Since all 5 segments of products are available after the analysis, you should first decide how they will be split between campaigns. As we explained in “How to split Product Segments between campaigns”, the most common split is 3 campaigns with all 5 segments within them.
To allocate budgets correctly, we should think about each product segment and its’ unique features, which will define how much money it should get.
Product segment | Sales | ROAS | Budget Recommendation | Campaign to place in |
Winners | Huge | Above exp. | High, about 30-40% of total budget | Campaign 1 |
Prospects | Present | As expected | High, about 25-30% of total budget | Campaign 1 |
Jumpers | Somewhat present | Slightly below expected | Low, about 15-20% of total budget | Campaign 2 |
Sleepers | Absent | Unknown | Low, about 15-20% of total budget | Campaign 2 |
Wasters | Somewhat present | Much below exp. | $0, disable unless really needed | Campaign 3 |
The general rule of thumb is to budget these segments “top-to-bottom” where Winners get as much as they want, Prospects get a bit smaller, and so on. Wasters should be disabled right after the setup to realize gains on ROAS and extra Sales but could remain active on a lower budget to stay in the turnover.
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