How does product segmentation work?

While being advertised on Google, each product inside of the campaign gets its own performance history, which includes impressions, clicks, costs, conversions, and revenue. While usually, the account manager looks at the overall campaign performance, the Label Manager goes through every single product and compares its performance against the desired target values.

Based on the comparison result, the product is assigned to one of the five segments and receives a corresponding value to Custom Label. In the end, these labels are visible inside the Google Ads interface, allowing users to select which products to advertise.