The European Commission required Google to independently operate Google Shopping profitably in the countries of the European Economic Area (EEA) where shopping ads are available. To ensure this profitability, Google deducts a fixed margin from every merchant bid before it enters the auction. This margin is factored into the CPC (cost per click) that the merchant pays and only applies when a user actually clicks on an ad.

By using their own CSS, agencies can also participate in the CSS program. Advertisers can avoid the margin, so the entire bid flows into the bidding system, allowing them to bid up to 20% more effectively in the auction.

What exactly does the click cost saving through an alternative CSS in Google Shopping mean?

It is important to mention that this always involves a savings of UP TO 20%. In simplified terms, this means that campaigns linked with a CSS participate in Google’s ad auctions with higher virtual bids for the best positions in the search results. Unlike regular Google Shopping campaigns, the entire bid from the customer flows into the auction with a CSS partner. However, with regular Google Shopping campaigns, a Google-internal margin applies, meaning that approximately 80% of the bid actually enters the auction process.

Having a dedicated CSS avoids this and gives agencies and advertisers a better starting position to improve their placements and impressions in the highly competitive Google Shopping market. For e-commerce companies that rely on Google Shopping campaigns, this is a crucial advantage – especially given high CPC costs and competitive pressure.

It is important when using a CSS that €1,000 in advertising budget does not simply become automatically €800. Instead, the value of the bid changes through a CSS provider in the auction. Thanks to the virtually higher bid, the shop can participate in more auctions, including more expensive, potentially more promising auctions. This usually leads to greater visibility and more impressions, which increases the effectiveness of the ads.

What does the savings in Google Ads through a CSS partner depend on?

· Market and competitive conditions: In highly competitive markets, the effect of the savings can vary. The more merchants that already use a CSS, the less positive effect there is in the bidding process. This underscores the relevance of implementing a CSS early, as companies may otherwise start at a significant competitive disadvantage and initially have to make considerable efforts to catch up on the resulting deficit.

· Type of campaign: Performance Max campaigns that encompass various networks can also benefit differently from the savings.

· CSS provider: Both the fee for integration into the CSS and the landing page and product density have a high influence on success. For example, if many shops from similar industries are listed, the end customer may not find the desired product or shop on the CSS landing page.

Conclusion

The cost-per-click advantage from using one's own CSS is a valuable tool for agencies and e-commerce providers to enhance their competitive edge in Google Shopping. Although actual results may vary, participating in the CSS program remains indispensable. In particular, the high density of shops utilizing a CSS (around 40% of the overall market) should act as an additional impetus for those hesitating – because nearly every second competitor is currently benefiting from this strategic competitive advantage. Label Up supports agencies and shops in participating in the CSS program themselves and thus benefiting from the advantages of having their own CSS.