Background
A well-established e-commerce industry platform (name withheld to protect data) was seeking ways to increase revenue at a given ROI on a very saturated marked with lots of strong competitors.
They were already an established brand name with a diverse customer base, and solid revenue.
They were running Adwords Search advertisement for >8 years and now needed a way to boost revenue growth without massive increase in spend.
Challenge
Adwords efforts were becoming far more expensive and returning less on their investment due to the huge competition and market consolidation.
It was decided to utilize Google Shopping potential, which had been drastically underutilized by the company and therefore provided us with a great opportunity.
Main KPIs: Cost Revenue Ratio (CRR)
Goal: Increase revenue from Google Shopping by 10% while keeping CRR stable
Actions
In-depth Shopping Feed analysis showed that data quality can be improved greatly leading to higher relevancy of listed items to search terms. Which, in turn, should lead to lower CPC.
Used a 3rd party feed management platform to optimize the titles and descriptions for products in the Shopping Feed.
Used Adwords Scripts to create “1 item Adgroups” to be able to collect loads of search query data on an item-based level to guide decisions for further feed optimization.
Crucial structural parts of the feed (Product type, Google Product Taxonomy, Color, Material) were optimized to serve the correct ads for higher quality searches.
Bidding approach reviewed: based on past performance, seasonality trends and inventory analysis, several custom labels were populated to the feed. Bidding rules then were attached to the labels, ensuring that best-performing, in-season items and categories receive the highest bid.
Results
Solving data quality problem, creating dedicated, item-based Shopping Campaigns in Adwords, well-thought bidding based on custom labels, led to the next KPI improvements:
Impressions increased by 35%
Clicks increased by 12%
Cost increased by 8%
Revenue increased by 13%
CRR decreased by 4%
