Strategy & Implementation
In any online shop, you always need to analyse the data carefully and meticulously. This is why we have divided our work into four stages.
We have analysed all the product segments and identified the main product groups that generate about 60% of total revenue. These groups were the focus of the campaign. The client has already had search campaigns in Google Ads as well as Google Shopping campaigns running, but most of them were not segmented correctly. The first shopping campaign covered all the products in the shop. Priority products were not highlighted in the search and separate ad campaigns.
The sales and search campaigns used "Targeted ROAS" strategy that was misaligned. Because of this, the company had significantly lower revenue and could not reach the ROAS of 450%. At the same time, the Smart Shopping Campaign was generating the bulk of revenue.
analysis of optimization strategies
We have segmented audiences by average bill and by individual regions. We have prioritised the regions where customers made the biggest checks: France and Belgium. It was noticed that first-time buyers always take small batches of goods. Therefore, the cohort analysis was applied to understand which audience gave the biggest checks, from which advertising campaigns and in what period.
Customers from countries such as France often made test purchases on small checks in the first month, and by the end of the first month or in the second, when they had already seen the quality of the product and began to trust the company, they made a purchase on a large check (more than €1,500). Metaltis missed this point initially and switched off many advertising campaigns that did not immediately yield high profitability. The multichannel sequences report also showed that big-check purchases are made one month after the first interaction.
At the very end, we have analysed the keywords in the search campaigns that produced the highest results over the last year. We also separately analysed the keywords that produced the least or no results. About 65% of the keywords were simply unprofitable or just drained the advertising budget. Branded keywords were used together with the other keywords in the same advertising campaign.
When we had the full picture and understanding of what gives the best results, we started to implement that.
We began with creating a new account structure: we moved the branded queries into the separate search campaign. For each product category and prioritised subcategories, separate search and smart sales campaigns were created.
We have allocated most of the advertising budget to campaigns with the products that brought in the biggest results, targeting France and Belgium.
To increase coverage, we additionally set up dynamic search campaigns under priority and non-priority.
Working on the rate optimisation strategy first, we reduced the target return on advertising investment from 900% to 600%, and then to 500%, which resulted in increased revenue and the target ROAS of 450%.
Then we gradually began to build up the budget for priority campaigns. In the third month of work, we created individual product feeds and launched Performance Max campaigns for priority product groups.