- Do you know if Google Ads is spending money on your non-profitable products?
- Want to minimize the $100’s or $1,000’s each month on wasted Google ads spend?
- Can your current agency tell you which products are hitting your business goals?
Google Ads, the digital pickpocket of the modern age, are masters at convincing online store owners to pour their hard-earned money into their bottomless pit of an advertising platform. They dangle the carrot of consistent sales, but the joke’s on you when you realize they’re haphazardly funneling your ad dollars into whatever product they please. It’s almost laughable that this giant, once parading under the banner of “Don’t be evil,” has become a marketer’s begrudging ally.
Remember how Google played the role of the benevolent wizard, making everything seem so easy? That was the story with Smart Shopping campaigns. They lured Ecommerce owners with the simplicity of merging standard Shopping and display remarketing into one neat package. They whispered sweet nothings about automated bidding strategies leading to soaring conversions and burgeoning online stores. And for a brief, blissful moment, it seemed true.
But then, in a classic Google plot twist, they axed Smart Shopping campaigns, replacing them with the shiny new toy, Performance Max. This move left many online store owners, already dizzy from the complexity of Google Ads, scrambling to adapt. Google, in their infinite kindness, offered an automated upgrade, which for many was a mixed bag of confusion and new problems. Performance Max was like opening Pandora’s box, leaving many inexperienced users perplexed about their next move.
In the grand scheme of things, Google might occasionally spotlight your star products to the right audience at the right time. But don’t be fooled. They’re just as likely to burn through your ad budget on duds. There is a secret to mastering your profitability in this game, but it seems to be a well-kept secret among Google, and many marketing agencies out there.
What to know how you can show more of your profitable products and reduce your wasted ad spend?
What Is Flowboost Labelizer and Why Use It?
As an e-commerce store owner, it’s crucial to understand how easily Google Ads can eat into your budget without yielding the expected results. This is where the Flowboost Labelizer can be a game-changer for you. Think of it as your very own smart assistant in the complex world of PPC for Google Ads, helping you to manage your campaigns more efficiently and effectively.
The main strength of the Flowboost Labelizer lies in its ability to organize and categorize your product, good, bad or indifferent. This is done through various metrics, such as how much you earn back for every dollar spent (ROAS) and how often people buy your product after clicking the ad (conversion rates). It smartly labels your products into groups like ‘over-index’, ‘index’, ‘near-index’, ‘under-index’, and ‘no-index’. Thanks to the good people at ProductHero, we can call these segments as Hero’s, Sidekicks, Villains and Zombies, which we’ll explain later. This segmentation is helpful because it tells you which products are doing well and which aren’t, allowing you to ensure your budget is more focused on the products that are really bringing in sales.
In a nutshell, if you’re tired of seeing your ad budget disappear without much return, the Flowboost Labelizer script could be the solution you need. It’s a powerful assistant for e-commerce store owners who want to get the most out of their Google Ads campaigns without wasting money.
Want to stop wasting your Google Ads budget?
Setting Up Your Flowboost Labelizer
Step #1 – Analyze Your Product Performance Data
Setting up and using the Flowboost Labelizer is a multi-step process that includes a Google Ads script, a supplemental list in your Google Merchant Center account, and a structured campaign to control it all. The key component to the process is the custom Flowboost Labelizer, a high-impact Google Ads script that sits in your account, assigning labels to your product range, which will provide the necessary information for you to take advantage of your “winners” and minimize your ad spend on the “losers”.
While you may not have enough data for all segmentation, they are primarily broken down as follows:
Over-index (Heroes):
- This product surpasses its expected performance levels
- To qualify, it needs to fulfill specific click-related criteria, which are determined by the average conversion rate and a particular multiplier
- Additionally, its Return on Ad Spend (ROAS) should exceed your target goal by a defined percentage
Index (Sidekicks):
- The product achieves, or marginally exceeds, its intended target
- This status requires a considerable number of clicks, gauged against the standard conversion rate
- Its ROAS must be at least on par with, or exceed, your target goal
Near-index (Sidekicks):
- The product’s performance falls slightly short of its target
- Its ROAS is expected to be just under the target, reduced by a predetermined percentage
Under-index (Villains):
- The product fails to reach your set target
- It should either have more than one conversion or a substantial number of clicks, in line with the average conversion rate
No-index (Zombies):
- This label applies to products that don’t align with any of the above categories
- Typically, it signifies a lower count of both conversions and clicks
If you want to give it a try, you can use the free version (check code below):
// Flowboost Labelizer 1.1 by Floris de Schrijver
// custom requests? floris@flowboost.co
// V1.1 - enter your data as variables
// make copy of the spreadsheet
// add the spreadsheet URL as supplemental feed to Google merchant center (check cel H1 for custom_label_1, label or product type)
// ------- make sure you register at https://library.flowboost.co for other free scripts, automation tips, how-to and much more (to come)
// ------- updates will be uploaded in the library first
// -- v3.1 is live since july 2023 > advanced settings, better segmentation en graphs
// ------- Newsletters to check >
// -- PPC Edge newsletter > https://www.ppcmastery.com/blog/
// -------
// let it run daily, smooth sailing
// be aware: products with no impressions will not be added, include all other items in the no-index campaign or ad group
// -------
// Enter your data here >
var SPREADSHEET_URL = "https://docs.google.com/spreadsheets/d/1AHPMy__XMFBtufgsc-RQWcktAjX2K_GZyy3nTUqprWI/copy"; // make a copy of the spreadsheet, don’t change any tabs in the sheet
var breakevenRoas = 6.5; // set it 10-20% lower than the account target
var AverageCvr = 5; // conversion rate on average in shopping in past daysAgo
var impressionThreshold = 50; // less than 50 means a ‘zombie’ or ‘no-index’
var daysAgo = 90; // days you like to look back at
// Advanced settings only available in premium labelizer script (get it in the library)
// - conversion lag in days
// - segment on 1 or multiple campaign(s) only
// - capitalization bug
// - 4 graphs and over time improvement
// - bucket for proven bad products
// - creates buckets based relative- instead of absolute difference in ROAS
// - bucket based on tCPA or tROAS
// Start script don't edit anything below here
function main(){
var products = getFilteredShoppingProducts(daysAgo);
products.sort(function(a,b){return a[0] > b[0];});
products = products.slice(0, 999999);
pushToSpreadsheet(products);
}
function getFilteredShoppingProducts(daysAgo){
var today = new Date();
var daysAgo = new Date(today.getFullYear(), today.getMonth(), today.getDate() - daysAgo);
var dateFrom = Utilities.formatDate(daysAgo, AdWordsApp.currentAccount().getTimeZone(), 'yyyyMMdd');
var dateTo = Utilities.formatDate(today, AdWordsApp.currentAccount().getTimeZone(), 'yyyyMMdd');
var query =
"SELECT OfferId, Impressions, Clicks, Ctr, Cost, Conversions, ConversionValue " +
"FROM SHOPPING_PERFORMANCE_REPORT " +
"DURING "+ dateFrom +","+ dateTo;
var products = [];
var count = 0;
var report = AdWordsApp.report(query);
var rows = report.rows();
while (rows.hasNext()){
var row = rows.next();
var offer_id = row['OfferId'];
var impressions = row['Impressions'].toString();
var clicks = row['Clicks'].toString();
var cost = row['Cost'].toString();
var conversions = row['Conversions'].toString();
var conversionValue = row['ConversionValue'].toString();
var convValuePerCost = (conversionValue.replace(",", "") / cost.replace(",", "")).toString();
if (isNaN(convValuePerCost)){
convValuePerCost = 0;
}
var isProductType = '';
if (clicks > ( 300 / AverageCvr ) && convValuePerCost >= breakevenRoas + 1){
isProductType = 'over-index';
} else if (clicks >= ( 100 / AverageCvr ) && convValuePerCost >= breakevenRoas ){
isProductType = 'index';
} else if (convValuePerCost >= breakevenRoas - 1){
isProductType = 'near-index';
} else if (impressions < impressionThreshold){
isProductType = 'no-index';
} else {
isProductType = 'under-index';
}
products.push([offer_id, impressions, clicks, cost, conversions, conversionValue, convValuePerCost, isProductType]);
count+= 1;
}
Logger.log(count);
return products;
}
function pushToSpreadsheet(data){
var spreadsheet = SpreadsheetApp.openByUrl(SPREADSHEET_URL);
var sheet = spreadsheet.getSheetByName('Flowbelizer');
var lastRow = sheet.getMaxRows();
sheet.getRange('A2:H'+lastRow).clearContent();
var start_row=2;
var endRow=start_row+data.length-1;
var range = sheet.getRange('A'+start_row+':'+'H'+endRow);
if (data.length>0){range.setValues(data);}
return;
}Step #2 – Label Creation to Segment Your Campaigns
The script will do all the heavy lifting with assigning a label to each product and from there, we just need to assign it as a supplemental feed in your Google Merchant Center. As you can see, once the script has been run, it will give you first impressions on the performance of your products. Here’s an example of a client with 1000’s of products after setting it all up:
As you can see from the case study above when we first started, over 80% of the client cost was going towards products that were not meeting their ROAS goal and in essence, costing them additional ad spend that could be better spent elsewhere. Only 6% of the ad spend was going to their best performers but only accounted for just over 11% of revenue.
What does this mean in simpler terms?
- Monthly ad spend on Shopping campaigns – $1,000
- Monthly spent on products under ROAS target – $800
- Monthly spent on products at or above ROAS target – $200
Imagine how much more profitable this account could become if we could just focus on increasing the number of profitable products.
Step #3 – Setting up Your Flowboost Labelizer Campaigns
Once this is finalized, the final part of the puzzle is to set up your campaigns with the flowboost labelizer labels. While Performance Max (Pmax) campaigns are an option to implement this, we are finding that Shopping campaigns can provide a similar output. Shopping campaigns also come without the fear of Google creating additional images or search ads for other networks that you may not want to include, as well as protecting your brand.
Let’s look at an example on how you can setup your Shopping campaigns.
Over-index (Heroes)
- This campaign will advertise your best performing products
- A budget of 50% can be assigned to the campaign
- Set a target ROAS to just under your breakeven ROAS that you assigned in the script
End Goal: Increase your spend on your most profitable products
Index (Sidekicks)
- This campaign will advertise your products that are performing at your target ROAS.
- A budget of 15% can be assigned to the campaign
- Set a target ROAS at your breakeven ROAS that you assigned in the script
End Goal: Allocate some of your budget to products that fall on or near your target ROAS.
Near-index (Sidekicks):
- This campaign will advertise your products that have potential but just under your target ROAS
- A budget of 10% can be assigned to the campaign
- Set a target ROAS at your breakeven ROAS that you assigned in the script
End Goal: As these products get more spend, they will likely end up in the Over-Index or Under-Index campaign
Under-index (Villains):
- This campaign will run your least profitable products.
- A budget of 5% can be the most assigned to this campaign
- Set a target ROAS above your ideal target to push these products to perform
End Goal: Although poor performing products, they can either be excluded or might perform well with low spend
No-index (Zombies):
- This campaign will run your products with low impressions
- A budget of 20% can be the most assigned to this campaign
- Test bid strategy of Maximize Clicks
End Goal: We want to increase these products visibility without wasting too much of the budget
Case Study: Flowboost Labelizer Success
As we move forward a few weeks with our original case, we can see the impact the changes are having across the product range. We can see that we have reduced the ad spend for non-profitable products by approximately 30% and reduced the low profit revenue by 80%.
So what changed?
- Monthly ad spend on Shopping campaigns – $1,000
- Monthly spent on products under ROAS target – $500 (decreased by $300)
- Monthly spent on products at or above ROAS target – $500 (increased by $300)
These numbers will continue to improve, and allow us to further scale the account now that we are confident that we are displaying the right products across the Shopping network. This is on top of working on your No-Index products and increasing their visibility to see if and where they will fit into the scheme of things. Even if you don’t look at setting up the campaign structure laid out above, by running the script you can get a snapshot of the performance of all your products.
What’s Next?
The quest for innovative tools that propel us ahead of the competition is relentless, as well as advantageous. Tools that can help with product performance analysis can provide further strategic value, and further increase sales.
With the upcoming release of newer versions, updates to the Google Merchant Center will enhance additional product insights, including Price benchmark data. Focusing on Google’s price benchmark data, this will further highlight your competitively priced products, allowing for targeted isolation of these products in your campaigns, and rising to the occasion against your competitors.
Leveraging the enriched product data from the merchant center, you are primed to amplify profitability and eclipse your competitors. In summary, the Flowboost Labelizer is more than a tool; it’s a gateway to elevating your Google Ads campaigns and enhancing your market performance.
So, you’ve seen how Flowboost Labelizer can revolutionize your Google Ads management. It’s not just about efficiency and accuracy, it’s also about maximizing your ad spend. With customizable campaigns, real-time data synchronization, it’s clear that this strategy can be a game-changer. Stop surviving against the competition, and start thriving.
Would you like to learn more about how this strategy can improve your Google Ads results across the Shopping network?
Click on the Contact Us link and we’ll implement the script into your account and discuss the output at NO CHARGE!
