What is product bucketing?
Product bucketing is a strategy used in online marketing, especially within SEA (Search Engine Advertising), to divide products into different groups or "buckets" based on specific characteristics such as price, margin, popularity or conversion opportunities. The goal of product bucketing is to more accurately tailor ads and bidding strategies to the characteristics of each product segment so that you can make the best use of your budget and achieve better results.
With product bucketing, for example, you can divide your products into different price ranges: low, medium and high. You can then adjust your bids based on this breakdown. For high-margin products, you can use higher bids to generate more visibility and clicks, while for lower-margin products you may want to bid more conservatively. You can also apply product bucketing based on the popularity of products. For example, popular products are then given a higher priority in your ads because they are more likely to convert.
In practice, product bucketing is often used in conjunction with Smart Bidding strategies within SEA. A best practice is to properly organize your product feed and ensure that the segmentation criteria you use for product bucketing are relevant to your business goals. For example, this could mean grouping products based on seasonality, inventory levels, or even customer reviews. By using product bucketing effectively, you can better match your ads to the value and potential of each product segment, leading to more efficient spending of your ad budget and better performance of your campaigns.
