To set up a Shopping campaign, you’ll need to link your Google Merchant Center account and:
Google My Business account
list of approved Shopping policies
Shopping ads are ads that include rich product information, such as product image, price, and merchant name. This ad format uses the data attributes from the product information you submit in your Merchant Center data feed.
You will need an AdWords account that is linked to your Merchant Center account in order to set up your Shopping campaign. This allows your Shopping campaign to use the product data you submit in your Merchant Center account.
Read more here: https://support.google.com/merchants/answer/2660968
Shopping ads are ads that include rich product information, such as product image, price, and merchant name. This ad format uses the data attributes from the product information you submit in your Merchant Center data feed. We’ll show your ad to people who are already searching for the kinds of products you advertise — so those people are more likely to take action. You can customize your ad content, set a budget and pricing that’s comfortable for you, and easily measure the impact of your ad with advanced reporting and performance tools.
In order for your products to show to users, you will need to create campaigns for your Shopping ads in AdWords. Shopping campaigns allow you to manage and optimize Shopping ad to promote your products online. Shopping campaigns offer a simple and flexible way to organize your Merchant Center product inventory so you can easily create customized campaigns. You can then use powerful reporting and benchmarking tools to monitor and optimize your campaign performance.
Your product data is integral to how you create and manage your Shopping campaigns in AdWords. By making all of your product data accessible within AdWords, Shopping campaigns let you easily browse and organize your product inventory and make informed decisions about your advertising strategy. Shopping campaigns use product groups to select which products you want to bid on in a given campaign. You can subdivide your inventory into customized product groups using any product attributes (category, product type, brand, condition, item ID, custom labels) you choose — and at any level of granularity. The products within the product groups you don’t subdivide remain in an “Everything else” product group. You then set bids for each product group depending upon your campaign goals.
We’ve made it very simple for merchants to create a basic Shopping campaign directly from Merchant Center in just a few steps. You’ll either create a new AdWords account or use an existing one, and then enter some basic campaign information such as your bid and budget. This campaign will put all of your products into one “Everything else” product group. Once you’ve created the campaign in Merchant Center, you’ll be able to use the retail-centric tools in AdWords to manage your campaign and further subdivide your products.