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Margin-based segmentation in Performance Max: how i-run maximized its profitability?

i-run
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17 Feb 2024
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Context

We supported i-run in optimizing their Google Shopping strategy, facing a challenge common to e-commerce players: the difficulty of steering profitability within Performance Max campaigns, where every product is treated uniformly by the algorithm, regardless of its real contribution to margin. The goal was clear: stop allocating advertising budgets indiscriminately across a product catalog with heterogeneous margins, and regain control of performance by directing investment toward the most profitable references.

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Solution

We designed and deployed a margin-based segmentation strategy within Performance Max, leveraging the FeedMax solution to restructure product feeds and take back control of the algorithm's serving logic.

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Product segmentation by margin level

  • Isolating low-margin products in a dedicated campaign, in order to control and limit their serving without excluding them entirely from the setup.
  • Creating a specific campaign for high-margin products, maximizing their visibility and impression share on the most profitable references for i-run.
  • Adapting campaign objectives by margin level, enabling finer performance steering and better alignment between business intent and algorithmic logic.

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Data-driven steering via FeedMax

  • Implementing the FeedMax feed segmentation solution to structure product data according to profitability criteria, not just volume or popularity.
  • Setting up a granular reading of performance by margin type, making budget trade-offs and client-side decision-making easier.
  • Monitoring over a 3-month period to measure the real and incremental impact of the new campaign architecture.

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Benefits

Profitability steering based on the real contribution of each product
Better budget allocation toward the most profitable references
Reduced media waste on low-margin products
Regained control against the uniform logic of Performance Max campaigns

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Margin-based segmentation in Performance Max: how i-run maximized its profitability?
Supporting i-run in optimizing its Google Shopping strategy to better steer profitability against the limits of Performance Max campaigns. Refocusing investment toward the most profitable products to regain control of performance across a catalog with heterogeneous margins.
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