Performance Max Integration

While Performance Max (PMax) campaigns are highly automated, their success still significantly depends on the quality of signals you provide them, especially through strategic segmentation of the product feed. Custom Labels generated by Karsa Labelizer are a key tool for effectively structuring your PMax activities.

Why is feed segmentation important for PMax?

• Providing stronger signals to Google AI: Clearly defined product groups (Karsa clusters) help AI in PMax better understand the characteristics and performance potential of your inventory.

• More targeted strategies: Allows you to customize your approach to different segments of your portfolio even within the automated PMax environment.

Preferred Strategy: Multiple Separate PMax Campaigns

For maximum control and strategic flexibility, we recommend considering creating multiple separate PMax campaigns, where each campaign will focus on one or more logically related Karsa clusters. This approach will provide you with the best options for managing budgets and performance goals.

Procedure and Key Benefits of Separate PMax Campaigns:

1. Creating dedicated PMax campaigns:

   • For each key product segment you've identified using Karsa Labelizer (represented by one or more Karsa clusters), create a separate PMax campaign in Google Ads.

   • For example:

     • PMax Campaign A: Targets products from the cluster mycompany_TopPerformers

     • PMax Campaign B: Targets products from the cluster mycompany_StablePerformance

     • PMax Campaign C: Targets products from the cluster mycompany_NewProducts

2. Filtering products using Custom Labels:

   • In the settings of each PMax campaign created this way, filter products through Listing Groups so that the campaign contains only items with the appropriate Custom Label values from Karsa. Exclude other products from that campaign.

3. Benefits of this approach:

   • Maximum control over budgets: For each strategic segment (Karsa cluster), you can set a completely separate daily or shared budget. This is key if you want to invest more aggressively in the highest-performing segments or, conversely, limit spending on less priority ones.

   • Specific ROAS/CPA targets per campaign: Each PMax campaign can have its own target return on ad spend (tROAS) or cost per acquisition (tCPA) that exactly corresponds to the margins and strategic goals of that product segment.

   • Dedicated Asset Groups and audience signals: For each PMax campaign (and thus for each main Karsa segment), you can create tailor-made sets of creative assets (texts, images, videos) and provide specific audience signals that are most relevant to that group of products and its customers.

   • Clearer reporting and analysis: Tracking and evaluating the performance of several clearly defined PMax campaigns (each for a different Karsa segment) is often easier and provides more readable data than analyzing many Listing Groups within one extensive PMax campaign.

   • Controlled learning phase: When gradually deploying new segments or with major changes in the assortment, launching a new, separate PMax campaign allows better isolation and monitoring of its initial learning phase.

Alternative Strategy: Segmentation Within One PMax Campaign

If you prefer a more consolidated approach or have a smaller number of distinctly different segments, it is still possible to use Custom Labels for segmentation of Listing Groups within one (or a smaller number of) PMax campaigns.

• Procedure: Within an Asset Group, divide the inventory according to Custom Label.
• Customization: You can create multiple Asset Groups and target each to different Listing Groups (Karsa clusters) with different creatives.

• Limitations: This approach does not provide the same level of control over budgets and ROAS/CPA targets at the level of individual Karsa segments as separate campaigns.

General Recommendations for PMax and Karsa Labels:

• Quality signals: Custom Labels from Karsa are a strong signal for AI in PMax.
• Optimal number of segments: Karsa Labelizer helps you find the appropriate number of clusters, which is important for effective learning of PMax algorithms.
• Testing: Consider testing both approaches (multiple campaigns vs. segmentation within a campaign) to determine which strategy best suits your goals and assortment.

For most situations where granular control over budgets and performance goals for different product segments is required, the strategy of separate PMax campaigns based on Karsa clusters provides a more robust and transparent solution.

By using Custom Labels from Karsa Labelizer for intelligent structuring of your PMax campaigns, you provide Google AI with more precise information, which can lead to more effective targeting and better overall results.