Thursday, 3 October 2019
Wednesday, 2 October 2019
How To Optimise & Get The Most From Smart Shopping
Once you’ve created your Google Smart Shopping Campaigns you need to know how to properly optimise them. Read on to find out how best to utilise Google’s Machine Learning and Smart Shopping campaigns.
Smart Shopping campaigns push your shopping campaigns to the next level, expanding your reach across the Google display network with new advertising formats while further leveraging Google's Machine Learning.
So let’s consider how to properly optimise your Smart Shopping campaigns to ensure you're getting the most bang for your buck.
Set Up Your Smart Shopping Campaigns For Success
Choose a budget you are comfortable to spend every day over the period of a month.
One of the common questions we hear is, “My budget is only $50! Why did it spend $80 today?”
Particularly in the early days of the campaign while Google is testing, learning and adjusting, your daily spend may fluctuate. However, your spend will average out over the course of a month. Google allows for overspend for up to 2 times your daily budget on any given day, but will average the total budget across the month.
The next question to ask yourself is, “What is my target? Do I target the maximum possible revenue I can achieve or do I need to ensure I hit a target return on ad spend to make advertising profitable?”
With Smart Shopping campaigns, and digital advertising in general, the goal should always be to generate revenue and to maximise your conversion value.
This decision to set a ROAS target is based on your individual circumstances, including your profit margins, business goal and any shopping campaigns sales history you might have.
By not setting a ROAS target here you are telling Google, “try and get the highest conversion value for my budget as possible, regardless of return.”
For a better understanding of revenue goals and return on ad spend as a KPI read our blog on the goal of digital advertising.
You may want to think about campaign segmentation and creating multiple campaigns if you have:
- a wide range of different products,
- specific budgets for categories or
- significantly different margins or performance across products
Each campaign can be given an individual budget and target but it’s Google’s best practice to avoid segmentation until necessary. We recommend avoiding making segmentation decisions until you have sufficient conversion data in your Smart Shopping Campaigns.
Stop, watch and wait!
Your campaigns will now need time to learn and optimise using the machine learning inbuilt into the Smart Shopping Campaigns. The time this process takes can vary from campaign to campaign, but a 2 week period at a minimum is recommended before making any changes.
During this time you should:
- Monitor traffic - make sure your product feed doesn’t have any disapprovals
- Give campaigns time to learn
- Avoid temptation to change
After monitoring for 2 weeks you can begin to make changes - but one at a time!
If you are achieving your ROAS target and would like to achieve a higher conversion value, consider increasing your budget.
If you are not achieving your ROAS target or cannot increase your budget, consider decreasing your target to achieve a greater conversion value.
If you didn’t originally set a ROAS target when setting up campaigns, now might be the time to set one. Be aware that setting a goal above what you have achieved so far may limit your ads from being shown as often as they could. A recommended strategy is to look at the ROAS results and set a target within 10% of these results.
The key to successful optimisation of these campaigns is small, incremental changes at a time giving the algorithms the opportunity to learn and optimise after each change. Ideally, no more than 1 budget or goal change will be made every 14 days.
Another part of your ongoing optimisations should be feed optimisations. Look at your descriptions and product titles to ensure that your ads are generating traffic and that traffic is relevant. Look at your click through rates and conversion rates and monitor how your optimisations affect your performance in these areas.
If you want any information about managing your Smart Shopping Campaigns, or want to know how our software can help your Google Smart Shopping ads performance, please visit our website.