How to Effectively Segment Performance Max Campaign Asset Groups

One of the most frequent questions I receive is how to effectively segment asset groups for Performance Max (PMax) campaigns, especially when working with higher- and lower-demand products. The following is a strategy we use at Growth to segment PMax campaigns for our e-commerce clients. This approach can drive better results, like our recent campaign, where we spent £38,000 and generated £173,000 in revenue with a 4.55 ROAS.

Why Segment Performance Max Campaigns

Segmentation allows you to optimize how your ads are delivered based on product demand, search behavior, and budget. The goal is to align ad copy, assets, and strategy with what your audience is searching for, maximizing relevance and conversions.

High-Demand vs. Low-Demand Campaigns

We typically segment campaigns into higher and lower-demand groups using the 80/20 rule. This means focusing on the top 20% of your products that generate 80% of revenue for your high-demand campaign while the remaining 80% of products go into the low-demand campaign.

Example:

• Higher Demand Campaign: Top products like mattresses, headboards, and Divan bed sets.
• Lower Demand Campaign: Products such as bed frames, ottoman bed sets, and zipping link bed bases.

This strategy allows a more targeted approach by dedicating specific asset groups to higher and lower-demand products.

Core Variables for Segmentation

1. Budget: If you have a limited budget, it’s essential to reduce segmentation and simplify the strategy. More budget allows for more asset groups and a more detailed strategy.
2. Product Performance: Identify your top-performing products through sales data from platforms like Shopify and Google Ads. We focus on sales volume and revenue, ensuring you target products in demand and performing well in ads.
3. Keyword Research: This is the backbone of segmentation. Match your ads with what users are searching for by segmenting based on critical keywords, such as product size or color. For instance, if you’re selling mattresses, segment asset groups by size (Single, Double, King, etc.).

Keyword Research & Message Matching

A key part of our strategy is ensuring “message match.” This involves aligning the keywords in your ad copy with user searches and product landing pages. The goal is to increase relevance, which leads to higher conversion rates.

For example, if someone searches for a “double mattress,” your ad and product page should reflect that specific term, making the customer more likely to convert.

Scaling Your Campaigns

Once your foundational strategy is in place and you’ve identified your winning asset groups, the next step is to scale. Allow the data to guide you—invest more in the highest-performing groups and fine-tune the rest.

You can increase ad relevance, improve ROAS, and drive more sales using these segmentation techniques. Start small, monitor results, and scale as you see success.

Want expert help with your Performance Max campaigns? Schedule a call today, and let’s discuss how we can elevate your e-commerce brand!

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