The Challenge: Optimizing Product Promotion Using Custom Labels
In the world of online stores, only 10% of products typically account for 90% of total sales. For a large e-shop like diogenistore.gr, which features over 45,000 products, the challenge was to identify and effectively promote products with specific characteristics. An important factor is that Google generally promotes only about 15% of a site’s products, leaving many items underrepresented in advertising campaigns.
Strategy: Using Custom Labels and Supplemental Feeds
To address this challenge, we implemented a strategy utilizing custom labels for each product in Google Merchant Center. These labels were used to segment products into categories based on specific attributes, including:
- Best Sellers: Products with high demand and stable sales.
- Zero-Click Products: Products that, while not having received clicks in previous campaigns, still hold potential. These products are often overlooked because Google tends to focus on the top 15% of the most viewed products.
- High Margin Products: Products with high profitability that are worth promoting to maximize revenue.
By using supplementary feeds, we were able to organize products more accurately, allowing Google Merchant Center to classify them according to the custom labels we defined.
Implementation of the Strategy: Targeted Product Promotion
Through the appropriate use of custom labels and complementary feeds, we successfully isolated and promoted products with the potential to bring higher revenue and profitability to the business. This approach enabled us to tailor our Google Ads campaigns to focus on products with the defined attributes, thereby increasing the efficiency of the advertising budget.
Only 10% of an e-shop’s products usually account for 90% of total sales. In Google Ads it is common for only 15% of the total products to be promoted, so a large percentage does not have the opportunity to be properly advertised.
Results: Performance Optimization through Specialized Promotion
The implementation of this strategy at diogenistore.gr yielded significant results. The combination of custom labels and complementary feeds led to:
- A 120% increase in average ROAS (Return on Ad Spend) in Google Ads campaigns.
- A 70% improvement in average conversion rate.
- More efficient use of the advertising budget by focusing on products with the highest margins.
Conclusion: The Importance of Specialized Product Promotion in Google Merchant Center
Proper utilization of Google Merchant Center features, such as custom labels and supplemental feeds, is essential for improving the performance of ad campaigns. By accurately identifying and promoting the right product categories, businesses can significantly increase their return on investment (ROI) in Google Ads, maximize profits, and enhance advertising effectiveness.
