When to Exclude Underperforming Products from Google Campaigns

excluding low-performing products in ppc google ads campaign management google shopping optimization performance max product strategy ppc budget optimization Jun 13, 2024

If you're running Performance Max or Google Shopping campaigns, chances are you’ve noticed that not every product pulls its weight. Some quietly burn through budget without bringing in conversions — and knowing when and how to exclude them is one of the most underrated levers in campaign profitability.

In this guide, we’ll break down the exact metrics, tools, and processes you can use to identify underperforming products, decide whether they should be paused or optimized, and implement data-driven exclusions without hurting long-term growth. We’ll also explain why excluding products too early can backfire — and how to use scheduled reviews to keep your feed lean, efficient, and profitable.

Key Takeaways

Excluding underperforming products from Performance Max and Shopping campaigns can improve ROAS and reduce wasted ad spend — but must be done strategically.
Look beyond short-term performance by reviewing data over 30, 60, and 90-day windows to spot real trends vs. temporary dips.
Key metrics to monitor include: high spend with low conversions, declining conversion rates, seasonality, and shifts in the competitive landscape.
Set up a consistent review process using automated dashboards and documented performance thresholds to guide exclusion decisions.

Avoid permanent exclusions too early — some products may rebound due to seasonality or benefit long-term brand goals even if short-term results are weak.

Understanding Underperformance: Key Metrics and Data Insights

Before deciding to remove a product, it’s important to dig into the numbers. Here are some metrics you should review:

Spend Trends:

Check if the product consistently receives high spend over 30, 60, or 90 days.
Notice any downward trends which might indicate a natural phase-out.

Conversion Rates:

Compare spending with conversion numbers.
A product with high spend but few conversions might be a red flag.

Seasonality and Market Dynamics:

Look at long-term trends over six months or more.
Understand if cyclical patterns might affect performance.

Competitive Landscape:

Consider changes in the market, such as new competitors or shifting pricing strategies.

Example:

Imagine you’re running a campaign for a line of winter jackets. Over the past 90 days, one jacket model has seen a steady spend increase but very few sales. On closer inspection, you notice that the conversion rate drops significantly after the holiday season, suggesting that this model might not perform well during off-peak times. Such insights can help you decide whether to exclude this product temporarily or rethink your marketing strategy for it.

👉 Top 2 Google Shopping Campaign Optimisations You Need in 2025

When to Exclude Products

Deciding to exclude a product shouldn’t be rushed. Instead, take a systematic approach to evaluate its performance:

Review performance data over different timeframes (30, 60, and 90 days) to capture both short-term trends and long-term patterns.
Monitor for consistent declines in conversions or spend, which may indicate a deeper issue.
Compare short-term fluctuations with long-term data to understand if a drop in performance is temporary or more permanent.
Consider external factors such as seasonality, market shifts, or new competitors that might be impacting performance.
Schedule regular reviews to ensure your decisions are always based on the latest data.

Implementing a Data-Driven Exclusion Process

Putting your evaluation into action means setting up a process that keeps your feed optimized over time. You want to make decisions based on solid data, not just a hunch.

Here’s how to implement a systematic review:

Set up scheduled reviews, such as monthly or quarterly, to check on product performance.
Use dashboards and automated reports from platforms like Google Ads and Google Analytics to track key metrics.
Identify clear thresholds for performance indicators that trigger a deeper look or potential exclusion.
Document your decisions and review the outcomes to refine your criteria over time.

For example: if you notice that a particular product consistently underperforms across several review periods—even after minor adjustments—this structured process helps you confidently decide to exclude it, thereby freeing up budget for more promising products.

Balancing Cost Savings with Growth Opportunities

Excluding products can save money, but you need to strike a balance so you don’t miss out on potential growth. Sometimes, a product might underperform temporarily due to external factors and then rebound.

Key points to consider:

Monitor Seasonality: A product might perform poorly during an off-season but could be a hit when demand picks up again.
Keep an Eye on Market Trends: If competitors are influencing your metrics, adjustments in strategy might revive a product instead of excluding it.
Plan for Reintroduction: Instead of a permanent cut, consider pausing or testing tweaks to see if performance improves over time.
Assess Potential: Balance immediate cost savings with long-term brand or customer value. Even if a product isn’t converting well now, it might help build brand awareness or complement your best-sellers.

For instance, if you run a campaign for seasonal products like outdoor furniture, a dip during the winter months might be expected rather than a sign to permanently remove those items.

How to Exclude Products from Your Google Campaigns

Once you've identified underperforming products through data analysis, excluding them from your Google Shopping or Performance Max campaigns is straightforward — but it varies slightly depending on how your feed is managed. Here's a breakdown of how to do it step by step.

1. Exclude Products at the Feed Level (Merchant Center)

If you're using a feed file (CSV, XML, or via an ecommerce platform like Shopify or WooCommerce), the cleanest approach is to remove or flag the product directly in the feed.

Option A: Remove the product entirely from the feed if it’s no longer relevant or won’t be advertised again.
Option B: Use the excluded_destination attribute in your product feed:

Set it to "Shopping" and/or "Performance Max" depending on where you want the product excluded.

Example:

<excluded_destination>Shopping</excluded_destination>

<excluded_destination>Performance Max</excluded_destination>

💡 Pro Tip: If you're using feed rules inside Google Merchant Center, you can also create rules to automatically exclude products based on custom labels or conditions like low ROAS.

Use Custom Labels for Dynamic Exclusions

If you want more control without deleting products, custom labels are your friend. You can:

Tag underperforming products with labels like low_performer or pause_candidate.
In Google Ads, create campaign-level product group filters to exclude any product with those labels.

This method is especially useful for testing reintroduction later, or excluding products temporarily without modifying the original feed structure.

Exclude Products in Google Ads (Product Groups)

Inside your Google Ads account:

Go to the relevant campaign and ad group.
Open the “Product Groups” section.
Find the product (or group) you want to exclude.
Click on the pencil icon to edit.
Choose “Exclude” next to the product or product group.

This only stops the product from being served in that specific campaign or ad group, so it’s ideal when you still want the product eligible in other campaigns.

Use Listing Groups in Performance Max Campaigns

For Performance Max campaigns that use listing groups:

Navigate to the campaign > Asset group > Listing group.
Expand the product tree to find the specific item(s).
Click the pencil icon and mark them as excluded.

Note: Performance Max campaigns are less granular than standard Shopping campaigns, so using custom labels or feed-level exclusions is often more scalable for managing large product catalogs.

Consider Automated Rules or Scripts

For larger accounts, consider using automated rules or scripts to exclude underperforming products based on:

Low CTR or ROAS
High cost with no conversions
Specific SKUs flagged in your performance dashboards

You can automate these exclusions via Google Ads scripts or third-party feed optimization tools.

FAQ

When should I exclude a product from Google Ads?

Exclude a product only after reviewing performance over 30, 60, and 90 days. If it consistently underperforms, drains budget, and shows no seasonal or strategic value, it may be worth removing.

What metrics should I check before excluding products?

Focus on spend trends, conversion rates, and seasonality. Also evaluate search volume, impression share, and whether performance dips are short-term or long-term.

Can seasonality affect whether a product is underperforming?

Yes. Products like winter jackets or outdoor furniture often perform poorly during off-seasons. Don’t exclude these unless long-term data shows consistent poor performance.

What tools can help evaluate product performance?

Use Google Ads reports, Performance Max insights, and Google Analytics dashboards. Look at trends in clicks, conversions, cost per conversion, and return on ad spend (ROAS).

Is it better to pause underperforming products or remove them?

Start with pausing. If performance doesn’t improve after adjustments or seasonal changes, consider removing the product from your shopping feed permanently.