We created a Google Shopping framework which focused on a Shopping for Business Objectives approach where every product in the client’s product catalogue was given a High, Medium or Low label, according to its profit margin. This label was then passed into Merchant Centre/Google Shopping.

Based on the profit margin assigned to products, Google Smart Shopping campaigns were organised into separate High, Medium and Low campaigns, each with their own ROAS targets.

Each month we collectively reviewed the previous month’s product performance to identify the top ‘outliers’ i.e., over/under performers. Based on this analysis products were promoted/demoted between campaigns for the following month.

Whilst product Cost of Sale is the main decision KPI other factors were taken into consideration, for example:

• Stock and supply availability
• Seasonality
• Price competitiveness

This means profit margins and assigned labels were continually monitored to ensure both profit margin but also market trends and external factors were considered in the campaign structure.

In addition to High/Medium/Low we also introduced campaigns/labels for:

• ‘Promotion’ - products we wanted to push and had enough margin to warrant a separate campaign with its own ROAS target
• ‘Zombie’ - products that had not delivered impressions or may have been overlooked by Google Smart Shopping machine learning. These were put into a temporary campaign and given a very low ROAS to try to give them a ‘kick start’