{"id":623033,"date":"2024-06-04T17:00:00","date_gmt":"2024-06-04T14:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/4-performance-max-segmentation-strategies-and-how-to-leverage-them\/"},"modified":"2024-06-04T17:00:00","modified_gmt":"2024-06-04T14:00:00","slug":"4-performance-max-segmentation-strategies-and-how-to-leverage-them","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/4-performance-max-segmentation-strategies-and-how-to-leverage-them\/","title":{"rendered":"#4 Performance Max segmentation strategies and how to leverage them"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e5b94c5ec7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e5b94c5ec7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/4-performance-max-segmentation-strategies-and-how-to-leverage-them\/#Learn_the_pros_and_cons_of_common_Performance_Max_segmentation_strategies_along_with_tips_to_determine_the_best_approach_for_your_account\" >Learn the pros and cons of common Performance Max segmentation strategies, along with tips to determine the best approach for your account.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/4-performance-max-segmentation-strategies-and-how-to-leverage-them\/#1_Top_performerhigh_margin_segmentation\" >1. Top performer\/high margin segmentation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/4-performance-max-segmentation-strategies-and-how-to-leverage-them\/#2_Product_type_segmentation\" >2. Product type segmentation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/4-performance-max-segmentation-strategies-and-how-to-leverage-them\/#3_Brand_and_non-brand_segmentation\" >3. Brand and non-brand segmentation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/4-performance-max-segmentation-strategies-and-how-to-leverage-them\/#4_Customer_segmentation_based_on_nCACLTV\" >4. Customer segmentation based on nCAC\/LTV<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/4-performance-max-segmentation-strategies-and-how-to-leverage-them\/#Two_Performance_Max_must-haves\" >Two Performance Max must-haves<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/4-performance-max-segmentation-strategies-and-how-to-leverage-them\/#Enhance_your_Performance_Max_campaigns_through_segmentation\" >Enhance your Performance Max campaigns through segmentation<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Learn_the_pros_and_cons_of_common_Performance_Max_segmentation_strategies_along_with_tips_to_determine_the_best_approach_for_your_account\"><\/span>Learn the pros and cons of common Performance Max segmentation strategies, along with tips to determine the best approach for your account.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"bialty-container\">\nWhile auditing PPC accounts from agencies, freelancers and in-house teams, I\u2019ve found that Performance Max campaigns typically fall into one of four categories.<\/p>\n<p>Below, I\u2019ll break down each category, discuss their pros and cons and share some insider tips on how we run our accounts. This should help you make the most of opportunities in the Performance Max auction.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-1-top-performer-high-margin-segmentation\"><span class=\"ez-toc-section\" id=\"1_Top_performerhigh_margin_segmentation\"><\/span>1. Top performer\/high margin segmentation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>By far and away, the most common structure our audits uncover is a focus on \u201ctop products.\u201d Many advertisers work under the assumption that they should focus their advertising on the products they sell the most. Sure, they have other products in their catalog, but they may not want to advertise all of them.\u00a0<\/p>\n<p>By segmenting products into \u201ctop performer\u201d and \u201clong-tail\u201d campaigns, you can artificially force Performance Max to spend more on top-performing products by setting lower ROAS targets. This can cut down on the time it takes for Performance Max to learn what products are good versus bad.<\/p>\n<p>This <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach sometimes works, but it is usually driven by bad assumptions:\u00a0<\/p>\n<ul>\n<li>The product clicked is not necessarily the product purchased. Our internal research determines cross-sell rates to most commonly sit at ~70%. By forcing Google to show the product you want to sell instead of the product they want to show, CPCs often rise, while CTRs decrease.<\/li>\n<li>Assigning queries to the most appropriate product is vital to success in shopping. For instance, the top products for shoe retailers may be Nike, Adidas and HOKA. However, a New Balance search should turn up a New Balance sneaker. Forcing top products likely means they\u2019ll be the only retailer in the SERP showing a Nike shoe on a New Balance search. They\u2019ll lose the click along with a long-tail sale opportunity.<\/li>\n<li>A common mistake we uncover is when advertisers fail to segment asset groups by product type. If your top products segment contains products from multiple categories or brands, use asset groups to make sure ad creative and copy make sense. Otherwise, you could end up with ads that talk about women\u2019s apparel but show images of men\u2019s products, like this one:<\/li>\n<\/ul>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"381\" height=\"484\" alt=\"Cycling apparel ad\" class=\"wp-image-442870\" srcset=\"https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Cycling-apparel-ad.png.webp 381w,https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Cycling-apparel-ad-266x338.png.webp 266w,https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Cycling-apparel-ad-89x113.png.webp 89w\" data-lazy-sizes=\"(max-width: 381px) 100vw, 381px\" src=\"https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Cycling-apparel-ad.png.webp\"><img fetchpriority=\"high\" decoding=\"async\" width=\"381\" height=\"484\" src=\"https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Cycling-apparel-ad.png.webp\" alt=\"Cycling apparel ad\" class=\"wp-image-442870\" srcset=\"https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Cycling-apparel-ad.png.webp 381w,https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Cycling-apparel-ad-266x338.png.webp 266w,https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Cycling-apparel-ad-89x113.png.webp 89w\" sizes=\"(max-width: 381px) 100vw, 381px\"><\/figure>\n<\/div>\n<h2 class=\"wp-block-heading\" id=\"h-2-product-type-segmentation\"><span class=\"ez-toc-section\" id=\"2_Product_type_segmentation\"><\/span>2. Product type segmentation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The second most common structure is a strategy that groups like products together. Operating this way ensures that asset groups are relevant, with budgets and promotions easily managed. This structure keeps seasonal demand trends groups. Additionally, it enables maximally relevant auction insights.<\/p>\n<p>Not only does this structure keep data clean and assets relevant, it is probably one of the easiest to execute. However, it fails to consider business contexts surrounding margins, call center sales volumes, customer types and more.<\/p>\n<p>Moreover, a common mistake we find is when people quickly use feed product types to segment all products into campaigns and send them live. While this is an easy approach, adding a layer of data analysis before you launch is worth the extra step.<\/p>\n<p>Performance Max requires sufficient signal volume to be successful. Examine the historical performance of your products, and you may discover smaller categories with insufficient volume to stand on their own. These may need to be grouped with other long-tail categories to be successful. Just be sure to use asset groups to keep ad copy cleanly segmented.\u00a0<\/p>\n<p><strong><em>Dig deeper: <\/em><\/strong><strong><em>The Performance Max playbook: Best practices and emerging tactics for 2024<\/em><\/strong><\/p>\n<p><!-- START INLINE FORM --><\/p>\n<p><!-- END INLINE FORM --><\/p>\n<hr class=\"wp-block-separator has-text-color has-cyan-bluish-gray-color has-css-opacity has-cyan-bluish-gray-background-color has-background\">\n<h2 class=\"wp-block-heading\" id=\"h-3-brand-and-non-brand-segmentation\"><span class=\"ez-toc-section\" id=\"3_Brand_and_non-brand_segmentation\"><\/span>3. Brand and non-brand segmentation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>I don\u2019t commonly see this structure in account audits, possibly because implementing it is a little more complex. <\/p>\n<p>That said, it\u2019s a common recommendation from self-appointed experts on LinkedIn who claim Google inflates Performance Max\u2019s performance by including branded traffic. While it is true that Performance Max runs on branded content, I don\u2019t believe it is as big an issue as it is often made out to be.<\/p>\n<p>Performance Max\u2019s branded search traffic in the shopping network is a good volume that does not cannibalize any organic traffic (besides negligible free listing clicks).\u00a0<\/p>\n<p>However, some advertisers take issue with Performance Max running branded text ads that they\u2019d rather run through existing search campaigns. However, since Performance Max <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/support.google.com\/google-ads\/answer\/2756257?sjid=16094952309928770208-NC\"><strong>cannot<\/strong><\/a> run a search ad if the user\u2019s query exactly matches the text of any keyword you have built, this should not be a problem.<\/p>\n<p><strong>Note: <\/strong>This has nothing to do with \u201cexact match\u201d the match type.<\/p>\n<p>So, either:<\/p>\n<ul>\n<li>You <strong>have <\/strong>built a sufficient breadth of branded keywords, including any variants and\/or misspellings with significant volume, and there is no problem.<\/li>\n<li>You <strong>have not <\/strong>built a sufficient breadth, and Performance Max is entering the auction with your search campaign and, due to higher ad rank, is entering the auction with a lower CPC than your branded campaign. You just saved money.<\/li>\n<\/ul>\n<p>That said, this does become an issue when Performance Max is limited by budget and is forced to run a lot of branded text ads because of a bad search build. This will leave Performance Max with no budget for shopping, which will definitely hurt performance.\u00a0<\/p>\n<p>If you build a high-quality, comprehensive branded search campaign, you don\u2019t have a problem.\u00a0<\/p>\n<p>The positive aspect of this strategy is that it can fix problematic Performance Max\/Search overlap in poorly built and managed accounts. It can also segment brand and non-brand in shopping in case ROAS targets, budgets or other campaign-level settings must differ between brand and nonbrand.<\/p>\n<p>However, this strategy often solves a problem that doesn\u2019t exist. This causes data to be segmented between more campaigns, often leading to less revenue at the same efficiency. Also, the brand is usually recommended to be run on standard shopping, which again nets less revenue at the same efficiency.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-4-customer-segmentation-based-on-ncac-ltv\"><span class=\"ez-toc-section\" id=\"4_Customer_segmentation_based_on_nCACLTV\"><\/span>4. Customer segmentation based on nCAC\/LTV<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This is the least common structure I see in audits. When I do, it often has significant errors due to its complexity. The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> idea is to build Performance Max based on a customer acquisition strategy informed by new customer acquisition cost (nCAC) and lifetime value (LTV).<\/p>\n<p>This strategy enables advertisers to justify higher CPAs by understanding the true value of a purchase beyond the average order value. This way, Performance Max algorithms bid to the value of the consumer rather than the value of the transaction.\u00a0<\/p>\n<p>This helps them win more of the right auctions that help businesses grow long-term. By emphasizing high-value new customers, Performance Max can support the growth of more efficient channels like email, branded search and direct load.<\/p>\n<p>However, this strategy ultimately enables lower ROAS in-platform and can significantly squeeze margins. This can be particularly difficult in the short term if you use a long payback window in your LTV calculation, creating a cash crunch that requires advertisers to level up their understanding of the whole sales practice.<\/p>\n<p>Yet, those who can pull off this strategy will go the furthest, the fastest. However, an expert must implement this strategy because it can quickly get out of hand, squeezing margins beyond profitability. Proceed with caution.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-two-performance-max-must-haves\"><span class=\"ez-toc-section\" id=\"Two_Performance_Max_must-haves\"><\/span>Two Performance Max must-haves<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With that, I\u2019ll leave you with a few must-haves, regardless of what strategy you choose:\u00a0<\/p>\n<ul>\n<li><strong>Zombie SKU campaigns<\/strong>: These campaigns are filled with products that are the \u201cliving dead.\u201d They are active, in stock and eligible to serve but get very few (or 0) clicks. Sometimes, these products don\u2019t get the attention they should get from bid algorithms due to low historical volume. By separating them into their own campaign, the algorithm is forced to test them. Occasionally, a winner that adds meaningful incremental volume will emerge.<\/li>\n<li><strong>Catch-all<\/strong>: Set to low priority, this campaign helps ensure you aren\u2019t missing anything in your build. Sometimes, existing targeting will not pick up new products that are added. Incorporating this campaign and monitoring volume pick-up helps you take advantage of products as soon as they hit the catalog, whether you\u2019ve been kept in the loop or not.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\" id=\"h-enhance-your-performance-max-campaigns-through-segmentation\"><span class=\"ez-toc-section\" id=\"Enhance_your_Performance_Max_campaigns_through_segmentation\"><\/span>Enhance your Performance Max campaigns through segmentation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Performance Max has come a long way since its debut in late 2021. As an out-of-the-box solution, it works reasonably well for advertisers.\u00a0<\/p>\n<p>Smart Bidding and Smart Campaigns have largely commoditized both bidding and budget allocation. As a result, a major way to win in modern Google Ads is through structuring that gives Performance Max the best signal quality and volume. Get out there and win.\n<\/p><\/div>\n<p><\/p>\n<div class=\"about-author\">\n    About the author<\/p>\n<div class=\"information\">\n<div class=\"author-module\">\n<div class=\"row\">\n<div class=\"col-12 col-lg-3 text-center\">\n<div class=\"avatar\">\n                        <img loading=\"lazy\" decoding=\"async\" class=\"img-fluid rounded-circle avatar-border\" alt=\"Matt Bowen\" width=\"140\" height=\"140\" src=\"https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Matt-Bowen.png.webp\"><img loading=\"lazy\" decoding=\"async\" class=\"img-fluid rounded-circle avatar-border\" src=\"https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/Matt-Bowen.png.webp\" alt=\"Matt Bowen\" width=\"140\" height=\"140\">\n                                            <\/div>\n<\/p><\/div>\n<div class=\"col-12 col-lg-9\">\n<div class=\"about\">\n<div class=\"name\">\n                            <strong>Matt Bowen<\/strong>\n                        <\/div>\n<div class=\"row g-2 pt-2\">\n<div class=\"col-auto\">\n                                    <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.linkedin.com\/in\/matt-bowen-digitalmarketing\/\" aria-label=\"opens in a new tab\"><i class=\"fab fa-linkedin\"><\/i><\/a>\n                                <\/div>\n<\/p><\/div>\n<div>Matt Bowen is the Director of Enterprise Acquisition &amp; Strategy at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.logicalposition.com\/freereview?utm_source=SEL&amp;utm_medium=referral&amp;utm_campaign=bowen_SEL\">Logical Position<\/a>. Matt has spent 7 years managing Google Ads strategy for some of the largest firms in North America. He also runs strategy for Logical Position\u2019s entire book of business which represents the largest agency client count in North America. Logical Position is a multi-time Google Premier Partner Award winner and Microsoft Channel Partner of the Year Award winner.<\/div>\n<div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology<\/a><\/span> category.<\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/searchengineland.com\/performance-max-segmentation-strategies-442868\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn the pros and cons of common Performance Max segmentation strategies, along with tips to determine the best approach for your account. While auditing PPC accounts from agencies, freelancers and in-house teams, I\u2019ve found that Performance Max campaigns typically fall into one of four categories. Below, I\u2019ll break down each category, discuss their pros and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":623034,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/searchengineland.com\/wp-content\/seloads\/2024\/06\/4-Performance-Max-segmentation-strategies-and-how-to-leverage-them-800x450.png","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[142591,107942],"class_list":["post-623033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-google-ads","tag-ppc"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/623033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=623033"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/623033\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/623034"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=623033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=623033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=623033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}