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Campaign priority should be used when:
A) You have multiple campaigns advertising the same products
B) You want to separate your inventory by brand
C) You want to lower the bid for a product group
D) You have multiple sales to promote within the same campaign
Explanation:
Campaign Priority determines which products you want to get displayed from in case you have multiple Shopping campaigns running with similar products. In that case the deciding factor will not be a bid, but the campaign priority if you set it to High
Campaign priority is useful when you’re advertising the same product, for the same country, in multiple Shopping campaigns.
Read more here: https://support.google.com/adwords/answer/6275296?hl=en