Product groups are used to specify which products from your Microsoft Merchant Center catalog should be included in a particular ad group.
After you create a shopping campaign, Microsoft Advertising creates a default ad group. That ad group includes a product group containing all of the products in your Microsoft Merchant Center catalog feed. However, you don't typically want an ad group to contain all products. Instead, you likely want each ad group to contain only very closely related products in order more effectively manage which ads show, and when. With product groups, you can narrow down that default group to a customized list of specific products and divide up to 5 levels for each product group.
You can use the following attributes from your catalog feed to choose the specific products you want to include in any particular product group.
You can use multiple attributes to narrow your group even further. For example, you can create a product group based on brand and condition.
Let's say Matt is the owner of a small toy store and his catalog includes the following items:
|Merchant Product Identifier||Title||Brand||Category 1||Category 2||Product Type||Custom Label 0|
|1111||Toy 1||Tailspin Toys||Toys & Games||Indoor||Paint||Ages 1-5|
|2222||Toy 2||Wingtip Toys||Toys & Games||Indoor||Stickers||Ages 1-5|
|3333||Toy 3||Tailspin Toys||Toys & Games||Outdoor||Chalk||Ages 6-12|
|4444||Toy 4||Wingtip Toys||Toys & Games||Indoor||Glitter||Ages 6-12|
|5555||Toy 5||Tailspin Toys||Media||Indoor||DVD||Teens|
|6666||Toy 6||Wingtip Toys||Toys & Games||Outdoors||Sports||Teens|
|7777||Toy 7||Tailspin Toys||Media||Indoor||Books||Ages 1-5|
|8888||Toy 8||Wingtip Toys||Toys & Games||Indoor||Paint||Ages 6-12|
He wants his ad group to contain only toys for ages 1-5. To do that he would simply narrow the default product group down to a product group where Custom label = Ages 1 -5.
As another example, assume that Matt wants to create an ad group that contains only toys from Tailspin Toys for ages 1-5. He simply needs to create a product group where Brand = Tailspin Toys and Custom label = Ages 1-5.
Let's see what the second example would look like in Microsoft Advertising.
Matt's created his shopping campaign and is looking at the default ad group. It contains the default product group that contains all products.
First, he wants to select only toys from Tailspin Toys. So he clicks the pencil icon to display the following. In the drop down, Matt wants to divide all products by Brand.
Matt then chooses Tailspin Toys, and saves his changes.
Now Matt wants to divide Tailspin Toys even further, to select only the right age group. So he click the + next to Tailspin Toys.
In the dropdown list, he chooses to customize Tailspin Toys by Custom label 1, then selects "Ages 1-5."
Right now the product group still contains everything in the catalog feed. It's just divided into "Tailspin Toys," "Ages 1-5" and everything else. But he wants this ad group to contain only Tailspin Toys for ages 1-5. He need to exclude everything else. Note that Microsoft Advertising has already created a couple of rows that contain "Everything else."
So to exclude everything else, Matt simply clicks on the on the pencil icon next to the appropriate bid and selects Excluded. (Alternately, Matt can change bids for multiple products groups by selecting the check boxes next to the product groups he wants to modify and then clicking Edit to open the bulk edit options.)
Doing this for Everything else in "Tailspin Toys" will exclude Toy 3 and Toy 5. Then, doing the same thing again for Everything else in "All products" will exclude Toy 2, Toy 4, Toy 6 and Toy 8.
Matt now has an ad group with a product group that contains only Tailspin toys for Ages 1-5.