improving of titles, descriptions and other things which help show right product ads
making of right structure which represents company needs and gives high potential to scale and management
using own software Panda, ppc-specialists can manage bids according to their performance in ROI and Profit
using own software “NegativeKeywords tool” and Google Ads Scripts - specialists manage search terms and negative keywords effectively
(After PLA, Dynamic Remarketing drives transactions to store)
(product search ads, still can give more transactions)
(sometimes Bing can give +10-20% to revenue)
(helps to build relations with users and push them in the buyer funnel steps of the store)
(adding Dynamic Search Ads, store can achieve more traffic and transactions)
We often see that many advertisers use ROAS as a main metric to measure success of Shopping campaigns and manage bids according to this metric. But according to our experience, managing bids in that way can give non-obvious bad results.
Let’s imagine a situation that we have a product (New Balance trainers) in our campaign with the following data:
| Clicks | CPC, $ | Transactions | Cost, $ | Revenue, $ | ROAS |
|---|---|---|---|---|---|
| 79 | 1.34 | 5 | 106 | 225 | 212% |
At first glance, the result doesn’t look bad and Google gives us advice to increase bid to $1.7 because our performance looks good and many advertizes do that.
But if we add product margin to this data, we get other results:
| Clicks | CPC, $ | Transactions | Cost, $ | Revenue, $ | Margin | ROAS | Profit, $ | ROI |
|---|---|---|---|---|---|---|---|---|
| 79 | 1.34 | 5 | 106 | 225 | 35% | 212% | -27.25 | -26% |
So if advertiser continues to increase bids, it will cost more losses. The right way to set an effective bid is to use this formula:
Target CPC = item price * margin * conv. rate * invest. rate (% of investment which is set by advertiser from 1% to 100%), for New Balance shoes target cpc will be:
Target CPC = $45 * 35% * 6.3% * 75% = $0.74
So if advertiser sets up this bid, performance will be the following:
| Clicks | CPC, $ | Transactions | Cost, $ | Revenue, $ | Margin | ROAS | Profit, $ | ROI |
|---|---|---|---|---|---|---|---|---|
| 79 | 0.74 | 5 | 58.46 | 225 | 35% | 384% | 20.29 | 34.6% |
According to new data advertiser achieves positive ROI and Profit.
In many cases bids optimization in that way gives better outcomes than doing it according to ROAS and Google advice.
