Smart Shopping campaigns are the go-to solution for retailers from Google.
They use a bidding strategy called Maximize conversion value
which generates as much conversion value as it can with your budget.
When you use Smart Shopping campaigns,
you also have the option of setting a minimum return on ad spend target.
Setting a minimum return on ad spend target is a good way
to help your campaign achieve your goals.
Keep in mind that higher targets may cause campaigns to spend less,
while lower targets will usually lead campaigns to spend more
and capture more opportunities.
Smart Shopping campaigns are powered by machine learning,
and machine learning algorithms are powered by data, like clicks and conversions.
Campaigns that have more data to learn from will usually perform better.
When building a new Smart Shopping campaign,
choose a group of products with at least 100 conversions
in the previous 30 days whenever possible.
Now let’s discuss four common ways to use Smart Shopping campaigns.
Maximizing revenue.
If your primary goal is to maximize conversion value or revenue,
combining all of your products into a single Smart Shopping campaign
is a good first step.
However, sometimes advertisers have more nuanced business goals than revenue.
In these situations,
it makes sense to have more than one Smart Shopping campaign.
Managing inventory.
If you have separate sales targets for certain types of products,
creating separate Smart Shopping campaigns for each group of products
will give you more control over how much of your Smart Shopping budget
is spent on each product group.
Similarly, if you have products that are available
for a limited time, like the holiday season,
you can create a separate campaign for those products
so that the algorithm prioritizes them during peak periods.
Increasing profitability.
If some of your products are more profitable for you than others,
or have a higher margin,
creating a separate campaign for those products
can make your Smart Shopping campaigns more profitable.
Use the Custom labels in your feed to label your High Margin Products,
and then create a separate Smart Shopping campaign
that targets those products.
For Higher Margin Products, you should set a lower return on ad spend target.
When you set a lower target, you’ll capture more demand for the products
that make your business profitable.
Maximizing Reach.
If you want to maximize visibility for some of your most popular products
or support a new product launch,
try creating a separate campaign with a low return on ad spent target.
The lower your return on ad spent target is,
the more likely your ads will show,
allowing you to reach more people with your most exciting new products.
Now, you’re set up for success
but it's always good to revisit your Smart Shopping campaign strategy periodically.
As your business goals change, your campaign structure may need to evolve, too.
For more step-by-step videos on Google Ads implementation and optimization,
check out Google Ads Tutorials on the Google Ads YouTube Channel.
If you have any questions, or for more information, please visit Google Ads Help.
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