Shopping Campaigns: Upgrade Playbook

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Agenda Shopping campaigns at-a-glance

Upgrade walkthrough

Advanced set-ups

Frequently asked questions

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At-a-Glance: Upgrading to Shopping campaigns

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Shopping campaign upgrade overview ●

Shopping campaigns are a better way to manage, report on, and optimize PLAs



All retailers are required to upgrade by the end of August 2014



Use the following walkthroughs and FAQs to help you upgrade to Shopping campaigns as soon as possible to get new functionality and begin optimizing

Retail-centric campaign management

Advanced reporting

Competitive landscape data

Tip: learn more about Shopping campaigns in our Upgrade Guide.

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Shopping campaign management overview ●

You’ll use product groups to bids on your products within a campaign



Basically, different products have different values to your business - product groups allow you to group similar items together and bid on them as a group

Electronic s $2.25

Apparel $1.75

Furniture $2.00

Everything else $1.30

Tip: learn more about Shopping campaigns in our Upgrade Guide.

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Steps to upgrade 1. Analyze your regular PLA campaign structure

2. If needed, add custom labels to your data feed

3. Create a Shopping campaign and subdivide

4. Pause your regular PLA campaign

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Upgrade walkthrough

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Step 1: Analyze your regular PLA campaign structure

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Most campaigns use 1 of 3 approaches ●

Campaign structure should allow you to bid according to products’ values



For example, you want to bid up on your high margin items and bestsellers



So, identify which of these behaviors aligns with your existing PLA campaign

Products

“I bid on my brands and product lines differently.”

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Performance

Hybrid

“I bid on my top- and low-performers differently.”

“I bid according to my catalog and performance.”

Merchandise by product lines and brands ●

Create product groups to bid differently on various product lines or categories



Attributes: product_type (or Google product category), brand

Womens Product type level 2

Apparel Product type level 1

Mens Product type level 2

Everything else

Acme Apparel Brand Everything else Beta Branded Brand Everything Else Catalan Classics Brand Everything else

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Merchandise purely by performance ●

Subdivide your inventory by performance, margins or sales



Get as specific as bidding on individual, high-value products by ID



Attributes: custom labels, item ID

High margin Custom label 1

Best Sellers Custom label 0

Low margin Custom label 1

Everything Else

111 Item ID Everything Else 222 Item ID Everything Else 333 Item iD Everything Else

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Merchandise by products and performance ●

Segment your inventory with a combination of attributes



At deeper-levels, focus on a smaller number of products



Consider using custom labels for cross-product line promotions like Back to School

Womens Product type level 2

Apparel Product type level 1

Mens Product type level 2

Everything Else

Bestsellers Custom label 0 Everything Else 1111 id Everything Else High margin Custom label 1 Everything Else

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1a. Filter for product targets with 1+ impressions ●

Sorting for active targets lets you focus on targets impacting performance



Choose at least a 30-day date range

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1b. Download your performance report ●

Get the data you’ll analyze to identify top performing targets

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1c. Sort your product targets A → Z ●

Copy/paste your performance report data into a spreadsheet



Sort your product targets alphabetically

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1d. Count each type of product target ●

Either count manually or use count functionality to note the number of each type of product target in your campaign

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1e. Record your results in a table ●

List the number of product targets using each attribute

Attribute All products

Total # 1

product_type

100

brand

100

AdWords_label or AdWords_grouping ID Condition Google Confidential and Proprietary

0 2,000 0

1e. Repeat based on product target performance ●

In your spreadsheet, filter product targets by performance



Identify targets with the most volume (i.e. clicks, impressions) and / or strongest conversion performance (i.e. low CPA, high conversion rate) Total #

# in Top 20 Clicks

1

1

product_type

100

12

brand

100

2

0

0

2,000

6

0

0

Attribute All products

AdWords_label or AdWords_grouping ID Condition Google Confidential and Proprietary

1e. Identify which attribute targets matter most ●

Look for the types of targets with strong performance (i.e. in the top 20 by clicks)



The goal is to understand how you organize your PLA campaign and how you can transfer the product targets that drive the most business to a Shopping campaign Total #

# in Top 20 Clicks

1

1

product_type

100

12

brand

100

2

0

0

2,000

6

0

0

Attribute All products

AdWords_label or AdWords_grouping ID Condition Google Confidential and Proprietary

Example: choosing a campaign template ●

From the table, product_type and ID were clearly the strongest performers



Therefore, this advertiser should plan to use the hybrid template

Attribute

All products product_type brand AdWords_label or AdWords_grouping

Total #

1 100

# in Top 20 Clicks

Womens Product type level 2

1 12

100

2

0

0

Apparel Product type level 1

Mens Product type level 2

Everything Else ID Condition

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2,000

6

0

0

Bestsellers Custom label 0 Everything Else 1111 id Everything Else High margin Custom label 1 Everything Else

Step 2: If needed, add custom_labels

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Notice if you depend on custom tagging in feed ●

The goal is to identify the attributes you’ll organize your Shopping campaign with



Look for the types of targets with strong performance (i.e. in the top 20 by clicks)

Total #

# in Top 20 Clicks

1

1

product_type

100

5

brand

100

0

0

16

2,000

4

0

0

Attribute All products

AdWords_label or AdWords_grouping ID Condition Google Confidential and Proprietary

2a. Assess if you actually need custom labels ●

Make sure you’re using the right attribute for the right values



In Shopping campaigns, custom labels should only be used for your unique key performance indicators (KPIs) like seasonality, sales, margins, and bestsellers

Common use

Optimized use

adwords_labels = pants

product_type = pants google_product_category = Apparel & Accessories > Clothing > Pants

adwords_labels = ACMEbikes

brand = ACMEbikes

adwords_labels = mens

product_type = pants > mens custom_label_0 = mens

adwords_labels = 0-49.99

product_type = apparel > pants > mens > 0-49.99 custom_label_0 = 0-49.99

adwords_labels = bestseller

custom_label_0 = bestseller

adwords_labels = highROAS

custom_label_0 = high ROAS

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2b. If you do, create a custom_label strategy ●

Ideal for grouping products by promotions, sales, margins, and bestsellers



Each product can have up to 5 values with 1 per custom label attribute



Start by creating a table to define how you’ll use the label and possible values

Custom label

Definition

Possible values

0

Seasonal

spring, summer, fall, winter

1

Promotions

flash sale, clearance, co-marketing deal

2

Selling rate

bestseller, low seller

3

Margins

high margin, low margin

4

Holiday

back to school, christmas

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2b. Add the custom_label attributes to your feed ●

Do not delete the adwords_labels or adwords_grouping attribute from your feed as it may be used for other ad formats



When complete, re-upload your data feed so changes take effect

Tip: learn more about custom labels. Google Confidential and Proprietary

Step 3: Create a Shopping campaign and subdivide

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3a. Create a Shopping campaign ●

You have 2 options for creating a campaign: in AdWords or via API*



In AdWords, click + Campaign, choose Shopping, and follow on-screen instructions to select your settings

*See developer documentation for details. Google Confidential and Proprietary

3b. Pause your Shopping campaign ●

Set the campaign status to pause while you build out your Shopping campaign

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3c. Subdivide your campaign into product groups ●

Click to + button subdivide your All products into more granular product groups

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3c. Subdivide your campaign into product groups ●

Choose the attribute you’ll use to start breaking out product groups, i.e. the one that matches the template you identified in step #1

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3c. Subdivide your campaign into product groups ●

Choose which values you’d like to bid separately on and use the arrows to move them to the left panel or use the + to select all - then, click save

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3c. Subdivide your campaign into product groups ●

Repeat the process for up to 7 total levels of product groups

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3c. Subdivide your campaign into product groups ●

When complete, you have product groups for items you want to bid on differently



Now, you can edit your bids by clicking on each, or do it in bulk in the next step

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3d. To bulk edit bids, download product groups ●

By downloading, you’ll have the option to edit your bids via spreadsheet

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3e. Edit your bids in a spreadsheet ●

Use any spreadsheet editor to set your bids



Set bids only for rows with partition type unit



Note: * at the end of a product group is a placeholder for everything else

Tip: remember that All products no longer needs to be the lowest bid as products do not overlap within a single ad group. Google Confidential and Proprietary

3f. Upload to Reports and uploads in AdWords ●

Upload your bid file to AdWords so that they take effect in your campaign

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3g. Carry over your mobile bid modifier ●

Make sure you carry over your mobile bid modifier to Shopping campaigns



Ensure your modifier is between -90% and +300% to reach mobile shoppers



If you’d like to use different mobile bid modifiers across products, you’ll need to create and segment inventory into separate ad groups (see advanced setups)

Modify mobile bids in Settings tab

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3f. Unpause your Shopping campaign ●

Now that you’ve built out product groups and applied your bids, unpause your Shopping campaign to get it running



Traffic will start flowing through this campaign within a few hours

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Step 4: Pause your regular PLA campaign

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4. Pause your regular PLA campaign ●

Avoid running two campaigns at once by pausing your regular PLA campaign



It can take up to 6 hours for your Shopping campaign to start running - so only pause your regular PLA campaign once you see traffic in your new campaign

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Advanced set-ups

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Multiple ad groups

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Aim for 1 ad group per campaign ●

Shopping campaigns helps you easily subdivide and bid on your products within one ad group

Benefits of using a single ad group ●

Eliminate product bidding overlap



Easily subdivide your inventory into product groups



Identify which products don’t have specific bids



Streamline your campaign management

Use multiple ad groups only if you... ●

Adjust mobile bid modifiers differently across products



Use a more granular negative keywords strategy

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Prevent overlap across multiple ad groups ●

If you do use multiple ad groups, you’ll end up with multiple automatically created Everything else in ‘All products’ groups



To prevent bidding overlap, exclude all but one of these groups

Ad group #1

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Ad group #2

Multiple campaigns

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There are 3 main reasons for multiple campaigns

1

Allocate budget across a subset of products

2

Respond to the retail calendar / promotions

3

Target multiple countries

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#1: Allocate budget across product subsets ●

The most common use of this strategy is to allocate a higher budget to strongest performing targets, i.e. your bestsellers



In this way, you can better uncap revenue potential while maintaining ROAS

$350

Bicycles

Parts

Everything else

ACME

Bikes

$200

$150

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Bicycles

Parts

Everything else

Use exclusions to only bid on the right subset ●

Make sure your campaign budget only goes to the product subset you intend



In other words, use exclusions on the Everything else in ‘All products’ group

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#2: Respond to retail / calendar promotions ●

Retailers optimize their stores all the time, moving trending items to the front window and displaying prominent “Sale” signs to move reduced price inventory



Shopping campaigns let you apply these same principles to digital advertising on top of your regular, core campaign optimized for long-term performance

On-Sale / Seasonal Campaign

Flexible, efficient structure for seasonal promotions

Bestsellers Campaign

Uncapped potential for your top performing products

Core Campaign

Foundation for long-term testing and optimization

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Campaign priorities lets you tier campaigns ●

Tell Google which bid to use when more than one is available for a product



Options for low, medium, and high priorities

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Example: campaign for summer apparel ●

Your core campaign is structured to bid on product lines and brands, but you want to promote a few items as part of a summer sale



Instead of editing your core campaign, create a campaign just for sale items use high priority to tell Google to use the bids in the seasonal campaign



When your sale is over, simply pause the sale campaign

Womens

Acme Apparel Everything else

Low Priority

Apparel

Mens

Beta Branded Everything Else Catalan Classics

Everything else Everything else

High Priority Google Confidential and Proprietary

Summer Sale Short-sleeved shirts + Shorts

#3: Target different countries ●

Because tax, shipping, language, and currency vary from country-to-country, you’ll need to create a separate campaign for each country where you sell products



Ensure the country of sale in your AdWords location settings matches the country your data feed is targeting and customized for in Merchant Center

Campaign 1

Campaign 2

Campaign 3

US

Germany

France

Tip: required attributes may vary across countries - check the feed specification.

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FAQs

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FAQs - Upgrade walkthrough “What bid should I apply to my product groups?” Use the same bid as your regular PLA campaign or the closest average bid. “What performance changes will I see by upgrading?” If your structure and bids are the same, you won’t see any differences. “Should I copy my regular PLA campaign structure to my Shopping campaign?” No, regular PLA campaigns have nuances that don’t exist in Shopping campaigns. You should take the time to consolidate your structure now before the holidays.

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FAQs - Advanced set-ups “I don’t understand campaign priorities. Will a high priority campaign prioritize those products in the auction?” No, campaign priorities tell Google which bid to use in your portfolio, not the product. “What happens if a product is in multiple campaigns or ad groups?” If the campaigns are the same priority, Google will use the highest product group bid. “I use a third-party platforms for my bidding and feed management. How should I upgrade?” Reach out and see how they can help. “How many advertisers have upgraded already? What’s their feedback?” Majority of PLA advertisers have already started taking advantage of Shopping campaigns. 85% of these advertisers are fully upgraded.

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Key takeaways

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Key takeaways Your regular PLA campaigns will be retired at the end of August

Start upgrading to Shopping campaigns as soon as possible 1.

Analyze your regular PLA campaign structure

2.

If needed, add custom labels to your data feed

3.

Create a Shopping campaign, subdivide, and bulk edit bids

4.

Pause your regular PLA campaign

Reach out to your Google team directly or give us a call if you need help at (866) 2-Google

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Thanks!

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Appendix

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Case Study: Farfetch Smarter merchandising with product groups

Organized product groups by category and brand Created a separate campaign for top-trending and best-selling products and set it to high campaign priority

↑ 37% Conversion Rate 3x higher ROI http://goo.gl/Ly9nKP

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Case Study: LiBoutique Better insight into performance

Created product groups for each brand Analyzed SKU-level performance to optimize bids

↑ 37% Conversion Rate 3x higher ROI http://goo.gl/XuY4dI

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Case Study: US Mattress Bidding strategies from competitive metrics

Organized product groups by brand, sub-brand, and individual SKUs Optimized bids with impression share and benchmark data

↑ 30% CTR ↑ 10% Average Order Value http://goo.gl/1Ws9C5

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Case Study: ValuePetSupplies Better workflow for management and optimization

Created product groups by brand and bestselling items Streamlined optimization by diagnosing product group health with impression share

↑ 650% ROAS 10x time savings http://goo.gl/XOltYb

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Shopping Campaigns: Upgrade Playbook Services

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Shopping campaigns A better way to promote your products on Google
That's it. Over time, performance metrics for your PLAs, such as impressions and clicks, will appear in your Shopping campaign. Best Practices: • Optimize your data feed so you can subdivide and bid effectively. Revisit attributes that are used to