Price benchmarks for Shopping ads show, on average, how other merchants are pricing the same products that you sell. You’ll see a click-weighted average price for each product, which can help you understand the price at which other advertisers are successfully attracting clicks for a certain product.
This article explains how price benchmarks for Shopping ads work.
Price benchmarks reporting may be useful when you're making decisions about:
- Bidding: Identify products that are price competitive and adjust your bids accordingly. Or, bid down on less price-competitive products. Combine strategies by pricing attractively and raising bids for popular products.
- Diagnostics: Understand changes in performance caused by pricing alteration or changes in the competitive environment.
- Assortment: Inform assortment decisions by understanding demand for different price points.
- Pricing: Understand how your price compares to other merchants to drive pricing decisions.
How it works
There are three metrics available to help you measure price benchmarks:
- Average product price: This is the average price of a product when your ad showed or when your ad was competitive in an auction
Benchmark product price: This is the average click-weighted price for a product across all merchants who advertise that product using Shopping ads. For example:
|Merchant||Product price||Clicks (over last 7 days)|
Benchmark product price = ((£100 x 9) + (£120 x 1) + (£125 x 0)) ÷ 10 clicks = £102.
- Benchmark Product Price Difference: This is the percentage difference between your product’s average product price and the associated benchmark product price. For product groups, the price difference is weighted based on your product's traffic potential. More popular products will be weighted more than less popular products.
To find your price benchmarks data, you’ll use standard Google Ads reporting features. When searching for columns, you’ll find Average product price under 'Shopping', and Benchmark product price and Benchmark product price difference under 'Competitive metrics'. You can compare price benchmarks with other performance metrics for advanced reporting.