Google Ads For Automotive Shopify Store Case Study ($100k Revenue At 4.74 ROAS​)

Ad Spend: $29841
Revenue Generated: $102741
Final ROAS: 4.74
Store Niche: Automotive

Introduction:

This client from New Zealand had just started using Google Ads to advertise but didn’t have faith in their in-house team so needed us to build, take control of the account, and train their team to manage it after we had set it up properly.

Screenshot from 2020 01 05 15 04 18

Challenges & Opportunities:

  • They had over 100k SKU’s to work with.
  • They were using a custom platform, so editing product data was a nightmare and required their developers to be involved.
  • Since they are an automotive store, we had to be very accurate with ad copy, etc. as using the incorrect makes/models/other vehicle details hurts conversion rates ALOT.
  • Their store was converting well though, and they had an organic/brand presence from being an established business for over 5 years which we could leverage.
  • They were losing money fast on Google Ads so we needed to prove ourselves ASAP.

Strategy & Implementation:

  • Upon going into the account, the campaigns were an absolute mess.
  • The campaigns were set on target ROAS with 500% even though the account was new and Google clearly didn’t have enough previous conversion data to operate efficiently.
  • The Shopping campaigns were also just dumped into an “all product” adgroup with over 100000 SKU’s all running the same bid. It was absolutely shocking to see and it was no surprise the account wasn’t getting above 1.5 ROAS.
  • We immediately began custom labelling & segmenting all products, as well as changing back to ECPC bidding to control bids while we were collecting data/testing.
  • We launched new SKAG search campaigns also using the data from existing campaigns as well as search terms found with extensive keyword research.
  • Fixed their conversion tracking for accurate tracking also.

The Results:

  • We re-launched & scaled their campaigns with an average of 4.74 ROAS with testing budget included.
  • 6 months later we’ve hit 100k in revenue with only 25k in spend. (this doesn’t sound like too much, but search volume in NZ isn’t that big so this was the scaling ceiling we could profitably hit for this brand and it’s automotive niche).
  • We did that by re-optimizing bids based on proper keyword research, using single keyword ad groups (SKAG’s) for ultra relevance which was necessary for their competitive niche to drop CPC’s.
  • We also segmented & restructured the Shopping campaigns into appropriate ad groups and campaigns where the bids and negative keywords can be controlled better. We also optimized the product titles based on keyword search volume to increase impressions & clicks.
  • Once campaigns were getting profitable sales, we changed from ECPC bidding to Target ROAS for consistency as well as reduced manual management time.
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