Which of the following is a best practice for shopping campaign structures?
Select one option.
- Do not bid on granular product groups
- Break out product groups by value, then bid accordingly
- The more granular your product group, the lower the bid
- Bid higher on all product ‘catch-all’ product groups
Explanation: The correct answer is Break out product groups by value, then bid accordingly. In the context of shopping campaign structures, breaking out product groups by value and then bidding accordingly is considered a best practice. This approach involves segmenting products into smaller, more targeted groups based on factors such as product type, brand, category, or performance metrics like conversion rate or profitability. By organizing product groups in this manner, advertisers can tailor their bidding strategies to align with the value and importance of each group, optimizing their bids to maximize return on investment (ROI) and prioritize higher-value products. For instance, products with higher margins or conversion rates may warrant higher bids to ensure prominent placement and visibility, while lower-value products may require more conservative bids to maintain profitability. This granular approach to campaign structure allows advertisers to allocate budget strategically, optimize bidding efficiency, and drive better performance across their shopping campaigns within the Microsoft Advertising platform. Therefore, breaking out product groups by value and adjusting bids accordingly is a recommended best practice for building effective and efficient shopping campaign structures in Microsoft Advertising.