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Google Shopping Campaigns Guide Part -3- Subdividing With Product Type

I believe there are 2 types of reasons for subdividing products into AdGroups and Campaigns.

  1. Business Reasons: These are reasons driven by business decisions outside perimeter of paid search. Here are some of the circumstances under which you will need to subdivide your products.
    1. Budgeting: You might have  budget limits on certain brands or certain categories
    2. Margins: You might want to focus more on high margin categories or brands
    3.  Offers / Discounts: You might want to run special offers or discounts on a set of categories or brands
    4. Stock clearing : You might want to clear some stock you have depending on categories or brands
  2. Marketing reasons: These reasons are related to campaign optimization purposes
    1. Negative KeyWord Management: You may want to add negative KeyWord which are irrelevant to a particular group of products , and you can add negative keywords at AdGroup or Campaign level
    2. CTR and Conversion Rate : Relevant products shown to the search term will result in higher CTR and Conversion rates
    3. Optimum utilization of budget: With subdivision of products in tight product groups you should be able to utilize your budgets in more efficient way

Now let’s get started with how you can subdivide products using “Product Type” attribute.

 

Let’s take an example of apparel e-commerce website. Take a look at following illustration which demonstrates how product types are defined in a typical apparel website.

categories.png

Now let’s look at how this category structure will work with Google Shopping campaigns

  1. Your top level category will be “Apparel & Accessories”: This will contain everything on your inventory and targeting this in one product group will result in to a large volume and  probably unacceptable efficiency & control
  2. 2nd level category will be “Apparel & Accessories>Shoes>” this will give you better controls and efficiency with lesser volume compared to top level category. This will include all the products under this category which will most probably all kind of shoes like leather shoes, running shoes and probably even heels J
  3. 3rd level category will be “Apparel & Accessories>Shoes>Athletic Shoes & Sneakers>” this gives you far better control and efficiency with decrease in volumes compared to 2nd level category
  4. 4th level category will be “Apparel & Accessories>Shoes>Athletic Shoes & Sneakers>Athletic Shoes” this will give you far better control and efficiency with significant decrease in volumes
  5. 5th level category will be last you can use because with Google Shopping campaigns you can only use categories to subdivide up to level 5. “Apparel & Accessories>Shoes>Athletic Shoes & Sneakers>Athletic Shoes>Indoor Court Shoes”  this will be your best bet to as far as ROI is concerned but worst performing in terms of volumes

This shows you importance of optimizing your data feed keeping in mind your campaign structure and limitations. If you create product type with 6 levels the 6th level will never be used.

 

Essentially as you create more focused product groups you will be trading off volume for efficiency and only efficiency without volumes may not always be best idea to make profits, as profits in most of the cases depend on volumes as well.

For example take a look at following chart for above example

 

Part3-chart.png

 

As you can imagine you will need to find a way to manage both efficiency and volumes to make profits on your shopping campaign.  But in theory you can counter this problem by creating several AdGroups which on their own may not have a very large volume but will add up to a volume which will be closer to the potential volume of top level category.

 

Now enough of theory and back to more practical questions.

 

How to subdivide products by Product type?

  1. Inside your Google shopping campaign when you create an AdGroup, it will by default create a product group called “All Products” and there will be a “+” sign towards right of this product group as shown in the screenshot. You need to click on this sign.   part3-1.PNG
  2. After clicking on “+” sign you will get a light box with a select box at the top, you need to select your desired product type from the list shown in the left side pane and push it to the right side pane and click on save.part3-2.png
  3. After selecting and saving desired category, shopping by default will also create a nested list which will have a value “Everything else in All Products”. This group will contain all products other than the category you have selected. You can exclude them from this product group as shown in the screenshot below.  This way you can subdivide your products in to desired product groupspart3-3.png

In Part 4 we will discuss how you can use brand attribute along with categories to create cross sections.

 

 



about Nikhil Parachure

Digital Marketing / Web & App Analytics expert with experience ranging from small businesses to very large portals. Across varied verticals like banking, travel, ecommerce, insurance. Google Adwords top contributor since 2013 and currently working with a leading Indian ecommerce portal. Aspiring writer, wants to be lighter!

Comments
vkore91 Top Contributor Alumni
June 2014

Great read, Nik!

theniks Top Contributor Alumni
June 2014

Thanks @vkore91  planning to publish more parts soon

 

Nisal L Rising Star
June 2014

Nice artile nik, I wanted to know more about this and this article helps,big time Smiley Happy

Gurunatha D
June 2014

Nice article Nikhil Parachure

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