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How do shopping ads compare to traditional ads in terms of performance?

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Shopping ads — particularly on platforms like Google, Meta, and TikTok — are highly effective for e-commerce brands because they showcase products visually, contextually, and with real-time data like price and availability.

Here’s how shopping ads compare to traditional ads in terms of performance, targeting, and ROI — and why EMILY® often recommends them for product-based businesses:


📊 1. Click-Through Rate (CTR)

Ad Type

Typical CTR Range

Shopping Ads

1.5% – 3.5%+

Search Text Ads

1% – 2%

Display Ads

0.3% – 1%

Social Static Ads

0.7% – 1.8%

Why Shopping Wins: They feature product images, titles, and prices directly in the ad — making them more visually appealing and relevant to purchase-ready users.


💰 2. Cost-Per-Click (CPC) & ROI

Ad Type

Avg CPC

Conversion ROI (general)

Shopping Ads

$0.30–$1.00

200%–600% ROAS

Text Ads (Search)

$1.00–$3.00

100%–400% ROAS

Display/Video Ads

$0.10–$0.50

Lower direct ROI, good for awareness

Why Shopping Wins: You only pay per click, and those clicks come from high-intent users. When optimized correctly, Shopping Ads deliver higher return on ad spend (ROAS) than traditional awareness ads.


🛍️ 3. Conversion Rate

Channel

Typical Conversion Rate

Google Shopping

2% – 4%

Meta Dynamic Product Ads

3% – 6%

Search Text Ads

1% – 3%

Display/Static Social

0.5% – 1.5%

Why Shopping Wins: The buyer already sees the product and price before clicking, making them more likely to complete the purchase.


🧠 4. Targeting Precision

Ad Type

Targeting Features

Shopping Ads

Product-level targeting, real-time inventory, dynamic remarketing

Search Text Ads

Keyword and geo targeting

Display Ads

Broad targeting, low conversion intent

Social Static Ads

Interest-based, demographic targeting

Why Shopping Wins: They leverage intent-based targeting AND dynamic personalization, especially when paired with retargeting or Smart Shopping campaigns.


📈 5. Reporting & Optimization Depth

  • Shopping Ads allow SKU-level ROI tracking, bidding by product, and feed performance diagnostics.

  • Traditional ads (text or display) offer less granularity unless heavily segmented.

EMILY uses custom labels, Merchant Center insights, and Google Analytics 4 to optimize Shopping Ads at the product level for maximum profitability.


🎯 Summary: When to Use Shopping vs. Traditional Ads

Goal

Best Fit

Drive product sales

✅ Shopping Ads

Launch new brand/product

🔄 Combine Shopping + Social Video

Retarget abandoned carts

✅ Shopping + Dynamic Product Ads

Broad awareness campaigns

📢 Display or Video ads

Local inventory promotions

✅ Local Inventory Shopping Ads


📅 Want to Compare Performance for Your Store? EMILY® audits your Shopping, Search, and Social campaigns — and builds integrated funnels that maximize ROI and product visibility across channels.

 📞 803-271-0875

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