How to Use Custom Labels for Shopping Campaign Segmentation
Custom labels let you segment products for different bidding strategies. Here's how to set them up and what to label.
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What Are Custom Labels?
Custom labels are attributes in your product feed (custom_label_0 through custom_label_4) that you define yourself. They don't affect product eligibility or quality — they're purely for your own use in organizing products for campaign management.
Why They Matter for Bidding
In a Shopping campaign, you can create product groups based on custom labels. This lets you set different bids for products with different characteristics — margin, seasonality, or performance tier.
Example: label your high-margin products as "high_margin" in custom_label_0, then create a product group in Shopping that bids 30% higher for those products.
Common Label Strategies
Margin-based labels:
- •high_margin (products with 50%+ gross margin)
- •medium_margin (30–49%)
- •low_margin (under 30%)
Seasonality labels:
- •summer_hero
- •holiday_gift
- •clearance
Performance labels:
- •top_performer (based on last 90 days ROAS)
- •new_product (added in last 30 days)
- •slow_mover (high impressions, low conversions)
Inventory labels:
- •low_stock (fewer than 10 units)
- •overstock (more than 200 units)
How to Add Custom Labels
In your primary feed: Add custom_label_0 through custom_label_4 columns with values per product.
Via supplemental feed: Maintain a Google Sheet with product IDs and custom label values. Update the sheet when labels change without touching your primary feed.
Setting Up Product Groups by Custom Label
In Google Ads, go to your Shopping or Performance Max campaign. Under Products, subdivide the product group by Custom Label. Set individual bids or target ROAS per label group.
Review and update labels quarterly as product performance and inventory levels change.