The SKU Segmentation Framework for Shopping + PMax

Segmentation is the difference between letting Google spend your budget and directing Google to spend your budget on what matters. Here's the framework we use for multi-SKU ecommerce brands.

Why Segmentation Matters More Than Ever

Google's automation pushes toward consolidation. Fewer campaigns, broader targeting, let the algorithm figure it out. That's great for Google's efficiency. It's often terrible for your profitability.

Without segmentation, you can't apply different strategies to different products. You can't scale heroes while protecting margin. You can't liquidate clearance without dragging down your premium line.

The Four Segmentation Dimensions

Implementing in Shopping Campaigns

For Standard Shopping, segment using product groups based on custom labels. Create separate campaigns for each major segment with appropriate budgets and targets:

• • High Margin Heroes: Maximum budget, aggressive tROAS
• • Profit Performers: Steady budget, efficient tROAS
• • Liquidation: Flexible ROAS, cash recovery focus
• • Low Margin: Minimal budget, high tROAS or excluded

Implementing in Performance Max

PMax makes segmentation harder but not impossible. Use asset groups to segment by product type, with listing groups filtering by custom label:

• • Separate PMax campaigns for major segments (heroes, performers, liquidation)
• • Use listing groups to control which products appear in each asset group
• • Apply different signals via audience signals per segment

The Feed Foundation

All segmentation starts in your product feed. You need custom labels that reflect commercial reality, not just product taxonomy. This requires ongoing updates as margin, inventory, and strategy change.

A product that was "Scale" three months ago might be "Liquidation" today. Your labels need to keep up.