Moneyball
Moneyball is Semmántica's method for deciding which products in a catalog to invest in. It scores each product according to profit, conversion and demand, and classifies it into five segments: Core, Scale, Optimize, Hold and Kill. This way the catalog stops being a list of items and becomes an investment decision system.
Most ecommerce businesses run automated Google Shopping campaigns (Performance Max), where Google chooses, by its own criteria, which products to show. They usually generate sales and growth, although money is spent on products that sell a lot but leave little margin, while others that could grow are left without budget. The account's average ROAS looks good, but it hides products that lose money.
Why? Google only sees part of the metrics, but it does not take into account what matters most: gross margin, returns, logistics and many other aspects of your business that are essential for the channel to be profitable.
We gather the product feed, the margin per product or per family and the analytics and campaign data.
We score each product on three variables: demand (how many people search for it), conversion (how many visits end in a sale) and margin (how much each sale leaves after advertising).
With that score, every product falls into one of five segments: Core, Scale, Optimize, Hold or Kill.
Each segment has its own rule: where investment goes up, where it stays, what needs fixing first and what leaves the campaigns.
We bring the segmentation to the catalog campaigns (Google Shopping, Performance Max and the Meta and TikTok catalogs) and review it every month.
The products that sustain the business. Their investment and visibility are protected.
Products with demand and margin that don't yet have the investment they deserve. This is where the new budget goes.
Products with demand but low conversion or low margin. Before investing more, the listing, the price or the bid has to be fixed.
Stable products that don't justify more investment. They are maintained without increasing.
Products that cost more than they bring in. They leave advertising investment.
The product feed from Google Merchant Center or from your e-commerce platform; the margin per product or per family, even if approximate; and access to analytics and advertising accounts.
In Google Shopping, Performance Max and the Meta and TikTok catalogs. It is also useful to decide which categories to work on in SEO, which products to highlight on the website and which items to review with purchasing.
E-commerce and brands with a wide catalog that invest continuously in product campaigns and want the budget to follow margin, not just sales.
In the diagnosis we tell you which products leave you margin and which don't. We'll tell you even if you don't hire us.
It is Semmántica's method for deciding which products in a catalog to invest in. It scores each product according to profit, conversion and demand, and classifies it into five segments: Core, Scale, Optimize, Hold and Kill.
After the method with which a baseball team started signing players using data instead of intuition. We do the same with the catalog: we invest where the data says there is a return.
ROAS measures sales against investment, but it ignores each product's margin. Moneyball does not: a product with a good ROAS and a low margin may be losing money.
The product feed, the margin per product or per family, and access to analytics and advertising accounts.
Moneyball is designed for catalogs sold online, because it needs conversion data per product. If you sell through distributors or in physical stores, in the diagnosis we check whether you have the data to apply it.
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