When you subdivide your inventory feed into product groups, you'll achieve the best results when you create focused product groups that contain products with similar performance. If your groups aren't focused enough, you may have products with wildly different ROAS or conversion rates in the same group, leading to situations where bids are too low for high-performance products, and too high for low-performance products.
However, manually monitoring the performance of individual product groups and deciding which product groups need further subdivision can be time consuming, especially for large inventories.
Automatically subdivide to achieve a performance goal
Search Ads 360 can monitor your Merchant Center feed and automatically subdivide product groups by the product ID attribute using criteria that you define in a conversion goal or Search Ads 360 bid strategy. The goal specifies the conversions that are relevant to your shopping campaign and instructs Search Ads 360 to create new groups using one of the following criteria:
- Create new groups for products that generate similar amounts of revenue
(along with a similar number of clicks and conversion rate)
- Create new groups for products that generate a similar number of conversions
(along with a similar number of clicks)
A conversion goal uses Floodlight or Google Analytics conversions to set only the initial bid for adapted product groups. You can then manually change the bid for the adapted product group.
A bid strategy uses Floodlight, Google Analytics, or Google Ads conversions to continually adjust bids for adapted product groups.
For example, Search Ads 360 could subdivide a product group that contains all cameras into the following new groups:
- A group for Camera A (product ID/SKU = "abc123"), which generates $90 of revenue per click
- A group for Camera B (product ID/SKU = "def456"), which generates $0 of revenue per click
- A group for all other cameras, which average $45 of revenue per click
This separation ensures that you can bid higher on Camera A to earn more revenue and bid less on Camera B to save budget.
Ready to get started?
You can also learn more about adaptive shopping campaigns.