Custom labels let you assign internal grouping values to products for reporting and bidding in supported Google Ads campaigns.
Google provides five custom-label attributes, named custom_label_0 through custom_label_4. Plan what each slot means before adding values so the catalog stays understandable.
Start with a business question
Decide what grouping would help you make decisions. Examples include an internally calculated margin band, a seasonal collection, or a merchandising priority.
These are organizational examples, not instructions to invent profitability data. A label called “high_margin” is useful only if your business has a consistent method for assigning it.
Write the definition of each label slot in a shared reference.
Choose where labels are maintained
For a connected store, inspect whether its integration supports the needed label mapping. For a product file, add the relevant supported attributes to the data.
Attribute rules may also be an option for assigning values based on existing information when available and appropriate.
Choose one clear owner for the logic so an integration and a manual edit do not compete.
Use consistent values
Agree on spelling and capitalization conventions. A team that uses “winter,” “Winter,” and “winter_collection” for the same intended group creates unnecessary complexity.
Keep values meaningful to the people managing campaigns. Avoid encoding several unrelated concepts into one unexplained string.
Test a small sample and confirm the processed label is attached to the intended products.
Check the advertising workflow
A label in Merchant Center does not automatically create your desired campaign structure.
In the relevant supported campaign, verify how product grouping, reporting, or bidding uses the labels. Ensure the selected product set matches the business definition.
If a product is in the wrong group, trace the label assignment before changing campaign controls.
Keep labels distinct from feed labels
A feed or data-source label identifies source groupings. Custom labels are attributes assigned to individual offers.
They can coexist, but they do not replace one another. Decide whether your task concerns selecting a source or grouping products within the catalog.
That distinction avoids building the right concept in the wrong field.
Frequently asked questions
Are custom labels product titles?
No. They are internal grouping attributes.
Do labels improve performance automatically?
No. They support organization; outcomes depend on how the information is used.
What is the best first label?
The one that answers a clear recurring business decision and can be maintained reliably.
Related reading
What Is Google Merchant Center? A Beginner’s Guide
How to Fix a Google Merchant Center Suspension
Official sources
https://support.google.com/merchants/answer/6324473?hl=en