Client:

An online store selling fireplaces, furnaces, stoves, kitchen ovens, mantels, gas fireplaces, bio fireplaces, electric fireplaces, stainless pipes and other accessories.

The client reached out to us with the goal of boosting their revenue from Google Ads.

Our primary objective was to improve ROAS.

Features of the project:

– The client maintained a functioning Google Ads account for approximately a year, generating considerable traffic. However, the ROAS was 200% – the ads were not paying off.
– The website had a huge number of different accessories that were low-margin and accounted for a significant portion of the advertising campaigns’ costs. At the same time, the client could not exclude them because they also needed to be sold.

Promotion and optimization strategy

Step 1: Overview of product categories for advertising

Before increasing the budget and expanding, it was necessary to achieve the optimal ROAS of 600% for this project. After consulting with our client, we decided to eliminate 30% of the least expensive accessories from the feed. These products were placed on the website as additional purchases in a separate block, offering customers the option to buy them when purchasing the main product. The profitability of these accessories did not decrease, and the average order value increased. The example of such products shows that they are very cheap and did not generate profit:

Step 2: Restructuring advertising campaigns

We restructured our campaigns and segmented the feed into specific categories for thorough management. Simultaneously, we successfully switched the Smart Shopping campaign to the new Performance Max in early July, when Google Ads terms were updated. The ineffective Search campaign was completely shut down and we focused on the Standard Shopping and Performance Max product campaigns.

We logically selected the Target ROAS strategy. Initially, we set the ROAS at 300% and subsequently increased the desired percentage without compromising traffic or order quantities. At present, the set ROAS is 1000%, but we achieve ROAS values ranging from 1500% to 2000%.

Step 3: Optimizing the new Performance Max campaign

While Standard Shopping became effective immediately after the adjustments, the new Performance Max campaign was unstable, occasionally worsening the overall picture. After removing unnecessary signals and objects, we left only the feed in the campaign. Essentially, the campaign now resembles a shopping campaign. We also moved certain product categories that were not performing well in this campaign to the Shopping campaign, while keeping stoves and other stove-related products in the current campaign.

The results improved, and now it functions as effectively as the Standard Shopping campaign.

Step 4: Increasing the results by involving new regions and budgets

After achieving the necessary ROAS, we consistently raised the budget weekly and incorporated a few regions that would potentially pique the client’s interest.

Having expanded the GEO to almost the whole territory of Ukraine, we filtered the audiences by disabling the ads for some demographic groups.

As a result, the current ROAS is 1800%, and revenue has grown by 30 times in 4 months.

Results

Results Before working with RegisTeam:

  • Income received – 30 639 UAH;
  • ROAS – 206%;
  • CPA – 197 UAH.

Results After:

  • Income received – 934 955 UAH;
  • ROAS – 1780%;
  • CPA – 147 UAH.

Comparison of the indicators:

Conclusions

Achieving a ROAS of over 1000% for marginal topics presents a substantial challenge. Due to the two-week learning period required for any campaign to acquire Target ROAS strategy, achieving the necessary indicators within a short timeframe proves difficult. Thus, successful results require effective testing and patience.

When using sales campaigns, consider the following factors:

– Product catalog structure: Thoroughly arrange your product catalog and product group structure. Use logical categories and subcategories to simplify management and monitoring.
– Experiment with campaigns. Test various campaign types and strategies for different product categories.
– Focus on profitable products. Analyze and identify the most profitable items. These are the products that you should prioritize in your campaigns, while additional non-margin accessories can be promoted through cross-selling.

Do you want to maximize the effectiveness of your advertising?

We at RegisTeam will be happy to bring the same or better results to your business.