The Custom Labels 0-4 bring order to your Google Shopping and PMAX campaigns 

Google Performance Max (PMAX) has now become an integral part of many online marketing strategies. The automated campaign structure promises maximum reach with minimal management effort. However, the more Google optimizes, the less control you have. You can see results – but not which products are actually delivering them. Especially frustrating: Underperforming products often waste valuable budget. 

Despite the automation and scaling possibilities that PMAX offers, many questions remain unanswered: Which products are really performing? Where are you wasting budget? And how do you get the most out of your feed? 

The options listed by Google

• Category

• Product type

• Brand

• Condition

• Item ID

are not enough to maintain complete oversight of all product data.

The key to more transparency: Custom Labels in the Google Merchant Center

What are Custom Labels in the Google Merchant Center?

Custom Labels are user-defined attributes in the product feed of your Google Merchant Center. They help you better segment product groups and gain full control over Google PMAX and Shopping campaigns.

The data and attributes of the products are presented in tabular form in the product data feed. In addition to the options defined by Google, there are 5 Custom Label Slots (custom_label_0 to custom_label_4) available. 

These slots can be freely allocated (e.g. “Winter 2025”, “Top Margin” or “Sale”) and allow you to group and treat products within your Shopping or PMAX campaigns in a targeted manner. 

Differentiated control thanks to Custom Labels

Custom Labels make invisible product features visible – and manageable. Instead of treating all products the same, you can differentiate: High-performing products get more budget, low performers are reduced or excluded. This not only increases efficiency but also reduces waste and sustainably boosts your ROAS.

Creating Custom Labels requires a high level of technical know-how. In addition to opaque scripts, there are more user-friendly solutions, such as the tool from Label Up.

Using Custom Labels: The four Performance Labels from Label Up

In addition to independence and individual control, the Custom Labels also offer you the ability to segment products based on performance.

Label Up has made performance segmentation a core function of the tool. The four Performance Labels that can be created as templates in the app provide the foundation for simple, effective, and scalable optimization of your Shopping and PMAX campaigns.

1.  Champions

The Champions are your bestsellers and the stars of your feed. They generate the highest revenue with strong ROAS. The Champions should be the focus of your campaign – they deserve full attention and optimal budget.

2. Potentials

Your Potentials hold real growth potential. These products give you high ROAS, but little traffic. With the right fine-tuning, you can turn them into your next Champions.

3. Sleepers

Little visibility and little revenue - your Sleeper products are in a deep sleep. Wake them up and activate them purposefully, or clean up your feed to minimize waste.

4. Wasters

These products block your resources and deliver little to no results. They tie up budget that could achieve more impact elsewhere. By identifying these products early, you can budget more efficiently and better support your Champions.

These Labels are based on real-time data from your Google Ads account and help you quickly identify which products deserve your budget – and which do not. 

Self-defined Custom Labels for Google Shopping and PMAX

In addition to the four predefined Performance Labels, Label Up offers you the ability to create your own Custom Labels according to your goals. Play by your own rules and create labels tailored to your KPIs.

These additional segmentation options are available to you with Label Up: 

• Margin: Treat products with high vs. low margin differently.

• Season: Promote current seasonal items in a targeted manner.

• Inventory: Push excess stock, hold back scarce products.

• Brand/Non-Brand: Distinction between manufacturer brands vs. private labels.

• Price categories: Fine control by price range (e.g. < 50 €, 50–150 €, >150 €).

AND/OR rules for maximum flexibility

With the flexible AND/OR rules in the Labelizer, you can combine conditions, e.g. “ROAS > 600% AND Margin > 30%”. This allows you to create precise segments – without any manual spreadsheet work. The feature also allows you to specify other Custom Labels as attributes. 

Integration of Custom Labels for Google Shopping

 With tools, such as the one from Label Up, the Custom Labels are added directly in the feed and can thus be easily integrated into the workflow. They can be used as user-identified labels or asset groups in campaigns. The linking of the data happens by logging in with the Google Ads account in the Label Up app. Since Label Up relies on data from Google Ads and Merchant Center, you maintain control over data usage at all times. As soon as the app is linked with the Merchant Center, automatic segmentation begins, updated once daily. This update can also be triggered manually to bring the labels up to date at any time.

 Concrete tips for application and use cases can be found in the article (Application article link) 

Best Practice: Performance boost through Custom Labels for Google Shopping 

For clients of Label Up, a significant difference was noticeable shortly after the application period, and users reported: 

·  Up to 30% higher ROAS through targeted budget allocation

·  Reduction of waste through pausing inefficient products

·  Time savings in campaign management through clear performance segments

·  Easy handling and organization of the tool

·  More revenue through the targeted push of your Champions

So AnalyticaA, a leading German performance marketing agency, also benefits from the new tool. For Holger Umling, Head of Performance Marketing at AnalyticaA, an improvement in outcomes of around 40% was visible.

Conclusion: Custom Labels as a game changer for data-driven campaign management

If you truly want to control PMAX, you need Custom Labels. They bring structure to your product feed, help you prioritize, and maximize the efficiency of your campaigns. 

With Label Up, you not only get automated performance labels but also the flexibility to establish your own feed logic.