Campaign structure and bidding
Illustrative example- Issue
- One Performance Max campaign with a single target ROAS covers the whole product range, with margins from 40% to 85%.
- Impact
- High-margin products are underfunded while low-margin ones get budget below their break-even point. In the report I calculate how much contribution this costs you every month.
- Recommendation
- Margin bands in custom labels (custom_label) in Merchant Center and separate campaigns with separate targets where volume allows. In smaller markets, exclude products below break-even. Ultimately, conversion value based on margin, i.e. bidding to POAS.
- Why separate campaigns
- In Performance Max, target ROAS is set at campaign level, not asset group level. Splitting into asset groups will not give products different targets.
