For those merchants who are already running PLA campaigns and looking to optimize their Google Shopping performance further, we made some tips on how to complex things just a little to gain more control over the ad spend.
How Many Data Feed Should You Have?
You could do just fine with one, giving the fact the feed is highly optimized. However, from a slightly different school of thought, you might want to break the main data feed into 3 feeds: best selling items, items with the highest profit margins and a general feed for the rest.
For that, data analysis and PLA performance audit should be conducted and you might need to dig in the KPIs to figure out which items have most conversions – and at what CPA and whether that makes sense. Once you have a list, bam, you’ve done 1/3rd of the work! That would be feed #1.
The second feed would be for all the items that have the highest profit margins, hence would justify higher and more aggressive bidding. To get that info could be a little tricky, but work with the merchant to figure that out. That bad boy would be feed #2.
The last feed would be for all the other items. Nothing special here, but we wouldn’t want to allocate most of our budget towards these products nor apply too aggressive bidding. Say hi to feed #3.
The bidding strategy should be based – always – on simple common sense. Feed number 1 and 2 should be attributed with solid budgets. Hard to throw numbers here, but a rough breakage of the 3 would be feed #1 and 2 are getting 40% each and the 20 go to feed #3.
In that matter, we are focusing on what is selling better and bring most profit to the store. The ROAS will likely be the highest and we can allow to apply more aggressive or accelerated strategy successfully. Since we don’t put a lot of budget towards feed #3, even if it under-performs, it won’t drag the overall performance down too much, and even within that feed we could still deploy individual bidding strategy towards what is selling best and likely to see positive ROI and ROAS too!
Advantages of Multiple Data Feeds
Main advantage is better and more granular CPC management and the ability to gain high level of control of the CPC. Whatever is not meeting benchmarks or KPIs could be paused so that the ad-spend would be fully allocated towards what is performing best.
Another advantage is security. If one feed gets disapproved all of a sudden, and that happens a lot, you have the other feeds working and generating sales and money. Don’t put all your eggs in one basket, kinda thing.
Keep Data Handy
Keeping simple data analytics handy is super helpful in order to determine the KPIs and set benchmarks for future performance. The more data we have, and from a longer time period, the more accurate predictions we could assume and wrap the strategy better.