How are product groups used in Shopping campaigns?
Correct Answer
A) To bid on organized inventory in an ad group
Key takeaways
Product groups subdivide inventory inside an ad group and carry the bid.
They are built from feed attributes such as brand, type, condition or custom label.
They organise inventory for bidding in Google Ads, not the feed in Merchant Center.
Why is this the correct answer?
Product groups are the bidding unit of a Shopping campaign. They subdivide the inventory inside an ad group using feed attributes such as brand, category, product type, condition or custom label, and each resulting group carries its own bid. That is the whole purpose: without product groups you could only bid one amount across everything you sell, which would badly over-bid your low-margin lines and under-bid your best ones.
Why are the other options wrong?
B) To create a list of keywords used to target Product Listing Ads to shoppers
Shopping campaigns have no positive keywords at all. Matching comes from product data, so a product group is not a keyword list.
C) To bundle items sold as a package, like a camera and tripod stand
Product groups do not bundle items into packages. They are a way of subdividing inventory for bidding.
D) To organize products within a data feed
Organising the data feed itself happens in Merchant Center. Product groups live in Google Ads and organise inventory for bidding, not the feed.
Frequently asked questions about this topic
How granular should I make product groups?
Granular enough that each group has a distinct commercial goal. Splitting to individual item level gives maximum control but thins out the conversion data in each group, which makes automated bidding slower to learn.
Official documentation: https://support.google.com/adwords/answer/6275317?hl=en
Topics in this question
About the Shopping Ads Certification
The Shopping Ads Certification checks that you can run retail campaigns end to end: product data in Merchant Center, linking it to Google Ads, and choosing between Standard Shopping and Performance Max to drive sales and value.
Exam guide and all 407 Google Ads Shopping questions →Related Google Ads Shopping questions
- 1How would you accurately describe the function of product groups in a Shopping campaign?
- 2Which of these statements about product groups in a Shopping campaign is true?
- 3Carey has used Google Ads for some time, but he recently found he doesn’t have time to manage multiple campaigns effectively. How can Smart Shopping campaigns reduce Carey’s Google Ads management workload?
- 4Julia owns a used video game store. She’s been using google shopping ads for a few months. Which two forms of data are easily available for Julia to continue optimizing the performance of her campaigns?(choose two.)Multiple correct
- 5Peter has finished subdividing the product groups in one of his Shopping campaign’s ad groups. What bid should Peter not use for the remaining “everything else in all products” product group?
- 6To subdivide products in Shopping campaigns using your own set product structure, you should use:Explained