Contextual ad case for online shop of smart phones accessories

About the Customer

• Template site on the marketplace Prom.ua;
• Has not run ads yet.

Input data:

• Monthly ads budget - 8 000 UAH;
• Geotargeting - All Ukraine, excl. Crimea;
• Ads network - Google Ads;
• Run time - 24/7;
• Positions of placing - does not matter;
• Cost of LEAD - shall not exceed 100 UAH;
• Tracking the effectiveness of contextual ads - by orders.
• The goal is to set up a cost-effective advertising campaign, increase the number of transactions.

Priority tasks

• Correct set up of Google Analytics;
• Creating and set up of new Google Ads account;
• Linking Google Ads account with Google Analytics, importing conversions and e-commerce into the account.

Project works

• Generation of feed for launching shopping campaigns, as well as its division into categories based on the site structure. Import of feed into Google Merchant Center. We came up to 9950 commodity units in total.

• Working out the names of commodity units based on features of Google algorithms.
• Start up of simple shopping campaigns to collect the conversions necessary to launch a smart product campaign.

• Once a week – manual control of the rates to reduce the cost of potential customers and increase the rate of conversions.
• Once every 4-5 days - working with search queries, to add negative keywords to the ad campaign.
• Launching a smart shopping campaign that works not only in search but also in Google Display Network, this allowed them to find customers, not only when they were looking for a product but also when they were busy doing something completely different.
• Setting up dynamic remarketing to show ads with the product the user has just like already viewed on the site. Unfortunately, this source of traffic had not ‌more profitable than shopping campaigns, so it was suspended, and the budget was reallocated.

• Once a week – to manage the rates manually to reduce the cost of leads and increase the ratio of conversions;
• Once a week – cancel ads placements;
• Every 4-5 days - work with search queries to find and add new relevant keywords to the advertising campaign, as well as to set up negative keywords to avoid irrelevant queries.

Work with the account has been carried out since February 2020 and is ongoing.

Outcomes of contextual ad:

• The largest amount of traffic coming to the site.
• High quality traffic.
• Transactions: 4200.
• Average price of a transaction: 35 UAH.
• Conversion rate: 8.79%.
• Revenue according to ecommerce data: 518,043 UAH.
• Margin: 60%.
• Advertising costs: 147 015 UAH.
• Gross profit: 518 043 * 0,6 = 310825 UAH.
• ROMI (return on marketing investments) according to the gross profit: (310 825 - 147 015) / 310 825 * 100% = 111%.

Further development plan:

• Uploading the entire customer assortment to Google Merchant Center;
• To make trials to find out the cost-effective rating strategy;
• Now, ads campaign cover about 53% of search network runs. At that, the daily budget is already 3000 UAH (at initially stated 250 UAH on start up) - we were able to expand the Customer’s ads budget by setting up a profitable advertising campaign, and we are planning to succeed 100 transactions per day soon.