3 easy steps to set up Custom Labels for Google Shopping & Boost ROI

Google Shopping Custom Labels

Are you running Google Shopping campaigns and want to improve your performance? Although there are no magic tricks to boost your ROI overnight, Custom Labels can indeed help you step up your game and make the difference you seek in your Google Shopping campaigns. 

 

What are Custom Labels?

Custom labels are attributes that allow you to divide your campaign's products using values of your choice. You can have up to five custom labels in your product feed numbered from 0 to 4, with each custom label having only one value per product. Using them in your Google Shopping Campaigns gives you the flexibility to identify and group similar products. This makes it easy for you to boost your ROI by filtering information and adjusting your bidding strategy accordingly.

 

Types of Custom Labels

Feel free to customise your labels any way you believe will work best for your business. For example, you could group your products under the following labels :

  • Seasonality
  • Popularity
  • Profit margin
  • Performance
  • Product features
  • Release year

The good thing about custom labels is that you have the freedom to choose labels specific to your practice; labels that are specifically customised to help meet your business objectives. Below, is a step-by-step guide to get the hang of it.  

 

Step 1: Defining your Custom Labels

Before you start creating custom labels, you need to (1) define your objectives, (2) decide on how you’d like to organise them, and (3) specify values for each label. Let’s say you chose the following 5 custom labels. Look how you can define their values in a way that can profit your business and increase your revenue.

  1. Seasonality - Identify the products that sell best, based on the season (i.e. Swimming suits for summer and Winter coat for winter).
  2. Profit Margin - Start by determining margins per product and then decide whether to bid higher or lower based on your products’ profit margin.
  3. Performance - You can identify the products that have a better performance and are more likely to sell. That way, you can group them under the same custom label and raise your bids in this category.
  4. Product Features - Products sell differently based on their colour, size, and gender. For example, some colours may sell more than others. That is normal. So by determining that popular feature you can segment your products accordingly and bid more on that specific colour, size or gender to maximise your profit.
  5. Brand - Similarly to features, some brands sell more than others. So, always in the same context filter which brand is more likely to generate sales and then optimise your bids accordingly.

Tip: It is necessary to never lose sight of your goal while also identifying and grouping the products that generate the most revenue. This is key information to optimise your budget and skyrocket your ROI.

 

Step 2: Deciding on Custom Labels Definitions

The definitions are unique to your business. This means that they are optional. However, you sure need them to better understand what values to assign to which label.

This is how your Custom labels would look like after setting up the definitions and the possible values for the custom labels attributes:

 

Custom label

Definition

Values

Custom_label_ 0

Seasonality

Winter, Spring, Summer, Fall

Custom_label_1

Profit Margin

Low Margin, Medium Margin, High Margin

Custom_label_2

Performance

Best Seller, Low Seller

Custom_label_3

Product Features- Colors

Black, Blue, Red

Custom_label_4

Brand

Chanel, LV, Dior

 

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Step 3 : Assigning values to your products

You can assign appropriate values for each product you submit in your your product data. For every product (e.g: Item #1) you can include one value (e.g: Winter) per attribute (eg: custom_label_0).

The attributes are optional; they exist only to help better organise your campaign and may not even apply all the time. Thus, some items won’t necessarily always have a value assigned to them. For instance, some products don’t have a profit margin [see table below: custom_label_1].

 

Item id

custom_label_0

custom_label_1

custom_label_2

custom_label_3

custom_label_4

Item #1

Winter

 

Low Seller

   

Item #2

 

Low margin

 

Red

 

Item #3

Summer

High margin

Best Seller

 

Chanel

 

 

Step 4: Using Custom Labels on AdWords

So you’ve identified the products you want to focus on and have chosen both the Custom Labels you will be using and the values you’ll assign to each product. Perfect! Time to learn about the most efficient way to add custom labels to your Google Shopping feed, and how it would look like on AdWords.

To add labels to your product feed you can use one of the Google Shopping feed plugins. These tools allow you to easily upload your feed on Google Merchant Center and will not only generate your product data but also integrate it into the GMC automatically. Note that you will need to do some manual labour, but it’s nothing compared to the benefits of setting this up.

Lastly, as mentioned before, you can use custom labels to create campaigns that contain products with custom_label seasonal or “low/high margin” inside AdWords. This is how it would look like.

Bottom Line

Custom Labels are great to improve the performance of your Google Shopping Campaigns as they allow you to group products in a way that will make bidding easier and your business more profitable. Hopefully, following the steps listed above will take you through the entire process of defining your objectives seamlessly so you can set up your custom labels properly and start making profit asap!

 

This post is part of adaplo Blog.

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