Google Shopping: ROAS increased to 1,819 % in the healthcare industry

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Business: pharmaceutical sales. Ukraine

The drug industry is subject to strict Google policies. Thus, prior to starting work, it is crucial to check all products for violations of the regulations and make sure that there aren’t any.

The client offers a very narrow range of medication for various purposes. At the time we started to work on the project, the variety of products included 15 items. All drugs are produced in EU countries and have Ukrainian counterparts.

Tasks:

optimize an existing shopping campaign. According to the client, the campaign did not bring an acceptable result, the search queries were not related to the products, and the campaign worked at a loss.

Results of PPC of medication before the Penguin-team stepped in

When we started — from December 1 to December 14 — the main indicators of the campaign were as follows:

✓ costs — UAH 2,609.12;

✓ clicks — 870;

✓ avg. CPC — UAH 3.00;

✓ conv. value — UAH 392.53;

✓ ROAS — 0.15;

✓ CTR — 2.13%;

✓ conv. rate – 11.08%.

Advertising account audit

During the audit, the following issues were identified:

All imported conversions in the account were marked as Minor.
All products were combined into one product group.
Negative keywords have been added at the campaign level.
Locations were not divided by region-city.
All imported conversions were used as the goal for campaign optimization.
The bidding strategy was «Manual bidding».

Work plan

Optimize an existing shopping campaign:

✓ separate products into separate ad groups;

✓ add negative keywords;

✓ change strategy;

✓ optimize results.

Works performed

Purchase is selected as a priority conversion, the rest of the conversions are marked as secondary ones/
In the Shopping Campaign, Purchases are also selected as the Goal, other conversions are excluded from optimization.
All active products are divided into separate ad groups. This is required for a more accurate choice of rates for each separate product, as well as for Cross Negative Keywords between separate products.
The bidding strategy has been changed from «Manual Bidding» to «Target ROAS». As a limitation, Target ROAS at the start is set to 100%.
The negative keywords gathered before we started the project were simply listed out and implemented at the campaign level. Mentions of active products are excluded from the list.
Started collecting negative keywords at the level of ad groups (products). Intersecting products are added as negative keywords (Cross Negative Keywords).

Challenges and how we solved them

The main challenge we faced was the specifics of the goods. On average, each product group receives from 500 to 2,000 impressions and 20-50 clicks per day. At the same time, the search queries that cause the ad to be displayed in the majority are the names of drugs that are not related to the promoted products.

In order to exclude irrelevant search queries, a list of analogs of promoted products was compiled, and their purpose and main active ingredients were written out. This helped to avoid adding relevant search queries to the negative keywords, which could lead to conversions in the future.

Results of PPC of medication after the Penguin-team stepped in

The first result was achieved within a day after the implemented changes:

The main indicators of the campaign from December 14 to January 5 are as follows:

✓ costs — UAH 8,058.82;

✓ clicks — 2,695;

✓ avg. CPC — UAH 2.99;

✓ conv. value — UAH 146,602.47;

✓ ROAS — 18.19;

✓ CTR — 1.75%;

✓ conv. rate — 4.77%.

Things that made these results achievable

After switching to the Target ROAS strategy, CTR decreased from 2.13% to 1.53%. However, thanks to the constant cleaning of search queries (more than 6,000 negative keywords have already been added), an increase in CTR is noticed:

By gradually raising the Target ROAS value (at the time of writing the case it was already 1,200% at the campaign level), we achieved an increase in the ROAS value by 11,148.20% compared to the previous period:

Comparing results of PPC in the healthcare industry: changing dynamics

Further work with search queries will keep increasing CTR and reduce Avg. CPC and the introduction of Target ROAS at the ad group level will allow you to set the limit for each product more accurately.

Check out more study cases in our blog⤵

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