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Microsoft Shopping Campaigns: Merchant Center and Feed Setup: 2026 Guide

2026-01-28
33 min read
Kiril Ivanov
Kiril Ivanov
Performance Marketing Specialist

On this page

  • What Are Microsoft Shopping Campaigns?
  • Product Ads vs Search Ads
  • Why Use Microsoft Shopping?
  • Potential Advantages
  • Microsoft Merchant Center Explained
  • Merchant Center Components
  • Step 1: Create a Microsoft Merchant Center Store
  • Store Setup Checklist
  • Step 2: Verify and Claim the Website
  • Verification Diagnostic Table
  • Common Verification Problems
  • Step 3: Choose a Feed Method
  • Feed Method Comparison
  • Step 4: Import From Google Merchant Center
  • Import Setup Checklist
  • Import Schedule
  • Google Merchant Center Import Limitations
  • Import Review Table
  • Step 5: Review Product Diagnostics
  • Product Diagnostic Table
  • Common Product Rejection Reasons
  • Product Feed Essentials
  • Core Product Attributes
  • Product Title Optimisation
  • Product Title Structure
  • Product Title Examples
  • Product Image Optimisation
  • Good Primary Image
  • Image Diagnostic Table
  • Step 6: Create a Microsoft Shopping Campaign
  • Shopping Campaign Setup Checklist
  • Standard Shopping vs Automated Campaign Types
  • Campaign Type Decision Table
  • Campaign Priorities
  • Priority Use Cases
  • Simple Priority Funnel
  • Product Group Structure
  • Product Group Hierarchy
  • Structure Examples
  • SPAGs: Single Product Ad Groups
  • SPAG Decision Table
  • Custom Labels
  • Custom Label Examples
  • Bidding Strategy
  • Bidding Decision Table
  • UET and Conversion Tracking
  • Ecommerce Tracking Checklist
  • Tracking Diagnostic Table
  • Search Term Analysis
  • Search Term Decision Table
  • Negative Keywords
  • Product Ratings
  • Product Ratings Checklist
  • Product Reviews vs Seller Reviews
  • Merchant Promotions
  • Promotion Checklist
  • Free Product Listings
  • Paid vs Free Product Visibility
  • Multimedia Ads and Feed-Based Creative
  • Image Preparation Checklist
  • Local Inventory Ads
  • Local Inventory Checklist
  • Campaign Structure Examples
  • Small Ecommerce Store
  • Large Retailer
  • Single-Category Brand
  • Microsoft Shopping Performance Scorecard
  • Weekly Optimisation Checklist
  • Common Microsoft Shopping Mistakes
  • Mistake 1: Assuming the Google Import Is Perfect
  • Mistake 2: Using the Wrong Country
  • Mistake 3: Ignoring Feed Diagnostics
  • Mistake 4: Running One Undivided Product Group
  • Mistake 5: Creating SPAGs for Every Product
  • Mistake 6: Using Poor Product Images
  • Mistake 7: No Revenue Tracking
  • Mistake 8: Optimising Only for ROAS
  • Mistake 9: Ignoring Search Terms
  • Mistake 10: Forgetting Scheduled Import Failures
  • Troubleshooting Table
  • Pre-Launch Checklist
  • 30-Day Launch Plan
  • Week 1: Merchant Center Setup
  • Week 2: Campaign Launch
  • Week 3: Query and Product Review
  • Week 4: Commercial Optimisation
  • Final Recommendation
  • Microsoft Shopping Action Plan

Microsoft Shopping Campaigns: Merchant Center and Feed Setup: 2026 Guide

If you sell physical products online, Microsoft Shopping should be part of your paid acquisition review.

Microsoft Shopping campaigns allow ecommerce advertisers to show visual Product Ads across Microsoft search and shopping environments. These ads can include the product image, title, price, store name and promotional information.

The main advantage is that many businesses already have most of the required data inside Google Merchant Center.

Microsoft Merchant Center can import product offers from Google Merchant Center, which means you may not need to build a completely separate product feed from scratch.

But the process is not quite as simple as importing once and forgetting about it.

Google and Microsoft do not support every attribute in exactly the same way. Product approval can differ. Country settings can be wrong. Scheduled imports can fail. Tracking may not be configured. Campaign structure can still waste spend even when the feed is technically approved.

Microsoft Shopping campaign setup showing Google Merchant Center feed imports, Microsoft Merchant Center and Product Ads

This guide covers:

  1. What Microsoft Shopping campaigns are.
  2. How Microsoft Merchant Center works.
  3. How to create and verify a Merchant Center store.
  4. How to import products from Google Merchant Center.
  5. How to review feed compatibility and product errors.
  6. How to build Standard Shopping campaigns.
  7. How campaign priorities work.
  8. How to structure product groups.
  9. How to use product ratings and promotions.
  10. How to set up tracking and bidding.
  11. How free product listings fit into the strategy.
  12. Common setup mistakes and troubleshooting.

Importing a Google Merchant Center feed can save time, but it does not remove the need for feed management. Import, review, fix and optimise.


What Are Microsoft Shopping Campaigns?

Microsoft Shopping campaigns use product data from Microsoft Merchant Center to create Product Ads.

Instead of writing a separate advert for every product, Microsoft uses the information inside your feed.

This may include:

  • Product title.
  • Product image.
  • Price.
  • Sale price.
  • Brand.
  • Availability.
  • Product category.
  • Product type.
  • Item ID.
  • Landing page URL.
  • Shipping information.
  • Product identifiers.
  • Custom labels.

When a user searches for a relevant product, Microsoft can use this data to decide whether your product is eligible to appear.

Product Ads vs Search Ads

AreaProduct AdsStandard search ads
Main inputProduct feedKeywords and ad copy
VisualProduct imageMainly text
PriceCan appear directlyUsually added in copy or assets
Product matchingFeed attributes and relevanceKeyword targeting
Best usePhysical productsProducts, services and brand messaging
Landing pageProduct pageAny relevant page
Main optimisation areaFeed, bids, product groups and conversion dataKeywords, copy, bids and landing pages

Product Ads can help users understand the product before they click.

They can see what it looks like, how much it costs and which retailer sells it.

This can improve click quality because the user has more information before reaching the website.


Why Use Microsoft Shopping?

Microsoft Shopping usually has lower total search volume than Google Shopping.

That does not make it unimportant.

The value of Microsoft Shopping comes from incremental reach.

It gives ecommerce brands another opportunity to reach people searching across Microsoft environments without relying entirely on Google.

Potential Advantages

AdvantageWhy it matters
Additional shopping visibilityReaches customers outside Google
Google Merchant Center importsReduces duplicate feed work
Visual Product AdsShows image, price and product details
Standard Shopping controlAllows product group and priority management
Free product listingsApproved products may receive unpaid visibility
Lower advertiser adoptionSome categories may face less competition
Microsoft audience reachAdds access to Microsoft search users
Existing feed reuseFaster setup for established ecommerce brands

Do not assume Microsoft Shopping will always outperform or underperform Google. Treat it as a separate auction with different users, competition and volume.


Microsoft Merchant Center Explained

Microsoft Merchant Center is where your product catalogue is stored for Microsoft Shopping.

Before you can run Product Ads, you need:

  1. A Microsoft Advertising account.
  2. A Microsoft Merchant Center store.
  3. A verified and claimed website.
  4. A product feed.
  5. Approved products.
  6. A Shopping or product-enabled campaign.

Your Microsoft Merchant Center store connects your product data with your advertising account.

Merchant Center Components

ComponentPurpose
StoreRepresents your ecommerce website
DomainConfirms which website the store belongs to
FeedContains product data
ProductsIndividual offers submitted through the feed
DiagnosticsShows feed and product problems
ImportPulls product offers from Google Merchant Center
PromotionsAdds eligible promotional information
Product ratingsSupports review information where eligible

Step 1: Create a Microsoft Merchant Center Store

The first step is creating the store.

Inside Microsoft Advertising, go to the Merchant Center area and create a new store.

You will normally need to provide:

  • Store name.
  • Store description.
  • Website URL.
  • Contact details.
  • Market or country information.
  • Language settings.

Choose the website destination carefully.

The store must represent the same domain where users can view and purchase the products.

Store Setup Checklist

A Merchant Center store can be reviewed automatically or manually.

Do not build the advertising campaign around an unapproved store.

Wait until the store and products are eligible before expecting delivery.


Step 2: Verify and Claim the Website

Microsoft needs to confirm that you control the ecommerce website.

Website verification may be completed using an available verification method such as:

  • UET tag.
  • DNS record.
  • Other supported webmaster or platform verification methods.

The exact options available can depend on your account and website setup.

Verification Diagnostic Table

CheckPass condition
Domain matches store URLExact ecommerce website is used
HTTPS is activeWebsite loads securely
UET tag is workingMicrosoft receives tag activity
DNS verification is correctVerification record resolves
Redirects are cleanDomain does not redirect unexpectedly
Store uses correct marketCountry and language match the feed
Website is claimableIt is not incorrectly claimed elsewhere

Common Verification Problems

ProblemLikely cause
Domain cannot be claimedAnother store may already claim it
UET verification failsTag is missing or not firing
Store URL mismatchwww and non-www versions differ
Products rejected for URL issuesFeed URLs do not match the claimed domain
Redirect errorsProduct URLs move to another domain
Review takes longerStore may require manual review

Website verification and UET tracking are separate jobs. Verification proves ownership. UET supports audience and conversion measurement.


Step 3: Choose a Feed Method

Microsoft Merchant Center supports different ways to provide product data.

Common methods include:

  • Google Merchant Center import.
  • Scheduled feed download.
  • Manual file upload.
  • Product feed URL.
  • API or platform integration.
  • Ecommerce platform application.

Feed Method Comparison

MethodBest forMain risk
Google Merchant Center importStores already using Google ShoppingAttribute compatibility and import failures
Scheduled feed URLStores with a stable hosted feedURL or authentication problems
Manual uploadTesting or small cataloguesBecomes outdated quickly
API integrationLarger or frequently changing cataloguesMore technical setup
Ecommerce applicationShopify or platform-led setupLess control over some attributes

For businesses already using Google Merchant Center, importing from Google is usually the most efficient starting point.

That does not mean it is always the best permanent method.

Larger retailers may eventually prefer a direct feed or API setup that gives them more control over Microsoft-specific data.


Step 4: Import From Google Merchant Center

Microsoft allows advertisers to import product offers from Google Merchant Center.

A typical process is:

  1. Open Microsoft Merchant Center.
  2. Select the Microsoft store.
  3. Open the Import section.
  4. Create a new Google Merchant Center import.
  5. Sign in to the correct Google account.
  6. Grant the required permissions.
  7. Select the Google Merchant Center account.
  8. Choose the feeds or products to import.
  9. Confirm country and language settings.
  10. Choose a schedule.
  11. Run the import.
  12. Review results and errors.

Import Setup Checklist

Import Schedule

Daily imports are a practical starting point for most ecommerce stores.

Stores with frequent stock or price changes may need a more direct or more frequent feed method where supported.

The chosen time is less important than consistency and freshness.

Do not assume a scheduled import succeeded.

Review import history regularly.


Google Merchant Center Import Limitations

A Google feed import saves time, but Microsoft and Google are different platforms.

Not every attribute behaves identically.

Some Google attributes may:

  • Not be supported.
  • Be renamed.
  • Be interpreted differently.
  • Require different formatting.
  • Be ignored during import.
  • Need additional Microsoft-specific configuration.

Import Review Table

AreaWhat to check
CountryProducts imported into the correct market
LanguageFeed language matches the market
Product URLsURLs work and use the claimed domain
ImagesImages load and meet Microsoft requirements
PricesFeed and website prices match
AvailabilityStock status matches the product page
IdentifiersGTIN, MPN and brand are present where appropriate
Product typesCategories remain useful
Custom labelsLabels have imported correctly
ShippingDelivery settings are accurate
PromotionsOffers are recognised correctly
VariantsSize and colour data remain connected

Never assume that a successful import means every product attribute arrived correctly. Review the imported feed and product diagnostics.


Step 5: Review Product Diagnostics

After the feed is imported, Microsoft reviews the product offers.

Products may be:

  • Approved.
  • Pending.
  • Rejected.
  • Limited.
  • Missing information.
  • Affected by store-level issues.

Do not launch a Shopping campaign without checking how many products are actually eligible.

Product Diagnostic Table

StatusMeaningAction
ApprovedProduct can become eligible to serveMonitor performance
PendingStill being reviewed or processedWait and recheck
RejectedProduct cannot serveFix the stated issue
WarningProduct may serve but has a problemImprove the attribute
ExpiredProduct data is no longer currentRefresh the feed
MissingProduct was not included in the latest importCheck source feed and filters

Common Product Rejection Reasons

IssueFix
Price mismatchMatch website and feed price
Availability mismatchUpdate stock status
Broken product URLFix the landing page
Missing imageAdd a valid product image
Image cannot be crawledRemove blocking or use a valid URL
Unsupported productReview Microsoft policy
Missing identifierAdd GTIN, MPN or brand where required
Domain mismatchUse URLs from the claimed website
Shipping mismatchCorrect delivery settings
Promotional text in imageUse a clean primary product image

Approval does not always happen immediately.

However, you should not promise or expect a fixed 24-hour approval period. Review times can vary depending on the store, feed and issue.


Product Feed Essentials

The product feed is one of the most important parts of Shopping performance.

A campaign cannot compensate for vague titles, weak images or incorrect product data.

Core Product Attributes

AttributeWhy it matters
IDIdentifies the product
TitleHelps Microsoft understand the product
DescriptionAdds detail and relevance
LinkSends users to the product page
Image linkProvides the main Product Ad image
PriceShows the product cost
AvailabilityShows whether the item can be purchased
BrandSupports product identification
GTINHelps identify standard retail products
MPNSupports manufacturer identification
Product typeHelps organise the catalogue
CategoryHelps Microsoft understand the product class
ConditionShows whether the item is new, used or refurbished
Custom labelsSupports campaign segmentation

Product Title Optimisation

Product titles strongly influence Shopping relevance.

The title should describe the product using language customers are likely to understand and search.

Product Title Structure

A practical title may include:

  • Brand.
  • Product name.
  • Product type.
  • Important attribute.
  • Colour.
  • Size.
  • Gender.
  • Pack size.
  • Material.

The exact order depends on the product category.

Product Title Examples

Weak titleStronger title
“Classic”“Women’s Black Wool Winter Coat”
“Tea Gift”“Loose Leaf Tea Gift Set With 6 Tins”
“Running Pro”“Men’s Waterproof Trail Running Shoes”
“Serum 30ml”“Vitamin C Brightening Face Serum 30ml”
“Dining Set”“Oak Dining Table And 6 Chairs”

Do not stuff titles with every possible keyword.

Put the most useful information first and keep the wording readable.


Product Image Optimisation

The primary image needs to explain the product immediately.

Good Primary Image

A strong product image should:

  • Be clear.
  • Be high resolution.
  • Show the correct product.
  • Use a clean background where suitable.
  • Avoid distracting graphics.
  • Match the landing page.
  • Avoid promotional overlays.
  • Show the correct colour or variant.
  • Use most of the available frame.

Image Diagnostic Table

ProblemEffect
Low resolutionProduct looks unprofessional
Text overlayImage may appear cluttered
WatermarkCan reduce quality or eligibility
Wrong variantCreates landing page mismatch
Excessive blank spaceProduct looks too small
Lifestyle image onlyProduct may be unclear
Broken image linkProduct cannot serve properly
Inconsistent imagesShopping results look unprofessional

Use additional lifestyle images on the product page, but keep the primary feed image clear and product-focused.


Step 6: Create a Microsoft Shopping Campaign

Once the store and products are approved, create a Microsoft Shopping campaign.

You will normally choose:

  • Campaign name.
  • Merchant Center store.
  • Country or market.
  • Budget.
  • Bidding strategy.
  • Campaign priority.
  • Product filters.
  • Location targeting.
  • Ad schedule.
  • Tracking settings.

Shopping Campaign Setup Checklist


Standard Shopping vs Automated Campaign Types

Microsoft may provide several ways to advertise products, including Standard Shopping and more automated campaign types.

Standard Shopping remains useful when you need greater control over:

  • Product groups.
  • Campaign priorities.
  • Bids.
  • Product exclusions.
  • Reporting.
  • Brand segmentation.
  • Margin segmentation.
  • Search query strategy.

More automated campaign types may simplify management, but usually give the advertiser less direct control.

Campaign Type Decision Table

SituationBetter starting point
Need product-level controlStandard Shopping
Want clear product group reportingStandard Shopping
Have limited management timeAutomated campaign may be considered
Need to separate margin groupsStandard Shopping
Large catalogue with strong conversion historyTest both approaches carefully
New Microsoft Ads accountStart with a controlled structure
Need brand and generic priority routingStandard Shopping

Automation is not automatically better. Choose the campaign type that matches your data, catalogue and need for control.


Campaign Priorities

Microsoft Shopping campaigns can use Low, Medium or High priority.

Campaign priority matters when the same product is eligible in more than one Shopping campaign.

The higher-priority campaign can be considered before a lower-priority campaign, subject to the wider auction and campaign setup.

Priority does not mean:

  • Higher ad position.
  • Better organic ranking.
  • Guaranteed impressions.
  • Better conversion rates.

It helps control which campaign handles overlapping product eligibility.

Priority Use Cases

PriorityExample use
HighGeneric search routing or promotional campaign
MediumCategory or controlled product group
LowBrand or fallback campaign

The exact strategy depends on how you use negative keywords, bids and overlapping products.

Simple Priority Funnel

A traditional structure might look like this:

CampaignPriorityBid levelSearch focus
Generic ShoppingHighLowerBroad non-brand demand
Category ShoppingMediumMediumMore specific product demand
Brand ShoppingLowHigherBrand-led searches

Negative keywords can help route searches between the campaigns.

This structure should only be used if the account has enough volume to justify it.

Do not create three campaigns for a small catalogue with very little traffic.


Product Group Structure

Microsoft Shopping campaigns use product groups to organise and bid on catalogue items.

You can subdivide products using attributes such as:

  • Category.
  • Brand.
  • Product type.
  • Item ID.
  • Condition.
  • Channel.
  • Custom label.

Product Group Hierarchy

A practical hierarchy may be:

  1. Brand.
  2. Product type.
  3. Custom label.
  4. Item ID.

The right hierarchy depends on the business.

Structure Examples

BusinessUseful subdivision
FashionCategory, gender, brand, product type
Tea brandTea type, gift set, price tier, margin
FurnitureRoom, product type, material, price
CosmeticsBrand, product type, concern, margin
ElectronicsBrand, category, model, margin
Multi-brand retailerBrand, product type, bestseller status

SPAGs: Single Product Ad Groups

SPAG stands for Single Product Ad Group.

The idea is to place one product, or a very tightly defined product group, into its own ad group.

This gives more control over:

  • Bids.
  • Negative keywords.
  • Reporting.
  • Product-level profitability.
  • Search term analysis.
  • Budget decisions.

But SPAGs are not automatically the best structure for every store.

SPAG Decision Table

SituationSPAG fit
Small catalogue with high-value productsStrong
A few hero productsStrong
Large catalogue with thousands of itemsDifficult
Products have similar margin and performanceLess necessary
Need item-level bid controlUseful
Low conversion volume per productMay fragment data
Frequent stock changesMore management required

Use SPAGs where product-level control creates a real advantage. Do not split every low-volume product into its own ad group just because the acronym sounds advanced.


Custom Labels

Custom labels help organise products using business information that Microsoft would not otherwise know.

Examples include:

  • High margin.
  • Low margin.
  • Bestseller.
  • Clearance.
  • Seasonal.
  • New arrival.
  • Price tier.
  • Stock level.
  • Hero product.
  • Subscription eligible.

Custom Label Examples

LabelPossible values
Custom label 0High margin, medium margin, low margin
Custom label 1Bestseller, standard, new
Custom label 2Spring, summer, autumn, winter
Custom label 3Under £25, £25 to £50, over £50
Custom label 4High stock, low stock, clearance

This makes campaign structure more commercially useful.

Microsoft does not know your margin unless you provide a usable signal through the feed or your own reporting.


Bidding Strategy

Shopping bidding should reflect the amount and quality of conversion data available.

Possible approaches may include manual or automated bidding options available in the account.

The best choice depends on:

  • Conversion volume.
  • Revenue tracking.
  • Product margin.
  • Campaign maturity.
  • Catalogue size.
  • Budget.
  • Business goals.

Bidding Decision Table

SituationApproach
New campaign with limited dataStart with controlled bids
Strong revenue trackingConsider value-focused automation
Stable conversion historyTest automated bidding carefully
Low conversion volumeAvoid restrictive targets
High-margin productsAllow more aggressive bids
Low-margin productsUse stricter profitability controls
Different product valuesSeparate campaigns or use value signals

Do not assume Enhanced CPC is always the correct choice.

Bidding options can change, and the right approach depends on the current account interface and data.


UET and Conversion Tracking

Microsoft Shopping needs proper conversion tracking.

Install and test the Universal Event Tracking tag.

For ecommerce, track:

  • Purchases.
  • Revenue.
  • Currency.
  • Product or order data where supported.
  • Basket additions.
  • Checkout starts.
  • Key engagement events.

The primary campaign goal should normally be the purchase, not a weak action such as viewing a product page.

Ecommerce Tracking Checklist

Tracking Diagnostic Table

ProblemRisk
Purchase fires twiceRevenue and ROAS are inflated
No revenue valueValue-based bidding becomes unreliable
Wrong currencyReporting is misleading
UET missing from checkoutPurchases are lost
Consent blocks all trackingData volume drops
Returns are ignoredReported revenue may overstate profit
Cross-domain checkout is brokenAttribution is lost

Search Term Analysis

Standard Shopping campaigns can provide useful search term data.

Review what users searched before clicking Product Ads.

Search terms can reveal:

  • New keywords.
  • Irrelevant queries.
  • Brand demand.
  • Competitor demand.
  • Product attributes customers care about.
  • Feed title problems.
  • Negative keyword opportunities.
  • New category pages to build.

Search Term Decision Table

Search term typeAction
Relevant and profitableKeep and consider stronger bid
Relevant but poor conversionReview price, product and landing page
Wrong product categoryImprove title or add negative
Informational queryAdd negative if commercially weak
Competitor termReview separately
Brand termDecide whether to route to brand campaign
Unexpected attributeConsider adding it to the product title

Shopping does not use keywords in the same way as Search campaigns, but search terms still reveal how Microsoft is interpreting your feed.


Negative Keywords

Negative keywords can help reduce irrelevant Shopping traffic and support priority structures.

Useful negative categories may include:

  • Free.
  • Used.
  • Repair.
  • Instructions.
  • Manual.
  • Jobs.
  • Wholesale, if you only sell retail.
  • Cheap, if the product is premium.
  • Competitor terms, if unwanted.
  • Irrelevant product types.
  • Unavailable sizes or uses.

Do not add broad negatives without reviewing search behaviour.

A negative keyword can block valuable searches if used carelessly.


Product Ratings

Product Ratings can add review information to eligible Product Ads.

Ratings may help users assess the product before clicking.

Product Ratings usually depend on review data being submitted in a supported format and meeting Microsoft requirements.

Product Ratings Checklist

Product Reviews vs Seller Reviews

Review typeWhat it measures
Product reviewOpinion about the product
Seller reviewOpinion about the retailer or service

A five-star review of your delivery service is not automatically a five-star product rating.

Keep the data properly separated.


Merchant Promotions

Merchant promotions can add promotional information to eligible Product Ads.

Examples include:

  • Percentage discount.
  • Money-off offer.
  • Free gift.
  • Free delivery.
  • Promotional code.
  • Seasonal sale.

Promotion Checklist

Promotions can improve visibility, but they cannot rescue an uncompetitive product.

Price, delivery, reviews and product relevance still matter.


Free Product Listings

Approved Microsoft Merchant Center products may be eligible to appear in free product listings on the Bing Shopping tab.

This can provide additional visibility without a direct ad click charge.

Free listings are not guaranteed, and eligibility depends on:

  • Product approval.
  • Market availability.
  • Feed quality.
  • Policy compliance.
  • Product relevance.
  • Microsoft’s serving systems.

Paid vs Free Product Visibility

AreaPaid ShoppingFree listings
PaymentAdvertiser pays for eligible clicksNo direct ad click charge
Campaign requiredYesProduct approval may be enough
Bid controlYesNo normal paid bid
ReportingPaid campaign reportingListing reporting may differ
VisibilityAuction-basedOrganic eligibility-based
Feed requiredYesYes

Even if you are not ready to spend heavily on Microsoft Shopping, an approved Merchant Center feed may still create value through eligible free product listings.


Multimedia Ads and Feed-Based Creative

Microsoft can use product data and images across additional visual experiences.

However, advertisers should not assume that every Multimedia Ad is automatically created from the feed in the same way or appears in every campaign.

The practical lesson is still important:

Your product images need to be strong enough for more than one placement.

A weak feed image can affect Shopping ads, visual listings and other feed-led experiences.

Image Preparation Checklist


Local Inventory Ads

Local Inventory Ads can help retailers promote products available in physical stores.

They may display local availability information, depending on market and eligibility.

Local inventory setup is more complex than standard online Shopping.

You may need:

  • Merchant Center store.
  • Online product feed.
  • Local product feed.
  • Local inventory feed.
  • Store location information.
  • Matching item IDs.
  • Regular stock updates.
  • Eligible markets.
  • Correct website or local storefront experience.

Local Inventory Checklist

Do not simply switch on local inventory because you have a shop.

The inventory data must be accurate enough to avoid sending users to stores where the product is unavailable.


Campaign Structure Examples

Small Ecommerce Store

CampaignProductsPriority
Main ShoppingAll approved productsMedium
Bestseller ShoppingTop-performing productsHigh
Brand ShoppingBrand-led routing if neededLow

Large Retailer

CampaignProducts
High-margin productsProducts labelled high margin
BestsellersHighest-volume products
SeasonalCurrent seasonal range
ClearanceDiscounted products
New arrivalsRecently launched products
Brand campaignsMajor brands separated where useful

Single-Category Brand

CampaignStructure
Main ShoppingProduct type subdivisions
Hero productsItem-level control
Gift setsSeparate seasonal budget
Subscription productsSeparate value target
Brand routingControlled with priority and negatives

Microsoft Shopping Performance Scorecard

Use this table during weekly reviews.

AreaGood signWarning sign
Feed approvalMost products approvedLarge rejection rate
ImpressionsKey products are receiving visibilityProducts receive no traffic
CTRProduct and price attract relevant clicksHigh impressions but low CTR
Conversion rateClicks convert efficientlyTraffic does not buy
ROASRevenue supports margin targetRevenue looks good but profit is weak
Search termsQueries match productsIrrelevant demand
Product groupsSpend follows business prioritiesOne weak group consumes budget
Import historyScheduled imports succeedFeed becomes stale
Stock dataAvailability matches siteUsers click unavailable products
Revenue trackingValues match ordersConversion value is incorrect

Weekly Optimisation Checklist


Common Microsoft Shopping Mistakes

Mistake 1: Assuming the Google Import Is Perfect

The feed may import successfully while some attributes are missing, changed or rejected.

Review the Microsoft version.

Mistake 2: Using the Wrong Country

Country mismatches can leave campaigns with no eligible products.

Check the store, feed and campaign market.

Mistake 3: Ignoring Feed Diagnostics

A campaign cannot advertise rejected products.

Check Merchant Center regularly.

Mistake 4: Running One Undivided Product Group

Keeping every product inside “All products” makes optimisation difficult.

Subdivide by useful business attributes.

Mistake 5: Creating SPAGs for Every Product

Item-level control is useful, but excessive fragmentation can create too much maintenance and too little data.

Mistake 6: Using Poor Product Images

Shopping ads are visual.

Low-quality images reduce trust and click appeal.

Mistake 7: No Revenue Tracking

Without accurate purchase values, you cannot judge Shopping profitability properly.

Mistake 8: Optimising Only for ROAS

High ROAS does not always mean high profit.

Include margin, stock and customer value.

Mistake 9: Ignoring Search Terms

Feed-based matching still needs query review and negative keywords.

Mistake 10: Forgetting Scheduled Import Failures

Scheduled imports can encounter permission, account, feed or processing problems.

Check import status instead of assuming it worked.


Troubleshooting Table

ProblemPossible causeFix
No products in campaignWrong store, country or product filterReview campaign settings
Products rejectedFeed or policy issueCheck diagnostics
Prices are wrongSource feed is outdatedRefresh Google feed and import
Scheduled import failsGoogle permission expiredReconnect the Google account
Custom labels missingAttribute did not import correctlyReview source feed and compatibility
No conversionsUET or purchase goal issueTest tracking
High clicks, no salesPrice, product page or intent mismatchReview search terms and landing page
One product takes all spendStructure or bidding issueSeparate product groups
Products expireFeed is not refreshedRepair scheduled import
Free listings do not appearEligibility or relevance issueImprove feed and review policy status

Pre-Launch Checklist


30-Day Launch Plan

Week 1: Merchant Center Setup

Week 2: Campaign Launch

Week 3: Query and Product Review

Week 4: Commercial Optimisation


Final Recommendation

Microsoft Shopping is one of the most practical expansion channels for ecommerce advertisers already using Google Merchant Center.

The import process reduces setup work, but it does not remove the need for proper management.

A strong Microsoft Shopping setup needs:

  • A verified Microsoft Merchant Center store.
  • A clean and compatible product feed.
  • Regular import monitoring.
  • Accurate purchase and revenue tracking.
  • Useful product group structure.
  • Search term reviews.
  • Negative keywords.
  • Product-level commercial analysis.
  • Strong titles and images.
  • Realistic bidding and budget decisions.

Do not treat Microsoft Shopping as a box-ticking exercise.

The platform may have lower volume than Google in many markets, but the traffic can still add profitable incremental sales.

Import the feed, but manage the channel. The easiest setup is not always the most profitable structure.


Microsoft Shopping Action Plan

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Kiril Ivanov

About the Author

Kiril Ivanov is a digital marketing specialist with experience managing local, national and international campaigns for businesses ranging from growing independent companies to major consumer brands. His background includes leading advertising automation work for Michael Kors and working on campaigns involving Canon, Dormeo, esure, DLG Group, Village Gym, Cameron House, Crerar Hotels, Cromlix Hotel, Harrison Fund and the Advertising Standards Authority. His experience spans paid search, paid social, advertising automation, SEO, conversion optimisation and wider digital strategy across hospitality, retail, financial services, professional services and other competitive sectors.

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On this page

  • What Are Microsoft Shopping Campaigns?
  • Product Ads vs Search Ads
  • Why Use Microsoft Shopping?
  • Potential Advantages
  • Microsoft Merchant Center Explained
  • Merchant Center Components
  • Step 1: Create a Microsoft Merchant Center Store
  • Store Setup Checklist
  • Step 2: Verify and Claim the Website
  • Verification Diagnostic Table
  • Common Verification Problems
  • Step 3: Choose a Feed Method
  • Feed Method Comparison
  • Step 4: Import From Google Merchant Center
  • Import Setup Checklist
  • Import Schedule
  • Google Merchant Center Import Limitations
  • Import Review Table
  • Step 5: Review Product Diagnostics
  • Product Diagnostic Table
  • Common Product Rejection Reasons
  • Product Feed Essentials
  • Core Product Attributes
  • Product Title Optimisation
  • Product Title Structure
  • Product Title Examples
  • Product Image Optimisation
  • Good Primary Image
  • Image Diagnostic Table
  • Step 6: Create a Microsoft Shopping Campaign
  • Shopping Campaign Setup Checklist
  • Standard Shopping vs Automated Campaign Types
  • Campaign Type Decision Table
  • Campaign Priorities
  • Priority Use Cases
  • Simple Priority Funnel
  • Product Group Structure
  • Product Group Hierarchy
  • Structure Examples
  • SPAGs: Single Product Ad Groups
  • SPAG Decision Table
  • Custom Labels
  • Custom Label Examples
  • Bidding Strategy
  • Bidding Decision Table
  • UET and Conversion Tracking
  • Ecommerce Tracking Checklist
  • Tracking Diagnostic Table
  • Search Term Analysis
  • Search Term Decision Table
  • Negative Keywords
  • Product Ratings
  • Product Ratings Checklist
  • Product Reviews vs Seller Reviews
  • Merchant Promotions
  • Promotion Checklist
  • Free Product Listings
  • Paid vs Free Product Visibility
  • Multimedia Ads and Feed-Based Creative
  • Image Preparation Checklist
  • Local Inventory Ads
  • Local Inventory Checklist
  • Campaign Structure Examples
  • Small Ecommerce Store
  • Large Retailer
  • Single-Category Brand
  • Microsoft Shopping Performance Scorecard
  • Weekly Optimisation Checklist
  • Common Microsoft Shopping Mistakes
  • Mistake 1: Assuming the Google Import Is Perfect
  • Mistake 2: Using the Wrong Country
  • Mistake 3: Ignoring Feed Diagnostics
  • Mistake 4: Running One Undivided Product Group
  • Mistake 5: Creating SPAGs for Every Product
  • Mistake 6: Using Poor Product Images
  • Mistake 7: No Revenue Tracking
  • Mistake 8: Optimising Only for ROAS
  • Mistake 9: Ignoring Search Terms
  • Mistake 10: Forgetting Scheduled Import Failures
  • Troubleshooting Table
  • Pre-Launch Checklist
  • 30-Day Launch Plan
  • Week 1: Merchant Center Setup
  • Week 2: Campaign Launch
  • Week 3: Query and Product Review
  • Week 4: Commercial Optimisation
  • Final Recommendation
  • Microsoft Shopping Action Plan

Related Reads

Microsoft Ads
Microsoft Ads: How to Block the Audience Network (2026 Strategy)
Microsoft Ads
Microsoft Dynamic Search Ads (DSA): Inventory Mining Strategy (2026)
Microsoft Ads
Microsoft In-Market Audiences: Targeting Purchase Intent (2026)

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