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Performance-based campaign strategy involves grouping products with similar performance criteria, such as ROAS, into the same campaign. This functionality allows you to customize each bucket (campaign) with the desired set of rules, granting you greater control over the performance of particular metrics.

This campaign strategy allows you to set targets aimed at maximizing product performance according to your chosen criteria, as well as allowing you to set different bids and budgets.

For example, if your objective is to optimize ROAS, you can group products that have similar ROAS into a campaign/bucket. Following this, you can set a higher target ROAS for your high-performing products and vice versa. You can use your ROAS data to create separate campaigns and manage bids, targets, and budgets on each.

Get started with the creation of a new shopping campaign with the Shopping Campaign Management tool. Read more about it here.

While creating a new campaign, the Campaign Structure settings give you the option to create 'Multiple campaigns by performance or custom rules'. Selecting this will allow you to set rules for your Performance Buckets and create campaigns based on it.

Using the Performance Bukets dropdown, you can select the strategy on which you would like to structure your campaigns. You have 3 options to choose from:

You have the option to adjust the configuration of the Performance Buckets according to your needs using the 'Customize Performance Buckets' option. Alternatively, you can make these adjustments at a later stage, as discussed below.

Choose your desired Ad Group and Product Group hierarchy and Save the settings.

You will now be able to see a new column called 'Performance Buckets' in your Campaign's settings. This column offers a preview of the different bucket configurations. You can click on it to customize the Performance Buckets.

Customize the buckets by changing, deleting, or adding new rules based on your needs. You can also set the daily budget, Ad Group Bids( for standard shopping campaigns), or target ROAS (for PMax and Optmyzr Smart Campaigns) for every bucket.

The buckets are shown based on the performance analysis of the products in the last X days. By default, we are looking at the Last 14 days. You can change the date range from the dropdown on the top right side during this stage.

We recommend creating an additional 'Catch-All' campaign that would contain any products that don't fall under the buckets defined above. You can edit the name, daily budget, Target ROAS, and Ad Group Bid for this campaign as well.

We recommend that the bucket ranges when modified, be consecutive. For example, buckets could be 100 to 300, 300 to 452, and 452 to 500, but, having buckets for 100 to 300, 302 to 452, may lose products that have the metric value say 301. This is to make sure that all products are part of a campaign.

We also recommend you automate the process of refreshing campaign groups, as with this you'll make sure all your products move around successfully.

Try not to overlap the buckets. For example, having buckets 100 to 300 and 200 to 400 creates an overlap. Products with the metric value 200 to 300 now become eligible for both buckets. In this case, a product that qualifies for the first bucket gets added there and is not processed by the second.

We don't recommend tweaking the campaign structure manually in Google Ads, as it may disrupt the campaign group settings. This means not:

Similarly, we ask you not to subdivide or bid on the Everything Else product group, as this may cause an inconsistency in the campaign group.

You can use the performance data over 14, 30, 60, 90, or 180 days to group products in campaigns. It is recommended to look at the last 14 or 30 days of data as this will use the most recent conversion patterns to place products in the right campaigns.

After the campaign group for these performance-based campaigns is created, products are moved across campaigns based on the performance of products in the Last X days. 'X' is the date range you selected when structuring campaigns for the first time.

For example, if a product in a campaign with the ROAS range of 100-300 receives more than 'N' conversions in the last 'X' days at the ROAS of 500 then it will be moved to the appropriate campaign.

You can edit the settings for already existing performance-based shopping campaigns using the Shopping Campaign Management tool. Click on the edit button of the desired campaign to get started.

The Performance Bucket configuration menu provides the capability to both, add new buckets and modify existing ones, including their rules and date range.