Google Shopping case: baby care products store (NDA)

11.01.2019
5 minutes
Cases,
172

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.

Рисунок-1_ROAS-до-оптимизации-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.

Рисунок-2_формула_сентябрь_минус

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:

  1. 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.
  2. To add remarketing campaigns + RLSA (dynamic campaigns).
  3. 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.
  4. To expand the negative keyword list.
  5. To make bids lower for products with low ROI and high Loss.
  6. To increase bids for products with high ROI and high Profit.
  7. To set bid adjustments by location.
  8. To create branded search campaigns.
  9. To provide consistent scaling of the account.

After new strategy implementation we got the following results:

Рисунок-3_ROAS_после_оптимизации

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%.
Рисунок-4_поисковые-кампании
  • 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:

Рисунок-5_-После-оптимизации_октябрь_декабрь

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:

  1. Correct goals setting which helped build the right strategy (achieving a positive ROI, then scaling).
  2. Competent micro-management thanks to The Panda software.
  3. Focus on the growth of ROI and net Profit.

P.S. Have you seen our new Google Shopping guide for business? It’ll help you to make your Google Shopping as effective as it can be. See for yourself!

1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 5.00 out of 5)
Loading...

Our website uses cookies to improve performance and provide maximum user experience.

В версии 3.0.0

  • новые сервисы: Ubersuggest (NeilPatel), Spyfu и другие;
  • автосохранение списка минус-слов в рабочей области;
  • авторизация для хранения данных в аккаунте;
  • списки типовых минус-слов;
  • возможность хранить пользовательские списки минус-слова в расширении для дальнейшего применения в аккаунте;
  • англоязычный и русскоязычный интерфейс.

Основные комбинации

  • LeftMouseClick для добавления слова, повторное нажатие - для удаления
  • LeftALT + LeftMouseClick - для сбора фраз
  • LeftALT + S - для поиска слов

In version 3.0.0

  • new services: Ubersuggest (NeilPatel), Spyfu and others;
  • autosave of a negative keywords list in the workspace;
  • authorization for storing data in the account;
  • generic negative keyword lists;
  • the ability to store custom lists of negative keywords in the extension for further use in your account;
  • English and Russian interface.

Key combinations

  • LeftMouseClick to add a word, press again - to delete
  • LeftALT + LeftMouseClick - to collect phrases
  • LeftALT + S - for words searching

В версии 2.0

  • 2 режима выдачи ключевых слов:
  • быстрая выдача - аналогична выдаче Google Planner, но найденные результаты включают каждое слово из введенной в поиск фразы;
  • полная выдача - расширенная выдача, которая включает поиск по дополнительным релевантным фразам, но найденные результаты также включают каждое слово из введенной в поиск фразы.
  • Обновленный файл выгрузки ключевых слов Excel:
  • выгрузка локаций в удобном формате для загрузки в Editor;
  • обновленный шаблон для создания объявлений.
  • Полный список локаций.
  • Группировка отчетов по проектам.
  • Устранена ошибка с задержкой в 30 секунд.
  • Новые фильтры для получения релевантной выдачи.
  • Копирование минус-слов.

In version 2.0:

  • 2 modes of keywords search result:
  • quick search result - is similar to one of Google Planner , but the results found include every word of the phrase entered in the search;
  • full search result - extended search result that includes search on additional relevant phrases, but the results found also include every word of the phrase entered in the search.
  • Updated Exces Keyword Upload File:
  • uploading of locations in a convenient format for uploading to Editor;
  • updated template for creating ads.
  • Full list of locations.
  • Grouping of reports on the projects.
  • Fixed an error with a delay of 30 seconds.
  • New filters for getting relevant search results.
  • Copying of negative keywords.

Несколько шагов до работы в Penguin

Заполните форму

Прикрепите резюме:
1Кликов 259, показов 3 515. Чему равно CTR?
2Заходов на сайт 874, конверсий 16. Чему равен коэффициент конверсии?
3Что такое СРА?
4CTR 4,03%, кликов 240. Чему равно число показов объявления?
5Затрат 20 158, конверсий 63. Чему равна стоимость конверсии?

Несколько шагов до работы в Penguin

Заполните форму

Прикрепите резюме: