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Unlocking Google Ads Success: The Journey to Doubling Revenue - Descript
John Moran analyzes an account that has a 40% decline in traffic and 81% drop in sessions by socials. He dives into the account to figure out what’s causing the declines. He also discusses why running Performance Max campaigns and Meta Ads for this particular business might be causing more harm than good, the potential risks and benefits of different advertising strategies, including the importance of balancing profitability and scale. He then suggests alternative strategies and where to focus on to achieve business growth. Listen to this episode to learn more.
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0:00 Intro
0:19 When Performance Max with Meta Ads Might Be a Bad Mix for Your Advertising Efforts
6:50 Decline in new customers
13:27 Strategies recommended by John
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Transcript
And today we're going to be talking about how a client
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:doubled his margin and revenue,
this year working with us compared
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:to last year of what he was doing.
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:It's really working out for this client
pretty well, even though it's a wonky
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:strategy per se compared to the number of
strategies that, A lot of times that we do
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:How's it going everyone this is josh
with another video for you guys and
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:today we're talking about how a client
Doubled his margin and revenue this
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:year working with us compared to last
year of what he was doing So let's go
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:ahead and take a look at the back end
numbers So he emailed me, his numbers
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:for 23 and 2024 for january and february
So in january 23, he made about 12.
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:6 in revenue You And in
:
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:6 in January.
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:Then if we take a look at
February, he made about 11.
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:2 and in February, 24, he made about 24.
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:8.
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:So we basically doubled his income.
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:And his revenue and those two
months that he had on with a certain
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:campaign that he had on versus our
strategies and what we're doing.
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:this is no seasonality at all.
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:So this is like month compared to month.
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:So there's no, nothing going to be
like wonky or going on with that.
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:This is comparing 20, 24
numbers last year to 23 numbers
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:and what he was doing before.
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:so this client says refers PCs, we took
a look at the time for between January
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:and February compared it to the previous
year, what they were doing the route, the
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:back, that we're using standard shopping.
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:And then last year that they were running
P max, so they're pretty heavily into it.
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:They had Dell, hp, Acer, Alienware,
and the corresponding campaigns.
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:And then we have something similar as
well where we have, Dell, hp, Acer, and
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:the corresponding campaigns as well.
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:You can see that we're spinning
about 17% less than last year.
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:We have about 6% increase in R.
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:It doesn't really offset the budget,
though that was down about 17%.
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:conversions are down by 56%.
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:CPAs up by 92%, and the
average CPC is down by 41%.
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:So you could say, this is
some really wonky numbers.
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:let's start with the average CPC.
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:And go from there.
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:So usually we'll see an increase in CPCs
when you switch away from PMAX to standard
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:shopping, but this is a different story.
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:It's actually down by 41%.
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:So you see right off the bat, we
have different bid strategies.
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:We have maximized clicks or one, two,
three, four, five, six campaigns.
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:and all those campaigns are pretty
much standard chomping top of funnel,
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:campaigns that have maximized clicks.
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:So those are all pretty
much cold traffic channels.
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:And the reason why, the CPCs are
down is because we're not bidding
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:for the absolute top, we're bidding
for a second or third position.
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:And another reason why we're doing
that is because their stock kind of
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:changes in and out pretty quickly.
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:So they'll have a product in stock for
about a week, and then that one will go
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:out of stock and then they'll have another
product that shows up that they sell.
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:So keep in mind that
they sell referred PCs.
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:So they can't manufacture
or produce them themselves.
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:So I have an F a set
standard for what they buy.
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:It's get what they take from
their distributors that they get.
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:So they could have a laptop that
might have a slightly different,
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:RAM or slightly different SSD drive.
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:And that completely
changes the part number.
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:you're like the, skew or the GTI ends.
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:And so Google will think that's
a completely different product.
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:So with maximize clicks, a thought
process is Google doesn't really
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:have to learn what that product is as
often with the changes that we have,
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:and also with the, competitiveness
of the markets, one or two.
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:And there's so many different
types of costs and they're
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:pretty competitive in their cost.
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:We're showing second or third because
we know that people can be shopping
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:around for different prices or different
products And they're doing pretty well
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:with those App bidding strategies.
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:So that's why the cpcs are so far down
Then we take a look at the cpa why it's up
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:by 92 so We know that with pmax it follows
the user a lot more often in the journey
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:of the client or the customer You So with
standard shopping, the business that we
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:have here, we're basically only showing
like once or twice to an individual or
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:client or customer, versus where in PMAX,
you're going to be following that user.
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:It's going to be collecting that data
and holding onto that data or that
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:customer a lot longer in that timeframe.
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:So it's going to be remarketing
into, let's say, search.
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:It could go into shopping.
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:It can go into display remarketing.
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:It can go into, Gmail.
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:So it's spinning little by little
just to hold onto that data.
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:And that client, and then the conversions
will be, more populated inside in app
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:because, the acquisition, is pulled
more, and easier since it's remarketing.
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:So with this, with standard shopping.
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:It's more top of funnel cold traffic
and a lot less into remarketing.
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:So you're going to hit the
client one or two times, that
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:data will get lost eventually.
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:And then they'll convert either
organic or direct, it's not
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:pulled into, in app and Google.
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:So you'll lose that acquisition.
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:So that's why the conversions are.
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:Are a lot less as well.
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:Another reason why it's less
too is because we're running
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:into a higher margin campaign.
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:So we segment this client out
into, high margin Dell, mid to
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:low for servers, high margin.
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:So instead of just showing for,
certain products or all the products
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:all at once, we only pick the
ones that, have a higher margin.
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:And so that way, with those conversions,
it's going to be a lot more valuable
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:to us than let's say, something
that costs less over here and it's
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:not as profitable, maybe 10 percent
margin versus a 30 percent margin.
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:So what I've seen Google likes
to do is let's say you threw
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:everything into one campaign.
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:And you have all those products in there.
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:It's going to go after the
easiest converting product.
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:And most of the time it's usually
the lower cost products, that get
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:the most conversions because it's
the easiest or easiest to get
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:a conversion on those products.
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:So this is how we have it segmented out.
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:And that's why other conversions
are a lot less as well.
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:and then with row, that's the same
concept of, not everything gets converted.
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:Or, Basically shown inside in app
when you're just running cold traffic.
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:The attribution is a lot more loss
versus the PMAX and remarketing.
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:That basically pretty
much sums up this account.
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:touching base up with maximized clicks.
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:it's not the end all be all, I wouldn't
change your account to maximize clicks.
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:Unless you want to do a test first,
but, how it works for this client.
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:Like I said before, we don't want
to show up for that first position.
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:We're like all the other
competitors are doing.
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:We don't want to be into
remarketing display.
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:like maybe the other
competitors are doing.
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:So we're hacking Google ads and saying,
Hey, we only want to show up for this,
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:we don't want to show up as maximum out
of budget and get the maximum clicks and
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:get the maximum exposure that we want.
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:Knowing that people are
going to be shopping around.
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:And, get the most out of what we're doing.
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:So it's really, we're not for this
client pretty well, even though it's
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:a wonky strategy per se, compared
to the two, the number of strategies
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:that, a lot of times that we do.
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:but that's why we always double check
and make sure to run tests, making sure
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:it lines up with the backend numbers.
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:And then learning new things as we
go along too, because everything can
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:be different, every platform or, the
market that you're in can be different
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:and so different strategies can
have different effect on you guys.
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:So it's not we have a certain
way of doing things only.
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:we just make sure that we do
some tasks and make sure that
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:the backend numbers follow suit.
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:So that's what we do it here at Solite.
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:And, but yeah, that's pretty much it.
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:And, I'll see you guys next time..