How the right taxonomy improves ad performance

Optimising the product feed in Google Shopping is one of the key factors for the success of your e-shop. In this article we go through Google’s taxonomy and how it affects the results.

Why is the right taxonomy setup important for your e-shop?

1️⃣ Better product visibility: Correctly categorised products appear in relevant user search queries, which increases the chance that potential customers notice your product.

2️⃣ Higher efficiency of advertising campaigns: According to Smarter Ecommerce, the right optimisation of the product feed can lead to a marked increase in click-through rate (CTR) and a decrease in cost per click (CPC). For example, one of their clients recorded a 20% increase in CTR and a 15% decrease in CPC after optimising their feed.

3️⃣ Higher conversion rate: Bidnamic states that accurately assigning products to the corresponding categories can lead to better ad targeting and thereby to a higher conversion rate. One of their clients recorded a 25% increase in conversions after correctly categorising their products.

Common mistakes when setting up taxonomy

• Incorrect product categorisation: Choosing an unsuitable category can lead to your products not showing up in the right search queries, which reduces their visibility and the efficiency of the advertising.
• Omitting required attributes: A lack of important attributes such as brand, condition or product identifier can negatively affect how your ads are displayed.
• Insufficient feed updates: Irregular updates of product information such as price or availability can lead to incorrect data being shown to users, which reduces trust in your e-shop.

Steps to optimise the taxonomy of your product feed

Careful product categorisation:

Use the current Google taxonomy to accurately assign every product to the corresponding category. This will help the system to understand and display your products better.

Filling in all relevant attributes:

State attributes such as brand, condition, product identifier (GTIN), colour, size and other characteristics that help describe your product better

Regular audit and updating of the feed:

Regularly check and update product information to keep the data current and to comply with Google Merchant Center requirements

Ignoring the correct taxonomy setup can lead to lower efficiency of your advertising campaigns and to a loss of potential profit. Even with advanced algorithms and strategies, you will not achieve maximum results without the right feed setup. To help you identify areas for improvement, we offer a free audit of your advertising account.

In addition, you can make use of a 30-day trial period of our Getprofit service, which will help you optimise your advertising campaigns and increase the profit of your e-shop. In the competitive world of e-commerce, every detail matters.