The Google platform offers a number of marketing products, so it's important to understand what these products are and how they relate to each other.
Google has two main shopping products; Performance Max (Google Shopping Ads) and Google Product Listings.
Google Shopping Ads
What Are They?
Paid advertisements that appear prominently at the top of Google search results and in the Google Shopping tab.
How Do They Work?
You'll select a 30 day budget ($150, $250, $500) and add ad credits to your account. Each time someone clicks on your ad, you'll utilize some of those credits. At the end of the month, you would refill your credits and your ad would continue to run. More information on the cost and billing process can be found here.
These ads show images, titles, prices, store names, and sometimes reviews.
Why Use Them?
Premium placement in search results means higher visibility.
Advanced targeting options allow you to reach specific audiences based on location, device, and demographics.
Google Product Listings
What Are They?
Free product listings that appear in the Google Shopping tab.
How Do They Work?
By simply having an active account (and platform fee), you can run as many of these types of campaigns as you would like.
These listings show similar information to Shopping Ads: images, titles, prices, and store names.
Why Use Them? A cost-effective way to gain visibility without paying for clicks.
If you aren't ready or able to spend the higher amounts required by Shopping, it offers an economical route to getting your business and products in front of potential customers.
If you are able, it complements your paid Shopping Ads by increasing overall exposure.
More information on the cost and billing process can be found here.
Key Differences
Cost: Shopping Ads require a budget, while Product Listings are free (subject to having an active platform fee of $10-$20 per month).
Placement: Shopping Ads get premium spots in search results and the Shopping tab; Product Listings are found only in the Shopping tab.
Targeting: Shopping Ads offer more advanced targeting options.