Feed-Level SKU Role Management
The feed is your control plane. If the feed is flat, your strategy is flat. Custom labels transform your product feed from a data requirement into a strategic tool that enforces commercial logic at the platform level.
The Feed as Control Plane
Most advertisers treat the product feed as a compliance exercise: fill in the required fields, pass validation, move on. This is a mistake that surrenders strategic control to the algorithm.
The feed is where business intelligence meets platform mechanics. Every attribute you populate (or fail to populate) shapes how Google understands, categorises, and bids on your products.
"Without custom labels, Google treats a clearance item the same as a profit driver. Labels force the platform to respect your business logic."
The 5-Label Strategy
Google allows five custom labels (0-4). Use them to encode your commercial strategy:
| Label | Purpose | Example Values |
|---|---|---|
| custom_label_0 | SKU Role (Primary) | profit, acquisition, demand_capture, learning, clearance |
| custom_label_1 | Margin Band | high (>60%), mid (30-60%), low (<30%) |
| custom_label_2 | Stock Status | in_stock, low_stock, overstock, fragmented |
| custom_label_3 | Payback Speed | fast, standard, slow |
| custom_label_4 | Lifecycle Stage | new, core, seasonal, end_of_life |
Profit Drivers in Feed
custom_label_0 = profit
Cash cows with healthy margins. These fund overheads and should be defended aggressively.
Campaign Logic:
- • Target: High tROAS aligned to POAS (Profit on Ad Spend)
- • Defend impression share aggressively
- • Exclude from acquisition campaigns to prevent budget drain
Acquisition SKUs in Feed
custom_label_0 = acquisition
Entry-point products designed to win first-time customers. Low margin is acceptable if LTV justifies CAC.
Campaign Logic:
- • Target: tCPA or lower tROAS (breakeven acceptable)
- • Use New Customer Acquisition (NCA) goals
- • Ringfence budget so efficiency pressure doesn't kill volume
Clearance & Inventory in Feed
custom_label_0 = clearance, custom_label_2 = overstock
Seasonal leftovers or dead stock. The job is cash recovery, not profit maximisation.
Campaign Logic:
- • Target: Ignore efficiency; focus on stock velocity
- • Aggressive bids to clear units fast
- • Use Seasonality Adjustments to force spend if needed
- • Stop spend immediately when cleared
Mapping Feed to Campaigns
Labels mean nothing if campaigns don't respect them. Structure must follow:
Standard Naming Convention
[Role]_[Category]_[Market]_[Network]Examples:
- • PROFIT_Shoes_UK_PMAX
- • ACQUISITION_Accessories_UK_Shopping
- • CLEARANCE_SS24_UK_PMAX
The Cardinal Sin
Never put clearance and profit SKUs in the same PMax campaign.
Clearance items convert easily (they are cheap). Profit items require more consideration. The algorithm will dump budget into clearance because conversions come faster, destroying your margin mix.
The same applies to acquisition and profit: different jobs require different targets, and blending them averages both into mediocrity.
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