Since their launch in April 2022, Google Ads Performance Max campaigns have become an integral part of our customers' e-commerce strategy. Thanks to Google's machine learning algorithm, the performance of the ads has significantly improved compared to the results of Google Smart Shopping campaigns. Yellowgrape wouldn't be Yellowgrape if we didn't keep developing. That's why we've been looking for a way to get even more out of our Performance Max campaigns.
Performance Max is a campaign type offered by Google Ads that allows you to advertise on various channels within the Google network. The Google Ads machine learning algorithm optimizes ad creation and placement to achieve the best performance and results. With Performance Max, you can advertise on the following channels:
While there are many advantages to automating Google Ads ads via machine learning, there are also a few disadvantages, such as the lack of insight and influence on individual product performance. From research by our partner Product thero It has been found that 60% of the products in a Performance Max campaign hardly generate any impressions or clicks. What's more, it appears that around 50% of the budget is spent on products that underperform!
As a result of these insights, the need for 100% data-driven Performance Max campaigns to maximize returns grew. Analyzing and optimizing product performance in the various Performance Max campaigns therefore became a must.
100% data-driven Performance Max campaigns: how? To gain these insights, the Labelizer tool from our partner Producthero comes into play. By using this tool, they predict a performance improvement of more than 30%.
Producthero is one of the largest Premium Google CSS partners in Europe and focuses on optimizing and improving product feeds for e-commerce companies. Yellowgrape was last month awarded GoldPartner and is therefore one of the 20 agencies in the Netherlands that has this status. Our customers are affiliated with Producthero as a CSS partner and therefore have the opportunity to use the Labelizer tool. But what exactly does this tool mean?
Producthero has analyzed hundreds of Performance Max campaigns and found insights that apply to each advertiser. The products you're advertising with can be categorized into four different labels:
The advantage of labeling your products is that you can link separate goals and budgets to your products. In this way, you can activate Zombies again, promote Sidekicks to Heroes and shift the costs from Villains to Heroes.
We tested the Producthero Labelizer tool with several customers and it has indeed delivered on the promised performance improvement. The analyses of our various customers show a significant improvement in performance:
Based on data, the Labelizer tool determines which products belong in which campaigns. We checked with various customers whether the products that were placed in the Heroes campaign, among others, are actually suitable for the Heroes. This turned out to be true.
The Labelizer tool is therefore not only valuable for improving performance, but also saves time. Previously, we implemented a Performance Max structure based on margins for our customers, which was error-prone and where margins are not always updated automatically in the Merchant Center. This is now no longer necessary, and we can fully rely on the Labelizer tool.
Want to know more about optimizing your Performance Max campaigns using the Producthero labelizer? Take especially contact join us!
