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Unlocking the Power of TRUDA’s Benchmark Label for Your E-commerce Strategy
In the competitive realm of e-commerce, understanding how your product prices compare to those of your competitors is paramount. TRUDA’s Benchmark label offers a robust solution for precisely this challenge. By evaluating and comparing your product prices with those of similar merchants, TRUDA empowers you to categorize and tag your products based on their pricing relative to the market.
Understanding the Labels:
- Below Benchmark: Indicates products priced lower than the market average. Their price is at least 5% lower than the benchmark price.
- Average Benchmark: Represents products priced at the market average. The range of prices at which we consider the product as an average benchmark is Benchmark price +- 5%
- Above Benchmark: Signifies products priced higher than the market average. Those product have their price higher with more than 5% than the benchmark price.
By utilizing this labeling system, you can easily create and test campaigns tailored to products classified as “Below Benchmark,” focusing on promoting competitively priced items compared to the market average. You can also experiment with campaigns dedicated to “Below Benchmark” products that haven’t yet generated revenue, giving them priority promotion opportunities.
Google Merchant Center and GTINs:
Google Merchant Center is a platform that allows merchants to upload their product data to Google and make it available for Google Shopping ads and other Google services. It’s an essential tool for managing your product listings and ensuring they meet Google’s requirements.
A Global Trade Item Number (GTIN) is a unique identifier for products, commonly used in barcodes. Google Shopping relies heavily on GTINs to match products accurately and provide relevant search results to users. Having correct GTINs is crucial because Google may disapprove products with incorrect or missing GTINs, affecting your visibility and ad performance.
All Benchmark data is collected from its corresponding Google Merchant Center account. Google Merchant Center can provide Benchmark data only for products with a correct GTIN attribute.
Importance of Benchmark Label:
The Benchmark label provides invaluable insights into your product pricing relative to the market, helping you understand where you stand compared to your competitors. It enables you to make informed decisions about pricing strategies, promotional efforts, and budget allocation for advertising campaigns.
Budgeting Example for Google Ads Campaigns:
Let’s consider a hypothetical scenario:
Suppose you run an e-commerce store selling electronic gadgets. With the help of TRUDA’s Benchmark label, you discover that some of your products are priced significantly lower than the market average (Below Benchmark), while others are priced higher (Above Benchmark). Armed with this information, you decide to allocate your Google Ads budget strategically:
- Below Benchmark Products: Since these products are priced competitively, you allocate a larger portion of your budget to Google Ads campaigns promoting them. You aim to capitalize on their competitive pricing to attract more customers and drive sales.
- Above Benchmark Products: While these products may have higher profit margins, they are priced above the market average. You allocate a smaller portion of your budget to campaigns for these products, focusing more on targeting specific niches or using remarketing strategies to reach potential customers who are willing to pay a premium for quality.
By adjusting your Google Ads budget based on the insights provided by the Benchmark label, you can optimize your advertising spend to maximize ROI and stay competitive in the market.
Combining Labels in Ad Campaigns:
To maximize the effectiveness of your ad campaigns, you can combine TRUDA’s Benchmark label with other powerful labels such as Revenue, Promoted, and Price Range. For instance, you can create segmented campaigns targeting products with both high revenue and below benchmark pricing, allocating a larger budget to capitalize on their profitability and competitiveness. Additionally, you can use the Promoted label to identify products with high engagement levels and prioritize them in your advertising efforts. By integrating multiple labels into your campaigns, you can create targeted and efficient strategies to drive sales, increase ROI, and stay competitive in the e-commerce landscape.
TRUDA’s Benchmark label provides e-commerce merchants with invaluable insights into their pricing dynamics and market positioning. By leveraging this label alongside other TRUDA labels and strategic budgeting, merchants can optimize their advertising strategies, maximize ROI, and achieve sustainable growth in the competitive e-commerce landscape.
