A well-built bid segmentation structure can make a world of difference for any search marketing campaign. You may offer the best and most budget-friendly (miracle) product in the market but without proper focus in bid segmentation structure, search engine users will either never even see it or see it advertised at a high cost to you.

Great bid segmentation structures not only organizes marketing spend, but also find key performers and  allow you to optimize ad spend accordingly. When used carefully, custom Labels can assist greatly in accomplishing this. Since custom labels serve purely as reference for the user and are not required to conform to any standard for Google, they can also be utilized in numerous creative ways in segmenting bids.



1. Price Point Custom Labels


A commonly used custom label is price points (sometimes called a price bucket), which separates products by their price range. For example, a product that costs $12.99 could fall into the price range ‘$0-$50′.

This label can be especially useful when there are great variations in prices within a single brand or product type.

While it may appear optimal at times to raise bids on a particular brand or a specific product type group, doing so across the board could be wasteful.  By raising all bids based on product type or brand alone, you risk bidding high for low-value conversions that will not justify their cost. Instead, by utilizing price points in clever ways within your segmentation, you can assign bids based on the potential conversion values of the products, optimize ad spend and keep your other KPI’s on track!

2. Performance Custom Labels

As a general statement, the Law of the Vital Few states that 80% of the results can be attributed to 20% of the causes. Applied to eCommerce, this means 80% of revenue on sales come from approximately 20% of products. Finding this magical 20% is far from magical, it can be done with performance custom labels!

Typically, one can decide on cut-offs for poor/good/best performers based off of Adwords metrics, create a list and tediously label each one of these manually. With Feedonomics, we offer an all-in-one vertically integrated process and also automate it so that it becomes a dynamic solution that adjusts with new data.

In Feedonomics, you can effortlessly create custom labels based on actual performance metrics like ROAS (Return On Ad Spend), and CPA (Cost Per Acquisition)

3. Sale Custom Labels

The last custom label you should be doing is based on sale items. By tagging items as on sale, you can increase the bids, as these items are far more likely to convert with the price discount.

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