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Step 2: Confirm or adjust your strategy

How to set up the Producthero Labelizer Strategy in the Producthero Platform.

Updated over a month ago

Watch our video tutorial or follow the step-by-step guide below.

In the ‘Advertising’ tab of the Producthero Platform (see image below), click ‘Adjust Labelizer Strategy’ to customize the tool according to your goals. By default, a predefined strategy based on best practices is already in place, but you also have the flexibility to create your own strategy.

adjust your labelizer strategy in the Producthero Platform

Within this section, you will:

Set two thresholds that define how products are segmented into labels.

Select the custom label where the labels will appear in your feed.
Receive budget recommendations for each label to optimize ad spend.


Set the thresholds for your Labelizer Strategy

If you decide to set up your own strategy, you will need to adjust the 3 metrics that will determine the distribution of labels for your products: (1) PH Target TROAS, (2) Number of Clicks and (3) Date Range.

set up your labelizer strategy

1.Producthero TROAS:

Please keep in mind that the Producthero Target ROAS is not the same as the Target ROAS you set in Google Ads. It is simply a reference value used by the Labelizer to determine how products are labeled—it does not directly control bidding in Google Ads. (👉 How does the Labelizer work?)

📌 Best practice: Set your Producthero TROAS 25% lower than your actual ROAS

Why? (Click to expand)

Many purchases don’t happen immediately after a user clicks on an ad. This conversion lag means some products take longer to generate sales. By setting Producthero TROAS lower than your actual ROAS, you allow the Labelizer to account for these delayed sales. This prevents well-performing products from being mistakenly labeled as poor performers just because they take longer to sell.

2.Number of clicks

This setting defines how many clicks a product needed in the selected date range to get a conversion.

📌 Best practice: Set this threshold slightly lower than your average number of clicks needed to get a conversion

Why? (Click to expand)

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 Sidekicks and Zombies.

PH number of clicks


3.Date Range

Determine the time frame for past data used to analyze your product performance, based on your business needs and sales patterns. Adjust this by clicking the pencil icon next to the date range.

30 days (generally recommended)

Most businesses use the last 30 days of data as a reference.

Click to expand

60 days (long conversion paths)

You might consider extending the range to 60 days for long conversion paths, such as when buying furniture or expensive electronic devices (For example, if someone is buying a sofa or a laptop, they might spend several weeks comparing options, reading reviews, and waiting for a sale before making a final purchase).

Click to expand

7 or 14 days (exception)

You might want to choose a shorter data range for cases such as when something went wrong with your conversion tracking or for seasonality changes. For instance, right after winter, when you may shift from selling jumpers to focusing on summer clothing.

Click to expand


Select a custom label

To ensure that Producthero Labelizer labels are correctly added to your product feed and appear in your Google Ads account, you must select a Custom Label.

When adjusting your Producthero Strategy, click “Enable the advertising label in your feed”, then choose an empty Custom Label from the dropdown menu and check the box to confirm your selection.

Make sure to select the same Custom Label in Google Ads to ensure the labels are correctly applied.

Set your custom label


Daily budget advice

In the Summary page, you'll find daily budget recommendations to apply in your Google Ads campaigns.

These recommendations are based on the Producthero Labelizer strategy you’ve just configured, combined with your historical costs and are adjusted to give higher weight to Heroes and less to Villains.

Use this guidance as a reference point, while also considering seasonal trends 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 below how the budget advice is calculated.

How is the budget advice calculated? Click to expand

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

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