Google Shopping as a Top of Funnel tactic

Google Shopping Tag

For e-commerce business owners everywhere, Google Shopping is a popular ‘top of funnel’ marketing tactic that can be used to drive people to your site in an instant.

A Google Shopping campaign is especially effective because it gets your products under the noses of people who are actively seeking the type of products you are selling.

Setting up a campaign is a little tricky and best left to the experts but once done it’s relatively easy to set budgets and track progress. Your Google Shopping expert should be able to advise and help you maintain your campaigns if you are thinking of running them yourself.

What’s the point of a Google Shopping campaign?

A Google Shopping campaign’s job is to get relevant people to your website and NOT – as if mistakenly believed – complete a sale.

With a Google Shopping campaign, you are literally paying for the site traffic.

Google Shopping campaigns are judged by their ‘Click Through Rate’ (CTR) and by analysing the search terms that people used before they click on your ad (to determine audience relevancy).

Keep it TOFU

Google Shopping’s job is to give your website the audience it needs to convert site traffic into paying customers.  It should be treated strictly as ‘top of funnel’ activity.

Let’s look at the part it plays when it comes to a profitable funnel.

Say industry figures point to a 2% conversion rate for your sector. You don’t have your own data yet as you’re a new business – so you go along with this benchmark.

You’ll need your Google Shopping campaign to send you 50 site visitors before you can expect a sale.  

It’s easy to lose money with Google Shopping

To prevent wasting money on Google Shopping, you will want to look at three things:

Cost per click – if you need 50 site visitors for one sale and your CPC is £1 then that’s £50 per sale. That sounds like a lot but of course depends on the value of the item you’re selling. That’s why determining a marketing cost per sale is important.

If reducing the CPC is not an option then perhaps you can work on improving the ad relevancy, so that once people land on your site they are more likely to buy when they are there.

Or, perhaps you need to look into other factors that may prevent you from increasing your conversion rates once the traffic has landed on site.

Increasing your website conversion rates from 2% to 10% will mean you only need to pay for ten clicks to get the people you need to your site.

Say you manage to reduce your initial CPC to 50p per click – your marketing cost per outcome then ends up as £5 per sale; which might sit a little easier that our original £50.00.

There are many different stages involved in building a profitable marketing sales funnel and it often requires a bit of trial and error and regular work to get right.

At Masterplan Marketing, we can set you up with a Google Shopping campaign AND help iron out any conversion issues further down the funnel. Get in touch to chat.