How to Build a Google Paid Ads Campaign Using Custom Labels

How to Build a Google Paid Ads Campaign Using Custom Labels

This document explains how we use your product feed’s custom labels to build structured Shopping campaigns in Google Ads. Each step supports a clear campaign strategy, backed by data from your product catalogue.

Step 1: Understand the Labels in Your Feed

Your feed includes the following custom labels:

Label: custom_label_1
Purpose: Price band
Values: Price 0–10, Price 10–50, Price 50–200, Price 200–500, Price 500–750, Price 750+

Label: custom_label_2
Purpose: Promotion status
Values: On Promotion

Label: custom_label_3
Purpose: Profit margin
Values: Profit 0–5, Profit 5–10, Profit 10–50, Profit 50–200, Profit 200–500, Profit 500+

Label: custom_label_4
Purpose: Featured products
Values: Priority

These labels let us group your products and control bids more precisely.


Step 2: Sync Your Feed

We’ve confirmed the custom labels are live in your Merchant Centre account. Products with missing or incomplete data will not be excluded automatically, but we recommend adding cost prices wherever possible to allow full use of profit-based bidding.

Action: We will monitor for missing values in cost price and review with you if any gaps persist.


Step 3: Campaign Structure

We will split your Shopping campaigns based on the most useful custom labels, allowing us to set different bid levels depending on product value or margin. Here are the starting campaign groups:

Campaign A: Price Bands

This campaign splits products by custom_label_1. It allows us to control bids based on expected order values.

Example setup:

Product Group: Price 0–10
Bid Range: Lower bid
Why: Lower margin, lower intent

Product Group: Price 50–200
Bid Range: Higher bid
Why: Good balance of value and volume

Product Group: Price 750+
Bid Range: Targeted bid
Why: High order value, fewer clicks needed to see returns

Action: We’ll review performance by band and adjust bids weekly.

Campaign B: Promotions

Products marked as On Promotion in custom_label_2 are grouped into their own campaign or ad group. This allows us to attract clicks during sale periods.

Action: We will apply higher bids to promotional products and monitor conversion rate. When promotions end, the products will move out of this group automatically based on your feed.

Campaign C: Profit Margins

This campaign uses custom_label_3 to split products based on expected profit per sale. Products with higher margins give more flexibility with cost-per-click bids.

Example setup:

Profit Band: Profit 0–5
Bid Approach: Minimal bidding or paused

Profit Band: Profit 50–200
Bid Approach: Mid–high bidding level

Profit Band: Profit 500+
Bid Approach: Highest bidding, close performance monitoring

Action: We’ll prioritise products with over £50 profit per sale. This ensures your ad spend supports your business targets.

Campaign D: Priority Products

If a product is marked Priority via custom_label_4, it will receive more focused attention. This label is for items that support wider commercial goals, such as key models or seasonal lines.

Action: We will build a dedicated campaign for these and increase visibility through higher bids and impression share targets.


Step 4: Ongoing Management

We will:

  • Review product group performance weekly

  • Adjust bids based on ROAS, CPC and conversion rate

  • Flag any products that appear in the wrong group

  • Report on which labels are driving the most revenue

Summary

Using custom labels allows clear campaign segmentation. It ensures your budget supports the right products at the right time. The strategy works best when the feed remains accurate and complete.

Next steps:

  • You don’t need to take action now. We will handle the setup, management and ongoing optimisation.

  • If you want to add new labels (for example, stock status or brand), we can review this at any time.

Let us know if there’s a specific product or range you want to focus on. We can apply a label and track its performance directly in the campaign.

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