⬆️ Winners in the Search Innovation category

    Send request
    and get an offer

      Send request
      and get an offer

      Cosmetics Online Store Promotion: 1.5x Increase in ROAS Without a Decrease in Revenue and an Increase in the Budget for Сlicks

      Author
      Author: Oleksandr Shylin
      Context Specialist
      Reviewer
      Head of PPC specialists
      2022-03-23

      Client

      Online store of cosmetics and products for manicure with a network of offline stores in Kyiv. The client’s target audience at the macro level is divided into two parts: B2C (small average check, mostly one-time purchases for own use) and B2B (wholesale orders from salons and masters, with a high average check and LTV).

      Work Period

      Work on the project is ongoing from 01.07.2019 to the present.

      Our Task

      Since any business is a “living organism”, constantly changing under the influence of external factors, in 2 years, the initial task from the client “Increase the number of sales” was transformed into a more complex but financially compelling task — to maximize advertising revenue.

      Description of Works

      For such a long period of work on the project, we have accumulated a lot of interesting statements, and it is virtually impossible to describe everything within the framework of one material (we tried). Therefore, we decided to share the most significant and exciting aspects. Conventionally, all work on the project we divided into 3 periods, each of which influenced the final result of the promotion.

      I Period — the Start of the Project.

      At the launch time, the client was already running contextual advertising campaigns on Google. After the audit, the specialists of the Aweb team prepared an account development strategy to increase the number of conversions.

      Advertising campaigns in the account were set up at a reasonably high level, but the client was interested in growth and scaling. To perform this task it was necessary to revise the global strategy and change the approach.

      Global challenges

      The client demonstrated a systematic approach to business, so internal business processes were regulated, all orders were recorded in CRM with source indication, and further monitoring of the effectiveness of traffic sources on key business indicators (LTV, CPS, CPL, AOV) was conducted. For our part, it was necessary to properly configure the tracking of all types of conversions on the site (e-commerce, calls, sending forms).

      Together with the client, we have prepared a list of priority product groups for customization. The main difficulty at the stage of selecting groups for launching AC was to combine the client’s wishes with the ability to quickly achieve the set goals in terms of the number of conversions from the position of PPC.

      For example, there is a group of goods A, with which the client receives the maximum profit, and his natural desire is to increase the number of sales of this particular group. But the volume of search queries for this group of products is minimal. Accordingly, there is practically no traffic, so it is impossible to provide a sufficient number of conversions through contextual advertising quickly. At the same time, product group B, which can provide a significant number of conversions and is recommended by PPC specialists, brings minimal profit. Hence, the promotion of this group is pointless for the client. As a result, by joint efforts, we found group C combines both the wishes of the client and the implementation possibilities from PPC.

      Advertising campaigns set up at the start of the project:

      Before starting cooperation with Aweb, the client ran Google Ads contextual advertising campaigns for a long time. Since the assortment of the online store is quite broad, the account contained a large number of active advertising campaigns. Based on the audit results, we have suspended campaigns with low efficiency. Advertising campaigns that showed the potential to improve performance were kept active, developing a plan to optimize them.

      Optimization and set up actions in period I

      We set up 74 advertising campaigns: search, display, shopping, video campaigns. The main principle of campaign optimization in all networks was a non-linear approach to performance evaluation, which included the following:

      In addition to extra traffic, this format also allows you to reduce the cost per click.

      Data after the first full month of cooperation (August 2019) compared to the same previous period (August 2018) was increased.

      Traffic by 67.43%

      Transactions by 91.05%

      Income by 42.06%


      Click budget increased by 34.81%

      Budget per click was increased by 34.81%

      II Period — COVID-19 Pandemic, Lockdown and Saving Antiseptics

      The global task for this period was to squeeze the maximum out of a fixed budget for clicks. Testing new hypotheses, launching advertising campaigns in new directions, or increasing the budget for more effective advertising campaigns — everything was done within a fixed budget. Accordingly, the team’s main task was to promptly respond to changes in the performance indicators of already launched ACs, suspend the least effective ones, and use the freed funds to either test new hypotheses or scale-up already successful ACs in the account.

      Optimization

      After three months of active trading, demand began to fall slightly, competitors pulled themselves up, after which efficiency began to decline. Therefore, further, the task of meeting the demand for antiseptics was transformed into the distribution of the budget between priority areas to obtain the optimal number of conversions.

      The first month of full-fledged cooperation with the client was August 2019. The CPC channel performance statistics after a year of cooperation (August 2020) is shown below:

      Traffic decreased by 30.32%

      Transactions increased by 29.58%

      Revenue increased by 58.33%

      Budget per click was not changed

      III Period Was Transition to Maximizing Profit From Advertising Investments, Searching for the Optimal ROAS Indicator, Promoting Offline Outlets.

      The primary markers of this period were the maximization of advertising revenue and the use of contextual advertising to increase traffic to offline outlets.

      As we said above, any business is a “living organism” that changes under the influence of external factors, and the goals change accordingly. By ensuring a stable flow of transactions and accurately predicting costs and revenues from digital, the client was able to devote some of the resources to experiments to find ways to increase the profitability of advertising campaigns.

      Optimization

      As a result of the successful test launch of two advertising campaigns, our specialists decided to scale up — today, Smart Ads was launched on all offline stores of the client’s network.

      The results of the project in numbers (comparison of the first month of work on the project and data for the same period after 2 years) includes the following:

      Conclusions:

      1. The transformation of business goals in working on a project is a natural process. The main thing is to quickly respond to changes and adjust the strategy in time, which is possible only with a constant information exchange between the client and the agency.

      2. Problem-solving cannot be done linearly. If one tool does not work, you need to continue testing alternative options.

      3. Increasing revenue without increasing your click budget is real (and without losing revenue).

      Google Ads Tools Used in the Project

      Types of advertising campaigns:

      Ad formats:

      Bid Strategies:

      Project Participants:

      Project Manager: Kateryna Tymoshenko

      PPC-specialist: Halyna Lyman, Oleksandr Shylin

      Head of PPC department: Halyna Lyman.