We analyzed the last 4 months of loss-making campaign. Campaigns run during this period had led only six transactions. The balance of campaign revenue to expenses incurred (ROAS) was equal 83,5% which means every dollar of revenue had cost $1.26.
There were two campaigns deployed on the account: text ads and shopping campaigns.
The biggest issue of existing campaigns was inaccurate keywords selection. The keyword determination didn't include the target buyer type of the analysed on-line store.
Designer products accepted as exclusive ones should be promoted in an adequate manner.
Before any changes were made, the campaigns were carried out with use of generic phrases making the range exceedingly wide and impossible to reach any valuable customer. Users who hadn't knew the product range specifics were entering the stores website but as a matter of fact they didn't buy anything. Due to the lack of knowledge of the product range, either the price and the product weren't desired by the users. The result was a high bounce rate and a low conversion rate.
The first step was a complete reconstruction of the present campaign. We've decided to use only some of the brands available at the store as keywords. Original designer furniture aren't made for everyone. By our ads we wanted to reach an aware customer familiar with the promoted brand that fits his style and the price isn't a big deal. Prepared ad groups and keywords enabled us to reach fitting users.
Second idea was to introduce RLSA, namely the search engine remarketing. RLSA is an excellent opportunity to optimize your campaign by basing on knowledge about users behaviour recorded at the online store. Thanks to remarketing in text ads and shopping campaigns we've reached relevant customers in right time. Many of them made their purchase decision few days later. With RLSA our ads returned to a potential customer and purchase probability was higher than for new customers.
Changes resulted in significant increase of ROAS up to 376% for AdWords account. Campaigns using search engine remarketing which so far haven't been used as store promotion have reached nearly 700% returns! Revenue compared to the previous period increased by 550% and the bounce rate got reduced by 10%.
Implemented changes not only had increased ROAS but also had improved website traffic quality. Ads hit straight to customers willing to place an order and this is the biggest success of it all.