Sometimes when the budget is limited, having too many products in the shopping ads means the algorithm has trouble gathering conversion patterns, which can lead to low performance.
It becomes harder to optimize because each conversion on each shopping ad or product is too spread out across the weeks or months.
So the answer is to temporarily exclude products until the algorithm can get the hang of things. Then, with scale later on, those products' shopping ads can be re-included.
While it's nice to hone in on products that work, we are very selective about excluding products just because of low performance. Here’s what usually happens when we exclude products.
When we turn off a product ad that might have been getting lots of web traffic (spending the budget), people start to look at related products, see remarketing ads for those products, and end up buying them.
It seems like the product that was getting all the clicks was losing money but it was actually acting like a highly targeted TOFU (Top of the Funnel) ad to bring traffic to the site & feed the product ads which seem like they're performing well.
(Quick note: TOFU or Top of the Funnel is a marketing strategy we use to attract cold audiences and increase brand awareness. Learn more about TOFU here.)
So, if we exclude a product, it can cause a domino effect where another product stops performing, and then we exclude that one, which causes another, etc. etc."
Does excluding my product mean it won’t be purchased?
Just because we exclude a product, doesn't mean it won't be purchased. It just means it might not work well as a shopping ad & the money could be better spent on other shopping ads to bring people to the site...but those people still might buy these products.