Google Shopping case: baby care products store (NDA)
Results
15.08.2018 — 15.10.2018 (before) | 16.10.2018 — 16.12.2018 (after) | Change | % of change | |
ROAS | 294% | 546% | +252% | +86% |
Conv.rate | 6.36% | 10.27% | +3.91% | +61% |
Conversions | 204 | 146 | -58 | -29% |
Av. margin | 38.80% | 40.07% | – | – |
ROMI (Shopping) | 32% | 153% | +121% | +378% |
Net profit (Shopping) | $1706.48 | $2900.71 | +$1194.23 | +70% |
Background information
Client: NDA (online baby care products store).
Region: USA.
Service: creating and optimization of advertising campaigns in Google Ads (Shopping, Search, Remarketing).
The task from the client was to increase a revenue. Campaigns performed for a long time and at first glance the results looked not bad: Shopping campaigns brought about $9000 of revenue per month. But here’s what client said: “We must increase our revenue, ‘cause if we subtract $3000 of advertising costs and look at our average 30-35% margin, it appears that we make only a little profit. And we wanna make more. If you can increase revenue by $1,500-2,000 per month – we’ll be happy”.
You can see the data for 2 months before optimization on Image 1.
Only Shopping campaigns were performing. Revenue of 2 months was $17k, ROAS — 293%.
Our work on the account was started with the audit.
We didn’t find any technical mistakes. Two campaigns were set for 2 product categories — baby food and diapers. Most of the traffic was relevant. All products in campaigns were splitted into relevant groups. But all of them had the same bids! And margins of each product weren’t considered at all while setting up max CPCs. The daily budget was splitted between 2 campaigns. Campaign with baby food had higher conv. value and daily budget.
It also seems very logical, doesn’t it?
But without taking into account margins it’s impossible to make reliable calculation of real profit and ROMI. And without them it’s impossible to make a final conclusion about account effectiveness.
For this task our Penguin-specialists use The Panda — ppc micro management software. This software allows to add margins to the products of online store and determine the actual profit or loss for each product and general profit for campaigns. Based on this data Panda calculates the Target CPC for each product.
This image shows results of the campaign performance (September, 1 month before optimization), which brought higher revenue and accordingly to it, spent more budget.
In fact, this campaign has performed really badly in the last few months. In September (at this time, the budget for it was increased) profit / loss was -$653. ROMI was equal to -36%.
In the second campaign (diapers) results were much better, it seemed to bring some profit. Therefore, for a long time client thought that the campaigns didn’t work so badly.
After seeing the actual results we changed goals for account optimization. Our main task was to increase ROMI and profits in both product categories.
Based on the new goal and the accumulated data in account, we created a new strategy:
- To stop showing products that bring us losses (based on the data calculated by The Panda). Such items were only 3.They spent most of the budget.
- To add remarketing campaigns + RLSA (dynamic campaigns).
- To add Shopping Remarketing campaigns. Since repeating sales are very important in this market segment and the segment is very high competitive, it’s needed to get the maximum Search Impression Share for users who have already visited website.
- To expand the negative keyword list.
- To make bids lower for products with low ROI and high Loss.
- To increase bids for products with high ROI and high Profit.
- To set bid adjustments by location.
- To create branded search campaigns.
- To provide consistent scaling of the account.
After new strategy implementation we got the following results:
Results according to the data from Google Analytics (for Shopping campaigns):
- ROAS for Shopping campaigns after 2 months work is equal 546%;
- The revenue share of Shopping campaigns is 70%.
- Other campaigns (Search + Remarketing) indicators: ROAS is 1,075%.
So result that we got was much better than it had been before our work. In addition to good numbers in Google Analytics, we also achieved good ROMI and net profit:
As you can see on the image:
- total Profit / loss is $2,900.71
- ROMI is equal to 153%;
These results allowed our client to make a really good profit from Google Ads advertising.
A positive result was achieved due to:
- Correct goals setting which helped build the right strategy (achieving a positive ROI, then scaling).
- Competent micro-management thanks to The Panda software.
- Focus on the growth of ROI and net Profit.