Congratulations! Your shopping feeds are finally of good quality and all your products have been approved by the Google Merchant center. It's logical that you should be asking yourself what more can you do to optimise your Google Shopping campaigns.
If you're short on ideas, we suggest a few ideas for optimisation with Custom labels. Custom labels are an essential lever to feed Google Ads in line with your business priorities.
They allow you to fine tune your bidding strategies and stick closely to your budgets. When used correctly, Customs labels enable you to improve your ROI on your Google Shopping campaigns over time.
1. Custom Labels - price segmentation
This technique involves grouping products according to their price levels. A distribution analysis of your prices will reveal the right price category levels to make Google Ads activation relevant.
This segmentation is particularly useful for retailers offering a wide range of prices within a single range. It is then possible to differentiate media activation by fine-tuning bidding strategies for each price range in an intelligent way.
2. Custom Labels - product performance
If the Pareto principle is applied to the product catagloue, an average of 80% of turnover is generated by the top 20% of the best products. This empirical rule is rarely disproved and has an impact on Google Shopping activation. As you can see in the example below, the shopping budget combined with sales of the best products could be higher.
Consequently, the challenge boils down to identifying that 20% of “magical” products that attract so many of your sales. This can be done by regular analyses of your product data by adding the information to a custom label.
SmartFeeds manages the concepts of product performance perfectly to create custom labels in accordance with real performance measurements such as ROAS (Return on Ad Spend) and CPA (Cost per Acquisition). Thus, this automation takes into account all your data in real time and adjusts your bidding accordingly.
3. Custom Labels - competitive pricing
Price is a key factor for online shoppers searching on Google Shopping. A more competitive price than that of your competitors will lead to a better click rate. In addition, Google has made information on competitors' pricing available on the Google Ads platform.
This information can be useful for segmenting your products according to your price positioning. Please note that there are lots of tools that list competing prices and that our SmartFeeds technology is able to easily enrich product feeds with that information. This means that if you have the cheapest product, the most likely to result in a sale, it would be wise to increase your bids. Conversely, if your product is more expensive than the competition, it seems appropriate to lower your bids. However, the only arbiter will be the ROI of your campaigns.
4. Custom Labels - profit margins
Obviously, the profit margin levels on your products are not uniform. That is even true within a single category. When the margin is available at a product level of detail, it's useful to be able to trace it back in your product feeds to see the bidding pressure.
SmartFeeds facilitates the importation of complementary data to enrich your feeds and structure your campaigns by profit margin levels. This approach makes it possible to build efficient and profitable acquisition in the long term.
5. Custom Labels - seasonality and key moments
Your marketing events plan can be transposed into Google Shopping strategy with custom labels. Thus, it is worth enriching your product feeds with information on key moments and marketing operations to highlight seasonal products.
Once again, an enrichment file can be activated directly in SmartFeeds to automate the activation for key moments, like Black Friday, for example.