ROAS—”Return On Ad Spend”—is a profitability metric that allows you to calculate just how much €1 invested in your advertising campaign will generate for you. In this way, you can quickly determine whether your actions are profitable for your company.
As a marketing and performance expert, you are very familiar with this metric and spend a lot of time optimising the results of your campaigns on Google, Facebook, and the like. Changing ad formats, your target audiences or keywords, switching over to autopilot with the giants of the Internet, performing A/B tests, and so on.
First, here’s a question: Have you ever thought about optimising what constitutes THE BASIS of your campaigns -your product feed?
Yes, your product catalog is a great resource and lever for profitability; it’s up to you to get the most out of it.
We explore five ways how feed optimisation will help you increase your ROAS:
Don’t limit your feed to just your core products. When importing your catalog, include all the product variants you have. Product variants are variations of the same product in your catalog, such as different sizes or colors.
When somebody searches for clothing and accessories on Google, these features help them decide whether the product is right for them. Sometimes it is sufficient that the item is available in the right color, size and/or material for the customers to make their purchase.
Similarly, it is also worthwhile to have different variants on Facebook, as Facebook gives you the option to highlight multiple products of the same category in your dynamic ads.
Be sure to update your inventories for each variant. Accordingly, you can also set up automatic rules so that a product and/or its variants are not delivered when the stock level gets too close to 0. This way you avoid, for example, disappointing an internet user who is looking for shoes when their size is no longer available.
The attributes which make up your feed, whether required or recommended, help to accurately describe your products and make it easier for users to search and find them.
The attributes which make up your feed, whether required or recommended, help to accurately describe your products and make it easier for users to search and find them. At a minimum, your product feed must include the basic attributes that are required and are the same for all product types. There are some other attributes that are optional, but still highly recommended and are useful for better positioning of products in search results.
In the Lengow platform, while configuring your feed, you can link the fields of your catalog with attributes in a special area, whether they are required or recommended by the various channels.
A few examples:
In the “Matching attribute” section of the Lengow platform, you can use the conversion list to help you match the values of your source catalog with those expected by the marketing channels.
For instance, you can adjust your sizing system by changing your product sizes from S, M and L to 36, 38, 40 and so on.
User-defined labels, also called “Custom Labels”, allow you to optimize your distribution. In fact, Custom Labels are used to segment your product catalog according to the values that you choose: Seasonality, stock, promotions… Assigning common labels to products according to your commercial goals (KPI or Key Performance Indicators) is highly recommended for structuring and optimizing your campaigns.
With Custom Labels, not only can you monitor and track your results more easily, but you can also answer some questions about your performance, for example, through A/B tests. Custom labels help you reach your target audience through personalized ads and increase your ROAS.
Whether it’s Google Shopping or Facebook, you can have up to 5 custom labels ([custom_label_0] to [custom_label_4]) in your feed.
Some examples of how custom labels can be used:
Within Lengow, you use them by creating rules for your feed that allow you to group products from your catalog of items according to the values you choose.
Custom Labels are a very useful part of your strategy and allow you to achieve greater granularity in your campaigns. At Feed Manager, we use Custom Labels to combine complementary products (e.g. a makeup kit for a cosmetics customer). We also highlight top sellers or, conversely, sales flops and capitalize on the most profitable products by identifying price ranges.
Senior Account Manager at Feed Manager
Optimizing your ad titles has a direct impact on your results. Why is that so important?
Here are some specific examples:
On the Lengow platform, you can quickly optimize your titles by defining automatic rules. You can quickly change all your titles with a single action.
Focus your efforts and budget on the most profitable products to improve your ROAS. By the same token, the least profitable products also need to be identified in order to stop their distribution or adjust the resources used.
Modify the distribution of more or less profitable products and categories from your feed with just a few clicks. Design your strategy in real-time!
You can create automatic rules to disable or enable products on the channels according to the achieved performance (sales, conversion rate, etc.). This information can also be highlighted in your ads and in your various marketing campaigns. For example, you might prepare a segment with “profitable products” identified as the products with the best conversion rate over the last 30 days. At that point, customize your ads by adding a “Top Product” in the title of those products and a custom “Top Sales” label to make it stand out in your Google Shopping and Google Ads campaigns.
Remember that a successful marketing campaign requires high-quality product data. Your catalog is the key to optimized product offers: It’s the foundation of your multi-channel strategy, and you need to take extra care to present up-to-date, valid, and high-quality data.
Using an automated tool like Lengow to centralize and manage the distribution of your catalog can help you make the most of it and increase your ROAS.
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