By Adam Wells
British Food Depot is an eCommerce retailer that sells British chocolates, drinks, chips, and other British snacks online. British Food Depot wanted help improving ad performance for Google Shopping Campaigns.
We helped British Food Depot in the following ways:
- Performed an Ad Account Audit
- The job started with an account audit to assess the structure of campaigns, the bidding, targeting etc. Before going in and modifying ads, we wanted to start with a solid foundation. In other words, optimization starts with having a account / campaign structure that makes managing, monitoring, bidding, and reporting much easier, efficient and transparent.
- Restructured Shopping Campaigns
- We took British Food Depot from having 1 campaign for hundreds of products to having over 20 campaigns to provide transparency in ad performance. By us breaking up ad campaigns into categories, this allows anyone looking at campaign performance to see what categories are performing well and what categories are not. You can drill even further into performance at the ad group and product group levels.
- Managed Bids at the Item Level
- We gave some time to build some performance data to look at and as data gathered we started adjusting bids at the item level. When doing so, we took item sale price and item cost into consideration. We also looked at other important metrics to help us determine proper bidding.
- Optimized Shopping Feed & Website Items As Necessary
- Sometimes it is just blatantly obvious that a product title and description could be better. Most of time it came down to there being a non-descriptive title or a product description lacking enough details to distinguish one chocolate from another for example. As we came across these, we did competitor and product research to adjust titles and descriptions with the intention to help Google show the ads for more relevant searches, to increase click through rates (CTRs), and to increase the likelihood that someone would have enough information (and a little persuasion) to make a purchase.
- Setup Remarketing Lists for Search Ads (RLSAs)
- Imagine you have a 5% conversion rate, which is actually considered really good. Now imagine you get 1,000 visitors to your website a day. This means that out of 1,000 people that came to your website, only 50 people bought something. Would you not want to try to get those other 950 people back to your website (especially the ones that were highly engaged)? If you have a 15% Add to Cart Rate, that means there were about 100 people per day that added items to their cart but did not checkout? Also, how big is your email list and how segmented is your email list? Based on these various criteria, this is what we setup remarketing for and we made bid adjustments for these criteria to improve performance.
- Other Detailed Analysis, Management, and Adjustments
- We continued to drill further into areas we could use for improvement. We performed time of day, day of week, location, audience, and device performance analysis to appropriate bid adjustments and increase performance.
- Negative Keyword Management
- We managed negative keywords on a weekly and bi-weekly basis. We analyzed what searches were trigger what ad groups, and we uploaded negative keywords to ensure ads / products were not showing for searches irrelevant the end-user. No advertiser wants to spend money on searches that are not likely to convert, and the whole purpose of negative keyword management is to reduce wasted spend as much as possible so that spend goes towards more profitable and relevant search queries.
- Managed an Ad Budget of $750 Per Day
The RESULTS:
British Food Depot went from a return on ad spend (ROAS) of 2x and less, to a consistent 3x ROAS. This means that if profit margins were 50% on products, with a budget of $750 per day, an advertiser would profit $375 per day. This is taking into consideration the recouping of product cost (approximately $1,125 in inventory) and ad spend of $750.
$2,250/day Ad Revenue – ($750/day Ad Spend + $1,125/day COGS) = $375 Profit Per Day.
Even if you only go from 2x ROAS (break-even) per day to 3x ROAS ($375 profit) per day, is it not worth it?
Outcomes:
Text Ad Performance
- 22.85% Text Ad Avg. Conversion Rate
- $2.59 Text Ad Cost Per Conversion
- 11x Text Ad Return on Ad Spend (ROAS)
Shopping Ad Performance
- 4.75% Conversion Rate
- $8.55 Cost Per Conversion
- 3x Return on Ad Spend (ROAS)
