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: In this project, mainly search advertising campaigns were previously configured, there were only three shopping campaigns, for several main product groups. During the outbreak of coronavirus 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

It was decided to create smart shopping campaigns (Smart Shopping) by product category, and in some cases by subcategories. Why Smart Trading? They are easy to set up and maintain, 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 division was done both for separate ad groups and within one group, but according to the results, there was not much difference. 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 – 300% for some campaigns, 400% for others. 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):

  • expenses – 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

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The first month. Tuning and initial optimization

In the first month, both the previous 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, work was carried out to optimize shopping campaigns. New items of goods by ID were manually added to the campaigns, which appeared on the site and were added to the product feed; ROAS percentages and budgets were changed (as a rule, they were increased). Changes in ROAS in campaigns need to be approached carefully, adding no more than 10-20% to the original data, so that the historical data on ROAS in the campaign does not sharply sink. If ROAS did not reach the specified values, in the initial data it was reduced by the same 10-20%, but there were almost no such campaigns.
Making changes to ROAS and changing budgets happened simultaneously so that the system data did not go astray.

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:

  • expenses – 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 of the store, but with a micro budget (15 UAH / day), with a rate for products of 1 kopeck 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 very many sales, but its margins are prohibitive, since by spending about five hryvnia on it per day, you can sell several thousand worth of 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:

  • expenses – 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

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

In the third month, we added a new smart campaign to highlight anti-virus products. A total of 15 campaigns were running. This was done in order to collect all the trending products in one campaign, and see which of the products brought the greatest profit during the outbreak of demand, and also so that it was possible 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:

  • expenses – 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%)

In fairness, it should be noted that around the beginning of November, a second wave of coronavirus and a new impending quarantine were announced, which triggered a boom in sales.

Shopping campaign results after three months of operation

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

After three months of working with Shopping campaigns, their 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 132%
Transactions 1365 3232 1867 136,8%
Conversion cost 56,22 UAH 43,32 UAH -12,9 UAH -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 232 757,6 UAH 589 733,2 UAH 356 975,6 UAH 153,4%

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