These are the type of results you can expect.
Ecommerce Case Study
Manufacturer who sells direct online and distributes through retail stores in New Zealand, Australia, Malaysia and Singapore.
- CTR jumps from 1.08% to 2.54%
- Spend drops by $289.42 to $1323.65
- Conversions almost double (94.4%) from 143 to 278
- Cost per sale drops 57.9% from $11.28 to $4.75, turning a loss making account into a profitable one.
- Impressions share jumps from 14.9% to 63.7%, with ample room to grow conversions further.
The reduction in cost plus the additional sales more than paid for the overhaul and first month of management.
How did I achieve this?
- Stopped the bleeding. Eliminated broad match, deleted poor performing keywords, tightened up campaign settings and added hundreds of negative keywords to minimise low quality impressions.
- Mined for gold. Mined the search query and Google Analytics reports from the start of the account to find all the converting keywords.
- Created new ads to split test against the incumbents that lead to the high account level CTR.
- Setup separate brand campaigns for each country to improve the account level CTR and Quality Score.
- Setup remarketing campaigns for each country to remarket to all website visitors (organic, direct, social) and those who had abandoned their cart.
- Setup a competitors campaign to target the brand names of competing brands
International Ecommerce Case Study
49.3% increase in sales in the first six months.
Ecommerce retailer that sells into New Zealand, Australia, United States, United Kingdom, Canada, Singapore, Indonesia and Korea.
Account was managed in-house after being taken back from an agency. With paid search being the primary way they attract new customers, this channel was vital to achieving their sales targets.
- CTR jumps from 1.55% to 1.85%
- Spend drops by $1,316.6 (38.2%) to $2,131.46
- Revenue from paid search channel increases by 12.4%* despite spending 38.2% less than the previous month
- Cost per sale drops 30.5% from $95.78 to $66.61, cutting the break even cost for a new customer.
- Impressions share jumps from 29.6% to 51.0%, with ample room to grow conversions further.
*Conversions were tracked incorrectly within the account before I began. The client was counting shopping basket and checkout views as conversions with the same weighting as actual sales.
The reduction is cost alone paid for the initial overhaul and first month of management.
How did I achieve this?
Beyond the steps given in the first case study, the main improvement was channelling the spend towards the right countries. Because this business ships from New Zealand, the best markets are in New Zealand and Australia due to the faster delivery times. Budget was reallocated from the countries distant countries to countries closer to New Zealand.
In addition, shopping campaigns were setup to take advantage of this low cost traffic.
In future months I increased the spend to the pre overhaul levels to generate more sales, while keeping the cost per sale within an acceptable range.
Note how the cost per conversion has stayed relatively flat (up $1.83 to $68.44) but the number of conversions has increased from 42 to 53 per month.
Revenues from paid search are up 49.4% percent since I began managing the account. (30 day comparison)
Consumer Finance Case Study
Company that provides personal cash and small business loans was paying an exorbidant $41.20 for a lead, of which one in 25 may turn into a paying client. With the cost to process a loan (even if its disapproved) broaching $250 in staff time and overhead, the cost of acquiring a new client was nose bleed expensive.
25 leads at $41.20 each = $1030
$250 per application processing costs x 25 applications= $6250
Total cost to acquire one new client = $7280
The strategy we devised was to eliminate low quality applications with a combination of keyword selection and ad group. Searchers who use “bad credit” in their search were eliminated entirely. The result was 27.7% less conversions after the first month, but each application cost 42.4% less.
Applying the same math to the overhauled account.
25 leads at $23.75 each = $593.75
$250 per application processing costs x 25 applications = $6250
Total cost to acquire one new client = $6843.75*
*Note that this doesn’t take into account the improvement in sales conversion resulting from focussing on high quality applicants.
The lions share of the cost of acquiring a customer is in the processing. This means the entire AdWords account need to be focussed on generating high quality leads and nothing else.
The saving of $436.25 can now be channelled into generating more high quality leads.
- CTR drops from 9.39% to 4.79% as I move away from high CTR “bad credit” keywords
- Spend drops by $2,048 to $1,634 a decrease of 59.6%
- Converted clicks drop by 27.7% from 94 to 68 as I weed out low quality traffic
- Cost per converted click drops 42.35% from $41.20 to $23.75, turning a loss making account into a profitable one.
- Impressions share drops from 73.75% to 43.44%, which I would increase in future months with a close eye on lead quality.
By the end of September the account had been transformed.
- Converted clicks now exceeding pre-overhaul levels with 136 unique conversions
- Cost per lead has dropped from $41.20 to 27.42, a 33.4% decline while improving lead quality
I love achieving this type of result for a client. More, high quality leads at a lower cost per lead. My fee pays for itself and the business is much better off.
Note that row #1 refers to the search network and row #2 refers to the display network. The display network campaigns are producing leads at $8.73 apiece, a fraction of the cost of the more competitive search network. A tiny fraction of New Zealand advertisers ever use the display network. Its an untapped gold mine if you know what you are doing.