Custom labels: everyone
says use them - here's how
to actually do it

Edit directly in Merchant Center

Google Merchant Center lets you apply overrides to individual products manually. Straightforward for small catalogues or one-off changes, but it doesn't scale - you'd spend more time managing overrides than running campaigns.

Layer values via a secondary feed

A supplemental feed sits alongside your primary feed and writes custom label values against matching product IDs. Typically built in Google Sheets, it's updated manually or on a schedule. Good middle ground - no dev dependency, works for most accounts, and gives you decent control without a big technical lift.

Rule-based automation at scale

Tools like DataFeedWatch, Channable or Feedonomics let you write conditional rules that assign custom label values dynamically - no spreadsheet maintenance required. If price drops below a threshold, the label updates. If stock drops below a set quantity, it shifts segment. The logic runs automatically every time the feed refreshes.

For larger catalogues or accounts where label values need to change frequently, this is the right approach. The upfront setup takes more time, but the ongoing maintenance drops significantly.

Treat new products differently from the start

New arrivals often need a different push - especially if you're in a fashion or seasonal vertical where recency drives purchase intent. Labelling new stock separately lets you control budget allocation and bid strategy independently of your evergreen range, rather than letting them compete in the same bucket.

Segment by what the data tells you

Splitting products into tiers based on performance - typically conversion value (whether you use default transaction value or profit proxies) and conversion rate - lets you apply different bid strategies and budgets to each tier. Star performers get the most headroom. Low performers get tighter control or get cut.

What job is this product actually doing?

Not every product in the catalogue is trying to do the same thing. Some SKUs are the high-margin drivers you want to scale. Some are cash-flow products that need to keep moving at volume. Some are new range launches you're investing in to build data. Labelling by SKU role lets you structure campaigns around these different objectives rather than treating all products as interchangeable.

Old inventory is a cost, not just a product

Stock sitting in a warehouse too long is tying up cash. Labelling by stock age - typically banded into ranges like 0–30 days, 31–90 days, 90+ days - lets you give older inventory a harder push when you need to, without manually hunting through the catalogue every time clearance is on the agenda.

This one tends to be overlooked until it hurts. Building the label early makes the clearance moment much easier to execute.

Bid based on what actually makes money

This is one of the more powerful approaches and, frustratingly, one of the most underused. Knowing which products generate the most contribution margin per sale changes how aggressively you should be bidding on them. A high ROAS SKU with a thin margin is not the same as a lower ROAS SKU with a strong margin - but without margin-tier labels, your campaign structure treats them identically.

Combining margin tier with price point adds another dimension - useful when you're trying to identify where you can push spend hardest or where you need a floor.