Google Shopping Campaigns’ product-focused strategy delivered outstanding outcomes

High cost per conversion successfully decreased by 72.2%

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Industry

Ecommerce

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Region

Europe

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Duration

3 Months

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Platforms & Tools

Google Analytics, Google Merchant Center, Google AdWords, AdWords Editor, AdWords Scripts

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overview:

  • European-based eCommerce company
  • Over 50,000 different IT and electronic appliances
  • Google Shopping Campaigns’ product-focused strategy
  • 2 teams, 3 countries, 90 days
  • Main challenge: High cost per conversion
  • Main goal: Decrease cost per conversion by 50%
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SOME OF THE QUESTIONS WE ANSWERED:

  • Which marketing strategy is going to improve ROI?
  • Which products are bringing most profit, which are bringing most revenue, and what is their share in the Google Merchant Center Feed?
  • Which attributes should we add in the Google Merchant Center Feed, and which content standards should we follow?
  • How are we going to structure and automatize Shopping Campaigns to achieve and retain the lowest cost per conversion possible?
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MAIN RESULTS:

  • Shopping campaigns cost per conversion decreased by 72.2% in 90 days
  • Adwords campaign cost decreased by 88.3 % in 90 days
  • Main goal exceeded by 44.4%
  • Product-focus strategy successfully implemented
  • Stable conversion rate and number of conversions throughout the whole month

Process & results

INTRO

It is commonly known that every new beginning is intimidating, but every project begins with a single step. After meeting our client for the first time, we quickly realised the size of the challenges in front of us. As an eCommerce company offering more than 50,000 different IT and electronic home appliances, we were aware that changes in marketing strategy and conversion optimization could provoke changes of principles applied in marketing and sales processes, which happened to be true in this case.

The client was seeking a way to optimize current advertising efforts by achieving and retaining the lowest cost per conversion possible. A thorough review of the client’s former sales results clearly showed which strategy would help us achieve that goal.

FOCUSING ON THE OUTCOME

After several initial meetings and reports, we had full support from the client to shift from a more evergreen, low-cost-effective strategy to a product-focused, high-cost-effective strategy of producing continuous sales while decreasing cost.

Carefully considering existing Google Analytics data, we decided to start our three-phased implementation plan, which included conducting a dozen complex analyses followed by a series of actions performed to improve profit margin led by Google Shopping Campaigns.

THE FIRST STEP – REVEALING THE UNSEEN

The first step consisted of a series of detailed product performance analyses, and that received the most attention. Some of the reports included the following:

  • - Current Marketing Strategy and Potential Analysis
  • - SKU (Stock Keeping Unit) Revenue Analysis
  • - Google Merchant Center Feed Analysis

THE SECOND STEP – THE FRESH START

The second step consisted of defining new models, metrics, and processes. Some of them are the following:

A product segmentation model which forced marketing strategy towards demographics, revenue, cost, risk, demand and other strong product performance influencers;

Performance metrics, which were the source of the product segmentation evaluations;

A product feed management process, which consisted of an automatic feed implementation in Google Merchant Center with the possibility of custom attribute descriptions for testing purposes only.

THE FINAL STEP – HELLO MARKET

Before activating Shopping Campaigns, we implemented Brainlab’s modified script to automatically increase and decrease bids per day in the week and hour per day, which helped us retain the lowest cost per conversion possible.

We activated a few carefully built Shopping Campaigns for various strategically segmented products and designed them to get the best results out of the automated optimization.

THE RIGHT SOLUTION

During the testing period, as suspected, we experienced a slight decrease in the conversion rate. After boosting the product groups with the best evaluation rates forward, the tactics showed their full potential. In the third and final month, we achieved a decrease of cost per conversion by 72.2%. Moreover, we retained the same number of conversions throughout the whole month, and the conversion rate was stable from then on.

This study shows that choosing a product-focused strategy was the right choice, allowing the client to get the most out of the market they are operating in.

1

Shopping campaign cost per conversion decreased by 72.2% in 90 days

2

Overall Adwords campaign cost decreased by 88.3% in 90 days

3

Stable conversion rate and number of conversions throughout the whole month

1

Shopping campaigns cost per conversion decreased by 72.2% in 90 days

2

Overall Adwords campaign cost decreased by 88.3% in 90 days

3

Stable conversion rate and number of conversions throughout the whole month

CONTACT US FOR MORE INFO ON SHOPPING CAMPAIGNS