Google Ads Case Study eCommerce ($2 Million) #googleads

Overview:

Ready to blast off your e-commerce sales? In this revealing case study, we're about to lift the curtain on a proven strategy that generated a whopping $2 million in just two months, all while delivering a stellar 5X return on ad spend. My personal strategy will help catapult any e-commerce store owner’s Google Ads performance to new heights.

Get ready to learn the exact playbook that drove these remarkable results. I’ll cover a few of the problems that were detected on this account, including:

  • Limited budget on increasing search interest opportunity
  • Inadequate seasonal promotion asset setup
  • Branded search campaign not optimizing for ROAS target
  • No experiments performed
  • Nonexistent YouTube remarketing
Ecommerce Case Study

Keep reading to find out how I solved these problems, while optimizing the account and scaling it to new levels.

Client Results

Ecommerce Case Study

Diving into the data over a three-month period, my client generated $2.5 million in sales overall. This is a $1.2 million increase compared to the previous period, with a 106% sales growth and a massive scale in budget.

Ecommerce Case Study

Problem 1: Tight budget

Ecommerce Case Study

Now, to get big results, we had to overcome a few challenges. The main issue: many of the campaigns were limited by budget. The account didn't have enough money behind it to really make an impact. So, we took a closer look at each campaign and saw that when we increased the budget, the results improved significantly. When I reviewed the forecast, the ROAS was dropping. Big budget changes should be around 20 percent. We also reviewed the forecast to see where we could make adjustments.

Solution: Increase budget

Ecommerce Case Study

We wanted to make sure that we were spending the right amount of money to get the results the client wanted.

Ecommerce Case Study

Also, we wanted to review in the Insights and Reports any other demands in trends and seasonality that could be possibly coming up. This would help influence the audience signals that could be introduced into the campaign before the budget is increased to guide the machine in a certain direction. It’s important to review the insights, see what's limited by budget, and then update the assets, audience signals, and budget accordingly.

Impression Share (IS): percentage of impressions ads receive compared to the total number of impressions those ads could ultimately collect.

Ecommerce Case Study

 

Audience Signals: powerful tool that allows advertisers to target specific groups of users based on their behavior and demographics.

Problem 2: Seasonal Promotion Assets Set Up

Let's talk about the second problem we encountered. The account didn't have the right promotional assets set up for the seasonality trend.

Ecommerce Case Study

This meant that even though the business was ready to go with the right inventory and promotions, it wasn't being displayed properly on search ads or Performance Max (Pmax). It was a big problem because people just wouldn't see the ads, and Google wouldn't prioritize them. Eventually, this would hurt the account's performance and increase cost-per-clicks.

We also had issues with the products being disapproved on Google Merchant Center. This meant that we had to reach out to Google support to get them appealed so they could be displayed on shopping as well as search during the promotional period.

Solution: Testing

Ecommerce Case Study

Another thing we did was to make sure that the assets were updated properly within the Pmax campaign. This involved turning on and off the promotional asset group, which is a strategy that we tested. By doing this, we were able to make sure that the assets were being displayed properly and that the account was performing well.

Ecommerce Case Study

Here’s how I made the most of our promotional budget: testing different asset groups using unique copy and messaging for each one. Utilizing images or videos that are specific to each promo made them more eye-catching. And if there’s a list of people who typically buy promotions or give extra budget, that can be used to segment the audience and make sure the promotional funnel is working properly.

Problem 3: Branded Search Campaigns

Now, let's switch gears and talk about branded search campaigns. Our goal here is to capture as much intent as possible while still being profitable for the overall account.

Ecommerce Case Study

When I took over this account, it was using manual bidding, which wasn't being managed properly.

Manual CPC Bidding: a bidding method that allows the advertiser to set maximum cost-per-click (CPC) for ads.

My thought process here is that if the Key Performance Indicator (KPI) has to have a specific cost-per-click, manual bid is the way to go.

Solution: Switch to manual bidding

Ecommerce Case Study

So, we decided to switch to a Target ROAS bid strategy, which allowed us to spend more....

Target ROAS (tROAS): Target Return on Ad Spend falls under Google’s category of Smart Bidding strategies.

...increase conversion value...

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...and improve our impression share.

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Ecommerce Case Study

Clearly, this had a big impact on the account's performance, with more revenue and a higher ROAS. It was a big win for the account.

Problem 4: Not Running Experiments to Scale

This was another opportunity to test more broad match keywords and perform more experiments.

We want to run experiments for broad match keywords that can incrementally increase performance in the account. Eventually, that can lead to more spend. These are actions you always want to be taking.

Solution: Test and experiment with broad match keywords

Ecommerce Case Study

So when I see recommendations within the Google ads platform, like expanding broad keywords, I know these are important tests to run to capture any search terms that could be relevant. Using the 50/50 split test can help determine if this will give the client better performance.

Broad Match is the default match type that all keywords are assigned. This helps ads reach a wider audience without requiring an extensive keyword list.

Problem 5: Zero YouTube Remarketing

Now, we get into YouTube remarketing. We wanted to ensure we were targeting the right people, so we created an expansive remarketing list and used branded creative to reach people who had visited the site or hadn't converted.

Ecommerce Case Study
Ecommerce Case Study

We also tested videos that performed well on Facebook and imported them over to YouTube to do some general branding.

Ecommerce Case Study

The question may be - why not just use Pmax for YouTube remarketing? Performance Max tends to focus on search and shopping, even if it's given video assets or creative assets. So, we wanted to test YouTube creative outside of the Pmax network to see if we could get better results. And that's exactly what we did.

By using YouTube remarketing, we were able to reach people who might not have been targeted through Pmax. We saw great results. It was an effective way to round out our full-funnel strategy and make sure we were covering all our bases.

Solution: Retargeting

To get quick sales at the bottom of the funnel, we used creative that had worked well in the past. We didn't have any creative assets set up at the time, so this was a great opportunity to test out some new ideas.

Ecommerce Case Study

We set a target to maximize conversions initially, until we got enough conversions to set a target cost per acquisition (CPA) based on the average order value in the account. To do this, we multiplied the average order value by the target return on investment (ROI) to set the target CPA. This is a good way to scale from there.

Ecommerce Case Study

At the top of the funnel, we can nurture people that Pmax might not target by testing custom segments of competitors, best-performing keywords, and other strategies. For example, we can target people who have purchased a certain product to upsell them, or those who haven't bought in a while to replenish or cross-sell.

These are all cold strategies, but retargeting is the lowest-hanging fruit and what initially got this client better results. Overall, our strategy was to use a combination of cold and warm strategies to target people at different stages of the funnel.

By using creative that worked well in the past and setting a target CPA based on the average order value, we were able to maximize conversions and scale the account. And by nurturing people at the top of the funnel with custom segments and strategies, we were able to increase the overall ROI of the account.

Final Word

This client's Google Ads account had several issues that needed to be addressed, including a tight wallet, poor asset set ups, and trying to scale without experimenting with keywords. To solve these problems, we implemented several strategies, such as increasing the budget, optimizing ad copy, and adjusting bids. We also tested new ad creative and targeting options, such as remarketing through YouTube. As a result of these efforts, the client saw significant improvements in their Google Ads performance, including increased conversion rates, lower cost per conversion, and higher impression share.

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About the Author

Ted is the founder of TGQ Marketing a PPC, Analytics and CRO agency focused on client results.