Make The Most of Your Ad Budget, Despite Unforeseen Changes
Business Model: Ecommerce
Time Frame: More Than 6 Months
Overview
It is common for businesses to undergo quarters where they have to minimize their advertising budget. Normally, this can mean poor advertising results, but at CA Consults, we know how to maximize the value of Google Ads despite having a decreased advertising budget. This client was able to mitigate tremendous revenue losses from a 50% decline in their monthly ad budget by quickly scaling top performing ad elemnts in past campaign tests.
Challenge
Our Solutions
Throughout the tenure of working with this client, our emphasis was focused on campaign testing. Campaign testing focuses on new keywords, audiences, ad copy positioning, and advertising formats. Prior to the change in the monthly advertising budget, the client account has 4-5 months of ad testing tests.
Prior to the budget shift, the advertising budget focused 50% on campaign tests and 50% on middle andbottom funnel purchases. Once the campaign budget was lowered in June 2022, focus was shifted from mass testing to re-engaging middle and bottom funnel audiences with previous campaign learnings applied. This was done by the following:
- Segmenting the businesses target audiences by purchase potential to identify which audiences can provide the best return based on historical data
- Removing campaign tests to preserve the advertising spend for bottom funnel campaigns
- Focusing target keywords solely on historical conversion performance to maximize likelihood of continuing to drive purchases
- Applying less costly bid strategies to maximize conversions without sacrificing additional spend
- Executing aggressive bid adjustments based past purchaser affinity audiences to focus 100% of spend on selected audiences
The Results
Since executing our solution, the Google Ads account was able to minimize massive performance loss potential from a 50% decline in advertising spend.
With even more than a 50% decrease in ad spending, purchases only declined 6%. In many cases, this is unheard of.
More Results Compared to the Previous Period
- Cost declined 57%
- Cost Per Conversion declined 54%
- Conversion Rate increased 600%
- ROAS increased 127%
- Conversions declined only 6%
- Conversion value declined only 2%
