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Google Ads for ecommerce stores
Google Ads for ecommerce stores can look profitable on paper and still lose money. Google reports revenue and ROAS, but a sale only makes you money if its gross profit is bigger than what you paid in ads to get it. Two stores with the same ROAS can have very different results once their margins are counted.
These guides focus on ad spend that's profitable, not just revenue-positive. Measuring ad profit starts with ROAS, break-even ROAS and the click metrics behind them, and how to budget from your margin. Campaign types explains Performance Max, Demand Gen and keyword match types in plain terms. Bidding covers Target CPA, Target ROAS and how to set targets from your margins. Shopping setup covers Google Merchant Center and product identifiers like GTINs.
Google changes its products often, so platform-specific details are checked against Google's own help pages and linked where they appear.
Measuring ad profit
- What is ROAS, and what is a good ROAS?What is ROAS, and what is a good ROAS? The ROAS formula, how to calculate break-even ROAS from your margin, target ROAS, and how ROAS compares to POAS and MER.
- Click-through rate, CPC and CPM formulasClick-through rate, CPC and CPM formulas explained with a worked Google Shopping example, and why a good CTR or low cost per click says nothing about profit.
- How much do Google Ads cost for an online store?How much do Google Ads cost for an online store? How the auction sets cost per click, sourced CPC benchmarks, and how to budget from your break-even ROAS.
Campaign types and keywords
- Performance Max for ecommerce storesPerformance Max for ecommerce: what PMax is, where it shows ads, how it uses your product feed, its controls, and how to measure it on profit, not ROAS.
- Demand Gen campaigns explainedDemand Gen campaigns explained for ecommerce: what Google Demand Gen is, where it shows ads, what it replaced, and when an online store should use it.
- Google Ads keyword match types explainedGoogle Ads keyword match types explained: broad, phrase and exact match with ecommerce examples, what replaced broad match modifier, and negative keywords.
Bidding
Shopping setup
- Google Merchant Center: a setup guide for Shopify storesGoogle Merchant Center for Shopify: what it is, how to connect with the Google & YouTube app, the feed attributes that matter, and how to fix disapprovals.
- What is a GTIN?What is a GTIN? The Global Trade Item Number explained: UPC, EAN, JAN and ISBN types, when Google Shopping needs a GTIN, and where to get GTINs for products.