In this overview, we will explain how to set up the Producthero Labelizer Strategy in the Producthero Platform.
Watch our video explaining how to do this, or follow the steps in this guide.
Topics covered in this guide:
Producthero target ROAS
Number of Clicks
Daily budget Advice
Go to advertising by clicking the megaphone in the left menu.
Once you’ve arrived at Advertising you will see that a Producthero Labelizer Strategy exists for all products.
Your current Producthero Strategy settings
Go to Edit Strategy to change your Producthero Strategy.
Your Producthero strategy determines how your products will be distributed over the four labels. This includes your Producthero target ROAS and the number of clicks.
Date range: Most retailers use the last 30 days as a reference period. If you have very little conversion data, selecting the last 60 days might be better. By clicking the pencil next to the number of days you can edit your conversion period.
1. Producthero target ROAS
Looking at the Producthero target ROAS you’ll see a set percentage and a percentage with the Google Ads logo next to it.
Producthero target ROAS: this is the ROAS you set in the Producthero Platform for the distribution of your labels. You can edit the Producthero target ROAS by clicking the pencil.
Actual ROAS in Google Ads: this is the actual ROAS percentage coming from the previous 30 days in Google Ads.
Best practice: Set your Producthero target ROAS 25% lower than your actual ROAS
Why? By doing this you take conversion lag into account
Setting a high Producthero Target ROAS will result in having more products labeled as Zombies and Villains. On the other hand, setting a low Producthero Target ROAS will result in having more products labeled as Heroes and Sidekicks.
2. Number of clicks
Just like the Producthero target ROAS, the number of clicks determines whether your products will be labeled as Heroes & Villains, or as Sidekicks & Zombies. When setting the number of clicks, we advise using the average number of clicks needed to get a conversion in the last 30 days, as a point of reference:
Setting a low Number of Clicks will result in having more products labeled as Heroes and Villains. On the other hand, setting a high Number of Clicks will result in having products labeled as Simbdekicks and Zombies.
Note: The number of clicks highly depends on the performance of your Google Ads account. In general products of €1,000 need a lot more clicks to get a conversion, while products of €25 might need a lot less on average.
3. Daily budget advice
Click on "Next Step" and you'll enter the Summary page. This page presents the daily budget advice that you can incorporate into your Google Ads campaigns. These recommendations are based on the Producthero Labelizer strategy you've recently established, combined with your historical costs.
Regard this guidance as a reference point, while also factoring in any seasonal influences and your overall available budget.
Note: Does your budget advice look different from the example in this guide? That could be the case. We base our budget advice on your historical costs. See the formula below for how we calculate budget advice.
We have set multipliers which you can use to determine your budget (see table below). The calculation works as follows:
Monthly budget = cost x multiplier
Daily budget = monthly budget / 30. 4
Monthly budget Heroes: €817 (cost) x 2 (multiplier) = €1634.
Daily budget Heroes: €1634 / 30.4 = €54.
Label | Cost (last 30 days) | Multiplier (fixed) | Monthly budget | Daily budget |
Heroes | €817 | 2 | €1634 | €54 |
Sidekicks | €558 | 2 | €1116 | €37 |
Villains | €532 | 0.5 | €266 | €9 |
Zombies | €854 | 1.5 | €1281 | €42 |