Now that we’ve covered feed management, let’s discuss campaign configurations. When formulating a strategy, it’s important to consider how much time you have to devote to the initial configuration and ongoing optimizations. While agencies might love to organize campaigns as specifically as possible, in-house marketers with smaller teams may prefer simplicity and automation. What works for someone else may not work for you, so always consider the level of effort required before making any big decisions.
Google’s Smart Shopping campaigns are for anyone who is in a bit of a time crunch, prefers to automate the heavy lifting, and wants visibility across all shopping placements (search, YouTube, display, and Gmail).
After creating a new campaign, select “sales” as your goal and make sure that your feed (which should be linked from Merchant Center) and country of origin are set. At the bottom of the screen, you will see two subtypes in the AdWords platform:
After you choose “Smart Shopping,” the remaining options are fairly minimal. All campaigns use a “maximize conversion value” bidding strategy, so it is important to set your budget realistically. If you’ve run standard shopping or display campaigns in the past, I suggest using those budgets as a guideline for Smart Shopping. When in doubt, start low and increase over time. Another available option in the “bid settings” section is to “set a target return on ad spend.” Enabling this option right away can stunt your campaign and prevent Google from spending your entire daily budget. I recommend leaving this option unchecked and revisiting it after your campaign has run for at least one month.
After you’ve completed these steps, that’s it! You could technically call it a day, start collecting data, and closely monitoring ROAS.
One other area where you can make optimizations for Smart Shopping is under the “product groups” tab. By default, you’ll notice an enabled group called “All products” that contains everything you’ve included in your approved product feed. If you need to exclude certain products, simply edit the group.
This is where feed custom labels become very useful. Setting these columns to title, category, and/or sku makes it easy to find and isolate specific products. If the products you need aren’t available, you may need to add a column to your feed.
If you’re already running a standard Shopping campaign without optimal results, consider testing Smart Shopping. Isolate a small group of products, exclude them from your traditional campaign, and include them in your Smart campaign. Monitor the results for at least one month and make a determination based on performance.
Sometimes it makes sense to include certain products in a Smart Shopping campaign while managing others via Traditional Shopping. I occasionally use Traditional Shopping for bestselling products and Smart Shopping for the rest of the catalog. Depending on a client’s needs and performance standards, it may make sense to adopt some combination of the two.
Traditional shopping is more difficult to manage but gives a greater level of control over bidding and optimizations. Since it’s impossible for me to assess which strategy is best for you without reviewing historical data and revenue goals, I’m going to give a brief overview of some common configurations and when you might want to use them:
- Single product ad groups (SPAGs) are useful for anyone who needs product-level bidding control and has serious time to devote to management. If you have thousands of skus, adopt another strategy because this one will easily suck up all of your time. Instead of separating product groups by category, price, or brand, SPAGs use product IDs. Each product ID becomes its own product group with individual bid settings.
- Campaigns organized around shopping intent give you control over how much you bid for certain types of users. A user who is already familiar with your brand and searches for a specific product has a high intent to buy, whereas a user who searches for something generic isn’t as good of a fit. By using your campaign’s priority settings and negative keywords, you can ensure that you bid most competitively on users who are likely to purchase.
- Setting up campaigns by price and profit margin are two other solid strategies. The higher the profit margin, the more I’m willing to spend to send potential buyers to my site. It doesn’t make sense to pay the amount per click for products with wildly different return (unless customer lifetime value proves otherwise).
Traditional Shopping puts you in a good position to maximize return, discover new users, and grow your business, but it only works if you have time to manage it. When in doubt, start simple, optimize over time, and if all else fails, test Smart Shopping (or give Something Digital a call 😉).
Written by: Lindsay Pugh, Senior Digital Strategist