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 control effort. But the more Google optimises, the less control you have. You see results – but not which products really deliver them. Particularly frustrating: Often underperforming products burn valuable budget. 

Despite the automation and scaling possibilities that PMAX brings, many questions remain open: Which products really perform? 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 full visibility over 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 custom attributes in the product feed of your Google Merchant Center. They help you segment product groups better 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 assigned (e.g. "Winter 2025", "Top Margin" or "Sale") and enable 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 controllable. Instead of treating all products equally, you can differentiate: High-performing products receive more budget, while low performers are reduced or excluded. This not only increases efficiency but also reduces waste and sustainably increases your ROAS.

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

Using Custom Labels: The four Performance Labels from Label Up

Besides independence and individual control, the Custom Labels also give you the ability to segment products by performance.

Label Up has made performance segmentation the core function of the tool. The four Performance Labels that can be created as templates in the app provide the foundation for easy, effective, and scalable optimisation 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 an optimal budget.

2. Potentials

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

3. Sleepers

Low visibility and low revenue - your Sleepers are in a deep sleep. Wake them up and activate them strategically, or clean up your feed to minimise waste.

4. Wasters

These products block your resources and yield 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 promote your Champions.

These labels are based on real-time data from your Google Ads account and help you quickly recognise 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 tailored to your goals. Play by your own rules and create labels customised to your KPIs.

The following additional segmentation options are available to you with Label Up: 

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

• Season: Promote current seasonal items specifically.

• Inventory: Push overstock, hold back scarce products.

• Brand/Non-Brand: Differentiation by manufacturer brands vs. own brands.

• 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 precise segments to be created – all without manual spreadsheet work. The function also allows you to specify other Custom Labels as attributes. 

Integration of Custom Labels for Google Shopping

 With tools like the one from Label Up, 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 only relies on data from Google Ads and Merchant Center, you always retain control over data use. Once the app is linked to the Merchant Center, automatic segmentation begins, which is 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 here.

Best Practice: Performance Boost through Custom Labels for Google Shopping 

For customers of Label Up, a significant difference was noticed after a short application time, and users reported: 

• Up to 30 % higher ROAS through targeted budget allocation

• Reduction of waste by pausing inefficient products

• Time savings in campaign management through clear performance segments

• Easy handling and organisation of the tool

• More revenue through targeted pushing of your Champions

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

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

If you really want to control PMAX, you need Custom Labels. They bring structure to your product feed, assist with prioritisation, and maximise 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.