How To Use Custom Labels in Google Shopping

How To Use Custom Labels in Google Shopping

Custom labels in Google Shopping are an effective way to set up and optimise your campaigns. You can already create product groups based on Product Type, Item ID, Condition, Brand, and Channel. But custom labels allow you to create your own filters based on anything you like.

The day I learned how to apply them blew my mind (thank you, Gemma Renton), and made managing my Google Shopping campaigns so much easier. You can create up to five custom labels, Custom Label 0 to Custom Label 4, and below are some ways you can use them.

Sub-Product Types

You can already separate products based on their product type in a Google shopping campaign, but there could be subcategories within this type you want to dive deeper into.

For example, imagine an online store that sells famous Australian brands such as Akubra. We know we can sort the Brand (Akubra) and the Product Type (Hats). Akubra’s hat range is exhaustive though, with over 100 different styles, such as Cattleman, Riverina, Avalon, Arena, Snowy River, Bronco… to name a few!

This store wants to create an ad group for each style so that they can monitor the search queries and control the bidding on an ad group level. Custom labels allow us to set up filters for each style and then split them up accordingly. Instead of breaking each custom label into an ad group, you might also like to just keep them in one ad group to observe the results from there and adjust bids as needed.

A screenshot of options for Custom Labels In Google Shopping

Best Selling Items

If you know what your best selling products are, then you could bid more aggressively for these products to increase search impression share and sales. If the Akubra Cattleman and Traveller hats were the highest-selling of the hats, these could be added to a ‘Best Selling’ custom label and bid on more heavily. You might also like to put your best selling items in their own campaign so they can be allocated a specific budget.

High & Low Profit Margins

The same as above goes for sorting products by high and low profit margins. Some of your products might have lower profit margins, therefore needing a higher Return On Ad Spend than products with high profit margins. In this situation, you could separate your high profit and low profit products into separate ad groups or campaigns to control their bids and ad spend.

Seasonability & Events

It is also useful to label items based on seasonality (Summer, Autumn, Winter, Spring) or events (Christmas, birthdays, etc). For example, an online store that sells gifts might set custom labels to sort their cards based on events like Mother’s Day, Father’s Day, Christmas, and birthdays. They would increase bids for Christmas cards in November and December to increase their Impression Share during this period of high demand.


Sorting products by their colour is also useful. An online shoe store might want to know which colour shoes are their best seller on Google Ads. By setting up custom labels according to shoe colour, they can identify the number of conversions, Return On Ad Spend, Cost Per Acquisition, or whatever the goal is. Knowing this information can help them know where to bid more aggressively (or less). They could also apply ‘best selling’ or ‘high ROAS’ custom labels to these colours.

Naming products

You might be in a scenario where you want to bid on individual products. I find it annoying that you can’t automatically separate individual products by their names – it’s only by their Item ID. This usually doesn’t give you much indication on what the product is.

Normally, you’d then have to go into the ‘Products’ tab to see which exact products had conversions…but not anymore! You can set a custom label to display the actual title of the product. It’s so simple to do. When setting up a custom rule in the Google Merchant Centre, set the custom label to the Title attribute – and you’re done!

A screenshot of options to set a title Custom Label in Google Shopping

Wrapping Up

So there we have it, six ideas for how to use custom labels! Contact us if you have any questions, or would like help with managing your Google Shopping accounts. If you’d like to know more, we also have an article about the benefits of Google Shopping.

Thanks for reading!

Written by Courtney Wilkinson