Google Shopping Ads
Google Shopping Ads are part of Googles paid shopping ads platform. First of all there are many strategies and techniques that are very effective. Optimising is very important.
Also, Segmentation of products is very useful.
Items should be in small groups. The best and the most popular is to segment them by category and by product type.
Segmenting products into smaller groups is the key as otherwise all of the products in the campaign would have the same CPC bid ( A bid that you set to determine the highest amount that you’re willing to pay for a click on your ad) which is not very good for optimisation. Or using automation, it would have the same CPA bid.
Worse, lumping a lot of different products into the same ad group means you can not hone negative keywords efficiently.
To make return on investment you will need to set bids that are proportional to the amount of revenue that you will generate.
In Googles 2016 updates Google released the option to segment campaigns by all devices.
Segmenting your products into smaller clusters of similar items is key to good performance. Also, by doing this, you get great control over targetting to various devices, and using negatives drives up ROI.
More-over, you can create ‘generic’ and ‘targeted’ ad groups. One would have fewer negatives and a lower bid, to catch broad traffic at a cost that still gives good returns, whilst the targeted group has the more negatives to leave traffic that is most likely to convert. Here the bids can be increased sharply.
This does not need to be done for all products, but it is a good idea for your best sellers, and most costly product groups.
If you need to make seasonal or holiday adjustments, you can also do so without manually changing product bids, or your ad scheduling adjustments. You can simply increase the desktop multiplier, for example.
In conclusion there are several different ways to segment product feeds for the best performance. It is worth getting familiar with them.