Understanding Shopping Campaign Types
Google offers two primary campaign types for Shopping ads: Standard Shopping and Performance Max. Each has distinct characteristics that suit different advertiser needs.
Standard Shopping Campaigns
Standard Shopping campaigns give you granular control over your product advertising:
- Manual bidding: Set bids at product group level
- Search terms visibility: See exactly what queries trigger your ads
- Network control: Ads appear only on Search and Shopping tab
- Negative keywords: Full control over query exclusions
- Product group structure: Organize by brand, category, custom labels
Standard Shopping is ideal for advertisers who want transparency and control, especially those with the time and expertise to optimize manually.
Performance Max Campaigns
Performance Max uses Google's AI to automate bidding and placement across all Google networks:
- All networks: Search, Shopping, YouTube, Display, Gmail, Discover, Maps
- Automated bidding: AI optimizes for your conversion goals via Smart Bidding
- Asset groups: Combine products with creative assets
- Limited visibility: Less insight into search terms and placements
- Audience signals: Guide the AI with audience suggestions
Performance Max suits advertisers seeking scale and automation, especially those with strong conversion data for the AI to learn from.
Standard Shopping vs Performance Max: How to Choose
The Shopping vs PMax decision isn't binary—many advertisers run both. Here's how to decide:
| Factor | Standard Shopping | Performance Max |
|---|---|---|
| Control | Full manual control | AI-driven |
| Search term visibility | Complete | Limited |
| Reach | Search + Shopping only | All Google networks |
| Learning curve | Higher (manual optimization) | Lower (AI handles it) |
| Best for | Control-focused, limited data | Scale-focused, strong data |
When to Use Standard Shopping
- You need full search term visibility for optimization
- You have limited conversion data (fewer than 30/month)
- You want to control exactly where ads appear
- You're testing new products and need granular data
- You have time/resources for manual optimization
When to Use Performance Max
- You have strong conversion data (50+ conversions/month)
- You want to reach audiences beyond Search
- You're comfortable with AI-driven optimization
- You want to simplify campaign management
- You have quality creative assets to provide
Hybrid Approach
Many advertisers run both: Standard Shopping for brand defense and control on Search, Performance Max for incremental reach on other networks. PMax takes priority over Standard Shopping when both are eligible for the same auction.
For a detailed comparison, see our Standard Shopping vs Performance Max guide.
Campaign Structure Approaches
How you structure your campaigns determines your ability to control bids and budgets. Common approaches:
Single Campaign (Simple)
One campaign containing all products. Simplest to manage but offers least control.
- Pros: Easy setup, consolidated data, simple reporting
- Cons: Can't set different bids/budgets by product type
- Best for: Small catalogs, beginners, limited management time
Category-Based Structure
Separate campaigns for different product categories (e.g., Shoes, Apparel, Accessories).
- Pros: Control budgets by category, easier to analyze performance
- Cons: Doesn't account for margin or performance differences
- Best for: Retailers with distinct category performance patterns
Margin-Based Structure
Campaigns segmented by profit margin (High Margin, Medium Margin, Low Margin) using custom labels.
- Pros: Bid aggressively on profitable products, protect margins
- Cons: Requires margin data in feed, more complex setup
- Best for: Profit-focused advertisers with varying margins
Performance-Based Structure
Segment by historical performance: Heroes (top performers), Standard (average), Long-tail (low volume/untested).
- Pros: Focus budget on proven winners, test new products safely
- Cons: Requires ongoing maintenance as performance changes
- Best for: Established advertisers with performance history
Recommended Structure for Most Advertisers
Start with 3 campaigns: Brand (brand searches, high priority), High Margin (profitable products, aggressive bids), and All Products (catch-all, conservative bids). This balances control with simplicity.
Bidding Strategies
Your bidding strategy determines how you compete in auctions. The right choice depends on your data volume and goals.
Manual CPC
You set max CPC bids at the product group level. Google shows your ads when the cost won't exceed your bid.
- Best for: New campaigns, limited conversion data, maximum control
- Requires: Regular bid adjustments, search term analysis
- Risk: Under-bidding misses opportunities, over-bidding wastes budget
Enhanced CPC (eCPC)
Google adjusts your manual bids up or down based on conversion likelihood. A middle ground between manual and automated.
- Best for: Transitioning from manual to automated
- Requires: Conversion tracking, some conversion history
- Risk: Can exceed your set bids by up to 100% for likely converters
Target ROAS
Set a target return on ad spend (e.g., 400%). Google optimizes bids to achieve it.
- Best for: Profitability-focused campaigns with conversion value data
- Requires: 15+ conversions in past 30 days, conversion value tracking
- Risk: May limit volume if target is too aggressive
Maximize Conversions / Conversion Value
Google automatically sets bids to maximize conversions or conversion value within your budget.
- Best for: Growth-focused campaigns, spending full budget
- Requires: Sufficient budget, conversion tracking
- Risk: May sacrifice efficiency for volume
For detailed strategy comparisons, see our manual vs automated bidding guide.
Brand vs Non-Brand Segmentation
Separating brand and non-brand traffic lets you measure true acquisition costs and defend your brand efficiently.
Why Segment Brand Traffic?
- Different intent: Brand searchers are further down the funnel
- Different ROAS: Brand searches convert at higher rates
- Defend your brand: Competitors may bid on your brand terms
- Measure incrementality: Non-brand shows true acquisition performance
How to Implement Brand/Non-Brand Split
Use campaign priorities and negative keywords:
- Create two campaigns with identical product groups
- Non-Brand Campaign: High priority, add brand terms as negatives
- Brand Campaign: Low priority, add competitor/generic terms as negatives
- Set appropriate bids: Usually higher for non-brand (harder to win)
Priority Logic
Higher priority campaigns are evaluated first. If a search matches the high-priority campaign's criteria (non-brand), it shows there. If not (brand search hits a negative), it falls through to the low-priority brand campaign.
For implementation details, see our brand vs non-brand segmentation guide.
Feed-Only Performance Max
Performance Max typically requires creative assets (images, videos, headlines). Feed-only PMax runs without these, relying solely on your product feed.
How Feed-Only PMax Works
- Create a PMax campaign without adding asset groups
- Connect your Merchant Center feed
- Ads appear primarily on Shopping surfaces (Search, Shopping tab)
- Limited or no reach on Display, YouTube, Gmail, Discover
When to Use Feed-Only PMax
- You don't have creative assets to provide
- You want PMax's bidding AI but only on Shopping surfaces
- Testing PMax before investing in creative production
- Supplementing Standard Shopping with PMax reach
For setup instructions, see our feed-only PMax guide.
Multi-Platform Strategy: Google vs Microsoft
Microsoft Shopping (Bing) offers incremental reach beyond Google. While smaller, it often has lower CPCs and different demographics.
Microsoft Shopping Advantages
- Lower competition: Fewer advertisers means lower CPCs
- Different audience: Older, higher income demographics
- Easy import: Import Google campaigns directly
- LinkedIn integration: B2B targeting options
Google Shopping Advantages
- Scale: ~92% search market share vs ~3% for Bing
- Features: More advanced bidding and targeting options
- Integration: Better ecosystem (YouTube, Maps, etc.)
- Data: More volume for AI optimization
| Metric | Google Shopping | Microsoft Shopping |
|---|---|---|
| Reach | Massive | Smaller but growing |
| Avg. CPC | $0.50-$1.50 | $0.30-$0.80 |
| Competition | High | Moderate |
| Setup effort | Primary setup | Import from Google |
For a detailed comparison, see our Google vs Microsoft Shopping guide.
Testing and Iteration
Campaign strategy isn't set-and-forget. Regular testing reveals what works for your specific business.
What to Test
- Bidding strategies: Manual vs automated, different target ROAS levels
- Campaign structures: Margin-based vs performance-based segmentation
- Product groupings: Granular vs broad product groups
- Budget allocation: Shifting budget between campaigns/products
- Feed changes: Title formats, custom label strategies
Testing Best Practices
- Test one variable at a time for clear results
- Run tests for 2-4 weeks minimum (account for conversion lag)
- Ensure statistical significance before concluding
- Document results and apply learnings
- Consider seasonality when comparing time periods
Frequently Asked Questions
Should I use Standard Shopping or Performance Max?
Use Standard Shopping if you want full control over bids, search terms visibility, and product group targeting. Use Performance Max if you want AI-driven optimization across all Google networks and have sufficient conversion data. Many advertisers run both: Standard Shopping for control on Search, Performance Max for incremental reach.
What is the best campaign structure for Google Shopping?
The best structure depends on your goals. Common approaches include: single campaign (simple, low-control), brand/non-brand split (protect brand traffic), margin-based tiers (bid by profitability), and performance tiers (separate heroes from long-tail). Most mid-size advertisers benefit from 3-5 campaigns segmented by margin or performance.
Should I use manual or automated bidding for Shopping?
Manual CPC gives full control but requires more management time. Automated bidding (Target ROAS, Maximize Conversions) works well with sufficient conversion data (15+ conversions/month). Start with manual to understand your data, then test automated bidding once you have conversion history.
How do I segment brand vs non-brand in Shopping campaigns?
Create two campaigns with identical product groups. In the brand campaign, add competitor and generic terms as negative keywords. In the non-brand campaign, add your brand terms as negatives. Set higher priority on the non-brand campaign so it catches generic traffic first, with brand campaign as fallback.
Build Your Winning Strategy
Effective Google Shopping campaign strategy balances control with efficiency. There's no one-size-fits-all approach—the right structure depends on your catalog size, margin profile, and management resources.
Key takeaways:
- Standard Shopping offers control; Performance Max offers automation and reach
- Segment campaigns by margin or performance for better bid control
- Separate brand and non-brand traffic to measure true acquisition costs
- Start with manual bidding, graduate to automated with sufficient data
- Consider Microsoft Shopping for incremental reach at lower CPCs
- Test continuously and iterate based on results
Tools like SKU Analyzer help you analyze product-level performance to inform your campaign structure decisions, showing which products deserve aggressive bids and which should be segmented or excluded.