Case of Setting up PPC advertising for an online store of medical equipment

Medical equipment. Increase sales after setting up and optimizing Shopping campaigns

Service: Shopping campaigns in Google Ads
Topic: Online store of medical equipment
Region: Ukraine
Duration: 3 months
Advertising budget: UAH 140,042.

Initial data: Previously mainly regular search advertising campaigns were set up in this project. There were only three shopping campaigns, for several main product groups. During the peak of the coronavirus epidemic and quarantine, there was a strong jump in sales, but already in the summer, sales dropped dramatically and before the start of work on the account, they showed a stable, but small level of sales.

Goals and objectives: The goal was simple – to increase the number of sales (transactions) and income on this channel

We decided to create smart shopping campaigns (Smart Shopping) by product category, and in some cases by subcategories. Why Smart Shopping? They are easy to set up and support, have expanded reach across all Google networks, and use a new smart bidding strategy. These campaigns have already been tested in the Western market and have shown very good results.

We created Shopping campaigns for product categories, and then, in ad groups, we divided products into subcategories. The separation was done both for each ad groups and inside every group, but there was not much difference in the results. Smart Shopping campaigns use the “Increase Conversion Value” bidding strategy with the ability to set a target return on investment (ROAS). To begin with, we chose a small percentage – for some campaigns – 300%, for others – 400%. These numbers mean that we want to get 3 times more income than the advertising campaign will spend (in the first case) and 4 times more (in the second case). These data are initial and are adjusted after the campaigns collect statistics.

PPC advertising results at the start of working with Shopping campaigns

Key indicators (for the period 22.07.2020-20.08.2020):

  • costs – UAH 20,146;
  • number of clicks – 27,740;
  • number of conversions (transactions) – 471;
  • conversion price – UAH 28.94;
  • conversion rate (transactions) – 1.70%
  • advertising revenue – UAH 189,903.
  • conversion value ratio – 13.93

First month. Set up and initial optimization

In the first month three shopping campaigns worked, and new smart campaigns were added for the main product categories (7 items). There are 10 campaigns in total. After creating campaigns, the period of their training and collecting statistics, we optimized shopping campaigns. New items of goods, which appeared on the site, were manually added by ID to the product feed and to the campaigns. ROAS percentages and budgets were changed (as a rule, they were increased). ROAS should be changed carefully in campaigns, adding no more than 10-20% to the original data. Historical data on ROAS in the campaign shouldn’t sharply sink. If ROAS did not reach the specified values, it was reduced by the same 10-20% in the initial data, but there were almost no such campaigns.
Changes to ROAS and changes to budgets took place at the same time not to break the system data.

PPC results after a month of working with new Shopping campaigns:
Key indicators (for the period 21.08.20-19.09.20) and change in comparison with the previous period of work:

  • costs – UAH 36,336.96. (+ 166.5%)
  • number of clicks – UAH 36 331; (+ 31%);
  • number of conversions (transactions) – 704 (+ 50%)
  • conversion price – UAH 51.60. (+ 78%);
  • conversion rate (transactions) – 1.94% (+ 14%)
  • advertising revenue – UAH 350,146. (+ 84%)
  • conversion value ratio – 9.64 (-30%)

Second month. Refinement and optimization

In the second month, the rest of the product categories were added. There are 14 campaigns in total. The optimization works described above were also continued.

An interesting shopping campaign was also added, with all the products in the store, but with a micro budget (15 UAH / day), with a rate for products of UAH 0.01 and with a low priority (so that it works as an additional campaign and does not take traffic from smart shopping campaigns). This campaign does not generate a lot of sales, but its margins are prohibitive, since by spending about five hryvnia on it per day, you can sell several thousand goods.

PPC results after the second month of working with new Shopping campaigns:
Key indicators (for the period 20.09.20-19.10.20) and change in comparison with the previous period of work:

  • costs – UAH 26,780.24. (-26%)
  • number of clicks – UAH 28,258; (-22%);
  • the number of conversions (transactions) – 656 (-6.84%);
  • conversion price – UAH 40.82. (-20.89%);
  • conversion rate (transactions) – 2.32% (+ 19.78%)
  • advertising revenue – UAH 428,330.36. (+ 22.33%)
  • conversion value ratio – 15.99 (+ 65.98%)

Third month. Optimization by trends

Working with contextual advertising, it is extremely important to take trends into account. During a period of increased demand for certain groups of goods, you need to separate them into different campaigns and raise bids in order to “collect the cream” of high season traffic. The advantage of contextual advertising is the ability to implement such changes very quickly and flexibly manage traffic.

In the third month we added a new smart campaign, that highlighted anti-virus products. There were 15 campaigns in total. This was done to collect all the trending products in one campaign, and see which of the products brought the greatest profit during the demand burst period. And to have the ablility to control bids more precisely to cover more demand.

PPC results after the third month of working with new Shopping campaigns:
Key indicators (for the period 20.10.20-18.11.20) and change in comparison with the previous period of work:

  • costs – UAH 76,924.98. (+ 187.25%)
  • number of clicks – UAH 74183; (+ 162.5%);
  • the number of conversions (transactions) – 1872 (+ 185%);
  • conversion price – UAH 41.08. (+ 0.65%);
  • conversion rate (transactions) – 2.52% (+ 8.7%)
  • advertising revenue – UAH 1,230,216.61. (+ 187%)
  • conversion value ratio – 15.99 (+ 0%)

Honestly we should note that the beginning of November was a second wave of coronavirus and a new quarantine were announced, that triggered a boom in sales.

Shopping campaign results after three work months 

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

After three work months 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 done Absolute changes Relative changes
Investments in advertising
76 744 UAH
140 042 UAH 63 298 UAH 82,50%
Total ad revenue 866 254 UAH 2 008 693 UAH
1 142 439 UAH

Transactions 1365 3232 1867
Conversion cost
56,22 UAH
43,32 UAH
-12,9 UAH
Transaction Ratio 1,48% 2,33%

ROAS 1128,75% 1434,35% 305,60% 27%

71,30% 35%
Net profit 232 757,6 UAH 589 733,2 UAH 356 975,6 UAH 153,4%

Сonclusion. Smart Shopping campaigns are a great tool for promoting your online store and show good results, you just need to monitor the metrics and optimize them. And the work continues on the account.

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