Set a budget for Google Smart Shopping campaign

Every time someone visits a page where a Google ad can be shown, Google's algorithms determine which ad to show. A factor for whether your ad is shown is your Google Smart Shopping campaign budget.

If your budget is set lower than similar campaigns in your target market, then your ad is shown less when competing with similarly relevant ads, because there is less budget to work with to place a competitive bid. Whenever possible, it is best to keep your daily budget for Google ads around the average or above average.

Google Smart Shopping campaigns work well if you already have existing visits and online traffic to your store. If you’re a new store, then the learning period may take longer to generate conversions.

Google Smart Shopping campaigns bid to help get conversions that are the most valuable for your campaign (basket value). Google Smart Shopping campaigns use cost-per-click pricing, so you pay only when customers click on your ad.

Recommended daily budgets by target country
Market status Example Countries Recommended minimum budget
Emerging markets India, Brazil, Mexico, South Africa, and other emerging markets 5 USD - 7 USD
Mature markets Canada, United Kingdom, France, Germany, Australia, New Zealand, and other mature markets 10 USD - 15 USD
United States United States Over 15 USD

How your budget affects your ad performance

Why is setting a competitive starting budget important?

An appropriate starting budget allows you to place competitive bids which makes it more likely that your ads are viewed and that you get a wider reach. The higher your budget is, the more frequently your ads can be shown when compared to similarly relevant ads.

If your budget isn’t competitive for the target market, then your traffic and conversion rate might not reach its full potential.

How does bidding work?

Google’s automated bidding helps to set bids for your campaign. Using information about your campaign and data present at auction-time (such as your budget, Google insights and Retailer insights), Google automated bidding automatically finds an optimal bid for your ad each time it's eligible to appear. Google sets these bids to help get conversions that are the most valuable for your campaign.

Google's algorithms use the performance data from your ads (clicks and conversions) to determine when your ads should be shown in the future and the right bid to place. Getting lots of performance data early helps better target your ads to potential customers, which leads to your ads performing better.

To learn more about bidding, refer to Google Ads Help.

How does pricing work?

Google Smart Shopping campaigns use cost-per-click pricing, so you pay only when customers click on your ad.

If my budget is too low, how is my traffic affected?

If your budget isn't high enough, then your traffic and potential conversion rate can be lower. Other factors like product descriptions, titles, images, and pages can affect your traffic.

For more information on how to improve your ad performance, refer to Maximize the impact of your Smart Shopping campaign.

How your target market affects your budget

Why is the minimum budget suggestion more expensive in mature markets?

Mature markets are more expensive because there are more advertisers in these markets. This means that the auction is more competitive. The more competitive the auction is, the higher budget you need.

What countries are supported for Google Smart Shopping campaigns?

For a list of countries supported by Google Smart Shopping Campaigns, refer to Google Merchant Center Help.

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