Magic Shopping is an algorithm which manages Google Shopping campaigns based on our attribution model Magic Attribution with using margin data about individual orders.
Magic Shopping is an algorithm which manages Google Shopping campaigns based on our attribution model Magic Attribution with the use of margin data of individual orders.
Why was Magic Shopping created?
We have already shown you the management of Google Ads by margin in the Magic Margin section. Our next goal was to implement margin management on Google Shopping. Our previous experience shows that the integrity of management directed by one algorithm and under the control of one person yields greater efficiency, rapid growth and fewer errors. Due to the different method of operation and the algorithm’s complexity, this simply wasn’t possible for a long time.
- Magic Shopping can, as well as Magic Margin, use attribution model of your choice.
- We need daily updated feed with ID number of each order and the margin of each order.
The main difference is that in Magic Shopping, it is impossible to use feeds with ID orders and margins for the past year, like we can in Magic Margin. This might appear to be a problem, but we took it as a challenge. How did we manage to solve this situation? Shopping campaigns have significantly lower volatility than Search or Display campaigns and therefore they are more stable. From the moment Magic Shopping is launched, margin data is collected in Google Ads. We usually wait around two weeks to start using the algorithm.
Unlike with Magic Margin, we can’t work with cancellations and returns directly via feed updates because no feed is used. We can, however, import them retroactively in two different ways. This depends on the type of online store:
- We can import cancellations with a one day delay. Therefore, at least the first cancellations should be covered.
- Alternatively, we can import already finished orders.
Besides the already mentioned essentials, on the client-side we also need to add and implement a custom dimension (User-level scope) to Google Analytics – we call it Click ID.
Thanks to Click ID, we will be able to pair order margin with a click and assign this click to the source of the conversion path. We then import the margin into Google Analytics, which we will use later on in the algorithm’s calculations.