P.Max Optimization ROAS: Google and Microsoft Ads Performance Max Labelizer

What is P.Max Labelizer, and why is it unique for P.Max campaign optimization?

Our P.Max Labelizer is an advanced tool for automatically labeling and optimizing products in Performance Max (P.Max) campaigns, based on historical performance data. The goal is to reduce budgets for unprofitable products, boost the profitability of top-performing ones, and enhance the visibility of underexposed products.

Competitors like Product Hero offer similar tools, but ours is the only Labelizer in the world that works with both Google Ads and Microsoft Ads.

Seamless Integration with Google and Microsoft Performance Max Campaigns

Our Labelizer is directly integrated with Google and Microsoft Ads campaigns, as well as their Merchant Centers via API. This ensures that labels are automatically synchronized and optimized, eliminating the need for manual setup.

Integration with BlueWinston for Maximum Efficiency

Additionally, we can import P.Max campaigns into BlueWinston, where clients can:

Manage campaigns more efficiently and with better clarity,
Utilize an unlimited number of variables and parameters to filter products within P.Max campaigns,
Make data-driven decisions based on historical product performance, determining whether to continue advertising a product or pause it.

Advanced Optimization Beyond the Standard Google and Microsoft Ads Interface

Our platform enables clients to make product-level decisions, which cannot be made in the standard Google or Microsoft Ads interface. This means greater control, more efficient budget use, and continuous campaign optimization. Additionally, we offer a broader range of tag categories to more accurately reflect the dynamics of e-commerce campaigns.

How Does P.Max Labelizer Optimize P.Max Campaigns?

The P.Max Labelizer strategy is designed to help advertisers optimize their campaigns for peak performance. After analyzing thousands of campaigns, our PPC specialists found that:

More than 50% of the advertising budget is spent on unprofitable products, which we call OFFs. These products drain the budget that could be better allocated to higher-performing products and therefore need optimization.
Only 10% or fewer of products account for up to 80% of total revenue. These are STARs, the top-performing products.
Many products show strong potential but have low sales volume. These are called HELPERs.
More than 60% of products receive barely any impressions or clicks. These products are called GHOSTs because they have minimal visibility, and investing in them without further analysis is not worthwhile.
Products fluctuating between loss and profit are COREs, remaining in a stable zone.
Currently unprofitable products with insufficient data to determine viability are LOSERs.
Products that have never received any impressions are called ZEROs. Unlike GHOSTs, they never had a chance to gain visibility.

The Logic Behind Our Product Segmentation: Labels for ROAS Optimization in P.Max Campaigns

P.Max Labelizer automatically assigns optimal labels to each product based on data analysis from Google Ads or Microsoft Ads and customizable client settings. These labels are determined by two key factors:

Click Volume: Products with clicks above a predefined threshold—typically the average number of clicks required for a conversion—are classified as STARs or OFFs. Products with fewer clicks fall into the categories of HELPERs, COREs, GHOSTs, or LOSERs.
ROAS (Return on Ad Spend): If products achieve a ROAS above the Labelizer threshold, which is set according to historical performance (but can be adjusted by the client), they are classified as STARs or HELPERs.

Our P.Max Labelizer is the only tool in the world that incorporates Critical ROAS —a value determined by the average product margin in a P.Max campaign.

Products with a ROAS between Critical ROAS and Labelizer ROAS , are classified as COREs.

Products below Critical ROAS fall into the OFFs, LOSERs, or GHOSTs categories, with GHOSTs referring to products that receive clicks but do not generate conversions.

Products that receive no clicks are classified as ZEROs.

This dynamic system ensures continuous campaign optimization and precise ad budget management.

One of the key advantages of P.Max Labelizer is that products are automatically reassigned to different labels based on their performance. For example, a product may be classified as a LOSER today, but if its ROAS improves, it could become a HELPER or even a STAR by the next day. This dynamic process drives continuous campaign optimization while ensuring efficient budget allocation.

Why Leverage Our P.Max Labelizer for P.Max Campaign Optimization?

1. Budget Optimization

Eliminate unprofitable products that unnecessarily drain your budget.
Increase investment in high-performing, profitable products.

2. Identifying and Removing Unprofitable Products with the “OFF” Label

Every P.Max Labelizer has a predefined average margin.
This allows us to calculate Critical %ROAS and label products that fail to meet it. In other words, these products do not generate even €1 in profit and should be removed from advertising.
Only our P.Max Labelizer, in combination with BlueWinston P.Max campaigns, allows you to remove these products from your advertising with a single click.

3. The Only Solution for Both Google Ads and Microsoft Ads

Unlike competitors, we optimize Performance Max product campaigns across both advertising platforms, ensuring greater efficiency and cross-channel performance.

4. Flexibility and Automation

Predefined values for quick and easy setup.
Customizable rules for tracking periods, click volume, Labelizer %ROAS, Margin %, and label update intervals, giving you full control over campaign optimization.

5. Maintain Labeling for New Products

Only our P.Max Labelizer technology enables you to retain all existing filters and apply additional segmentation within your P.Max campaign. Label products based on their historical ROAS performance while still being able to advertise newly added products in your e-shop. Your P.Max campaign can run continuously, ensuring seamless integration of both existing and new products without compromising performance.

If you want to maximize the efficiency and profitability of your campaigns, P.Max Labelizer is your best choice!

Why Is It Important to Exclude Unprofitable Products from P.Max Campaigns?

Each P.Max Labelizer has a defined average margin, which enables us to calculate Critical %ROAS—a key metric for identifying products that do not meet a profitable performance threshold.

In other words, if a product does not generate even a minimal profit, the advertiser is losing money, and it needs to be optimized. Products that fall below Critical %ROAS are classified as OFFs and should be removed from advertising to prevent budget waste.

Why Is This Important?

Efficient Budget Allocation – Unprofitable products drain the advertising budget that could be better utilized for promoting high-performing, profitable products.
Higher ROAS Across the Entire Campaign – By eliminating loss-making products, you improve the campaign’s average ROAS and enhance overall profitability.
Greater Control Over Campaign Performance – With P.Max Labelizer tags, you gain full visibility into which products are profitable and which are not, allowing you to fine-tune your advertising strategy.
Elimination of Irrelevant Clicks – If a product has no chance of generating a profitable conversion, its impressions and clicks only decrease the overall campaign efficiency.

By optimizing your budget with P.Max Labelizer, you can focus on the products that truly drive revenue and contribute to your business growth.

Getting Started with P.Max Campaign Optimization Using P.Max Labelizer

In this article, you will find a detailed guide on how to use P.Max Labelizer, including its setup in the BlueWinston tool and its application in Google Ads and Microsoft Ads accounts.

STEP 1: Accessing the P.Max Labelizer Page

First, locate the P.Max Labelizer link in the left-hand navigation menu of the tool. Clicking on it will open a page displaying all P.Max Labelizers created for this account. Next, click “Create new” and select “Product labels based on performance %ROAS”. This selection is recommended because, in the near future, our interface will also include additional Labelizers, such as the POAS Labelizer, which will be specifically designed for P.Max campaigns using the Target POAS Bidding Strategy.

STEP 2: Input and Output Data for P.Max Labelizer

Define a name for your Labelizer to easily identify it later.
Select the correct advertising channel: A) Google Ads or B) Microsoft Ads. This determines the P.Max campaign the P.Max Labelizer will optimize.
Choose the correct Merchant Center account.
We can use the automatic label update feature via API, where we must either (A) select an available supplemental feed to use or (B) create a new one specifically for this purpose. We recommend creating a new supplemental feed, as it can also be used for other P.Max Labelizers within the same Merchant Center account.
Select a campaign from the list using the “Select” button – this must be a P.Max campaign using the Target ROAS Bidding Strategy.
The last two fields/variables are “Time frame” and “Minimum conversions”. We generally recommend that clients keep the default values. Essentially, this setting tells P.Max Labelizer not to start labeling products in the campaign unless it has at least 30 conversions in the last 30 days.

STEP 3: Fine-Tuning P.Max Labelizer Tagging Settings

In the “Label settings” tab, you can not only view the latest P.Max Labelizer results from the most recent update or live product data from the selected campaign, but also make additional adjustments and fine-tune the P.Max Labelizer to optimize ROAS and redistribute labels across individual products.

4 Key Settings That Affect Labeling

Average Clicks – The average number of clicks required to achieve a conversion is automatically calculated by the tool based on the selected Time frame, which is 30 days by default for every P.Max Labelizer. If the campaign and its products typically convert in fewer than 10 clicks, we recommend keeping a minimum of 10 clicks to ensure a sufficient data sample.
Margin (%) – This value represents the average product margin in the given campaign. P.Max campaigns should always be created for product groups with approximately the same margin. In this case, the margin is 15%.
Labelizer %ROAS – This is the automatically calculated Labelizer %ROAS, which determines how labels are assigned to individual products. The corresponding graph on the right side visualizes this distribution. Important: This is not the same as the Target ROAS set in the Bidding Strategy for the campaign in Google or Microsoft Ads! The Labelizer %ROAS should be at least 25% lower than the Target ROAS used in the campaigns. Ideally, it should be set as the Ideal %ROAS, which can be calculated manually or automatically by the tool.
Label Update Interval – The frequency at which product labels are refreshed. We recommend setting this to 7 days.

STEP 4: “Products” Tab – Product Performance and the Option to Manually Exclude Items from P.Max Advertising

In the “Products” tab, you can view various metrics and reports for the selected time frame, which is set to the last 30 days by default. This section provides a comprehensive report across all products, but you can also filter products by labels or performance for a more detailed analysis.

A very useful feature is the ability to manually pause specific products or assign them the “OFF” label. Products with this label are excluded from advertising, meaning they are not included in P.Max campaigns. This helps save daily budgets and reallocate spending to more effective products.

STEP 5: “Recommendations” Tab – Always Up-to-Date Suggestions for P.Max Label Optimization

In the “Recommendations” tab, you will always find up-to-date suggestions for labeled products and guidance on how to manage them. This includes recommended daily budgets for each label. For example, if you decide to run only two campaigns—one that includes all products except those labeled “OFF” (since these products are excluded from advertising) and a separate campaign dedicated to “LOSER” products—you need to calculate daily budgets based on the labels used in your campaigns. Of course, these budgets are only recommendations, and you can set different amounts based on your own strategy. However, the suggested budgets are derived from historical spend data from previous periods to ensure optimal allocation.

Automatic daily budget allocation for campaigns based on specific labels is coming soon! You can look forward to this exciting feature in Q1 2025.

Recommended Campaign Structure Based on Historical Performance. There are various approaches to structuring campaigns and determining which labels or products to include. BlueWinston will always recommend the optimal campaign structure tailored to your needs.

Implementation of a Unified Target ROAS Strategy

To maximize the effectiveness of P.Max Labelizer, it is recommended to set the same Target ROAS for all newly created campaigns in the Google Ads or Microsoft Ads campaign settings, while adjusting budgets based on product performance categories. This approach helps advertising platform algorithms allocate resources efficiently –prioritizing high-performing products while limiting spending on less effective ones. If you decide to move labeled products into new campaigns to optimize your Performance Max results, remember to set the same Target ROAS for each P.Max campaign as the original “parent campaign.”

Thanks to BlueWinston, you can directly remove automatically generated Text Assets and Final URL expansion, helping you create high-performance-oriented P.Max campaigns with a higher ROAS for your products.

STEP 6: New P.Max Campaign Structure – Managing Products with ROAS Labels

In this step, we will explain how to leverage the data and labels obtained through P.Max Labelizer. Based on historical performance, your products will be assigned specific labels, ranging from top-performing products (“STAR”) to those that should be removed from advertising (“OFF”) because they continuously consume budget without ever reaching Critical ROAS—the threshold at which a product starts generating profit from advertising.

Always Follow the Core Rule: Optimize Gradually! We recommend splitting campaigns and assigning products with specific labels only if the parent campaign has at least 30 conversions and 50+ products in the last 30 days. Additionally, we suggest implementing campaign segmentation (so-called “fragmentation”) gradually. Apply optimizations every 7–14 days for the best results. For example, in the first phase, we recommend removing “OFF” products from advertising, which will immediately free up ad budget that can be reallocated to higher-quality products, ultimately boosting ROAS.

Phase 1: Removing “OFF” Labeled Products

In the first phase, we primarily remove products labeled as “OFF”. In other words, the goal is to save daily budget by shifting spending away from unprofitable products and reallocating it to the remaining ones. After waiting 7–14 days, you can proceed to the next phase of optimization.

We recommend using P.Max campaigns created or managed directly within the BlueWinston interface, as it provides more advanced filtering options and ensures that “NEW PRODUCTS”, can continue to be automatically added to the campaign without the need for manual adjustments. For campaigns that were not created through BlueWinston, use the P.Max Importer to integrate them. If you choose not to manage campaigns through BlueWinston, you will not be able to automatically add “NEW PRODUCTS” to the parent campaign. Instead, you will be working with a fixed group of products that were included in the parent P.Max campaign at the time of launching P.Max Labelizer.

Phase 2: Moving “LOSER” Labeled Products – No Sooner Than 7–14 Days After Removing “OFF” Products

In the second phase, we move products labeled as “LOSER”. This step further optimizes the advertising budget by reallocating resources. Unlike OFF products, LOSER products are still advertised, but we reduce their budget by 50% compared to their previous allocation. After waiting 7–14 days, you can proceed to the next phase of optimization.

The parent campaign, from which we are moving “LOSER” products, must have 30 to 70 conversions in the last 30 days!

Phase 3: Moving “LOSER,” “CORE,” and “GHOST + ZERO” Labeled Products: No Sooner Than 7–14 Days After Removing “OFF” Products

In the third phase, we move products labeled as “LOSER,” “CORE,” and “GHOST + ZERO”. At this stage, the parent campaign is performing very well, generating a high number of conversions. This allows us to create additional sub-campaigns for specific labels. After waiting 7–14 days, you can proceed to the next phase of optimization.

The parent campaign, from which we are moving “LOSER,” “CORE,” and “GHOST + ZERO” products must have 70 to 100 conversions in the last 30 days!

Phase 4: Finalizing Optimization – Moving “HELPER” and “NEW PRODUCTS” – No Sooner Than 7–14 Days After Removing “OFF” Products

In the fourth and final phase, we move products labeled as “HELPER” and “NEW PRODUCTS”. This marks the last stage of optimization, where we have already structured campaigns for each label. The key rule remains to gradually separate products while ensuring that products labeled as “STAR” and “HELPER” collectively have at least 100 conversions in the last 30 days. The total number of conversions from all other products is, of course, significantly higher. After waiting 7–14 days, you can proceed to the next phase of optimization.

Products labeled as “STAR” and “HELPER” must have at least 100 conversions in the last 30 days. combined.

STEP 7: Manually Labeling Products as “OFF” That You Don’t Want to Advertise

P.Max Labelizer not only allows you to review the performance of individual products based on the selected tracking period (which is set to 30 days by default) but also gives you the option to manually select and label underperforming products as “OFF.” In other words, you can exclude these products from advertising, as discussed in Step 6, where removing “OFF” products is the first and fundamental step in the ROAS optimization process for P.Max campaigns in Google and Microsoft Ads.

You can add the “OFF” label to products at any time, but you can also remove it whenever needed in the future.

In the “Products” tab, you can view the performance of each individual product. On the left side, you can filter products labeled as “LOSER”, as these products are expected to have the worst performance in terms of ROAS and clicks, right after “OFF” products.

In the table, you will see the filtered products labeled as “LOSER,” displaying their performance as an example. Let’s say you decide to remove the first product from advertising by assigning it the “OFF” label. Simply select it using the checkbox, click on the options icon, and choose the first option: “Label product as OFF.”

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