Single Product Ad Groups: Transforming Google Shopping Campaigns (2023)

If you’ve read our blog before, you probably already know that KlientBoost is all about Single Keyword Ad Groups (SKAGs) for B2B brands (Business to Business) investing in pay-per-click ads.

But most of my clients are eCommerce vendors in the B2C space (Business to Consumer).

So what’s the SKAGs equivalent for B2C vendors, I wondered? And would that SKAGs equivalent be just as effective?

The answer is Single Product Ad Groups (SPAGs)—another term coined by KlientBoost (SKAGs is our baby, too).

To demonstrate SPAGs, I’m going to turn to Sponge Bob Square Pants. Specifically, the secret Krabby Patty formula.

Like Krabby Patties, Google Shopping campaigns also have a secret formula that makes them juicier, with results like this:

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Single Product Ad Groups: Transforming Google Shopping Campaigns (1)

Introducing SPAGs

SPAGs are the Google Shopping equivalent of SKAGs. It’s a special sauce that makes it easy for you to know what products trigger what searches, and how much money your individual products make.

This probably sounds familiar if you’ve run a brick-and-mortar business. If you own a premier restaurant like the Krusty Krab, for example, you definitely know how much each item on your menu earns and how much it costs to make it (your margin).

Similarly, SPAGs are the best way to get your campaigns relevant traffic and streamline your bidding strategy. SPAGs make sure you don’t bid more than what a product is actually worth, and that you focus on products that make money.

Let’s dive into this secret optimization formula.

What are Single Product Ad Groups?

In your Shopping campaign, SPAGs are ad groups that contain one product.

More importantly, SPAGs are a way to gain more control and coax better performance from your shopping campaigns.

With this approach, your products (in the Google Merchant Center) appear in relevant search queries and the bids associated with each of your products make sense.

If your Shopping campaigns aren’t organized by relevant themes and profitability, this leads to a chaotic situation I call “The Mob Effect.”

You don’t need an Al Capone documentary, an Al Pacino movie, or even a note from Spongebob to know that mobs aren’t exactly a good thing.

But it’s important to note that Google Shopping mobs play out like real-life mobs—you’re left with a big, expensive mess.

The mess in your Shopping campaigns is a smorgasbord of search terms whose profitability you can’t tie to a single product. The profitable terms are mixed in with potentially low-performing products that drain your PPC budget.

(Video) Google Shopping Ads Strategy: Convert Cold Traffic (Fast)

Clearly, mob invasion isn’t ideal. To avoid the Mob Effect, let’s look at an example of a SPAG.

Naming your SPAGs

The two strongest product-level identifiers are

  • item ID (product ID)
  • name

Say one of the items in your catalog is a Krabby Patty.

Item ID: KP1

Your ad group should be named:

KP1 – Krabby Patty

Keep it simple; know what the product is at a glance.

Single Product Ad Groups: Transforming Google Shopping Campaigns (2)

On top of that, SPAGs make it easy to see what specific products attract search terms.

Benefits of SPAGs

Google Shopping ad campaigns don’t provide control at the keyword level. Not the same way that Google does on other platforms.

The search terms you pay for are determined by the quality of data in your product feed. You might be surprised by the search terms your products bring in.

You might discover opportunities to improve your product titles or other elements in your campaign.

Creating SPAGs makes it easy to see the search terms each of your products trigger and the revenue associated with those search terms by product.

SPAGs helps you weed out irrelevant terms.

When you optimize your product data around your shopping campaign’s most profitable search terms, you overcome the most difficult part of Shopping campaigns: the fact that you can’t target keywords in Google Shopping.

The one exception: when you shouldn’t rely solely on SPAGs

Blanket statement: SPAGs are awesome and you should rely on them.

🚨👉 But there’s one exception.👈🚨

If you sell 1-100 products, SPAGs will provide significant clarity on your product performance without getting too unwieldy.

But if you sell hundreds of products, or manage over a thousand SKUs, creating and maintaining SPAGs can become a logistical nightmare.

🚧 Analysis paralysis is real. 🚧

(Video) Best Google AdWords Campaign Structure - Structure Your Campaigns to Win

Ok, that’s dramatic. 🥸

But there is a law of diminishing returns. And generating an equal amount of traffic for every product isn’t your goal.

Your goal is to break up the mobs, discover which of your products sell best, and use them to drive sales.

Creating SPAGs makes that a lot easier for you.

If you manage thousands of SKUs, your Google Shopping-related time and energy is precious. In this case, the best returns will come from identifying top performers and keeping high-spending products with low returns (aka “mob products”) from running away with your budget and profits.

Here’s an example of what a top performer looks like:

Single Product Ad Groups: Transforming Google Shopping Campaigns (3)

Of the five highest-spending products, the one that spent the least actually out-earned the other four—combined.

If you manage thousands of SKUs, you’ll still want to protect outliers with higher revenue and return on ad spend from the mob.

The best way to do that is to stash those top performers in a unique campaign with their own dedicated budget. 🥳

Mic drop, right?

Let’s do that next.

How to create SPAGs

Now that we’ve established the value of SPAGs for one eCommerce product or a thousand, let’s talk about how to create your first Single Product Ad Group.

Google Ads

Go to the Products tab in Google Ads (formerly Google Adwords). You’ll find a list of all your products, which you’ll need to copy and paste into Excel.

Single Product Ad Groups: Transforming Google Shopping Campaigns (4)

For the sake of SPAGs, the two most relevant columns are Item ID and Title because these columns make up your ad group name.

Spreadsheet

When you paste your data into a spreadsheet, format it to look like this:

Single Product Ad Groups: Transforming Google Shopping Campaigns (5)

Now convert your Item ID and Title data into something the Google Ads Editor will recognize.

To do that, create these column headers:

  • Campaign
  • Ad Group
  • Max CPC

Now your product data should look like this:

(Video) Transform Your Google Shopping Campaigns into Relentless Profit Machines | 2020 Shopping Strategy

Single Product Ad Groups: Transforming Google Shopping Campaigns (6)

Generating SPAG names in Excel

You don’t have to manually add the Item ID and Title into one cell in Excel. There’s a secret formula for that too.

Here’s what the formula looks like when you’re done: =E2&“ - ”&F2

WTF, right?

Let’s walk through how to make this formula.

  • Go to the ad group column
  • select the Item ID first E2
  • Add an ampersand &
  • add a quote, a space, a dash, another space, and another quote (The spaces make the ad group name easier to read.) “ - ”
  • Add one more ampersand & followed by F2 to include the product title in the ad group name

Here’s what it looks like:

Single Product Ad Groups: Transforming Google Shopping Campaigns (7)

No matter how many ad groups you have, you only have to enter this formula once.

Drag it throughout your spreadsheet to create and organize as many ad group names as you want.

Now do something celebratory because of all the time you saved by reading this post.

Export your SPAGs

Now turn your spreadsheet data into a campaign with sets of ad groups.

  1. Open Google Ads Editor
  2. Go to the Ad Groups pane
  3. Click “Make Multiple Changes”
  4. Paste your data from the clipboard.
Single Product Ad Groups: Transforming Google Shopping Campaigns (8)

Before you upload your ad groups:

  • Go to the ads pane in Google Ads Editor
  • Scroll down to Shopping ads
  • Add a Shopping ad to all of the ad groups in your campaign

Now you’re ready to upload your campaign and ad groups to Google Ads. The last step is to add your product groups. These will serve as your actual targets.

When you create your first product group, Google Ads defaults to “All Products.” This is the exact opposite of what you want and has mob rule written all over it.

To turn this into a SPAG, click the + sign.

Subdivide by Item ID and select the designated product in your ad group name.

(Video) The $50M Google Shopping Ads Playbook (2021)

Happiness: Because you included the Item ID in your ad group name, you can copy it while you’re in the interface, bulk add it in the item ID selector, and instantly add the correct product.

At the end of the process, you’ll notice that even when we add the item ID, an “everything else” subcategory appears.

Aarrghh.

Sadness.

You’ll exclude this in every SPAG you make. Otherwise, you’ll end up back at square one: mob country.

Next steps for SPAGs

So you’ve set up your first SPAG, and you might be thinking, “That was a lot of steps for setting up SPAGs.” Yeppers. Setting up SPAGs is one of those time-consuming digital marketing strategies.

No one said taking down the mob was gonna be easy.

Depending on how many SPAGs you want to set up, you can set up a bulk sheet for that too.

The bulk sheet looks like this:

Single Product Ad Groups: Transforming Google Shopping Campaigns (10)

Using this format, when you create product groups you can exclude the “Everything else” product category in one upload—hooray—and shave considerable time off your SPAG creation.

Why SPAGs are worth it

Remember the example we looked at earlier, with five highest-spending products and one outlier whose revenue and ROAS outweighed the rest?

If you’re wondering how that whole situation played out, here’s what happened.

Single Product Ad Groups: Transforming Google Shopping Campaigns (11)
Single Product Ad Groups: Transforming Google Shopping Campaigns (12)

This is what it looks like when you break out of the Mob Effect.

You stop wasting money on products that don’t sell well on Google Shopping and use your top performers to drive growth.

Wrapping up Single Product Ad Groups

SPAGs take time to create. As a savvy marketer, that’s the price you pay. And they won’t transform your eCommerce store sales overnight. But once you do the heavy lifting, you’ll quickly start finding weaknesses in your shopping strategy that you hadn’t noticed before.

You’ll pick out the profitable products, make bid adjustments, monitor the metrics, and transform your Google Shopping campaigns for the better.

(Video) Are You Using The Right Data in Performance Max?

FAQs

How many ad groups are in a smart Shopping campaign? ›

The Smart Shopping campaign only allows one ad group per campaign.

Do Shopping campaigns have ad groups? ›

Ad groups in your Shopping campaign can help you organize bidding and access certain features. Depending on your goals, you might need more than one ad group to create the structure you want. This article will cover how ad groups work and how to add them to your Shopping campaign.

What's the purpose of products groups in a Shopping campaign? ›

In shopping campaigns, product groups are used to organize your inventory so you can place fewer bids on very similar products. It also helps you understand what search terms are being used. Because of this, you can make more informed decisions about your advertising.

What is the best way to structure Google Shopping campaigns? ›

Creating one Ad Group within a Google Shopping campaign and then subdividing by product group attributes such as Brand, Price and Category is a good place to start when you are getting to grips with Google Shopping.

How many ad groups per campaign should I have? ›

Because of this, we recommend having at least 3 ads in each ad group and using optimized ad rotation. The optimize setting will optimize your ads for clicks in each individual auction using signals like keyword, search term, device, location, and more.

How many ad groups are there in 1 campaign? ›

Did you know that a Google Ads account can contain as many as 10,000 campaigns (including active and paused campaigns) per account, 20,000 ad groups per campaign, and 50 text ads per ad group? That's a lot to manage!

What are product groups in Google Shopping? ›

Product groups in the Google shopping campaign houses all the products you listed in your product feed file. By default, an ad group of a shopping campaign contains one product group that lists all the products under it.

What is an ad group in Google Shopping? ›

You can use ad groups to structure a Shopping campaign for bidding. Ad groups let you use features like bid adjustments and negative keywords. If you include a product in multiple ad groups in the same campaign, the highest bid is used. You can use Product groups to subdivide and arrange your products under ad groups.

What is the difference between campaigns and ad groups? ›

The biggest difference is that ad groups are one level below campaigns in the account hierarchy. Campaigns directly control the goal and budget, while ad groups oversee the bids/CPC, audience/targeting, placement, and delivery options chosen to capture the audience.

What is a product group example? ›

A collection of such products is known as a "product group" or "product range". Good examples of product groups include: Apple's range of laptops (MacBook), desktops (iMac), tablets (iPad), smartphones (iPhone) and wearables (iWatch)

Why groups of customers are targeted for selected products? ›

Market Segmentation allows businesses to tailor the marketing mix for specific target markets, rather than offering the same marketing to vastly different products, making it easier to satisfy the customer's needs.

What's a benefit of Shopping ads? ›

The added benefit is you can utilize the keywords in your future products, content, or ad copies. Shopping ads also appear in image searches to increase their visibility on the search engine. Visibility and traffic from Shopping ads are customers with high purchase intent.

How can I improve my Google Shopping campaign performance? ›

10 Simple Tactics to Optimize Your Shopping Campaign
  1. Optimize your product feed.
  2. Optimize your campaign structure.
  3. Divide products into ad groups.
  4. Top vs. Other.
  5. Find your winners and losers.
  6. Exclude unprofitable products.
  7. Add negative keywords.
  8. Sub-divide negative keywords.

What is a good conversion rate for Google Shopping? ›

The average CTR of Google Shopping Ads is . 86% The average cost per click (CPC) of Google Shopping Ads is $0.66, which often yields exceptional profit for many brands. The average Google Shopping Ads conversion rate is 1.91%

What is the best bid strategy for Google Shopping ads? ›

Bidding Strategies
  • Maximise Clicks: This sets your bids to obtain the maximum amount of clicks possible for your target spend. ...
  • Enhanced cost-per-click (ECPC): This is designed to help boost your conversions for manual bidding by altering your manual bid if Google thinks it is more likely to result in a sale.

Should we create different ad groups for one single ad campaign? ›

Although, you can set up - same ads in multiple ad groups for a single campaign, it's usually a good practice to set up different variations of ads in multiple ad groups basis the theme of the products that you're trying to advertise. An ad group represents the structure of your website.

How many responsive ads can you have per ad group? ›

There's a limit of 3 enabled responsive search ads per ad group. If you have text that should appear in every ad, you must add the text to either Headline position 1, Headline position 2, or Description position 1.

How much should I spend on a retargeting campaign? ›

Typically, you want to spend 5%-10% of your Facebook ad budget for retargeting ads. While it's not a lot of your budget, it often results in 80% of the sales and results.

What is the minimum number of ad groups in Google Ads? ›

You should have at least 3 ads per ad group so that it can help the system to optimize the performance and you can also check which is working well for your audience. Paid advertising thrives on data, and the more data you can get, the better.

What are the 3 types of campaign? ›

The following are several types of marketing campaigns you can use to achieve various marketing goals within your organization: Traditional media campaign. Seasonal push campaign. Product launch campaign.

Is there a limit on ad groups? ›

A non-admin user can create a maximum of 250 groups in an Azure AD organization. Any Azure AD admin who can manage groups in the organization can also create unlimited number of groups (up to the Azure AD object limit). An Azure AD organization can have a maximum of 5000 dynamic groups.

How do I make a product group in Google Shopping? ›

Here are the steps to create product groups through the Google Ads UI. Create a new Shopping campaign for All Products. Create a new ad group. Click + next to All products to add a subdivision.
...
Manual steps
  1. Select Bulk add values manually.
  2. Add each subdivision (one item per line).
  3. Confirm the changes.

What are the types of Google ads Shopping ads? ›

You can advertise your shop and your products using 2 types of Shopping ads:
  • Product Shopping ads: These are created based on the product data that you submit in the Merchant Center. ...
  • Local inventory ads: These are created by combining product data and inventory data submitted in your Merchant Center account.

What does product group mean? ›

Product Group means a set of products that serve similar purposes and are similar in terms of use, or have similar functional properties, and are similar in terms of consumer perception; Sample 1Sample 2Sample 3.

What is an example of an ad group? ›

For example, let's say you sell desserts, beverages, and snacks on your website. For example, in the table below, each ad group contains a keyword list focusing on a product you'd sell. The keyword list in each ad group tells our system to show ads for these products only on websites related to them.

What is ad Group in Google Ads example? ›

An ad group contains one or more ads that share similar targets. Each of your campaigns is made up of one or more ad groups. Use ad groups to organize your ads by a common theme. For example, try separating ad groups into the different product or service types you offer.

How many types of ad groups are there? ›

Active Directory has two types of groups: Security groups: Use to assign permissions to shared resources. Distribution groups: Use to create email distribution lists.

What are the benefits of using multiple ad groups? ›

What's one benefit of creating multiple ad groups?
  • You can target specific ad groups into various Google networks.
  • You can break up keywords and ads into related themes.
  • You can set different budgets for each ad group.
  • You can pause specific keywords if they are not performing well.
22 Jul 2020

What are the 3 levels of the ad campaign? ›

#1: Choose a Campaign Objective Based on Your Goal

The structure of a Facebook advertising campaign consists of three levels: a campaign, an ad set, and an ad.

How are smart Shopping campaigns structured? ›

4 Steps to Smart Shopping Success
  1. Review your shopping feed and make sure it includes accurate data, sales columns and merchant center promotions.
  2. Lower your Smart Shopping campaign ROAS target to drive more sales volume and achieve a higher net profit.
19 Nov 2019

What does a smart Shopping campaign look like? ›

A Smart Shopping campaign automatically pulls product data from a feed and uses it to create Shopping ads specifically designed for your customers. Then, the campaign intelligently places these ads across different Google surfaces using bidding strategies that you choose.

How many types of groups are available in ad? ›

Active Directory has two types of groups: Security groups: Use to assign permissions to shared resources. Distribution groups: Use to create email distribution lists.

What are 3 smart Shopping tips? ›

Smart Shopping Tips
  • Think about some of the meals you will make.
  • Look at what you have on hand.
  • Write a list of what you need to buy.

How do I optimize Google smart Shopping campaign? ›

Follow these best practices for campaign optimisation to get the most out of your Smart Shopping campaigns.
  1. Conversion tracking. ...
  2. Remarketing tagging. ...
  3. Budget. ...
  4. Target ROAS. ...
  5. Product. ...
  6. Consider conversion value, not clicks. ...
  7. Seasonal and holiday events. ...
  8. Assessment.

What are the 5 elements of an ad? ›

5 Elements Of A Successful Ad
  • A Clearly Defined Target Audience. In order to create a successful ad, you need to know who you are speaking to, and ultimately, who you are selling to. ...
  • Value Proposition. ...
  • Quality Content and Design. ...
  • The Call-to-Action (CTA) ...
  • The Follow Up.
31 Oct 2022

What are the 4 elements of an ad? ›

Print advertisements usually contain four key elements: headline, copy, illustrations, and signature. Some advertisements also include the company's slogan, which is often presented with or near the signature.

What 5 strategies should you follow to be a smart shopper? ›

Smart shoppers
  • Ask yourself if you need it. This first point is vital. ...
  • Always compare prices. The Internet makes it's easy to compare prices at different outlets. ...
  • Take advantage of points or rewards. Smart shoppers look for the best possible deals, without forgoing quality. ...
  • Look at reviews. ...
  • Make purchases securely.

What is the difference between Google Shopping and smart shopping? ›

It uses Google's machine learning technology to optimize the Google Shopping campaign and maximize its reach and conversion rate. With Smart Shopping, the only two things a user has to decide on are the objective of the campaign and set up a budget. The rest of the process is taken care of by the technology.

What is the most important element when Optimising a Google Shopping campaign? ›

“You need to have well optimized, well-written titles and descriptions. Not only does Google use them to match your shopping ads to relevant search queries, but it's also your opportunity to introduce your brand and communicate your value proposition.”

What are the 3 most common group scopes used in Active Directory? ›

There are three group scopes in active directory: universal, global, and domain local.

Which ad group has the largest scope? ›

There are three types of groups in AD based on their scope, which are as follows: Domain local groups: Domain local groups are the groups where permissions are assigned. This is because these groups have the highest scope in terms of who can be members of this group.

Videos

1. Best Way To Optimise Performance Max Campaigns Right Now
(Aaron Young | 15,000Hr Google Ads Master)
2. Smart Shopping vs Standard Shopping Campaigns on Google Ads
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3. How to optimize Google Shopping Campaigns [Adjusting Product Group Bids]
(Online Retail Academy)
4. Rank Your Google Shopping Ad Higher With These Tips
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5. Shopping Advertising Exam Preparation Course
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6. Google Ad Group BEST Practices | How Set Up HIGH-CONVERTING Google Ad Group Tutorial
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