversion performance for specific segments of your store catalogue.

5. What is Ad Quality Score, and how to improve it

Google defines the ad quality score as” an estimate of the quality of your ads, keywords, and landing pages.” So It ensures that will show paid advertisements only the most relevant results.

5.1 What is the quality score?

Since a quality score measures how relevant your ads are, you want a high-quality score. You will see lower prices, better ad positions, and higher quality scores. Quality score is reported on a scale from 1-10, with ten being the best, and a combination of several factors determines it.

Dependent factors of Google Ads Quality Score

Dependent factors of Google Ads Quality Score. Source

When calculating the quality score, Google considers several factors, such as the historical click-through rate of keywords, landing page quality, the relevance of keywords, performance within targeted locations, and much more.

When viewing your quality score, you can also see its other components, such as expected click-through rate, ad relevance, and landing page experience. If you want your ad to be displayed in one of the top three positions, your relevant keywords must meet a quality score and max cost per click bid threshold.

5.2 How does the quality score affect the cost per click (CPC)?

As previously stated, high-quality scores can lead to lower costs. This will increase your return on investment (ROI) and make your eCommerce business more successful. If you have a high-quality score, Google tells you you’re meeting your customer’s needs. Therefore, Google will charge you less each time someone clicks your ad.

In the picture below, you can see exactly how the quality score affects your CPC. On a quality score of 10, you can pay with less than 50% of the google benchmark CPC, while on a quality score of 1, you would get a 400% increase in the CPC.

How the Quality score impacts the Cost Per Click (CPC)

How the Quality score impacts the Cost Per Click (CPC) Source

5.3 How to improve your Ad quality score?

Considering that you just found out, I’m sure you’re interested in improving your ad quality score and reducing your CPC.

Your keywords must be highly relevant to have a high ad quality score. Additionally, your landing page must appear to be trustworthy.

If Google considers that your page is not credible, then it will not display your ads in significant positions. Also, you must have a high click-through rate to prove that your ad is relevant.

Here are some things you can do to improve your ad quality score:

  1. Minimize your number of keywords by only using the most relevant ones.
  2. Pause or delete those campaigns with a low click-through rate.
  3. Make sure your ads are unique to the relevant keywords.
  4. Align the relevancy of your keywords to the relevance of your landing page.
  5. Improve the speed of your landing page. Test it using Google Pagespeed Insights.
  6. Make sure your landing page is mobile-friendly. Test it using Google Mobile-Friendly.

While you may already have a high-quality score, remember that there are always more ways to improve and make your eCommerce ad campaigns the best they can be!

6. Why You Should Use Negative Keywords In PPC

6.1 What are negative keywords?

Negative keywords are the types of keywords that prevent your ads from being triggered by certain words or phrases. They are the keywords in PPC you don’t want your ads to associate with.

You can selectively filter who sees your ad based on their search queries with negative keywords.

6.2 Why you should use negative keywords in PPC

You should implement negative keywords to save money and create opportunities for your ads to show in only relevant searches.

Utilizing negative keywords in your PPC campaign ensures your ads don’t show on particular keywords you have marked out.

6.3 Benefits of negative keyword research

They are numerous; Let’s go through the benefits of negative keyword research:

  • Improved click-through rate or CTR: when you can effectively target your ads to relevant search queries, the number of CTR on your ads will automatically increase as you will only be showing the ads to those who already want what you offer.
  • Improved conversion rate: when the CTR increases, your conversation rate also improves. From the list of relevant search queries will you increase your CTR; when that happens, your conversion rate tends to be encouraging.
  • Improved quality score: your quality score estimates your ads, keywords, and landing pages. You can use it to determine your cost per click (CPC) multiplied by your maximum bid to determine your ad rank in the ad auction process. A high-quality score means you pay low ad prices, and Google will better position your ads.

7. Metrics to measure your campaign performance

Measuring the results of your campaign(s) is mandatory. Otherwise, you will not be able to see what works for you and doesn’t. Also, you will be unable to make changes and improve your ad performance.

7. 1 How do I analyze my metrics?

When managing a pay-per-click (PPC) campaign, Google Analytics should obtain information about customer activity. Link your Google Analytics account with your Ads account to analyze your metrics.

Doing so will give you a more in-depth analysis of the current state of your eCommerce website. You can analyze things like cost per acquisition (CPA), click-through rate (CTR), and cost per click (CPC).

From here, you will be able to make the necessary changes to improve your eCommerce ad campaign.

How to link your Google Ads account to Google Analytics

How to link your Google Ads account to Google Analytics

7.2 Types of Metrics

There are many types of metrics you can analyze. The most common ones include those mentioned above (CPA, CTR, CPC).

CPA is a handy metric because it tells you how much it would cost to obtain one customer who makes a purchase. With this information, you can see if your marketing strategies are successful or not.

If this cost is too high, it will be difficult to earn revenue, aiming for low costs that produce great results!

CTR can give you information about the relevancy of your ads. Displayed as a percentage, the click-through rate takes the number of clicks you receive divided by the number of impressions.

With this information, you can gauge which keywords are successful and which ones aren’t. In this case, you want your CTR to be as high as possible because that means your ads are working!

According to WordStream, the average CTR in Google Ads across all industries is 3.17% on the search network and 0.46% on the display network.

CPC is the price you pay for each click you receive on your ads. You set a maximum cost per click within your campaign, and Google will make sure you never go over it. This is essentially the largest amount you would pay to get someone to click on your ad. You want this cost to be as low as possible.

7.3 How to measure Your Google Ads performance

As you can see, Google offers many ways to measure your success through various metrics. Through Google Ads, you can see which areas of your campaigns are most successful and which ones may still need improvements.

While CPA, CTR, and CPC are all excellent measurements, you will want to look at your ROI as another factor determining your success.

Return of investment is the ratio of new profit based on its cost to achieve that profit. For Google Ads, what we want to know is the advertising return on investment, and there is a simple formula you can use to work this out:

Google Ads ROI = (Total Profit – Advertising Costs ) / Advertising costs x 100

So, for example, if you have an online store that generated $5000 last month from your Google Ads campaign, your cost of products and wages was $1500, and your advertising costs on Google Ads were $500, then you could work out your Google Ads ROI as:

Total Profit = $4500 – $1500 = $3000

So for the calculation, the figures are: (3000 – 500) / 500 x 100 = 250% ROI

Keep in mind that If you’re paying for clicks, that doesn’t easily convert. The keywords that don’t directly convert may help other keywords get conversions.

In any case, ensure your selected keywords are helping your company rather than hurting it.

By choosing appropriate and negative keywords, you can take advantage of all the fantastic opportunities to improve your campaigns!

8. Attribution Models for e-commerce

With the detailed measurements in digital advertising, it’s sometimes hard to know where to start analyzing performance. That’s where attribution modelling comes in.

The performance can be segregated into different channels or campaigns and help the advertiser understand where conversion value should be distributed.

8.1 What is an attribution model?

An attribution model is a rule or set of rules determining the value assigned to channels in conversion paths.

For example, the Last Interaction model in Analytics assigns 100% credit to the final touchpoints (i.e., clicks) that immediately precede sales or conversions.

But there are many other attribution models available for e-commerce. Let’s check them out.

8.2 Various types of attribution models

  • Last-click attribution –This is the traditional model. The last interaction a user has with a website, the channel or campaign that facilitated that visit will be awarded 100% conversion value. So the channel or campaign that led to the visitor’s last interaction with the website takes all the conversion value. The Last Click attribution isn’t always the best way to measure ad performance, and Google agrees so much that it will soon stop supporting it. Plenty of other options are open to you,  so you should choose the one that fits best your PPC strategy.
  • Linear attribution – In the Linear attribution model, equal credit is given to every touchpoint that helped lead to a conversion. If five channels land the visitor on the website, each channel is awarded 20%.
  • Time decay –The time decay model works by giving more credit to the touchpoints closest to the conversion point.
  • Position-based – Here, 40% credit is given to the first touchpoint, another 40% to the last touchpoint, and the remaining 20% is divided equally between the middle channels.
  • First-click – The first-click attribution model recognizes the first touchpoint or channel. So, all credit is given to the first touchpoint.
  • Data-driven – New from Google, this attribution model is only available to accounts with a lot of conversion data. It uses Google’s machine learning to improve the model over time. It uses your conversion data to calculate each search ad click’s contribution along the conversion path. Additionally, it looks at what your customers do before converting and when they don’t, giving you valuable data. With increasing touchpoints in a user’s conversion journey, you must understand which ones have been most influential in getting that conversion. By getting this right, you can make decisions based on accurate data.


Paid Search management is a full-time job, so an eCommerce business shouldn’t be dabbling with Google Ads if they can’t afford to bring a new hire or agency to manage this.

However, missing out on advertising benefits with Google Ads is a competitive disadvantage, especially since Google Ads makes eCommerce the primary focus. That’s why It should be a top priority for retailers to take full advantage of Google Ads and Shopping Campaigns.

Relevant case studies of Todays.Agency

Today’s agency helps you generate Google Ads campaigns on all levels:

  1. Search campaigns
  2. Display campaigns
  3. Remarketing campaigns (static and dynamic)
  4. Google Shipping
  5. Youtube ads

Today’s agency specialists continually optimize the campaigns so our clients reach the highest number of possible conversions and continuously improve the ROI of the budget.

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