Client:
A multi-category online store with more than 40K orders in 4 years. Categories: books, toys, videogames, presents, goods for hobbies.
Problems our client faced:
Contextual advertising does not pay off with the PPC service the previous contractor provided. Advertising was completely unprofitable, direct losses of PPC budget reached more than 2000 USD for each week of work.
What we offered: full restart of contextual advertising from scratch.
- Creating and setting up a new Google Adwords account.
- Linking a store’s Adwords + Analytics account, importing conversions into the account.
- Creation of approximately 1000 basic ad groups.
- Conducting deep semantic research for each ad group with the most rigid list of stop words.
- Demographical optimization: orientation to large cities with a million population.
- Timing: the setting of dynamic rates day/night, weekdays and weekends.
- Manual processing (Google Merchant was not supported at that time) of 40000 products.
Successful and disastrous moves:
- Big cities give higher conversion rates.
- Sells at night are less than during the day.
- Golden hours is a period from 18:00 to 21:00
- Google Display Network is not suitable for customers focused exclusively on profitable sales with a wide range of products and overly dynamic balances.
- Synergy with email marketing increases conversions by 1.2%
- Bets on new products that will be absolute hits tomorrow.
- The more experiments, the better (the best day for experiments is Tuesday, 10-00 am).
Target audience: Ukrainian internet users from 18 to 45 years old.
Duration: 2016-2020
Transactions: 43,239.
Average transaction price: 430.11 UAH (≈ $16).
Conversion rate: 4.15%.
Income according to e-commerce: 18 597 574.62 UAH (≈ $715 300)
Advertising costs: 980 788.19 UAH including agency commission (≈ $37 720).
Margin *: 18 597 574.62 * 33% = 6 137 199.62 UAH
Return on investment: = 6 137 199.62 / 980 788.19 = 6.25
Result: the client received 6.25 UAH of profit for 1 UAH of investment.
* The report does not include orders made by phone (~ 20%), their size exceeded the share of unfulfilled orders, so accounting is carried out without them.
