Achieving 31% Google Ads Return On Ad Spend (ROAS) Increase In 2.5 Months

Rachel: 00:00:11

Hey everyone.

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Regina here with starter PPC.

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I'm going to show you around the strategy

that we've been using on this B2C e

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commerce company that sells beard oil and

other types of, skincare products for men.

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this company has been with us for

only about two and a half months.

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And we've already been able to see a,

on average, a 31 percent increase in.

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Return on ad spend inside of the ad

account alone and the media efficiency

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ratio, which if you don't already know

is like return on ad spend, except it's

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zoomed out for the entire business.

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So we're calculating that with, total

revenue divided by total media spend.

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So it's the return on your media spend.

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that also has gone up and that's gone

up by way more than So I'm going to show

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you guys around the strategy that we've

chosen, how that strategy has shifted over

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the past two and a half months and why.

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first things first.

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I just want to lay the

foundation and show you.

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I have October 2nd through

December 17th pulled up.

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So this is the entire time that

we've been managing the ad account.

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That's when we took over.

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I have a return on ad spend showing in

blue and I have the cost showing in red.

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And you can see that we've been increasing

the ad spend a little bit over time.

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We do 20 percent increases for

the first three months when new

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clients come and work with us.

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this time period to the previous

time period of the same size.

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And down here, you can see that the cost.

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For these two time

periods is about the same.

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In fact, it's even gone down a little

bit by 5%, but the return on ad spend for

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these two time periods has gone up by 31%.

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so what we're running is we've got,

two dedicated remarketing campaigns,

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which right now have 20 per day.

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And then we have a brand

campaign, which has 15 per day.

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And then we have standard

shopping, popular products only.

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I'm going to get into this in

a second, which has 120 a day.

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And then we have performance

max at 110 per day.

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what I've done is I've opened a

couple of tabs to show you around.

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So the first thing over here, This

is the standard shopping campaign.

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And you can see that we didn't actually

have it running the first two weeks.

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It actually started in the

middle of October and we've been

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adding budget to it ever since.

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and then for the P Max campaign,

you can see that we've actually been

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lowering the budget in the p max

campaign ever since it's been active.

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So these two campaigns work holistically.

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and you're gonna say, if we go

back to the main tab and you see

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the, 400% ROAS in the perform.

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Max campaign and only 78 percent ROAS

in the standard shopping campaign.

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You're going to say, why Regina?

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Why would you lower the budget in the

performance max and raise the budget

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in the standard shopping based on

these performances for each campaign,

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you can definitely see that the

performance max can afford to spend more.

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While the standard shopping

should just be shut off.

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Ah, looks can be deceiving.

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Do not follow what,

Google wants you to do.

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Google is attributing more

conversions towards the PMAX campaign.

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Google can decide how to

attribute conversions.

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If somebody clicks on standard shopping

and then clicks on a performance max ad

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after that, Google's going to decide,

ah, let's give it to performance max.

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It did the heavy lifting.

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It got the sale.

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That's not necessarily the case,

standard shopping is a shopping

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network only campaign, and it

doesn't do anything Smart, bidding.

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if somebody's searching in the shopping

network and the algorithm sees, oh, this

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person was recently on the website, let's,

let's bid really hard to get that sale.

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Google's not going to do

that with standard shopping.

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it does is it just bids when people

are shopping, it's going to just bid.

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See if it outbids the competition,

it's going to spend your daily budget.

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And that sometimes means you end up

spending more per click, like a dollar

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68 here versus a dollar 34 on average

for the performance max campaign.

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So sometimes these clicks cost

more, because Google doesn't really.

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Care, right?

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It's not really trying to maximize

the conversions or anything like that.

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It's just trying to spend the budget

and bid on people who in general are

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searching for these products when

they're searching for those products.

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And this means that it does a

pretty good job at finding new

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cold users to bring to your site.

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that's oftentimes why you will

always see a low return in the

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standard shopping campaign.

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It's focused on cold users.

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It doesn't mind paying a lot for the click

and, performance max is going to steal

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all of its click attribution anyways.

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So you're always going to see a

low row as you can just expect that

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from the standard shopping campaign.

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Meanwhile, the performance max

is over here focusing mostly its

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efforts on remarketing, right?

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And things like display.

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So once the standard shopping finds a

new cold lead and introduces them to

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the brand and gets them to the site, P

max picks that up and bombards them on

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all channels until they finally convert.

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and if P max also has, smart

bidding, smart Shopping inside of it.

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So if P Max sees that someone who

was recently on the website is now

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searching, it's going to be really

hard to try to get that conversion.

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That's why with a small budget, we

Still like to run performance max.

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So our sister agency solutions eight

there, they're actually focused right

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now on getting away from P max entirely.

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we do think that when you grow to, I

don't know, 10 K 20 K budgets per month,

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it might be something to consider.

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but with small budgets, it's.

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very difficult to, play into

the strategies that those

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larger budgets have, access to.

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and so we have to rely a little bit

on performance max to, scoop up the

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standard shopping because without that, we

wouldn't have enough, awareness across the

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shopping network and the search results.

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To really, get the power that

we need to get the conversion

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with standard shopping alone.

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that's why you can see us adding budget

to the account and putting it mostly

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into standard shopping this entire time,

while keeping performance max small.

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In fact, our new strategy is to try to

get performance max down to about 30%.

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Of the total shopping budget.

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So between the standard shopping and the

performance max shopping, budgets, we want

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this to be 70 and this to be down to 30.

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So that is what we're now

working towards, in this account,

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as well as other accounts.

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Hi there quick interruption.

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Do you know the main thing that

prevents small business owners from

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getting their Google ads account

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Budget.

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A lot of businesses, especially

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out, have limited budgets.

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agencies have minimum budget thresholds

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So what happens is the business owners

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And the problem with that is

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geared towards larger accounts.

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And the advice doesn't have any of those

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the algorithm into giving a small

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So it often just doesn't work

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losing money month over month.

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com.

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Okay.

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Back to the video.

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going to talk to you about why we

decided just to put the popular

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products into this campaign.

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this account in particular,

they have about five different

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products, but each product has, five

different smells and scents to it.

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what we realized is in this case.

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We want to focus the algorithm

on just five SKUs, five variants.

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And we do that because we have such

limited budget the algorithm to

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get very familiar with each SKU.

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So we want frequency

of conversions per SKU.

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And that gives the algorithm power

because it has a lot of averages and

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a lot of knowledge, and it can push

those SKUs out and figure out where

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else show them to similar people.

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We didn't want to divide the

budget up between all the scents.

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focusing the algorithm is one

of the reasons we decided just

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to go with one of the scents.

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So we have five skews, five variants.

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we figured there's two

types of users, right?

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There's people that are already

familiar with the brand and they

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already know what scent they want.

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And so they're going to be

searching for the brand name and

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maybe the scent that they want.

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And even if the wrong scent shows

up in the shopping campaign,

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because that's the only one that's

active in the standard shopping.

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They can't really see what scent

it is and it doesn't really matter.

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They're going to click on it anyways,

and then they're just going to change the

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scent that they want on the landing page.

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the other type of user is a cold user

who doesn't know what scent they want.

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And they're not going to be able

to distinguish anyways, right?

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They're just going to

search for beard oil.

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They're going to see us next to all

the competition and they really can't

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tell what scent it's going to be.

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So they have to click and read about

all the different scents anyways.

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So we figure we weren't harming anything

by restricting the amount of products

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here, and we wanted to focus the algorithm

on, just a small amount of skews since

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the budget is so limited performance.

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Max has access to all of the skews.

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Why?

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Because we're primarily relying on it to

be our remarketing our main source of.

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Remarketing on all channels.

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And so anytime anyone was looking

at us particular scent, we want that

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particular image of that scent to

follow that person around the internet,

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because we know that they were

interested in that particular skew.

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So all skews active in performance max.

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Okay.

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This has been a lot of information.

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I hope it's been helpful.

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a couple of different strategies

combined into one and we're

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shifting strategies as we go.

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And as we learned about what's working

and in PMAX's case, what isn't working,

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although it looks like it's working.

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and, the media efficiency ratio

for the business, which is the

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bottom line is going up and up,

which means that our standard

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shopping is bringing in cold leads.

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And those cold leads are,

repurchasing these beard oils.

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and so even though the standard shopping

shows a low return on ad spend inside

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the dashboard, looks can be deceiving.

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Make sure you're tracking that media

efficiency ratio, because that is

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what's going to tell you whether

it's doing a good job at bringing in

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cold leads who are then making repeat

purchases behind the scenes for free.

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You don't have to pay for

those repeat purchases.

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People are going to come back and

buy your products if they like them.

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All right.

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Thanks for watching.

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Hope this has been helpful.