How we used segmentation to increase the effectiveness of ads by 20 %

Our goal was to divide the PMAX campaigns so that there was no uneven display of products and thus possible loss of conversions. PMAX displays the best performing products at the expense of less profitable ones and in some cases can rob the client of potential conversions.  

This time, the outputs directly in Google Ads will not help us, because the data that needs to be compared is not available in any reports. You need to use Excel and your own script.  

You need to add up the number of views of all products from individual categories and evaluate the most and least viewed categories. For everything to work correctly, one thing is important - the category in the feed must correspond to the Google specification (https://support.google.com/merchants/answer/6324436?hl=cs).  

What was the procedure like? 

1. Export 

From the PMAX campaign in the products section, we set the columns for export to three important ones for us – product, number of views and product category. For adequate relevance of the data, we used statistics for the last 60 days. In order for the analysis to make sense and have sufficient informative value, it is necessary to work with a feed that contains at least 500 products. 

2. Processing 

Using advanced functions in Excel and a script in, for example, R studio, you can find out the correlation of views across categories. The RStudio application is a development environment that is mainly used in the academic and scientific spheres for working with statistical data analysis and their graphical display. 

3. Visualization 

As the output, we chose to display the results in a graph. At a glance, it is clear which category PMAX is neglecting, which is the most powerful, and therefore where there are opportunities to increase conversions. 

4. Interpretation

 The non-display of products can also be caused by a low search volume, i.e. low demand. In this case, the client used the analysis as a basis for further work with the categories of his e-shop - which to cancel, which to expand and whether new ones need to be added. By the way, this is another confirmation that a PPC specialist is not an ad group clicker, but a marketing and business consultant. You must feel his contribution in this area as well. 

Result 

Evaluating the results and changing display settings in PMAX campaigns brought our client an increase in sales by 17 % within 30 days. In addition to adjusting the campaign settings, you can also use the results chart to supplement the product range and manage stock.