How To Test Products & Scale On Google Ads ( $317K Revenue At 6.17 ROAS For Kids Fashion Brand)

 

Ad Spend: $51300
Revenue Generated: $317420
Final ROAS: 6.17
Store Niche: Baby & Kids

Introduction:

This client approached us when they had just built their new commerce business selling baby & kids products but needed help driving traffic to their site.

Challenges & Opportunities:

  • This business operated by the dropship model which we’re very experienced with.
  • The client was pretty inexperienced with eCommerce store optimization, as well as paid traffic/advertising in general.
  • Their store was professionally built & looked great, but their web developer didn’t know how to optimize for conversion & higher average order value, + set up all the necessary apps in the back end for analytics, profitability, and more.
  • Given their low margins as a dropshipping store, we knew we had to hit our targets or they would not be in a good place.
  • They had over 250 products ready for us to work with.
  • We decided to use Google Shopping & Search as our primary paid traffic source. Since margins were tight and
  • CPA targets were strict, we had to go with the most stable & predictable source.

Strategy & Implementation:

  • Implemented our cost-effective way of testing new products on the smallest spend possible.
  • Moved “winning” products out of the list of products in the test campaign, and into their own campaign to micro-manage budget, negative keywords, and search terms.
  • We then did keyword research around the best terms to rank the product for and then inserted these keywords into the product title. This alone helped to skyrocket impressions for some products that previously were getting little, or no impressions at all.
  • We then optimized the first image of the product. As you may know, Google shopping product ads are very visual, and the user’s typically click based on the headlining image.
  • From there, we micro-managed the product level bids on a weekly basis, always keeping in mind the conversion rate for our store and that particular
  • product. We use the conversion rate, as well as product margin to calculate the max price we can pay Google for a click while still staying profitable.
  • We implemented some further bid adjustments also which are great to make when your adsets collect enough data. These included: device bid adjustments, location (e.g city or state), as well as utilizing remarketing lists for search ads (RLSA), this basically says to
  • Google to bid more for the user’s who have already searched and clicked on our ad before. This usually signifies very high buying intent as they’re most likely a shopper considering your product again.
  • We then launched to other countries such as Australia, Canada, UK, New Zealand & Sweden.
  • We also launched on Bing ads, while the search volume is lower there, CPC’s are cheaper and the user’s tend to convert well.

The Results:

In under 2 years, we had scaled their revenue from close to zero, to over $300k. The business owners were mind blown from what Google Ads could actually do when in the right hands and minds. They’re now using the profits gained from this campaign to continue scaling using Facebook ads which we’re currently working with them on.

It doesn’t sound like the biggest scale, but the client monetizes on long term customer LTV by upselling & cross-selling them as their child grows up. They are also still sorting supply chain issues and fulfillment, so reasonable they cannot scale beyond this without something going bad. 

Therefore profitability & return on ad spend was more important than sheer revenue numbers in this client’s case.

We tailor our strategies to meet the needs of every unique business and founder, and that’s how we achieve such a high client success & satisfaction rate. 

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