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Case Study: Using Google Ads to Generate $1.1 Million in Sales for an E-Commerce Business (5.61x ROAS)

Case Study: Using Google Ads to Generate $1.1 Million in Sales for an eCommerce Business (5.61x ROAS)

Google makes advertising appear to be simple and doable for anyone who can follow the rules.

However, once you start the process, you quickly realize how difficult it can be to generate profits with Google Ads.

In addition to navigating the subtle default settings in place, you will also face stiff competition that drives costs up.

To overcome these obstacles and increase your chances of success, you must first understand how Google Ads works and not lean only on Google’s automation.

One of our clients did something a lot of founders do – launch Google Ads campaigns in-house. Not hiring someone in-house but managing the campaigns himself, among all the other responsibilities.

Months and months later, the results on his account showed a ROAS below the efficiency limit. That was the moment he decided to work with us.

We discussed his long-term business strategy and did our research so we could set realistic targets and create a sustainable growth system.

Three months later, the ROAS increased above the limit initially established with the client.


The best part?


We wrapped up our first year of collaboration with $1.1 million worth of sales directly attributed to our Google Ads campaigns.


Now let’s break down the steps.


The first was running an audit.

We noticed several problems, like poor keyword research, campaign structure problems, misallocation of budget, unrealistic return targets, and other clear issues that we could fix straight away.


Choosing the campaign framework the client needs.


We wanted to generate profits fast, so after we made sure that the tracking code setup was done correctly, we launched Shopping Ads, Search Ads campaigns, and Display Ads.

Shopping Ads and Search Ads are the most profitable types of campaigns when done correctly, and Display Ads are great for remarketing to people that have been on the website before.

For the Shopping Ads campaign, we did an audit of the product titles, as they play a critical role in your feed and dictate the keywords for which Google will display your Shopping Ads.

On the search side, we conducted keyword research, competitor research, crafted ad copy, and established new campaigns, including product keyword campaigns, generic keyword campaigns, and dynamic search ads.

We continued to optimize our product listing ads by making them relevant, targeting the client’s segmented audience, and collecting and analyzing performance data.

As we gathered more data and behaviour insights about our target audience, we managed to spend less on advertising while reaching more users. We also used segmentation to improve the Google Quality Score and the click-through rate.


Managing ROAS targets?


When we set higher goals for ROAS, the system adjusts by lowering the Cost-Per-Click bids. This decrease in CPC causes a drop in impression share, reducing the total sales volume.

However, with lower costs, the profit margin improves significantly, leading to a significant increase in profitability per sale.

We would also lower the ROAS targets to boost sales volume during a season when demand is low. And when the demand for search is high, we would increase the ROAS targets to achieve higher profits and manage the number of products we sell.

By leveraging our understanding of the client’s business and of the entire system, we were able to influence the campaign’s sales volume.


Testing, Testing…and More Testing Please.


Another key aspect of ROAS targets is discovering the ideal balance. Raising ROAS leads to higher profits per sale but decreases the total sales volume.

Conversely, lowering ROAS reduces profits per sale but increases the total sales volume. The “sweet spot” for ROAS is the balance that provides the highest overall profit.

Our work for the client included monthly testing to find the sweet spot for their business.


But First, There's The Obvious…


To be successful with Google Ads, you must have excellent operations in place as well as a desirable product. A poor product cannot grow through Google Ads if it does not meet any of the product market fit requirements.

When our client approached us, he already had promising products for Google Ads success. We then applied our expertise to maximize the revenue potential through Search and Shopping Ads.

The next year, we began to dig into more complex strategies and bring Facebook ads into the mix to create an omnichannel presence and brand awareness as the owner worked on diversifying the product categories and improving the customer experience.


Do you think you pay for average results?


Imagine seeing even better results from your Google Ads campaigns…

With the right structure in place, there’s no reason why you can’t achieve an outstanding ROAS from your own Google Ads campaign or increase your ROAS even more than you do currently.

So, if you don’t have the time to manage everything yourself, or if you need an experienced set of hands to handle your Google Ads strategy, click the button below to schedule a free strategy call with our team.


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