Google Shopping Ads, also known as Product Listing Ads (PLAs), are a powerful tool for ecommerce businesses looking to maximize results from digital advertising. By segmenting your Google Shopping campaigns, you gain deeper insights, uncover opportunities for conversion optimization, and can effectively leverage your advertising data for accelerated growth. Our team at DIGITPRO will guide you through proven segmentation strategies for your Shopping campaigns that can translate into measurable results.
The Basics of Google Shopping Campaigns
When launching your first Google Shopping Campaign, the standard setup usually involves creating one ad group containing all your products. While this is fast, our experience shows that a “one-size-fits-all” approach almost never yields the best performance. From our digital marketing agency expertise, we can confidently say that smart segmentation is key.
Google Shopping offers two main campaign types:
- Standard Shopping
- Smart Shopping
The main difference: Smart Shopping merges prospecting and remarketing, using AI and machine learning for bidding and targeting, while Standard Shopping offers greater manual control, including negatives, bid management, and location targeting.
Within every campaign, two types of segmentation drive success:
- Ad Groups
- Product Groups
Like in Google Search Campaigns, Ad Groups help organize large sets of products by goal or theme. Product Groups, on the other hand, subdivide ad groups further—organizing products based on shared characteristics or KPIs, even down to the individual SKU level. There’s no universal answer on the best way to segment, but after managing significant ad budgets for our clients, our team at DIGITPRO has refined several effective approaches suitable for varied business needs. If you’re seeking help with PPC advertising or eCommerce strategy, we’re always here to help.
Price Band Segmentation
Price Band Segmentation is an excellent starting point, especially if you have limited campaign data. The idea is simple: group products by price range (such as $100-$500, $500-$1,000, $1,000-$2,000, etc.) and set specific KPIs for each price band. This allows you to optimize advertisements for each product group based on their unique retail price. At DIGITPRO, we often recommend creating multiple campaigns segmented by price range, rather than lumping all products together—delivering more targeted and effective online advertising campaigns.
Margin Segmentation
Segmenting by profit margin helps maximize overall business profitability. When you know each product’s margin, add custom labels to your product feed accordingly. Margin Segmentation works best after gathering solid data (ideally over several months). By shifting campaigns from price-based groups to margin-based segments, businesses can often surpass previous Return On Ad Spend (ROAS) benchmarks. If you’re seeking ways to increase profitability and need help setting up margin-based attribution, our digital marketing team can assist.
Performance-Based Segmentation
Another strategic focus is segmenting by performance metrics aligned to your business objectives. Two common directions:
- Volume-Based Performance
- Profitability-Based Performance
For businesses focused on high sales volume, group products with “High Volume” and “Low Volume” custom labels based on recent conversion trends. Allocate bigger ad budgets to the “High Volume” segment while still maintaining visibility for lower-volume items. When profitability is the goal, segment by ROAS—creating clusters like “High ROAS” and “Low ROAS”—and tailor your ad spend to maximize conversion rates in each segment. This dynamic approach to conversion optimization and campaign segmentation makes your ads more efficient and delivers measurable results.
For companies wanting actionable advice on maximising campaign performance, our tailored marketing research and social media management services can provide you with the data and ongoing strategy needed for growth.
Work With Experts to Grow Your Results Online
Achieving sustainable ecommerce growth through Google Shopping campaigns is possible with the right segmentation strategy. Our experts at DIGITPRO specialize in lead generation services, PPC advertising, SEO services, and content marketing to help increase website traffic, brand awareness, and conversions online. If you’re ready to take your eCommerce store to the next level, reach out—we’re here to ensure your marketing is effective, data-driven, and delivers measurable performance.
Want to learn more about advanced segmentation or set up a winning online advertising campaign? Feel free to contact our team—we’ll help build a robust digital presence tailored to your business needs.
