Product segmentation in Google Shopping Ads is crucial for improving ad relevance, return on ad spend (ROAS), and campaign efficiency. By segmenting products based on categories, brands, price range, or performance metrics like conversion rates and click-through rates (CTR), businesses can tailor their bidding strategies and allocate budgets more effectively.

We then show you how you can automate this process with Shopstory’s Labelizer Flow (for FREE!), applying custom labels in Google Merchant Center based on real-time performance data, ensuring efficient segmentation and management of large product catalogs.

Why You Should Segment Products

Product segmentation is crucial in helping businesses optimize their Google Shopping Ads campaigns. When you have a wide range of products, not all will perform equally well. Some items will have higher conversion rates or better return on ad spend (ROAS), while others may struggle. By segmenting your products into distinct groups based on various attributes, you can adjust bids, budgets, and ad copy to maximize efficiency.

Automating segmentation with tools like Shopstory’s Labelizer Flow ensures dynamic campaigns, boosting ROAS and improving overall scalability.

The key to successful product segmentation lies in identifying high-performing products and allocating more resources to them. This allows you to bid more aggressively on products with a higher likelihood of conversion, while minimizing spend on lower-performing items. Ultimately, effective product segmentation helps you increase your ROAS and overall profitability.

Different Ways to Segment Products

There are several ways to segment your products in Google Shopping Ads. Here are the most common strategies:

1. By Product Category One of the simplest ways to segment your products is by category. This allows you to group similar items together, making it easier to create relevant and targeted ad campaigns. For example, if you sell a variety of fashion items, you can group them into categories such as shoes, clothing, and accessories.
2. By Brand Segmenting by brand can be useful for businesses that carry multiple brands. Different brands may have different levels of customer recognition and demand, so it's important to tailor your bidding strategies accordingly. High-demand brands may warrant higher bids to capitalize on their popularity.
3. By Price Range Price is a critical factor in consumer decision-making, so segmenting products by price range can help you tailor your bids to align with customer intent. For example, higher-priced items may require higher bids to compete in the marketplace, whereas lower-priced items may need a different approach.
4. By Performance Metrics Another effective way to segment products is by performance metrics such as click-through rate (CTR), conversion rate, and ROAS. By grouping products based on their historical performance, you can prioritize high-performing items and adjust your bids accordingly. Products with a high conversion rate may receive more budget allocation, while those with lower performance metrics may require a different strategy.
5. By Seasonality Certain products may perform better during specific times of the year. For instance, holiday-themed products or items with seasonal demand can be segmented for specialized bidding and budget strategies. By anticipating seasonal trends, you can maximize your ad spend during peak periods.

Shopstory’s Labelizer Flow: Segment Products Automatically

Shopstory’s Labelizer Flow simplifies product segmentation by automating the creation of custom labels based on performance data and predefined rules. This tool offers key advantages:

• Custom Labels: Automatically assign labels for product groups based on conversion rates, CTR, and ROAS.
• Rules-Based Automation: Set performance-based rules to dynamically segment products.
• Dynamic Feed Updates: Ensure that product segments are updated in real-time, keeping your campaigns optimized. This helps ensure that your campaigns are always optimized for the latest product performance trends.

By leveraging the Labelizer Flow, you can segment products efficiently and at scale, freeing up time and resources while ensuring optimal ad performance.

How to Use Shopstory to Segment Your Products:

1. Sign up with Shopstory for free here
2. Create an account via the email link
3. Go to the Flow Library and search for “Create Supplemental Feed with performance-based labels (incl. Report) - Labelizer”
4. Launch the flow and follow the guide (only takes minutes!)
5. Save and execute the flow
6. Set the flow live – you’re done! 🎉

Your products will labeled based on their performance. This flow will run automatically every day and keep your Merchant Center updated.

Segment Products in Google Shopping Ads: Conclusion

Using smart segmentation strategies and automating the process with Shopstory’s Labelizer Flow can help businesses improve the results of their Google Shopping Ads, boost ROAS, and make campaign management easier. With this tool, your product feed stays up-to-date and optimized, helping you get better results without extra effort.

Try Shopstory for free today and see how easy it is to automate your product segmentation with the Labelizer Flow:

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