Whenever you create a goal in Perpetua, the ad engine will create a set of campaigns for that goal. For example, with a normal strategy there might be an auto campaign, a manual keyword campaign and a manual product targeting (PAT) campaign. We call this a "campaign set". If you set a goal on an individual product, that product will be added to all the campaigns in the set. If you set a goal on a group of products, all of these products will be added to each campaign in the set.
This begs the question - when should I set a goal on a group of products vs setting goals on individual products? While there isn't a hard and fast answer, we have some suggestions below to help you decide.
When to group products
- When you have so many similar products it becomes difficult to manage dealing with individual goals for each (e.g. > 20). This is very typical for clothing brands.
- When you are budget constrained and can't safely allocate enough budget to each individual product. Goals have a minimum $10/day budget.
- When products are similar enough that you'd expect the keyword space to be mostly the same for all of them.
- When each of the products in the group has a similar price point.
- When each of the products are all variants of the same parent (set goal on parent or individual variants).
When to give a product from a group of similar products a dedicated goal
- If it's a top performer and can drive substantial spend and sales on its own.
- If it has substantially different performance from other products in the group (e.g. historically much higher or lower ACoS).
- When you want to guarantee impressions or drive spend on a specific product.
- When the number of products in the group is low, each product can stand on its own in terms of spend and sales and you can dedicate adequate budget to each product.
- If the product has a significantly different price point from other products in the group.
When multiple campaigns bid on the same keyword, Amazon skews the distribution of impressions towards the highest bidding product. Over time, this rewards top performing ASINs and penalizes lower-performing ASINS, and can result in higher ACoS at the account level.
Though this may seem reasonable, Perpetua has been able to realize larger sales volume and lower ACoS by grouping similar products into a single campaign. This approach means that each keyword only receives one bid from the account - thus driving a more even distribution of budget across ASINs and generally what has been observed to be a lower ACoS.
Note: You can always move the products into new goals after the initial launch once the Ad Engine has collected sufficient enough data for them.
For more detail on how to group your products together, check out this Ad School video here.
If you're still unsure, we're always happy to help. Feel free to reach out to us on chat to discuss your specific situation.