This AdWords Script checks the efficiency of how your Shopping Campaigns are structured and how their bids are managed. It also suggests how the score might be improved.
The Vallaeys Shopping Efficiency (VSE) Score
VSE Structure Score
This score calculates the percentage of all ad impressions that come from undefined product groups, i.e. those that are labeled 'everything else in ...'. Shopping campaigns by default include all products in your merchant feed so it's desirable to take as much control over the performance by controlling the bids through product groupings defined by the advertiser. If the VSE score is close to 100%, it means that a large portion of the feed has been split into defined product groups that can each be managed separately, and this is a good thing. If the score is low, it means that a large percentage of impressions come from 'everything else' and the campaign should probably be restructured to drive a larger portion of traffic through advertiser defined groupings.
VSE Bid Ratio
This is the ratio of cost per converted click for product groupings of 'everything else' over cost per converted click for defined product groups.
- A score less than 100%: indicates that conversions from 'everything else' are cheaper than defined product groups. If satisfied with the performance of defined product groups, this means bids for 'everything else' are too low and there is an opportunity to get more conversions.
- Score of 100%: indicates that conversions from 'everything else' cost the same as defined product groups. It may not be necessary to further split products currently in 'everything else'.
- A score greater than 100%: indicates that conversions from 'everything else' are more expensive than defined product groups. Money is likely wasted. By bidding less for 'everything else' or splitting out your products further, the overall account's cost per converted click could be reduced.
Shopping Ad Optimization Suggestions
The script provides a list of product groups that should be considered for further division or consolidation based on a target number of conversions to hit the sweet spot for bid management. If a product group has too few conversions, it will take too long before there is enough data to make a bid decision. If a product group has more than the target number of conversions needed for regular bid optimization, its performance could possibly be improved by splitting it into sub groups which could get different bids. By default the script looks for product groups to have between 5 and 50 conversions last month. These values and the date range can be modified to meet your own needs.