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Listen "How To Set A Budget For Google Smart Shopping Campaigns?"
Episode Synopsis
The No.1 Google Ads Coaching and Training Program. Watch Masterclass here: https://sfdigital.co/youtube
You can't do much with smart shopping anyway. So are you referring to changing the budgets?
Changing the budgets, changing the bids, changing the products, changing your feed. What one thing that people like to do is they like to take different they like to trade pick their products. And you don't wanna do that at all because I have a quick anecdote and hopefully this isn't annoying or irrelevant. We had a client. She sells medical device equipment basically.
For a specific type of medical technician. She has like 8,000 skews let's say. I don't know what it is but it's close to as close to 10,000. She goes, these are our 400 products that sell. Nothing else ever sells. We have them in our catalogue because every now and then, the doctor needs a light bulb or whatever but these are the 400 we're like, alright, we run. We did okay. 400% 500% ROAS. We finally, months later, talk her into throwing the whole product catalogue after it.
She's tracking 3000% ROAS now, I believe or something close to it and not one of those 400 products she gave me are on her top-selling List. Everything that you sell is a self-fulfilling prophecy because that's what you've positioned yourself to sell. Google will figure out what's going to sell for you. A, B, a lot of the products that perform for you on acquisition products that don't actually, they get to click, they don't get to sell.
So, when you're looking at your data, you look at a product that has, you know, a significant amount of ROI attached to it but you haven't sold that much of that product and the reason for that is if somebody, you know, if they click on an ad for this pen but they buy these glasses, The pen is what gets the ROAS attribution and so you're gonna say, I didn't sell a $1,000 with the pens. It's like, no, but you sold a $1,000 using the ads using the pen as the ad basically. And that happens all the freaking time which actually leads me to another structural issue and this was a mistake that we made.
In my early education, if anybody's ever seen any of our videos, we would tell people to segment their accounts, segment their campaigns by the margin. So, you know, Google would say, don't segment your smart shopping campaigns at all. We would say, no, that's wrong. Segment it by low, medium, high so you can do, you can attribute your budget accordingly and make sure that you're pushing your budget to the products that you wanna push.
The issue with that we found out later is smart shopping campaigns don't share traffic. So if they come in on product set A but buy on product set B, that wall that you've built, causes some drop off where you just can't cross-pollinate the way that smart shopping would need to.
So, you can still split your campaigns but only do it if you have products that are very different and you're never gonna get any of that cross-pollination. That's not most businesses. Most businesses have cross-pollinated products. Even low margin products that you don't wanna sell run them because you don't know what's gonna bring somebody in.
You can't do much with smart shopping anyway. So are you referring to changing the budgets?
Changing the budgets, changing the bids, changing the products, changing your feed. What one thing that people like to do is they like to take different they like to trade pick their products. And you don't wanna do that at all because I have a quick anecdote and hopefully this isn't annoying or irrelevant. We had a client. She sells medical device equipment basically.
For a specific type of medical technician. She has like 8,000 skews let's say. I don't know what it is but it's close to as close to 10,000. She goes, these are our 400 products that sell. Nothing else ever sells. We have them in our catalogue because every now and then, the doctor needs a light bulb or whatever but these are the 400 we're like, alright, we run. We did okay. 400% 500% ROAS. We finally, months later, talk her into throwing the whole product catalogue after it.
She's tracking 3000% ROAS now, I believe or something close to it and not one of those 400 products she gave me are on her top-selling List. Everything that you sell is a self-fulfilling prophecy because that's what you've positioned yourself to sell. Google will figure out what's going to sell for you. A, B, a lot of the products that perform for you on acquisition products that don't actually, they get to click, they don't get to sell.
So, when you're looking at your data, you look at a product that has, you know, a significant amount of ROI attached to it but you haven't sold that much of that product and the reason for that is if somebody, you know, if they click on an ad for this pen but they buy these glasses, The pen is what gets the ROAS attribution and so you're gonna say, I didn't sell a $1,000 with the pens. It's like, no, but you sold a $1,000 using the ads using the pen as the ad basically. And that happens all the freaking time which actually leads me to another structural issue and this was a mistake that we made.
In my early education, if anybody's ever seen any of our videos, we would tell people to segment their accounts, segment their campaigns by the margin. So, you know, Google would say, don't segment your smart shopping campaigns at all. We would say, no, that's wrong. Segment it by low, medium, high so you can do, you can attribute your budget accordingly and make sure that you're pushing your budget to the products that you wanna push.
The issue with that we found out later is smart shopping campaigns don't share traffic. So if they come in on product set A but buy on product set B, that wall that you've built, causes some drop off where you just can't cross-pollinate the way that smart shopping would need to.
So, you can still split your campaigns but only do it if you have products that are very different and you're never gonna get any of that cross-pollination. That's not most businesses. Most businesses have cross-pollinated products. Even low margin products that you don't wanna sell run them because you don't know what's gonna bring somebody in.
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