Google Shopping Strategies that we used to generate $800K with 7x ROAS for a health brand This Ecom store owner came to me looking for help

Google Shopping Strategies that we used to generate $800K with 7x ROAS for a health brand

This Ecom store owner came to me looking for help

Google Shopping Strategies that we used to generate $800K with 7x ROAS for a health brand

This Ecom store owner came to me looking for help.

They had been running their Google Ads campaigns for 6 months and they were BLEEDING cash.

They didn’t know how, but they were constantly pumping more cash into their bank account and the ad spend kept draining it away.

So I said:
‘Sure! I’ll take a look at your ad account and prepare an audit for you.’
So that’s what I did.
I got access to their Google Ads account and boy was it a mess!

The first thing I did was ask them for their profit margin (so I could work out their Breakeven ROAS).
They came back to me with 31%.
This means their breakeven ROAS was 3.22.
I looked into their account and man… was I surprised.
The whole account was losing money out the wazzoo.
What was the biggest culprit?

The out-of-control Google Shopping Campaign.

They had set up the campaign with terrible campaign settings and left the bids at $3 a click.

This is REALLY HIGH – especially for their niche.

There was NO WAY their store would be profitable by paying this much per click. It would be insane.

(Some niches MIGHT have $3 CPCs or more, but it’s often for high-ticket items or when there’s EXTREME competition).

How did I fix this? I just downloaded all the google shopping data into my template and it told me EXACTLY what to bid to turn the campaign into a profitable one. It’s as easy as that.

As you can imagine, across the board it said to reduce bids. Generally to about $1 (some higher, some lower).

So I did this and checked on it over the coming week.

Overnight we saw a huge reduction in the average CPA (Cost Per Acquisition) while we also had an INCREASE in total sales. Huh? how is this possible?

Even though by reducing your bids you become ‘less competitive’ it means you can get more clicks for the same budget.

If you have your budget set to $30/day and you’re paying $3 per click then you’ll get about 10 clicks per day.

But if you drop your bids to $1 per click then, as long as there’s still the volume of people searching, you’ll still fill up your $30 budget but get 30 clicks instead of 10!

I knew this was going to happen before I made the changes because I was able to check the Search Impression Share metrics in the account to know that our budget was severely capping our total volume of clicks.

Anyway, the conversion rate didn’t change.

Those $1 clicks still converted at 3.4% for the store and so BOOM, the cost per acquisition decreased by 70% while increasing the total volume of sales at the same time (because more clicks were coming through and converting at the same rate).

This is a clear example of the power of understanding the system and being able to change the right settings (like bidding) to get 10x results with minimal effort.

This store is still working with us and last month that same campaign generated $3.5k in profits a single Day.

Not sales.

PROFITS.

We kept applying our bidding strategy, mining for negative keywords, until we had enough data to switch to a target ROAS strategy and then the campaign was scaling quick!

I hope the future holds more and more results for this client. They told us they’d never leave after the magic they saw in their account.

Little do they know that it’s not magic – just a simple bidding strategy
As you can see, bidding based on profitability is extremely powerful for generating Ecom results.