1. Which campaigns can benefit from LM?
Label Manager is compatible with any feed-based product campaign, including Shopping and Performance Max.
It works best with a campaign that is large enough to generate 100 sales conversions or more within 30 days and has more than 300 products to advertise.
2. Which campaigns cannot benefit from LM?
Label Manager is not compatible with the following campaign types: Search, Google Display (incl. Dynamic Remarketing), Discovery, YouTube Video Ads, or Any type of Smart Campaign.
This is simply because product groups/listing groups are not available within these campaigns and a different way of segmenting shall be used.
3. What happens if I am already using other labels?
There are two different scenarios which could take place:
- You’re using other custom labels in your feed, but the one you selected for Label Manager is empty -> You’re good to start using Label Manager, it won’t interfere with any other labels.
- You’re using the same custom label for Label Manager and something else -> In this case, it’s likely that some interference will occur and you may see inaccurate results or no Label Manager result at all. We advise you to use an empty custom label for Label Manager.
4. What to do if I have too few Winners, Prospects, and Jumpers after the analysis?
Any product segmentation should ideally have as many items in TOP-3 segments (Winners, Prospects, and Jumpers) as possible. However, there are cases when these 3 segments have just a handful of products, for various reasons, such as:
- Store sales mainly come from just 5-10 best-selling products, others have never turned any revenue.
- The store has extremely high conversion rates on selected products, in the area of 20-30-50%, which confuses the Label Manager to think that a double-digit conversion rate should be expected from the rest. This issue could be exacerbated if these sky-high conversion rates account for a very small number of clicks (eg. 10-20), which results in none of the products ever making it to Winners or Prospects segments, which take the number of clicks into account.
- Too few conversions were reported for the maximum lookback window of 90 days.
Regardless of the reason, to address and improve the segmentation, here are a few ways to do so, which should be applied in order from top to bottom as of their potential effectiveness:
- Merge Winners, Prospects, and Jumpers into one campaign. This may allow them to stack at above 100 products, making it good enough to be put into a separate campaign.
- Lower your break-even ROAS in Label Manager settings, which will bring more products to the top three segments, thus making the campaign bigger. Please remember that the setting value inside of the app doesn't translate into any settings in Google Ads and doesn't mean that your products will perform at this level. So don't worry about lowering the bar during the analysis, ultimately Google Ads automatic bidding strategies will squeeze as much as possible performance out of these TOP-3 segments.
- Increase the Lookback window, so more products will receive performance data. However, this may undermine the relevance of the results, so please change it carefully.