1. What are Product Groups and why use them?
A Product Group is a way to organize specific sets of products within your advertising strategy. Product groups help you optimize product titles, manage segmentation and apply targeted Labelizer strategy settings.
Reasons to create a Product Group:
Optimizing product titles: Grouping similar products makes it easier to refine their titles.
Applying unique Labelizer Strategy settings: Product groups allow you to apply different Producthero Labelizer Strategy settings when using performance-based segmentation. This is especially useful for products with different profit margins, as it allows you to adjust the Producthero TROAS threshold that determines how labels are allocated.
2. How to create a product group
To create a product group, follow these steps:
Step 1: Navigate to the Advertising tab
Go to the Advertising section and click on "Add Product Group."
Step 2: Define your Product Group
Complete the following steps to create your product group:
Name your product group
Select the criteria for segmentation: You can filter products based on: Availability, Brand, Custom Label, GTIN, Product Type, Item ID, MPN and Google Category.
Analyse Performance Data: We provide performance data from the last 30 days to help you assess whether there’s enough data to create a segment.
We recommend having at least 30 conversions in the last 30 days and more than 50 products within each product group. This ensures that there is enough performance data in each pMax campaign and enough insights to justify creating a specific group of products with its own Producthero Labelizer Strategy settings.
Step 3: Finalize & create
Once you’re happy with your selection, click on Add product group.
3. Managing multiple Product Groups
Strategy status
The four Producthero labels (Heroes, Sidekicks, Villains are Zombies) are assigned to your products based on the TROAS and number of clicks threshold you set in your Producthero Strategy (👉 How does the Labelizer work?). These are your "All Products" settings.
If you add product groups, you can apply different Labelizer settings to specific product segments instead of using the same settings for all products.
Live: The Producthero Strategy is active, and products in this group will get labels based on its settings.
Paused: The strategy is inactive, so products in this group will follow the settings of another active product group or default to "All Products" settings.
Product Group Priorities
If a product appears in multiple Live product groups, the strategy from the group with the highest priority takes effect.
Priority 1 is the highest.
To change priorities, click “Reorder Priority.”
4. Using Product Groups in Google Ads campaigns
4.1 Add a Product Group to your Labelizer Strategy
Set a Producthero Strategy for your Product Group and activate it.
In this example, we’ve created two product groups based on profit margins:
High-margin products
Low-margin products
For each group, a Producthero Strategy is applied and set to Live.
4.2 Select a Producthero campaign approach
💡 Not familiar with Producthero campaign approaches? Learn more here.
Since we’ve already created two product groups, we want to keep our campaign structure simple while ensuring we have enough data per campaign.
For this example, we’ve chosen the campaign approach Option 1: "Catch the Villains!". This approach focuses on maximizing profitability by separating low-performing products (Villains) from high-performing ones.
To implement this approach, we divide campaigns based on profit margins and performance labels.
Corresponding campaign structure:
Campaign 1: High margin / Heroes Sidekicks Zombies
Campaign 2: High margin / Villains
Campaign 3: Low margin / Heroes Sidekicks Zombes
Campaign 4: Low margin / Villains
4.2. Setting up Google Ads Listing Groups
Setting up campaigns with Product Groups & Producthero labels follows a process similar to the regular Producthero labels campaign setup (👉 Create or transform your campaign).
When creating Performance Max campaigns, your listing groups should align with your product groups and assigned Producthero labels.
For example, in the "High-margin / Heroes, Sidekicks, Zombies" campaign, the listing group should be set up as follows:
The same logic applies to the other campaigns. Make sure each campaign only includes the correct Labelizer labels and corresponding margin group to ensure proper segmentation.