Categories: Industry news, Lifehacks, Recent projects Tags: , , , , , , Leave a comment

How to have ROAS of 700% with Standard and Smart Google Shopping

Don’t beat a dead horse in advertising, learn from others or “The Garden Tractors Case”

You have a profitable Shopping campaign, but feel that things can be much better than that. All you need is to find out potential issues and optimize your campaign. But it’s easier said than done… What to do now?

“Lead by example” works great with politics and business development, but it is also good for marketing. We have faced such a case and gathered useful info to share for similar situations.

What was the story

The client ran an e-commerce store selling spare parts for garden tractors. The main goal was launching profitable advertising campaigns. From the start, he had Shopping campaigns on the account and it was already lucrative. After analyzing the whole account we realized, that we can improve both: search and shopping.

Improving the feed

After reviewing the campaigns we’ve worked over the whole product feed to increase the feed quality score and achieve the lowest percentage of blocked products. There were no Google product categories for some products, we added them for more relevant displays of our ads.

Smart Shopping campaign effect

Also, we’ve created a Smart Shopping campaign, which received high priority in comparison with a regular campaign. Despite the fact that a smart shopping campaign has a higher conversion rate, the value of each conversion is lower than in a standard campaign. So we can conclude that small parts and spare parts that cost less are better sold in a smart shopping campaign.

Undertaken resolutions

Based on these data, it was decided to leave the standard shopping campaign, which has a lower conversion rate and ROI but generates more profit, even with its smaller advertising budget.

After testing various strategies and their combinations (keeping a certain ROAS, maximizing the number of conversions), we came to such a combination when the CPA has fallen significantly and the number of conversions has increased.

 

Because the range in the campaigns was very large, we decided to focus on the SKAG structure – each keyword had its own ad group, each keyword had several ads for rotation, each keyword led to the most relevant target placement. For example, “Countax parts” – to the main page of the site where you could select a product category and start the search, “Countax engine spares” – to the product category page, “Countax c600h hydrostatic gearbox” – to the page for selecting the hydraulic suspension for the tractor model c600h.

Here’s the list of some keywords in the campaigns:

 

This structure allowed us to achieve the greatest relevance for the user, as well as for the platform, because of which we had a high-quality score and a low cost per click (CPC). Of course, this structure took about 20 hours to develop, but it allowed us to achieve a very low bounce rate, even compared to the average for e-commerce, which saves a lot of budgets, since we did not pay a lot of money for clicks.

What optimizations were implemented and what were the results

In the process of managing the account, we made a lot of optimizations, some of them are the following:

  • device bid adjustments, demographics
  • keyword bid adjustments
  • A / B testing of different variants of ads
  • testing and comparing manual and automatic strategies such as – maximizing conversions, target CPA
  • analysis of search queries reports, adding relevant conversion words to the campaign, as well as the adding irrelevant words to negatives

All this allowed achieving these metrics for the month, the main ones are:

  • Average bounce rate of 28.09%
  • Average conversion rate – 4.30%
  • ROI – 653%

 

To sum up, there are always issues to improve your advertising campaigns. Just keep an eye out for the key audience behavior, try various campaign combinations and check their effectiveness by testing and comparing. Marketing in a whole is rather volatile thing, so it’s a must to always be flexible and stay ahead of trends.

Dmitriy
Dmitriy Averin

Project Manager

Leave a Reply

Your email address will not be published. Required fields are marked *