A bit of introduction information. The client is a large online store of building materials in Ukraine, with a network of stores in the regions.
Before the Google Ads Management, the previous contractor worked on it, which left not quite comforting results for the client. Only due to the account restructuring, we achieved great success, but this will be discussed in one of our previous cases.
1. What kind of requests the client came with
The current situation was marked by the presence of military operations in the territory of business. This imposed specificity in the management and optimization of Google Ads. No one knew the results of the military operations. And also – how will the target audience behave? How much will the purchasing power of the population decrease? How and by how much will the reach decrease?
In any case, the client had a goal – to restart activities after 2 months of downtime and increase the performance of basic metrics in Google Ads with a significantly reduced budget. A little spoiler here – after 1.5 years, the advertising budget increased by 30%.
So, the Leverage Pro team had the following objectives:
reduce the cost of conversions
increase brand awareness
As usual, the work on Google Ads management and optimization starts with an advanced audit, even if the previous launch and management were carried out by our team.
A fresh and objective view from the outside 90% of the time helps to find new “growth points”.
2. The situation before the Google Ads Management
Before Google Ads Management, the client had the following results in their ad campaigns.
The monthly number of conversions was only 113, with about 15,700 clicks per month. The average cost per click was $0.18, and the cost per conversion was as high as $17.7. It was obvious that the client needed to optimize their campaigns to increase advertising performance and achieve their goals.
Conversions per month of 2021-2022 before Google Ads Management
Overall performance through February 24, 2022 (Google Ads account stopped) for all time:
- Conversions – 712
- Clicks – 98.8K
- Cost Per Click (CPC) – $0.13
- Cost Per Lead (CPL) – $18.22
Average performance in recent months:
- Conversions per month 113
- Clicks per month (Clicks) – 15.7K
- Cost Per Click (CPC) – $0.18
- Cost Per Lead (CPL) – $17.7
After analyzing the current market situation by researching competitors, it was decided to use Performance Max as the main tool to improve the situation. Just at this time, this type of Google Ads Campaign became an integral element of successful launches in the E-Commerce niche.
3. What was done in the process of Google Ads optimization
Let’s highlight the main action points that have been implemented. It should be recalled that these actions are based on regular management of Google Ads accounts.
Launching all advertising campaigns at the same time and forgetting about your account for a few months is not an alternative. The work of a PPC specialist is a huge labour.
3.1 Redesigned the structure of the search advertising campaigns
The first step in optimizing Google Ads was to redesign and improve the structure of the search ads. Separate ad groups were created for different product categories, allowing for better control over keywords and ads.
It was decided to follow the structure of the site when organizing campaigns. Then, after several months of testing, it was revealed which products should have been placed in separate campaigns. In any niche, there are certain groups of goods in which there is a lot of competition, high price per click and low margin.
Turning off these keywords is not an option, as each Google Ads account is a unique organism that learns at the expense of all kinds of keywords. Therefore, in order not to waste budgets for this type of goods, we create separate campaigns with low rates per click.
3.2 Extending the semantics
Keywords and phrases related to the client’s products were expanded to increase audience reach. A detailed analysis and market research was performed to identify the most relevant and in-demand needs. This helped to attract more potential customers who were actively searching for building materials on search engines.
Important detail. In E-Commerce, where there is a lot of search traffic, Leverage Pro strictly segregate incoming traffic. Ads are shown only for commercial or near-targeted keywords. In our Google Ads campaigns, each keyword must convert from its context into a lead within 20 seconds.
If our PPC specialist sees that a keyword is from a visitor with the following intent: “I’ll think about it”, “I’m just interested”, “I’m pricing now, I’ll come back later”, then such traffic is excluded by adding in the list of negative keywords.
In contextual advertising, a direct link between the visitor’s query and the website content is important. The user enters a keyword – sees a relevant ad – goes to a relevant page – takes a conversion action in 20 seconds. Any other action is a waste of budget.
3.3 Adding Dynamic Search Campaigns to Google Ads
One of the key changes was the addition of dynamic search campaigns to Google Ads. This type of advertising allows ads to be automatically created based on the content of the client’s website. This approach allowed the client to effectively attract potential customers relevant to their needs.
Dynamic search campaigns free advertisers from the need to create and update multiple keywords and ads manually. Automatic creation of ads based on site content greatly simplifies the process of campaign management and saves advertiser time.
This type of campaign provides for absolutely all key queries that can be entered by an Internet user. De facto, any online store can start advertising with this type of traffic, without a detailed semantic.
Dynamic search campaigns allow you to precisely match ads to user queries. Google Ads algorithms analyze the content of the client’s website and display ads that are most relevant to the user’s query. Thus, the client receives more relevant ads, which increases the likelihood of clicks and conversions.
But dynamic Google search campaigns are not a magic bullet. You still have to make a detailed elaboration of semantics. Leverage Pro has various experiences when this type of advertising did not work. It should be fixed that dynamic search campaigns Google Ads should be considered as an addition to the overall advertising strategy, not as a basis.
3.4 Turning off retargeting campaigns in Google Display Network
Display retargeting campaigns were turned off because their effectiveness was lower than expected. The cost of conversion was 6 times higher than the client demanded. Although it would seem – go to any thematic event on Internet advertising, they will tell you that retargeting is the most effective in E-Commerce. Not always so, it all depends on the niche, the content of the site, how the site is adapted to Google sites, the speed of loading the site and so on.
In any case, we gave up retargeting in the Google Display Network in this case study. The focus, along with a limited advertising budget, was on more precise and targeted advertising in the search network, which allowed us to reduce the cost of conversions and focus on the most promising channels of customer engagement.
But we haven’t completely turned off retargeting campaigns. Many people don’t know about the nuance associated with another type of Google ad campaign.
3.5 Adding Performance Max campaigns
Performance Max campaigns were added to further improve results. This new ad format combines different advertising channels and uses machine learning to optimize impressions. Performance Max campaigns provided the client with the opportunity to reach a wider audience and increase the effectiveness of their advertising campaigns.
Performance Max is almost completely automated. It brings both advantages and disadvantages. The main and significant plus is that the full power of Google Ads is focused on getting as many conversions as possible.
Artificial intelligence is looking for those web users who need your product (if we are talking about E-Commerce) here and now. And how can you determine that a person needs this or that product? That's right, whether he or she visits competitors' sites and ( attention!) the site we are advertising.
In other words, retargeting campaigns are already into Performance Max by default. Since the system itself is interested in finding the hottest users on the web and targeting them for conversion actions.
In the case of this online store, 32 Performance Max campaigns were launched. This type of campaign requires a certain amount of time to learn before they show results. As a rule, the start of this type of advertising is accompanied by a sharp spike in the cost of the advertising budget in Google Ads.
Therefore, our PPC specialist has developed a step-by-step plan for launching all advertising activities, in which the budget load is distributed accurately and evenly, without sudden spikes and with predictable results.
4. What are the results after 1+ years of running Google Ads
After more than a year of running Google Ads campaigns, the client was able to achieve significant results. The number of conversions per month increased from 79 to 525, and the number of clicks increased to 24,600. At the same time, the advertising budget remained unchanged in local currency equivalent for almost a year.
Comparison of monthly metrics
The average cost per click decreased to $0.08 and the cost per conversion decreased to $3.39. These metrics indicate that optimizing campaigns and adding Performance Max brought the client significant improvements in the effectiveness of their advertising efforts.
- Conversions per month – 525
- Clicks per month (Clicks) – 24,60- thousand
- Average cost per click (CPC) – $0.08
- Conversion Price (CPA) – $3.39
Also consider that during this period, this geolocation was undergoing hostilities related to the Russian invasion on February 24, 2022. Also consider that during this period, this geolocation was undergoing hostilities related to the Russian invasion on February 24, 2022. We are confident that without these tragic events, the results would have been much higher.
5. Conclusions and what is planned next
The client was pleased with the results achieved through campaign optimization and the use of Performance Max. He was able to significantly increase audience reach, increase conversions and reduce the cost per conversion. The client’s marketing team celebrates the positive changes and recognizes the importance of using new technologies in ad campaigns.
In the screenshot below, the overall performance over the entire period of the Google Ads account:
In the future, the plan is to continue optimizing advertising campaigns, analyzing data and using the insights gained to target more accurately and achieve even better results. The client will have to scale their business and utilize the new opportunities that Performance Max provides.
For example, restructure Google Ads with respect to product margins, SKU group items, and those positions that for one reason or another did not receive enough advertising budget.
Thus, the use of Performance Max and optimization of advertising campaigns in Google Ads allowed the client to increase conversions by 4.64 times. This case study in the E-commerce niche is a prime example of how the right approach to advertising campaigns and the use of new technologies can bring significant success and improved results for a business.