Paid Search

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

i-run
/
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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