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Google Shopping ROAS Boost

A1 Security Cameras Case Study – Overview

About A1 Security Cameras: A1 Security Cameras is a one-stop shop for all video surveillance and security camera system needs. From large corporations to small businesses, the company serves a broad range of clients – owing to its incredible selection of products from 100+ recognized brands.

It is based out of Dallas, Texas, United States and was started by 3 video surveillance experts in 2007. The company has witnessed stellar growth over the past decade and continues to grow even today.

With the dawn of the digital marketing age, A1 too stepped up its game with an effective ad campaign that put them on the digital map and brought in more clients.

Objectives: A1 Security Cameras already had a clear-cut digital strategy in place when the Boost Team started working with the company. However, we saw numerous potential optimizations which would benefit their Google Shopping implementation. Primarily, by controlling and targeting specific products’ keywords – especially ones that offer a significantly higher ROI – effectively boosting the returns on ad spend and company profitability.

Final Outcome: The A1 Security Cameras Google Shopping campaign witnessed steady growth and the Return on Ad Spend (ROAS) jumped up by an impressive 2,219%, which made it the highest return the company had ever seen from their digital ad spends. What’s more, the boost in returns made up a significant chunk of the company’s total revenue – coming in at an unprecedented 15.38% of the total revenue – an improvement of just under 100% compared to the previous year.

Challenges

Although Google Shopping allows companies to promote hundreds of products using the familiar shopping feed, it doesn’t let you choose specific keywords like Google Search ads do. A1 Security Cameras’ impressive catalogue of 15,000+ products only made this task much harder.

Our Hypothesis

A careful analysis of the workings and technicalities of Google Shopping campaigns revealed the following possibility –

Assigning unique ad groups to profitable products should allow us to circumvent the inability to target keywords on Google Shopping.

To prove this hypothesis, our team mapped out a clear strategy for optimizing the A1 Security Cameras Google Shopping Ad campaign.

Our Approach to the Problem

The Boost Team started by identifying the products with highest ROI. Each of these profitable products were given their own ad groups, and we ended up with over 2,200 ad groups in total.

Here are the main focus points our team leveraged to elevate the return on ad spend and profitability of a company by dividing products into discrete ad groups –

  • Product Profitability: The core objective of a return on ad spend is to increase company profitability. Mindlessly increasing ROAS by targeting popular products is easy. But doing this comes at a cost, specifically as a dip in the profitability of the company. We analyzed the products on offer and found the ones that had the highest margins to ensure we could increase ROAS sustainably, while improving company profitability at the same time.
  • Product Attributes: A study of product attributes revealed a correlation between specific types of queries and indecisive behavior by users. Since these potential customers didn’t seem to have an exact product in mind, we could point them to related products within the confines of the searched category; a product that featured high enough margins to boost profitability.
  • Search Queries: We noticed an interchangeable conversion rate for certain search queries. Since such SKUs could be grouped together, we categorized queries by the attributes searched, such as brand name, model number, etc. This grouping allowed us to lower ad spends without affecting the conversion rate in any way.
  • Campaign Budget Allocation: Once an ad campaign is successfully optimized and expanded, budget allocations can be made using the key metrics of ROAS. But since we don’t have these metrics during the optimization process, we kept a close eye on the campaign budget to ensure that it remains under control throughout.

Technical Challenges

Keeping track of the metrics regularly is important not only when optimizing an ad campaign, but also later to track campaign performance. We created a self-updating real-time dashboard on Google Spreadsheets using the Google Analytics API. This dashboard gives A1 Security Cameras a quick, yet detailed, overview of the performance of their ad campaign.

Results

The A1 Security Cameras Google Shopping Ad campaign witnessed an impressive 63% boost in ROAS, increasing to 2,449.71% in a span of only 3 short months.

Moreover, the revenue generated from Google Shopping ads stood at just 7.27% of the total revenue of A1 Security Cameras in the previous year. Whereas this year it made up 15.38% of its total revenue – an unprecedented jump of 111.5%.

This growth is unwavering and it continues its upward trend even now.

Sahin Secil

Backed by 10 years of agency experience, Şahin Seçil established the BoostRoas Data-driven Performance Marketing Agency to help companies make more money through intelligent PPC marketing by turning data into knowledge and insights.