How to increase the effectiveness of contextual advertising in six months and reduce DDR from 32 to 17%
“Making money without ads can
only the mint. “
Thomas Babington Macaulay
Service: Contextual advertising Google Ads (Adwords).
Customer: Online store of the European manufacturer of travel bags (genuine calfskin) and suitcases. The brand has firmly established itself in the middle price segment due to a wide range of leather goods, a flexible system of discounts and sales, the development of new distribution channels suitable for the Upper Medium Segment.
The budget for the whole time of promotion: 938 936.22 UAH. from May 1 to August 30, 2019
Audience: Well-held men and middle-class women, businessmen and travelers aged 25 – 55 years.
Started to work: from 01.05.2019
Six months ago, a company engaged in the sale of European brand goods in Ukraine turned to our agency for assistance in promoting.
What goals are set: maximize revenue with minimum DDR (CRR). The share of Advertising Costs is the main indicator of advertising. It is calculated by the formula: DDR = Advertising costs / Advertising profit * 100%.
“You can only control what can be measured”
Peter Drucker, management theorist.
The client, turning to the agency for contextual advertising, seeks not just to buy a top place in search engines. He needs a profit. He counts on the profitability of his investment in advertising, and not delayed. But how can a business figure out how much profit has been made by investing in contextual advertising? At this point, cross-cutting analytics comes to the rescue.
- conducted an audit;
- analyzed advertising campaigns over the past 3 months, and excluded those that do not end in transactions;
- set up campaigns;
- break down major campaigns by device
- weeded out audiences that do not bring transactions;
- excluded all children’s channels, mobile applications and channels with many clicks and a high bounce rate;
- adjusted bids by days and hours, based on the statistics of Analytics;
- expanded semantics;
- disconnected those positions that have a high rejection rate, low quality of words, bring few conversions;
- conducted a systematic analysis of the sites where our GMS campaigns are hosted.
We were helped to achieve positive results: regular analysis of indicators of campaigns, groups, ads and key queries.
Many companies conduct Google advertising analytics in this way.
Ideally, the process should be like this.
“Marketing and innovation –
that’s what makes a profit.
Everything else is a cost. ”
If you think that you have opened an online store and launched an advertising campaign, it means that orders will fall on you, know that you are inevitably doomed to failure. You need to be clearly aware that only everything together: advertising, your website, usability, your prices and service, will be able to take your business off the ground. If at least one of the components is excluded, then successful sales cannot be a priori.
After six months of continuous optimization and analytical work, we managed to achieve significant progress:
- In April, the profit was – 589047.90, in August – 828399;
- Revenue increased by 40.6%;
- Reduce DRR from 32.46 to 17.32.
Using contextual advertising Google Ads, we have developed and customized advertisements that can quickly bring new potential customers to the store’s website.
We did a great job, which ultimately ended with the extension of the contract.
Are your sales falling too? You do not know what to do with it, and how to change the situation?
Do you want to increase your profit or figure out what to do in your case in order to have a guaranteed result? Contact our Internet marketing agency OURS. Get a personal consultation and you will have clarity of action and your unique sales growth plan.