Google Smart Shopping Optimization: 6 Tactics for better ROI
Now Google ads give the option in shopping campaigns to automatically target the potential Audiences who are extensively searching for your Product. It is Google’s next generation of shopping campaigns namely “Smart Shopping Campaigns.”
Smart shopping campaigns will simplify your tasks in Campaign Management by maximizing your conversion value and help you to generate more sales. Smart shopping campaigns will help you to target all google networks using automation and machine learning. Smart shopping will automatically optimize towards maximum revenue for your budget.
Here are some of the smart shopping campaign set up requirements:
- You should have at least 20 conversions from traditional shopping campaign. As in, 20 conversions will give enough data to start a Smart shopping campaign.
- Setting up the dynamic re-marketing tag on your E-commerce site, the Smart Shopping Campaign will get help in targeting the audience.
Now we will help you to know how you can optimize smart shopping campaign optimizations.
Smart Shopping Campaigns Optimization Tactics
Setting up Smart Shopping Budget
If you are testing a smart shopping campaign for the first time then your budget should be set at 50% of your standard shopping campaign.
You should provide enough budget for a smart shopping campaign so that it can be utilized for its quick machine learning.
Make sure you don’t give more than enough budget to avoid any harm to your bottom line.
Bid Strategy for Smart Shopping Campaign
In the smart shopping campaign, we all should go with the “Maximize Conversion Value” bidding strategy and enter the target ROAS.setting up the target ROAS should be based on your actual product margins. If your margin is 25% then it should be set at 400% ROAS just to break even.
Choosing Products for Smart Shopping Campaign
Like traditional shopping campaigns, smart shopping campaigns also provide the option to select the product which you want to promote in a smart shopping campaign.
It would be better for you to start with all the products so that Google can collect more data to serve the purpose.
Remarketing list to optimize smart shopping campaign
The optimization capacity of a smart shopping campaign depends upon the strength of the remarketing list build.
A smart shopping campaign utilizes the data of the remarketing list to target the audience.
After you’ve added up the dynamic remarketing tag on your e-commerce website, it will start creating the list of remarketing audiences used by the smart shopping campaign.
That is why it is recommended to implement the dynamic remarketing tag at the initial stage.
In the Smart shopping campaign, the top priority is given to best selling product. It is a better option to create a separate campaign for them based upon the performance.
Some of the other examples of such campaigns are
- Different ROAS goal for different product lines
- Clearance sale
- As product price
- Seasonality etc
Give time to Smart Shopping Campaign
We should give time to a smart shopping campaign in order to learn from it. Typically, it starts performing within a week but Google recommends it to wait for a minimum of two weeks.
However, you should keep an eye on external factors like seasonality, weekends, events, offers, holidays, etc.
Don’t panic with smart shopping campaign
In terms of CPC and clicks, the performance of the smart shopping campaign may fluctuate. In the first week of smart shopping campaign performance, you will not be getting a big number of clicks. Maybe it is because the campaign strives to optimize for conversion value than clicks.
Therefore, it may try to eliminate the non-converting clicks and bid higher on converting clicks with the saved money.
Take an action on smart shopping campaign
It is not certain that every smart shopping campaign will perform, some can fail to give results as well.
It is hard to tell when to stop or pause the campaign. In our opinion and with experience, it is better to kill the campaign when you have stability or less fluctuation in the data in the following context:
- Average CPC has become constant in the last 3-5 days
- Number of clicks from the campaign is getting stable
Smart Shopping campaigns are basically a better decision for getting started with product listing ads (PLAs). With the smart shopping campaign, we can only do limited optimization.
Smart Shopping campaigns have mostly outperformed traditional shopping campaigns and need less management.
Reach new heights by setting your e-commerce on the rocket of Smart Shopping Campaigns!