Driving Results with PPC Advertising for an Online Store of Medical Equipment on medtechnika.com.ua

Service: Google Ads Shopping Campaigns
Topic: Online Store for Medical Equipment
Region: Ukraine
Duration: 3 Months
Advertising Budget: $5000

Background: In the past, this project primarily utilized regular search advertising campaigns, with only three shopping campaigns established for a few key product categories. Sales experienced a significant surge during the peak of the coronavirus epidemic and quarantine, but by summer, they had significantly declined. Prior to commencing work on the account, sales remained at a stable yet modest level.

Goals and Objectives: The objective was straightforward – to enhance the volume of sales (transactions) and revenue through this channel.

Strategy:
Our strategy involved the implementation of Smart Shopping campaigns, categorized by product and subcategories in certain instances. We opted for Smart Shopping campaigns due to their ease of setup and management, broad reach across all Google networks, and utilization of advanced smart bidding strategies. These campaigns have already demonstrated impressive results in US markets.

We created Shopping campaigns for different product categories and further divided them into subcategories within ad groups. While we experimented with variations in grouping, the results did not vary significantly. Our Smart Shopping campaigns employed the “Increase Conversion Value” bidding strategy, allowing us to set a target return on investment (ROAS). Initially, we set modest ROAS percentages, such as 300% for some campaigns and 400% for others. These figures indicate our goal of achieving three times (in the first case) or four times (in the second case) more revenue than the expenditure on advertising. These initial figures are subject to adjustment based on campaign performance data.

PPC advertising results at the beginning of Shopping Campaign implementation

Key Metrics (from 22.07.2020 to 20.08.2020):

  • Costs: $720
  • Number of Clicks: 27,740
  • Number of Conversions (Transactions): 471
  • Conversion Price: $1,03
  • Conversion Rate (Transactions): 1.70%
  • Advertising Revenue: $6782
  • Conversion Value Ratio: 13.93

First month: Setup and initial optimization

During the first month, we implemented three existing shopping campaigns and introduced new smart campaigns for the primary product categories, totaling to 10 campaigns. After creating the campaigns, we allowed them time to gather data and statistics for optimization purposes. We focused on optimizing the shopping campaigns by manually adding new items that appeared on the website to the product feed and respective campaigns.

To enhance campaign performance, we made adjustments to the ROAS percentages and budgets, primarily increasing them. However, we exercised caution when modifying the ROAS, ensuring that it was done gradually, with increments of no more than 10-20% from the original data. It was crucial to avoid sharp declines in the historical ROAS values within the campaigns.

In cases where the ROAS did not meet the desired targets, we reduced it by a similar 10-20% from the initial data, although there were very few campaigns requiring such adjustments. Changes to both the ROAS and budgets were implemented simultaneously to maintain data integrity and prevent disruptions in the system.

PPC results after one month of implementing new Shopping Campaigns::
Key metrics (from 21.08.20 to 19.09.20) and change in comparison to the previous period:

  • Costs: $1298 (+166.5%)
  • Number of Clicks: 36,331 (+31%)
  • Number of Conversions (Transactions): 704 (+50%)
  • Conversion Price: $1,84 (+78%)
  • Conversion Rate (Transactions): 1.94% (+14%)
  • Advertising Revenue: $12505 (+84%)
  • Conversion Value Ratio: 9.64 (-30%)

Second month: Refinement and optimization

During the second month, we completed the addition of the remaining product categories, resulting in a total of 14 campaigns. The optimization efforts mentioned earlier were continued to improve campaign performance.

In addition, we introduced an interesting Shopping campaign that included all the products in the store. However, this campaign was assigned a microbudget of 15 UAH per day. The bidding rate for the products was set at UAH 0.01 with a low priority, ensuring that it operated as an additional campaign without diverting traffic from the Smart Shopping campaigns. While this campaign may not generate a high volume of sales, its profit margins are exceptionally favorable. With a daily expenditure of only around five hryvnias, it becomes possible to sell several thousand items.

PPC results after the second month of working with new Shopping campaigns:

Key Metrics (from 20.09.20 to 19.10.20) and Change in Comparison to the Previous Period:

  • Costs: $956 (-26%)
  • Number of Clicks: 28,258 (-22%)
  • Number of Conversions (Transactions): 656 (-6.84%)
  • Conversion Price: $1,46 (-20.89%)
  • Conversion Rate (Transactions): 2.32% (+19.78%)
  • Advertising Revenue: $15 297 (+22.33%)
  • Conversion Value Ratio: 15.99 (+65.98%)

Overall, the second month of working with the new Shopping campaigns resulted in a decrease in costs, clicks, and conversion price, while experiencing improvements in conversion rate, advertising revenue, and conversion value ratio.

Third month: Optimization based on trends

When working with contextual advertising, it is crucial to consider trends and fluctuations in demand. During periods of increased demand for specific product groups, it is important to separate them into distinct campaigns and increase bids to capture the maximum benefit from high-season traffic. Contextual advertising offers the advantage of quickly implementing such changes and effectively managing traffic.

In the third month, we introduced a new smart campaign specifically targeting antivirus products. This addition brought the total number of campaigns to 15. The purpose of this campaign was to consolidate all trending products into one campaign, enabling us to identify the most profitable products during the surge in demand. This approach also allowed us to have more precise control over bids in order to effectively cater to increased demand.

PPC results after the third month of working with new Shopping campaigns:
Key metrics (from 20.10.20 to 18.11.20) and change in comparison to the previous period:

  • Costs: $2747 (+187.25%)
  • Number of Clicks: 74,183 (+162.5%)
  • Number of Conversions (Transactions): 1,872 (+185%)
  • Conversion Price: $1,46 (+0.65%)
  • Conversion Rate (Transactions): 2.52% (+8.7%)
  • Advertising Revenue: $43 936 (+187%)
  • Conversion Value Ratio: 15.99 (+0%)

Indeed, it is important to note that the beginning of November coincided with a second wave of the coronavirus pandemic, leading to the implementation of new quarantine measures. This situation significantly impacted consumer behavior and triggered a surge in sales. The increased demand during this period played a significant role in the notable growth in key indicators, such as costs, clicks, conversions, conversion rate, and advertising revenue. The effect of these external factors highlights the importance of adapting and optimizing PPC campaigns based on trends and current market conditions.

Shopping campaign results after three months of work

(21.08.20 – 18.11.20 – comparison with the previous three months)

After three months of working with Shopping campaigns, the revenue grew almost 2.5 times, the number of transactions also increased almost 2.5 times, and the cost of conversions decreased by 25%. At the same time, ROI grew by 135%.

Index Initial results Results after work Absolute changes Relative changes
Investments in advertising $2741 $5001 $2260 82,50%
Total ad revenue $30 938 $71 739 $40 801 132%
Transactions 1365 3232 1867 136,8%
Conversion cost $2 $1,55 $0,45 -23%
Transaction Ratio 1,48% 2,33% 0,85% 57,40%
ROAS 1128,75% 1434,35% 305,60% 27%
ROI 204,60% 275,90% 71,30% 35%
Net profit $8313 $21 062 $12 749 153,4%

Сonclusion: Smart Shopping campaigns have proven to be highly effective in promoting the online store, demonstrating positive results. By closely monitoring and optimizing the metrics, it is possible to further enhance the performance of the campaigns. As the work on this account continues, it is essential to maintain a proactive approach to ensure ongoing success in driving sales and achieving business goals.

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