Marketing Insights
Marin Software's Official Blog

Product Listing Ads for the Uninitiated

By   December 20th, 2016

This is a guest post from Dionte Pounds, Account Manager at
3Q Digital.

Product listing ads, or PLAs, are an incredibly successful strategy for e-commerce companies to promote available product inventory on Google and Bing. Unlike standard search ads, PLAs incorporate a visual image over a text description to show the user the product they’re searching for.

There are plenty of reasons why you should be adding a PLA strategy into your advertising mix. Cost-per-click (CPC) will generally be below what you’ll see across search ads. As a result of showing the user an image of the product they’re searching for, click-through-rate will usually be pretty strong. Once the user clicks the ad, they’re taken directly to the product page, making the user journey simple and leading to a higher conversion rate.

Additionally, it’s quite easy to set up and manage campaigns. Both Google and Bing provide product level reporting, so you can also see how each product is doing individually.

With the holiday season in full swing, let’s take a look at some tips to drive great results from your PLA campaigns.

Segment

The first and most important step in improving PLA performance is to have the proper product group segmentation. Product group segmentation is vital to drive traffic efficiently. If all of your products are lumped together in a single product group sharing the same bid, you’re not maximizing your PLA campaign potential. In this case, you’re bidding the same amount for your best performing product group as your worst. This will lead to wasted spend and a poor return on ad spend over time.

A well-managed PLA campaign should have a structure that allows for isolation of product groups. Look to each product’s category, type, or brand to figure out what level of segmentation works best. In some cases, it may be best to separate each product entirely.

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Bidding

After viewing your product category report, you’ll have a good idea of what type of product group segmentation will work best for your campaign. In order to optimize the new structure, look at the average CPC for each product group and the ROAS. If the ROAS is below account target, you should start bidding with a CPC below the average. Likewise, if you have a ROAS that’s well above target, you can start that product group with a bid above the CPC to maximize returns.

Try to make use of your conversion rate, ROAS target, acceptable CPA, and average order value to back your way into a starting bid. Let’s imagine the AOV for an account is $50, conversion rate is 1%, and ROAS target is 200%. For this imaginary product group, a $0.25 bid is suitable.

Device Performance

PLA campaigns are very likely to drive more traffic from mobile devices than desktop or tablet devices. Generally speaking, this increase in traffic comes at a price, meaning lower conversion rates and ROAS. Look at how your campaigns are performing across devices, and be sure to use negative mobile modifiers for mobile devices and tablets if it makes sense.

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If you’re already bidding down on mobile devices, be sure to take a look at your desktop CPCs when placing starting bids on your new product group structure. It may be possible that the cheap mobile clicks are driving down your average CPCs. If that’s the case, then base your new bids on the desktop CPC to avoid a loss in traffic.

Negative Scrubs

An often-overlooked aspect of PLA campaign management is mining for negatives. Just like a search campaign, PLA campaigns need to be scrubbed regularly for negative terms to prevent wasted spend.

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There’s still time this holiday season to maximize your PLA performance across Google and Bing! See if you can utilize some of these tips to drive great results.

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