Start Selling MORE with Google Ads in 2023Apr 06, 2023
Are you struggling to get the most out of your Google Ads campaigns?
If so, it might be time to consider segmenting your products.
In this blog post, I'll show you how to effectively segment your products in Google Ads and explain why it's so important.
It is so important because we want to increase the profits within your Google Ads campaigns - especially Performance Max & Shopping campaigns.
But let me explain the technical reason why you would need to do this in Google Ads.
Let's just say you have an eCommerce store with over 1000 products SKU's
There would be products that have a high search volume & high conversion rate but a lower profit margin vs. other products with a lower search volume & conversion rate BUT have a much higher profit margin for your business.
So you obviously want to ensure that you have some focus on your higher profit margin products. But because the Google algorithm will focus on products with a higher traffic volume & conversion rate - because these conversions will be cheaper - it is quite often the case that your high-profit products don’t get the same level of focus from Google.
This is why you add in Product segmentation, and it works because budgets in Google Ads are set at a Campaign level, not the product level.
So if let's go back to our example:
- Product category A has high traffic volume & high conversion rates but a low-profit margin.
- While Product category B has a low traffic volume & low conversion rate but a high-profit margin.
You can set:
Product Category A’s budget at $150 a day
And Product Category B’s budget at $50 per day
Ensuring that Product Category B and its high-profit margins get enough of the assigned budget from Google Ads.
So when you are segmenting your products into different campaigns, you need to think about:
Your Cost of Goods Sold (or COGS) & Your expected traffic volume
Lastly, getting your campaign structure correct is essential, and you need to have an optimisation strategy, like my Google Ads eCommerce Optimisation Checklist.
You can download a copy of my Google Ads eCommerce Optimisation Checklist in the video description below.