Glossary
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Last updated
Welcome to the Karsa Labelizer glossary. This section provides more detailed explanations of key terms you may encounter when working with our tool, in the areas of Google Ads, product advertising, and data analysis. If you don't find a term here, also check the .
AI (Artificial Intelligence) : A broad field of computer science concerned with creating systems that exhibit intelligent behavior. In the context of Karsa Labelizer, AI is primarily used for advanced analysis of product data and automated creation of optimal segments (clusters) using machine learning algorithms.
API (Application Programming Interface) : A set of definitions, protocols, and tools for building software and applications. It allows different software systems to communicate with each other and exchange data. Karsa Labelizer can use APIs to download data from Google Ads or to receive order data from clients.
Attribution / Attribution Model : The process of assigning credit for conversions to various marketing channels, ads, or interactions that contributed to a customer's conversion journey. Google Ads offers various attribution models (e.g., Last Click, Data-Driven) that can affect how conversions are reported.
Break-even ROAS
: The minimum ROAS value at which your advertising costs equal your margin from sold products, so you're neither making a profit nor a loss from advertising expenditure. Calculation: 1 / Percentage margin. For example, if you have a 25% margin (0.25), your break-even ROAS is 1 / 0.25 = 400%.
Cluster : The result of the clusterization process; a group of products that have been grouped together based on analysis of their similarity within chosen performance metrics (parameters). In Karsa Labelizer, each cluster typically corresponds to one future Google Shopping campaign or a specific product segment.
Clusterization (Clustering) : A method of unsupervised machine learning aimed at dividing a set of data points (in our case, products) into groups (clusters) so that data points within one cluster are as similar as possible and at the same time as different as possible from data points in other clusters. Karsa Labelizer automates this process for product segmentation optimization.
Cluster Designer : The main tool (module) in Karsa Labelizer where users define all criteria, parameters, limits, and settings for creating a new clusterization (product segmentation design).
CPC (Cost Per Click) : The average amount you pay for one click on your ad. It is calculated as Total Cost / Total Number of Clicks.
CTR (Click-Through Rate) : The percentage of ad impressions that resulted in a click on your ad. It is calculated as (Total Number of Clicks / Total Number of Impressions) * 100%. It's an indicator of the relevance and attractiveness of your ad.
Custom Label
: The attributes custom_label_0 through custom_label_4 in Google Merchant Center that allow advertisers to add custom text values to products for segmentation and reporting purposes. Karsa Labelizer uses these labels to mark a product's affiliation with a generated cluster.
Dynamic Product Movements : A feature of Karsa Labelizer that automatically moves products between clusters based on current changes in their performance, with the aim of maintaining optimal and consistent segmentation. This process is governed by adjustable limits.
Feed (Product Feed) : A file (usually in XML, TXT, CSV format, or via API) containing structured information about your products (ID, title, description, price, image, availability, etc.). This feed is uploaded to Google Merchant Center and serves as a data source for Google Shopping and PMax campaigns.
GMC (Google Merchant Center)
: An online tool from Google where e-commerce stores upload and manage their product data (feeds) and information about their store. Data from GMC is essential for displaying product ads. Karsa Labelizer exports Custom Labels to GMC.
Cluster Consistency : A metric (often internal to Karsa Labelizer) evaluating how similarly and stably products assigned to one cluster behave in terms of chosen performance parameters over time. Higher consistency is desirable because it leads to better campaign predictability.
Conversion : An action that you consider valuable for your business and that you want users to take on your website after clicking on an ad (e.g., purchase, submitting an inquiry form, registration). Google Ads tracks conversions using measurement codes.
Conversion Rate (CR) : The percentage of ad clicks that led to a completed conversion. It is calculated as (Number of Conversions / Number of Clicks) * 100%. A key indicator of campaign effectiveness and landing page quality.
Machine Learning (ML) : A subset of artificial intelligence that enables systems to learn from data and improve their predictions or decisions without being explicitly programmed for each specific scenario. Karsa Labelizer uses ML for creating clusters.
Performance Metrics : Quantifiable indicators used to measure and evaluate the performance of marketing activities, campaigns, ad groups, keywords, or individual products. Examples include ROAS, CPC, CTR, Conversion Rate, Conversion Value, Number of Conversions, Impressions, Clicks.
Operation Manager : A module in Karsa Labelizer that displays the status and progress of operations running in the background, typically the process of creating a clusterization.
PLA (Product Listing Ads) : A type of ads in Google Ads, commonly known as Google Shopping ads. They display product information (image, title, price, seller) directly in Google search results and on the Shopping tab.
PMax (Performance Max campaigns) : An automated campaign type in Google Ads that uses AI to display ads across all available Google channels (Search, YouTube, Display Network, Discovery, Gmail, Maps, Shopping) from a single campaign.
Campaign Predictability : The ability (especially of Google AI) to reliably predict future campaign performance (e.g., how many conversions it will bring at a given budget and goal). Higher predictability, which is aided by a consistent product structure in the campaign, enables more efficient automatic optimization.
ROAS (Return On Ad Spend) : A metric that measures the gross revenue generated from each dollar (or other currency) spent on advertising. It is calculated as (Total Conversion Value / Total Advertising Cost) * 100% (if expressed as a percentage).
Product Segmentation : The strategic process of dividing a product catalog into smaller, more manageable, and targetable groups based on shared characteristics or performance metrics.
Smart Bidding : A set of automated bidding strategies in Google Ads (e.g., Target CPA, Target ROAS, Maximize Conversions, Maximize Conversion Value) that use machine learning to optimize bids in real-time for each auction with the aim of achieving set goals.
Stabilization Value : An internal metric or chosen parameter in Karsa Labelizer, the value of which for the entire cluster is maintained within certain percentage limits during dynamic product movements to ensure stability of the cluster's character and performance.
This glossary will be continuously updated with additional relevant terms. If you come across a term you don't understand or think should be included here, please let us know.