23 Dec Google Shopping Segmentation: Core Principles for Beginners
Google Shopping is simple, in theory. You upload your products with a data feed, sync your Google Merchant Center with your Adwords account and finally set-up a Google Shopping campaign in Adwords to get your product images to populate on Google Search.
If you want to learn how to create a Google Merchant Center Data Feed from scratch, check out the video below.
Setting up your very first Google Shopping campaign is exciting! If more customers find your products on Google, this means you’ll get more traffic to your site and drive more sales, right?
Be careful, once you are ready to launch your first Google Shopping campaign, it can be a massive free for all, which means you can spend a lot of money, quickly, without generating any sales.
You don’t want to burn a hole in your pocket!
If you upload your data feed and launch your campaign, it is going to serve all of your products within one campaign, which means there is no prioritization for your products/inventory.
Segmentation & Organization
Imagine if you were selling Nike and K-SWISS shoes. Since Nike’s are more popular, if both shoes were in one campaign and the bid was equal across the board, the Nike shoes would eat up the majority of the budget since there is more search volume. There is a chance that K-SWISS’ shoes would be more profitable (since they are more unique) yet you’d never know this if your campaigns weren’t segmented.
Below is what you need to keep in mind when it comes to properly segmenting and organizing your Google Shopping campaign, which will lead to a much more successful campaign.
- Price: A $500 product can be competing against a $5 product. Conversion rate will differ drastically on a less expensive product versus a high end product. There will likely be more search volume for a less expensive product.
- Profit Margin: You want to take into account the profit margin of your products as this will dictate whether or not you are making money on a certain product.
- Brand: Some brands will be more popular than others. Popularity doesn’t mean a higher conversion rate. If you don’t segment your campaigns, you will not be able to get a true sense on your highest converting brands.
- Desktop vs. Mobile: According to SmartInsights, e-commerce conversion rates on desktop is 4.14%, mobile is 1.55% and tablet is 3.56%. If you are not careful, the majority of your budget can come from mobile, even though you are twice as likely to
- Time of the Day – Saturday could be the worst time of the day for your products to convert and Tuesday evening could be the best. You want to make sure you are adjusting your bids based on the time of the day that converts best for your product.
If you stay organized with your Google Shopping campaign by properly segmenting campaigns and optimize the key components mentioned above, you’ll get a much better sense of the winners and losers in your Google Shopping campaigns.
Stefanie Rosenfield of Cleveland Marketing King contributed content to this article. Stefanie is a Google Shopping expert and has helped many e-commerce businesses grow through paid advertising campaigns.