How we make a 5x return with Google Ads.
Read the details below to learn about the strategies I employed to transform a barely profitable Google Ad campaign into a highly successful money-making machine.
The Goal
The primary objective for the client was to enhance the effectiveness of their existing Google Ads campaign. The client, who owned a winter clothing store with an E-commerce website, sought better results.
Through straightforward recommendations and a more comprehensive strategy, we successfully elevated their return from a 2x to 5x on their ad spend in just a few weeks.
Discover the steps we implemented below, along with the reasons behind each decision.
Where we started
Evaluate
Initially, we assessed the performance of the existing Ad campaign by examining the Return On Ad Spend (ROAS) from previous years.
When we captured a snapshot of the entire year, it became evident that their ROAS stood at 1.7:1. This indicated that for every £100 spent, they were generating only £170 in return, resulting in a £70 profit. The average ROAS is 2.87:1, but our target is 4:1 for a successful campaign.
Analysis
Every business experiences trends, and the most successful ones capitalise on these trends, especially during their peak periods.
Upon analysing their sales data, a trend emerged, one that aligned with our expectations. Given that they sold winter clothing in the UK, it was foreseeable that their best results would come around with the colder months. We made a straightforward recommendation: Move all your Ad budget to the peak of your trend.
In this case we moved a huge part of the budget over to the last 4 month of the year.
Ad Campaigns
Next, we shifted our focus to the individual Ad campaigns. The client had two campaigns in place: Search and Shopping Ads. While these campaigns were decent, we recognized that for small businesses lacking substantial brand presence, there existed a more effective approach.
We decided to transition both campaigns to Performance Max (P-Max) campaigns, two to be precise. P-Max campaigns excel in both driving sales and establishing brand presence, making them an ideal fit for our objectives.
Test
The decision to run two distinct campaigns was driven by our intent to conduct A/B testing on various wordings and images. Our goal was to identify the combination that would yield the highest Return On Ad Spend (ROAS).
Iteratively, we made incremental changes to the campaigns until we observed diminishing returns. Subsequently, we began exploring the creation and enhancement of new campaigns.
Illustrated in the image to the right, our initial approach involved launching two different P-Max campaigns one with a generic focus on the brand and the other specifically highlighting their jumpers/knitwear. Despite having the same Ad cost, the jumper-focused campaign generated more than double the return compared to the generic brand campaign.
The results
The same month one year apart.
New ROAS 5.79:1
Old ROAS 1.7:1
New conversion 107
Old conversion 33
New interaction rate 2.25%
Old interaction rate 1.43%
Conclusion
If there's one key takeaway from this case study, it should be these three principles: evaluate, analyze, and test. If your Ads are not yielding a 3:1 return, it's crucial to make adjustments.
While this case study didn't delve into details like audience targeting, campaign assets, and competitor research, it's important to note that achieving these results isn't about a secret or magic button. Instead, it involves a series of small changes and a deep understanding of the dynamics at play.
Get your Ads set up for free
We operate on a fully commission-based model, which means we handle the setup, evaluation, and improvement of all your Ads at no cost. We only earn when you do.
If you're interested, please share your email below, and we'll reach out to you within the day.