4 PERFORMANCE MAX SEGMENTATION STRATEGIES AND HOW TO LEVERAGE THEM

Summary from the TLDR Marketing newsletter

The pros and cons of 4 different PMax segmentation strategies. High margin segmentation, which separates top products from the long-tail, is common but is usually driven by bad assumptions. Product type segmentation groups similar products together, which can be effective if the grouping is done right. Brand and non-brand segmentation is sometimes effective, but often solves a problem that doesn't exist. Customer segmentation based on nCAC/LTV often has significant errors due to its complexity and can ultimately squeeze margins. Regardless of which segmentation strategy is used, every PMax account should have Zombie SKU campaigns, which include products that have low historical volume, and a Catch-all, which helps ensure you aren't missing anything in your build.