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By 60% Increased Revenue With Tracking the Value of Transactions

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PPC specialist
Reviewer: Galina Liman
Head of Context Department
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By 60% Increased Revenue With Tracking the Value of Transactions

Client

ShinaDiski is an online tire and wheel shop, official dealer of Michelin, Continental, Yokohama and GoodYear brands. The company has been operating throughout Ukraine since 2007.

In addition to selling tires and wheels, the customer provides seasonal storage of tires and tire fitting. Stationery stores of the brand are located in Kyiv and Odesa.

Work Period

Active work on the project has been going on for 4 years; works on trade advertising campaigns were carried out from 11.02.2019.

Our Task

Improving the efficiency of shopping advertising campaigns and increasing the number of transactions.

Preamble

There is a seasonality in the niche of tires and disks. An increase in demand is observed in spring and autumn, as a rule, in March-April and October-November. The effect of seasonality is shown on the screenshot:

Shopping Campaigns

From Google Ads Help

Campaign is used to create ads on Google and around the web where potential customers can see what is selling. We call these placements Shopping ads because they appear in a different, more visual format. In contrast to a text ad, which displays text only, Shopping ads show users a photo of your product, plus a title, price, store name, and more. These ads give users a strong sense of the product you’re selling before they click the ad, which gives you more qualified leads.

Simplify your campaign management, maximize your conversion value, and expand your reach with Smart Shopping campaigns. This campaign subtype combines Standard Shopping and display remarketing campaigns, and uses automated bidding and ad placement to promote your products and business across networks.

With Smart Shopping campaigns, Google’s machine learning uses your product feed to create and show a variety of ads across different networks, including the Google Search Network, Google Display Network, YouTube, and Gmail. Our systems test different combinations of the image and text assets you provide, then select and show the most relevant ads, automatically.

To effectively launch a smart shopping campaign, it is desirable to have statistics of collected conversions (from 20 conversions in the last 45 days). In February 2019, we launched a regular trading AC in our account. After collecting the necessary statistics to improve work efficiency, in July 2019, our specialists launched a Smart Shopping campaign.

Previously, it was not possible to set up conversion value transfer in the account due to a technical feature on the site side.

Smart trading AC performed well during seasonal peaks, but its effectiveness decreased significantly when demand fell.

Optimization Work

After analyzing the statistics of received conversions for all campaigns, we came to the conclusion that during periods of the seasonal decline in demand, the effectiveness of a Smart Shopping campaign decreases by an order of magnitude more than for other campaigns.

For the Smart Shopping campaign, the number of conversions decreased by 68% with an increase in the cost of conversion by 506%, while for the rest of the advertising campaigns, the number of conversions decreased by 14.5…62.5% and the cost of conversion increased by a maximum of 159%.

In the screenshot, we provide statistics for May 2021 compared to the previous period, when there was a seasonal increase in demand:

At the beginning of June 2021, it became technically possible to set up conversion value tracking, which should have a significant positive effect on the operation of the Smart Shopping campaign.

To optimise the bidding strategy, our specialists implemented the most gentle and non-traumatic way to replace the current conversion. The work was carried out in the following directions:

  • we added a value transfer conversion to Google Account but have not yet included it in the Conversions column so as not to injure smart strategies by optimizing for a new conversion without statistics;

  • a week after this, conversion accumulated the first statistics. We included it in the Conversions column and started using it to optimize advertising campaigns, replacing the previous Thank You-Page conversion.

After replacing the main Thank You — Page conversion with a value transfer conversion, the AC had a learning period as the Smart Shopping Campaign was optimized for the value of the conversion.

The costs of the training period were increased dramatically — that was necessary for the campaign to collect statistics based on which it will continue to work. Google was able to go beyond the daily budget of the Republic of Kazakhstan, but the monthly spending would remain within the sum of the daily budgets for 30 days.

The screenshot highlights the training period of the campaign — the consumption of AC in the period June 07-13 increased by more than 10 times (by 1055%), while the number of conversions increased by 4 times (by 275%):

Subsequent spending peaks were associated with the suspension of the AC due to the balance depletion — this was how the campaign spent funds that were not spent in previous days and replenished the statistics. Otherwise, with regular replenishment of the balance, the campaign reached stable expenses without sharp jumps and increased the number of conversions, as seen at the diagram’s end.

Results

As a result of setting up transaction value tracking for the Smart Shopping campaign, we increased the total number of macro conversions (all valuable user actions on the site are included in the Conversions column: purchases, contact form submissions, clicks on numbers) by 230.2%, and the number of transactions increased by 66.1%, while the total value of conversions — by 60.2%.

Below we provide statistics on the campaign (the training period is excluded from the presented statistics for a qualitative assessment of the results) compared to the previous period of the same number of days:

Project Participants:

Project Manager: Volodymyr Filatov

PPC-specialist: Iryna Khomenko

Head of PPC Department: Halyna Lyman.

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