WE HELP YOU GET THE RESULTS THAT OTHER AGENCIES FAILED TO ACHIEVE
Road to $276,600/month
We started our cooperation with this Private Client in February 2022. The client turned to us because of the ineffectiveness of their ongoing Google Ads campaigns. Break-even ROAS for this client was at 4.65x, and campaigns were barely hitting it. Due to the competitiveness of the Furniture industry in the US, in which this client was operating, it was a real challenge for us to scale this account while maintaining profitable results.
Prior to our cooperation, the Google Ads account had smart campaigns running, with a monthly spend of less than $14,000/month. They were generating $63,700 in revenue, so the ROAS was at 4,55x.
The main goals set at the beginning of the cooperation were:
- Increase the revenue generated by Google Ads campaigns
- Improve the cost-effectiveness of Google Ads activities
- After achieving satisfying results, we agreed to scale the account. We were given the green light to gradually increase the budget if we achieved the assumed efficiency.
As in most e-commerce businesses, we focused on shopping ads but did not forget about Search and remarketing in GDN. At the same time, we also decided to use RLSA (Remarketing Lists for Search Ads), which allowed us to reach users who were already on the client’s website with stronger purchase intentions.
In Shopping Ads, we focused on controlling what phrases the Client’s website displays for. We could not afford to pay high rates for displaying products for the wrong keywords. We wanted to target users in the sales funnel, those interested in and considering buying the products we offer, as precisely as possible.
However, we know from experience that the furniture industry is specific. It is difficult to define the levels of the sales funnel here. Transactions can be generated from very general phrases, such as „dresser” or „bed.”
Smart Shopping Campaigns
In the beginning, we decided to use Smart Shopping Campaigns because a lot of conversion data was already recorded on the client’s account. Smart Shopping combines standard product campaigns and ad network remarketing campaigns. It uses the automated placement of Display Ads on the websites and automatic bidding settings to promote products on various networks. However, Smart Shopping Campaigns have not delivered the expected results.
We were forced to pause some of them and relaunch certain product categories with Standard Shopping Campaigns, where we could control the search terms and exclude irrelevant keywords. It became apparent very quickly that many searches and clicks, and thus expenses, are generated by phrases related to kitchen furniture. Therefore, we decided to limit the display of ads for such phrases, and we even excluded some of them. The reason for such a decision was that kitchen furniture is a very small part of the client’s assortment.
Search Campaigns
In Search, we relied on a DSA (Dynamic Search Ads) campaign, which we treat as a keyword „digger.” At a later stage, we created a separate Search campaign for the most effective phrases, with headlines and descriptions tailored to keywords as precisely as possible – so that when a user clicks on the ad, he can purchase exactly what he was looking for.
In addition, an advanced brand campaign was also set up (targeting phrases with our client’s brand name).
Google Display Network
In the Google Display Network, we focused on remarketing activities. Here we used dynamic remarketing – the ads displayed products that users were interested in and browsed on the website. In addition, we created more than a dozen audience lists from with users at different stages of the purchase decision. The strongest promotion was aimed at people who abandoned the shopping cart (added the product to the cart but did not complete the transaction). Lower rates were allocated to reach product viewers or all other users.
Results
After 4 months:
- 357% increase in the number of clicks
- CPC decreased by 9%
- With a 261% increase in ad cost, we generated 318% more transactions and 464% more revenue (ROAS increased by 66% to 7,55x)
So it looks like incorporating smart campaigns and trusting artificial intelligence in running advertising activities may not be as effective as outsourcing it to a specialist who can fully control the search terms.
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- For e-commerce businesses that want to take their Paid Ads programs to the next level.
- For e-commerce businesses looking to understand their increased revenue potential with funnels & conversion rate optimization.
- For e-commerce businesses looking to maximize their conversion rates & average order value.