As Melbourne’s eCommerce landscape continues to thrive in 2025, local online retailers face an important decision when it comes to paid advertising—Google Shopping Ads or Google Search Ads? Both are powerful tools to drive traffic and sales, but each comes with its own strengths, targeting styles, and cost implications.
If you’re an online store owner in Melbourne, understanding the difference between Google Shopping and Search Ads can help you make informed marketing decisions that improve visibility, reduce wasted ad spend, and boost conversions. In this guide, we’ll break down the key differences, benefits, and ideal use cases for both types of ads—so you can decide which is better suited for your business.
What Are Google Shopping Ads?
Google Shopping Ads are visual product listings that appear when a user searches for a specific product on Google. These ads showcase product images, titles, pricing, brand names, reviews, and promotions—directly at the top of Google’s search results or under the Shopping tab.
Unlike text-based Search Ads, Shopping Ads are powered by a product feed submitted to the Google Merchant Center. Instead of targeting keywords directly, Shopping Ads rely on Google’s algorithm to match your products with relevant searches based on titles, descriptions, and product categories.
What Are Google Search Ads?
Google Search Ads are text-based advertisements that appear above and below the organic search results. They consist of a clickable headline, a display URL, and a short description. These ads are triggered by bidding on specific keywords and can be customized with ad extensions like call buttons, site links, or location details.
Search Ads are highly flexible and can be used to target a wide range of keywords, from branded terms to broader intent queries. They’re ideal for driving traffic to landing pages, promotional offers, service-based pages, or lead generation forms.
Visual vs Text: First Impressions Matter
For Melbourne-based eCommerce stores selling physical products, Google Shopping Ads have a clear visual advantage. They present the product image, price, and vendor at a glance—making them ideal for users who want to compare options quickly.
Search Ads, on the other hand, rely on persuasive copywriting. While they don’t showcase images, they offer greater creative control in terms of messaging and branding. This makes them better suited for complex offers, educational content, or services where a visual preview isn’t enough.
Targeting Approach: Automated vs Manual
One of the major differences between Shopping and Search Ads is how they target users. Shopping Ads use automated targeting based on your product feed, titles, and descriptions. You can’t manually choose keywords—instead, you optimize your feed content to help Google match your products to relevant queries.
Search Ads allow full control over keyword targeting. You can define exact match, phrase match, or broad match keywords, exclude irrelevant terms (negative keywords), and adjust bids based on performance. This level of control can be valuable for experienced advertisers looking to fine-tune campaigns.
Cost and Return on Investment
In terms of cost-effectiveness, both ad formats can deliver strong ROI when optimized well. However, Google Shopping Ads tend to have lower cost-per-click (CPC) than Search Ads, especially in competitive niches. Since Shopping Ads show more product-specific information upfront, clicks tend to be more qualified and conversion-ready.
Search Ads may have a higher CPC due to keyword bidding competition, but they’re also more versatile. They can be used to target high-value keywords, brand awareness, and seasonal promotions. With the right copy and targeting strategy, they can deliver exceptional results, particularly for service-led or content-driven campaigns.
Conversion Rates: Which One Performs Better?
Google Shopping Ads often yield higher conversion rates for eCommerce because users clicking on Shopping Ads have already seen the price, product image, and store name. They’re further down the buyer journey and more likely to make a purchase.
Search Ads can also convert well—especially when paired with landing pages optimized for user intent. However, they may attract more top-of-funnel traffic (research-stage users), which could result in lower conversion rates if not properly managed.
When to Use Google Shopping Ads in Melbourne
Google Shopping Ads are ideal for Melbourne eCommerce businesses that:
- Sell physical products like fashion, electronics, beauty, or home goods
- Have a well-structured online store and updated product feeds
- Want to showcase product pricing and images visually
- Prefer automated targeting without managing individual keywords
- Are looking to scale sales with product-specific campaigns
For example, if you own a fashion boutique in South Yarra selling sneakers online, Google Shopping Ads will help you reach customers looking for “white Nike sneakers” with an eye-catching product image and pricing info—right at the top of Google’s results.
When to Use Google Search Ads in Melbourne
Google Search Ads work best for businesses that:
- Offer services or custom products not easily captured visually
- Want control over keyword targeting and audience intent
- Need to promote landing pages, sales funnels, or lead forms
- Want to run promotional or seasonal campaigns with strong copy
If you’re a digital marketing agency in Melbourne or an online store selling complex tech solutions that require explanation, Search Ads allow you to communicate value through compelling copy and CTAs.
Combining Both for Maximum Results
While it’s tempting to choose one over the other, the most successful Melbourne eCommerce stores often use both Google Shopping and Search Ads in combination. This dual approach maximizes visibility across multiple touchpoints in the customer journey.
Shopping Ads attract bottom-of-funnel shoppers who are ready to buy, while Search Ads help target broader keywords, drive brand discovery, and retarget previous visitors. When used together, these formats create a well-rounded strategy that increases both traffic and conversions.
Local Targeting for Melbourne Retailers
One of the biggest advantages of both ad types is local targeting. Google Ads allows you to focus your campaigns on specific suburbs, postcodes, or even a radius around your physical store. This is especially useful for Melbourne-based businesses that offer delivery, in-store pickup, or local promotions.
Running Google Shopping Ads with local inventory ads can drive foot traffic to your Melbourne storefront. Similarly, Search Ads can include call or location extensions to encourage direct engagement from nearby customers.
The Verdict: Which One Is Better?
So, which is better—Google Shopping or Search Ads? The answer depends on your business type, goals, and product offering.
Choose Google Shopping Ads if you:
- Run a product-based eCommerce store
- Want highly visual, performance-driven ads
- Prefer automated keyword matching
- Have a strong Google Merchant Center setup
Choose Google Search Ads if you:
- Offer services or custom solutions
- Need keyword-level control and targeting flexibility
- Want to drive traffic to informational or promotional pages
- Have skilled copywriting support
Ultimately, the best choice may be a hybrid strategy that uses both formats to capture different customer intents.
Final Thoughts
For Melbourne online stores in 2025, understanding the strengths and differences between Google Shopping and Search Ads is critical to achieving eCommerce success. Each ad format has its place in a well-rounded digital marketing strategy. Whether you’re looking to showcase your product catalog or promote a seasonal sale, the right ad format can make all the difference.
If you’re unsure which strategy is right for your business—or want help optimizing both—working with a Google Shopping Ads agency in Melbourne can give you the guidance, support, and expertise needed to generate real results.
Want help managing your Google Ads campaigns the smart way? Partner with Wedee, Melbourne’s trusted PPC and Shopping Ads agency. We specialize in ROI-focused campaigns designed to help your store scale and thrive in 2025 and beyond.