eCommerce PPC Explained: Setup Steps and Essential KPIs

Pay-per-click (PPC) advertising is a foundational pillar of digital marketing for eCommerce brands like yours. It's a ROI-oriented solution with proven impact. eCommerce PPC delivers fast, visible results and works effectively across all stages of the marketing funnel.
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It’s a smart choice for launching new products, increasing sales of bestsellers, or clearing out stock that needs to move. This flexibility makes it a valuable tool for nearly any eCommerce goal.

In this guide, we’ll explore what PPC for eCommerce sites entails, how it functions, and why it's a powerful channel for increasing sales. Keep reading to uncover the essentials of eCommerce PPC marketing. 

If you’re looking for expert support, explore our eCommerce PPC management services, or get in touch with our team directly at <a href="tel:+442031376681">+44 (0) 20 313 766 81</a>.

‍What Is PPC for eCommerce?

Pay‑Per‑Click (PPC) for eCommerce is a performance‑based advertising model where online retailers pay only when a user clicks on their ad. This strategy enables eCommerce brands to appear in front of actively searching customers, driving qualified visits to product pages. With platforms like Google Ads, Bing, Meta, and Instagram ads, eCommerce PPC delivers immediate visibility and measurable results.

The best part is its flexibility. Since the results are easy to analyze since day one, your team can tailor messaging, product visuals, and calls to action, targeting shoppers at different funnel stages and seeing what works best. PPC for eCommerce sites gives you full control over budget, bidding strategy, and analytics unlike traditional media. 

Here is what PPC ads might look like:
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Benefits of PPC Advertising for eCommerce Stores

eCommerce PPC delivers tangible benefits:

• Once your campaign goes live, your ads start appearing in front of potential buyers—within minutes. There's no need to wait months for organic rankings to take effect. This immediacy is especially useful during time-sensitive promotions, product launches, or seasonal sales when getting in front of the right audience fast can make a major difference in revenue.
  
  
• PPC allows you to segment and target audiences based on detailed criteria such as search intent (via keywords), user demographics (age, gender, location), interests, past behavior, and more. You can even create custom audience segments for retargeting campaigns that bring back users who abandoned their carts or browsed key product pages—turning lost traffic into recovered revenue.
  
  
• With eCommerce PPC, every click, impression, and conversion is trackable. You can measure exactly how much you’re spending and how much return you're generating through metrics like Return on Ad Spend (ROAS), Cost Per Click (CPC), conversion rate, and total revenue. This level of transparency empowers you to fine-tune campaigns for maximum profitability. Advanced reporting tools, like those used in Promodo's PPC services, further simplify performance analysis and decision-making.
  
  
• PPC ads are easy to automate. This is especially important if your store offers a big variety of products, each of which may vary in color, size etc. Imagine having to monitor which products are out of stock, or having to manually rewrite all ads when prices change. Automation tools like G-MOS monitor each ad automatically and make it possible to make adjustments without disrupting ads and losing money.
  
  

• Even if users don’t click, simply seeing your ads builds brand recognition over time. Paid ads can increase brand awareness by up to 80%, according to Google data. This is especially useful for newer eCommerce brands entering competitive markets and working on making a name for themselves.
  
  

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Types of eCommerce PPC Campaigns

eCommerce brands typically rely on a diverse mix of PPC formats to optimize reach and conversions:

Shopping Ads

Shopping ads (or Product Listing Ads) showcase product image, title, price, and brand—making them highly visible and conversion-oriented. They're ideal for showcasing your catalog and capturing high-intent traffic directly from search engines. 

Search Ads

Text-based search ads appear when users enter relevant queries. With precise keyword targeting and flexible bidding, PPC for eCommerce via search allows you to present the right message at the right moment—especially when products are in demand.

Search ads can look in all sorts of ways, because platforms allow to add ad extensions:

• Sitelink extensions (multiple clickable links beneath the main ad)
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• Callout extensions (short non-clickable text snippets)

• Structured snippet extensions (lists of features or categories)

• Call extension (click‑to‑call phone number)
• Image extension (visual asset next to the ad text)

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Display Ads

These visually rich ads appear across the Google Display Network and other sites. Display ads are excellent for awareness and brand recall. Studies show consumers exposed to display ads are 155% more likely to search for your brand, and display campaigns are over 4× cheaper in CPC compared to search. 

Here’re the common display ad types:

• Banner Ads
  Horizontal ads that stretch across the top or bottom of a webpage. They’re wide and short—often the first thing users see when a page loads.
  
  
• Square and Rectangle Ads
  Box-shaped ads placed in sidebars or between pieces of content. These are commonly used for showcasing product images and offers.
  
  
• Skyscraper Ads
  Tall, narrow ads that run vertically along the sides of a webpage. They stay visible as users scroll down the content.
  
  
• Responsive Display Ads
  Flexible ads that automatically adjust their size, format, and layout to fit different devices and placements. They can appear as banners, boxes, or even native-looking ads.
  
  
• Lightbox Ads

Interactive ads that expand when clicked or hovered over. They often open into a full-screen view showing videos or image carousels.

• Interstitial Ads
  Full-screen ads that appear between page transitions or during pauses in app usage. They cover the entire screen temporarily.
  
  
• Native Display Ads
  Ads that are designed to match the look and feel of the website or app they appear on. They include a headline, image, and CTA, blending in like regular content.

Remarketing / Retargeting

Remarketing helps you reconnect with users who previously visited your site but didn’t buy. With tailored messaging and dynamic product feeds, these campaigns can significantly lift conversions—studies report retargeting increases purchase likelihood by up to 70%. They can appear in all sorts of formats, but they are very typical for ads on social platforms. 

Social PPC 

Social PPC plays a key role in product discovery, audience engagement, and driving ecommerce conversions through visual storytelling and hyper-targeted ad delivery. These platforms offer a rich mix of ad formats—carousel, video, collection, and story ads—designed to match user behavior and intent across different funnel stages.

• Facebook reaches approximately 2.11 billion people aged 13+, giving advertisers access to over a third of the global population. Its targeting options—based on interests, behaviors, lookalikes, and custom audiences—make it ideal for both prospecting and remarketing.
  
  
• Instagram has over 2 billion monthly active users, making it the third most popular social platform worldwide. Its potential ad reach is 849.3 million users, and 83% of people use Instagram to discover new products and services, making it highly effective for visual brands, product launches, and influencer collaborations.
  
  
• TikTok has surpassed 1.5 billion users globally, with engagement rates that outpace most platforms. Short-form video ads feel native and perform exceptionally well for trending products, Gen Z audiences, and viral ecommerce campaigns. TikTok’s algorithm also makes it easier for new brands to gain traction quickly.
  
  
• Pinterest is a discovery-focused platform with over 518 million monthly active users. With users actively searching for ideas, inspiration, and product solutions, Pinterest Ads are perfect for promoting products related to home décor, fashion, beauty, and lifestyle. The platform excels in upper-funnel awareness and drives high purchase intent.
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• LinkedIn may not be the first platform you think of for ecommerce, but it's effective for B2B ecommerce or high-consideration purchases. With over 1 billion users, its precise targeting by job title, industry, and company size makes it ideal for niche product categories and professional audiences.
  
  
• Reddit has over 430 million active users across thousands of niche communities (subreddits). Reddit Ads work well when targeting specific interest groups, tech-savvy shoppers, or community-driven buyers. Native ad formats help your message blend in with organic content.
  
  
• X (formerly Twitter) has a global ad reach of over 372 million users and is known for real-time engagement. Promoted tweets and trends can boost visibility during key campaigns, product drops, or seasonal sales. While direct conversions may vary, X is strong for brand awareness and social proof.
  
  

So honestly, the sky is the limit. What platform you choose to run ads will strongly depend on your target audience and offering. For example, if you sell lawnmovers, your safe bet will be Facebook ads, if you specialize on wedding accessories or decorations, then Pinterest would work well for you, if you have a gamer PC business, then you can try X or Reddit. Due to the precise targeting these platforms offer, the choice is obviously broader - Instagram or TikTok can be used for all these categories too. You just need thorough target audience analysis to know exactly where your customer prefers to scroll. 

How to Set Up a Successful PPC Strategy for Ecommerce

eCommerce thrives with Google Shopping campaigns. We won’t go in detail here, because we covered their setup in detail in this article. 

While the setup process will vary depending on the platform (Google, Meta, TikTok, etc.) and the type of campaign, there are some key steps that apply across the board. These steps are the foundation of any successful eCommerce PPC strategy.

Here’s what you need to cover to make sure your eCommerce PPC setup is solid from the start:

1. Get Clear on What You Want to Achieve

Before you touch a single ad platform, take the time to define your goals. Are you trying to sell a new product line? Move discounted stock? Boost repeat purchases?

Once your goal is set, you’ll need to track the right metrics to measure success. For eCommerce brands, these typically include:

• Conversion Rate – the percentage of clicks that turn into purchases
  
  
• ROAS (Return on Ad Spend) – how much revenue you earn for every dollar spent
  
  
• CPA (Cost Per Acquisition) – how much it costs to get one customer
  
  
• AOV (Average Order Value) – the average amount spent per order
  
  
• Cart Abandonment Rate – how many people leave without completing a purchase
  
  
• Click-Through Rate (CTR) – how many users who see your ad actually click it
  
  
• Impression Share – how often your ad appears compared to how often it could
  
  

To help you track these, we’ve created a free downloadable PPC reporting template and a detailed guide explaining each of these eCommerce PPC metrics in plain language. 

2. Choose the Right Platforms for Your Goals

The right platform for your campaign depends on what you're trying to sell and who you're selling to. Start with 1–2 platforms that best align with your goals and audience. Trying to do everything at once can dilute your efforts and budget. 

3. Organize Your Campaigns So They’re Easy to Manage

When setting up campaigns, especially in platforms like Google Ads, it’s important to keep things organized. Think of each campaign like a “bucket” with a specific focus—for example:

• A campaign just for your best-selling products
  
  
• One for clearance items or seasonal sales
  
  
• One per product category (e.g., shoes, accessories, home goods)
  
  

This helps you control your budget and bidding more precisely, making it easier to see what’s working and what isn’t. Campaign structure may sound technical, but keeping things logical and separated by theme or goal will save you time and money in the long run.

4. Write Strong Ads and Set Up High-Quality Product Feeds

Your ads are what people will see—so they need to stand out. Use clear images, short and punchy headlines, and highlight what makes your product special (free shipping, limited edition, new arrival, etc.).

For eCommerce, product feeds are especially important. These are files that send your product data (price, availability, image, etc.) to platforms like Google Shopping. If your feed is messy or incomplete, your ads may not run properly—or at all.

Promodo’s Feed Optimizer tool helps eCommerce businesses clean and structure their feeds automatically, ensuring your products are shown correctly and more often in search results.

If you will decide to add something else to Google Shopping, check out our compilation of great ad ideas:

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5. Set Up Bidding (Don't Worry—We'll Guide You)

Bidding means telling the platform how much you're willing to pay for a click or conversion. Sounds simple, but it’s actually one of the most complex parts of eCommerce PPC. The way you bid will affect how often your ads show up, how much they cost, and whether they reach the right people.

You can choose from manual bidding (you set the cost) or automated bidding (the platform adjusts your bids to meet a goal—like maximizing conversions or hitting a target ROAS). Choosing the right strategy depends on your budget, campaign type, and goals.

If you're unsure where to start, don’t stress—we explain everything step by step in our full guide to bidding. Read our Bidding Strategy in Google Ads article →

6. Set Up Conversion Tracking and Reporting

To know if your ads are actually working, you need to track what happens after someone clicks. This includes actions like:

• Viewing a product
  
  
• Adding to cart
  
  
• Completing a purchase
  
  
• Signing up for a newsletter
  
  

Platforms like Google Ads and Meta offer built-in conversion tracking, but you’ll want to double-check that these are installed properly and send accurate data. Connecting your PPC campaigns to tools like Google Analytics or GA4 gives you deeper insights into behavior and sales performance.

7. Keep Testing and Improving

PPC is not a “set it and forget it” channel. Even the best campaigns need regular adjustments. Every few days or weeks, check in on performance and look for:

• Keywords that are costing money but not converting
  
  
• Ads with low click-through rates
  
  
• Landing pages that aren’t turning visitors into buyers
  
  
• High-performing products or audiences that deserve more budget
  
  

Try new headlines, images, and offers through A/B testing. Adjust bids or exclude poor-performing search terms. Small changes can have a big impact when done regularly.

To know how your numbers compare to others in your niche, explore our article on PPC benchmarks.

8. Consider Getting Professional Support

Running ecommerce PPC campaigns takes time, data, and experience—especially when you’re managing multiple product categories, audiences, and platforms. If you're unsure where to start or want to avoid expensive mistakes, working with an experienced eCommerce PPC management company will be a huge relief.

Our team handles everything from campaign structure to bidding, creative testing, and ongoing optimization. We’re here to help you get the most out of your budget and drive real sales—not just clicks.

Learn more about how your business can grow faster.

Key Ecommerce PPC Mistakes You Should Avoid

Even the best strategies can falter if common pitfalls aren’t avoided:

• Neglecting negative keywords: Without them, you may squander budget on irrelevant traffic.
  
  
• Not tracking conversions properly: Missing goals impacts optimization accuracy.
  
  
• Overlooking ad fatigue: Refresh creatives regularly to combat reduced engagement.
  
  
• Setting-and-forgetting campaigns: Only about 10% of advertisers optimize weekly—this hurts ROI. 
• Mismanaging budgets with broad targeting: Leads to high CPC and low-quality traffic.

More about what that means and how to be cautious in our article about common PPC mistakes.

Final Thoughts

eCommerce PPC offers unmatched control, measurability, and scale. A well-designed setup, paired with vigilant optimization and clear KPIs, will elevate your traffic, conversions, and profit.

If you’re just a beginner, start with small budgets, AB test your ads and explore our blog for expert guidance. 

If you’d like to grow faster, we’re here to offer you help, guidance and results. We are certified Google Ads and Meta Ads partners, and our expertise in PPC is unmatched - proven by our happy clients all around the world. Just reach out, and we’ll take it from there.
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