The best customers are repeat customers. Remarketing helps your first-time customers to become loyal customers over the longer-term. It can be even more effective than email because you are not competing with crowded inbox.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Pretty much anything you can think of sending to a customer as an email, you can also send it as a Display Remarketing campaign. It’s a great way to turn a once-off customer into a long-term fan. You’ll see a lot more free (organic) traffic purchasing from you once they have been seeing your ads as well because a lot of people prefer to type your name into the browser instead of clicking on an ad.
Repeat business is good business. Use your good margins and customer loyalty to your advantage!
— Petra Manos High ROI Ecommerce Google Ads Specialist
When you get repeat business you can afford to scale more aggressively through paid advertising. The reason being, the lifetime value of the customer less the initial cost to acquire the customer and less the cost of goods sold ends up being a much bigger profit. If your business model has a recurring component, (i.e. if you sell supplies that run out and need to be purchased again), and if your cashflow can absorb a little more short-term expense, then calculate your Return On Ad Spend based on your expected lifetime value and build a larger customer base in order to grow long-term revenue.
If you have repeat customers, you can use paid channels to get the first sale and then leverage your customer relationship for subsequent sales.
— Petra Manos High ROI Ecommerce Google Ads Specialist
One of the hot strategies in today’s digital marketplace is “sales funnels”. This is a trendy way to describe a process of moving someone from a casual interest in your products or services, to becoming a customer, to becoming a big ticket or repeat customer. As long as you have an internal process for securing repeat or bigger ticket sales, you can use your paid marketing strategy to buy a small sale that may become a bigger customer. The trick then is to generate as many customers for small sales as possible, and then upsell a percentage of them into long-term profitable customers. If you have loss leaders in your inventory, try to make them inexpensive to ship and delight the recipient so that you can make a big impact for a small cost.
You’ll definitely want to track “hyperactive buyers”, – i.e. people who buy lots of products over time, as this will be your best performing list – the better the list, the better the result on Display.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Some marketers presume that once someone has become a customer, they should no longer receive your paid advertising because you can now reach them for free via email. This could not be further from the truth.
First of all, a lot of people are not reading promotional emails, full stop. Simply because they are too busy to or don’t like reading email.
Second of all, once someone has purchased from you once, they are much, much more likely to buy from you again. So it makes sense to advertise to them again, because next time they are purchasing that category you will want them to think of you (Your customers are not as loyal as you hope. They are buying from your competitors as well.).
If someone has purchased from you multiple times – let’s call them a “hyperactive buyer” – then it means they care a lot about your category of products in their life. In this case, it is even more important that they keep buying from you and not drift off to buy from your competitors due to negligence on your part. These users will be swayed by other brands’ promotions, and so by not advertising to them regularly you may miss out on their future business.
My general rule of thumb is the more valuable a customer is due to past transactions, the more Google advertising (Display, Search, Shopping, YouTube) you will want to show them in the future, UNLESS of course you are selling an item that someone would only ever purchase once. Like perhaps a coffin 🙂
If your customers purchase from you more than once, their value is greater than their first purchase. Sometimes you have to break even on the first sale in order to attract quality customers who will transact more over the long term.
— Petra Manos High ROI Ecommerce Google Ads Specialist
IKEA is the master of using llifetime value to their advantage. They know that if they can entice you to open your wallet to buy a $3 footstool or a $5 breakfast then you’ll be much more likely to also add larger pieces of furniture to your cart. They don’t make any money on those $3 footstools or other similar cheap items, but they make sure to place them prominently throughout the store so that you will make your first purchase and therefore take your first step towards becoming a loyal, repeat customer of their profitable products.
When you want to get started with Search (text) ads, I usually recommend a semi automated approach. Google Ads have a Dynamic Search campaign type that picks the keywords and landing pages for you. This works GREAT for businesses with a lot of landing pages. Optimize for specific keywords and landing pages once once you know what works.
— Petra Manos High ROI Ecommerce Google Ads Specialist
With a traditional Google Ads Search campaign you’d have to pick your keywords and then wait and see if you were right. With this new approach you can let Google choose your keywords and then find out exactly which words got you the highest ROI. You can always create campaigns for those specific keywords at a later time. This saves you a heap of time and is more profitable as you can start getting results straight away.
Ecommerce businesses should create text ads focused on individual products so that the searcher goes straight to the product page rather than to your home page.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Luckily Google Ads gives us a super easy way to do this for Ecommerce businesses – Dynamic Search ads! These ads automatically replace the ad heading and the landing page URL with the title and URL from your website that ranks the best for the keyword being searched. So for example, if you sell 200 different varieties of shoes, Google will replace the title and the landing page for the specific shoe that best matches the term being typed. This is an extremely powerful technique that leads to super high conversion rates for many of my clients.
It is important to have your Search advertising aligned with the intent of the person performing the search. Ads should be grouped based on keyword and adjusted accordingly.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Imagine you were having a conversation with someone and every time you talked about one thing they talked about something else! You would feel like they did not care about the conversation and you would leave. So it is with Search ads. A searcher initiates a conversation based on what they search for. How you reply is up to you, but if your response is not in line with the conversation then don’t expect them to click on your ad. Look carefully at your search terms and see if they fit into different conversations. It might be subtle like the difference between someone searching for a hat vs searching for a cap. You’ll want to use the same language in your ad so that they feel like you understand what they want.
Dynamic Search Ads find the most relevant page on your website for any search term. This is really helpful for retailers who have many pages. BUT, it will sometimes take visitors to less desirable pages like blog posts. Exclude these pages from your Dynamic Search Campaigns to increase ROI.
— Petra Manos High ROI Ecommerce Google Ads Specialist
To exclude a page from a Dynamic Search Campaign, you can specify individual excluded pages, or you can use a rule. So for example, if you have a blog and all of your blog posts have /blog/ in the URL then you can create a rule that says any URL containing “blog” will automatically be excluded from the Dynamic Campaign. This option is in the Dynamic Targets setting for the Dynamic Ad.
Try Not To Write Ads That Have A Capital At The Beginning Of Each Word In A Sentence. It Looks Really Strange In A Sentence Format (Like This), But Using Capital Is Fine For A Title.
— Petra Manos High ROI Ecommerce Google Ads Specialist
I’m not sure where it originated, but a lot of Google Ads search ads have descriptions That Look Like This. I’ve even been guilty of it myself in the past, because it does make the ad stand out a bit.
The thing is though, it looks strange, and when you write something that looks strange you lose a little bit of trust in the eyes of your customer base.
They wonder if maybe, just maybe, you are from some faraway country that doesn’t write and speak like them? And maybe this means that you will let them down in some way.
It’s not worth it to stand out like a sore thumb. Instead, find a less irritating way to make your ad copy stand out from the crowd. Consider changing up your copy, or adding more extensions instead.
Avoid adding questions in titles or descriptions when you create Google Responsive Search Ads. Google rearranges the order of the titles and descriptions in these ads, and it can look really strange if you have a question right at the end.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Questions are not good in Google Responsive Search ads because Google tries to pick the highest ranking titles and descriptions for the search term and the order of logic might get out of whack if the ad has to flow in a particular order.
On the other hand, questions are great in Google Expanded Search ads because they can lead a user logically from a problem to a solution to a call to action.
It is generally good to have at least one of each type of ad so that Google can pick the one that is likely to convert the best in any circumstance.
Add as many relevant extensions as you can to your Google Search (text) ads. They set you apart from the crowd, make your ads bigger, and give more information about you to your prospective customers.
— Petra Manos High ROI Ecommerce Google Ads Specialist
At the very least, add some callout extensions. Your ad can show up to four callout extensions at a time and they can be up to 25 characters each. These are a good place to mention that you have Afterpay, Fast Shipping, Quality Guarantee, Free Shipping etc.
When writing Google Search [text] ads, you can write up to 180 characters in descriptions ( 2×90 characters ). Here are some ideas to make them count!
— Petra Manos High ROI Ecommerce Google Ads Specialist
Your ad descriptions should describe what your perspective customers are looking to achieve and help them move past fears or hesitations that may be holding them back.
We want to describe the benefits and problems in the prospective customer’s tone of voice as much as possible. We want to avoid talking about features (what it does) and instead talk about why they should care about that.
Idea: If you can find customer testimonials pull some of your ad copy from them. They make the best ad descriptions!
Idea: Make sure it is obvious in the ad who your company is. People don’t want to buy from an Anonymous Nelly online.
Idea: Move away from ‘features’ and instead, describe benefits.
eg: It’s made of hardwood. (this is a feature) —> Your neighbours will be jealous of your beautiful new XYZ (this is the benefit)
or:
Australian support (this is a feature) —> 100% Australian support! Avoid frustrating calls with overseas support desks. (benefit)
Money back guarantee (feature) —> Our 100% Money Back Guarantee means purchasing is no risk to you. (benefit)
Marketers don’t have crystal balls! You don’t know in advance which ads will be best, so write several and see which convert the best.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Our general rule of thumb is that we should have at least two expanded text ads and one responsive search ad in each ad group. In reality you can get away with 5-6 ads. Any more than this many at one time and you’ll find that Google will only show a few of them anyway.
When you write Google Search ads, it’s a good idea to presume that some searchers know your brand and some people don’t and then write the titles differently for each. Google should pick the more relevant ad based on the keywords used.
— Petra Manos High ROI Ecommerce Google Ads Specialist
With Google Search ads, the titles are only 30 characters each, and only two or three titles are visible most of the time.
In Google Search, it will be displayed like this:
<Title 1> | <Title 2>
Or
<Title 1> | <Title 2> | <Title 3>
It can be hard to work out what to put in each of these spaces, especially when you only can use 30 characters.
My rule of thumb is that if the customers know the brand, it is a good idea to add the business name as Title 1. People who like your brand will click the ad just because of the brand name.
On the other hand, if your brand is unknown, it may be better to make the titles based around the term they are searching for, or a problem they are trying to fix. You can add a question mark to highlight a problem.
Examples of a search term leading the title might be “Biggest Bag Sale” or “Vegan ‘Leather’ Jacket”.
Examples of a problem to fix leading the title might be “Dog Ate Your Handbag?” (its OK to be unusual or humorous) or “Cruelty-Free Clothing”
Irrespective of whether Title 1 is a brand, a search term or a problem they are trying to fix, Title 2 should be a positive such as a solution or a benefit.
Title 3 should typically be a call to action
Here are some examples:
Biggest Bag Sale | Soft Luxury Leather | Shop Now
Vegan ‘Leather’ Jacket | Soft Luxury Feel | Visit Store
Dog Ate Your Handbag? | Treat Yourself to New | Choose Your Favourite
Cruelty-Free Clothing | Beautiful Leather Alternative | Afterpay Available
Every Google Search ad should have a Call to Action – something your prospective customer can do next that brings them closer to a sale.
— Petra Manos High ROI Ecommerce Google Ads Specialist
If you know what your customers want to achieve and what potential issues they want to avoid, it’s easy and natural to offer a solution. The solution will usually be something they can purchase, or it might just be a helpful thing that they can get from your website.
Whatever it is, make sure people know that you can help them!
Sing it loudly from the rooftops, and ensure your call to action is in every ad.
Here are some examples.
Example 1
What do they want? A user wants to buy a pair of slippers. They want to feel playful.
What do they not want? Cold feet. They want it fixed fast!
Call to action: buy our slippers
Example ad –
Are your toes feeling freezing this winter? Fun at home with a set of adorable pink bunny slippers! Purchase today. Fast shipping.
Example 2
What do they want? A user wants to buy a pair of durable slippers.
What do they not want? To buy a new pair within a year
Call to action: buy our slippers
Example ad –
Tired of replacing your slippers each year?. Skipper Slippers stay firm for years. Check out our range of colours online. Afterpay available.
Here are some other CTA ideas:
Shop our Winter catalogue
Check out our sales merchandise
Download our 10-point checklist
Pick from three fashion colours
Learn more online
Book your treatment today
Do you know what your potential customer fears most about purchasing from you? Once you’ve cracked this, it becomes so much easier to help them overcome their barrier to sale.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Your prospective customers probably do not type into their search terms what they are most trying to avoid, but it is always there at the back of their minds. They will subconsciously click on an ad that alleviates this fear.
They might have purchased something like what you offer before, and it didn’t work out. Or maybe they think it will be inconvenient, too expensive, or that you’re exaggerating your claims.
Most of the time a person will not want at least one of these things below. Some will even be actively worrying about them.
Loss of money
Loss of time that they can spend on enjoyable activities
Mistakes
Loss of health / physical pain
Loss of friends, family, peer group, status, respect
Effort
Boredom
Overwhelm
Legal or contractual loss of freedom
Bad customer service
Poor quality, need to replace or return
Even if you know that your products are great quality and that you have a guarantee so there is nothing for the customer to worry about, the customer may be worrying about these things anyway.
When writing ads, pick all of the main categories above that seem most relevant. Write out 1-3 different bad things that might happen if a prospective customer bought from a competitor.
If you’re not sure, it’s easy to find this out online. Try typing some of these phrases into Google:
For example, type into google:
“why I hate <product or service>”
“mistakes I made with <product or service>”
“problems with <product or service>”
It’s important to understand what your prospects want before trying to sell them something through Google Search advertising.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Always ask yourself “What does this prospect want?” before writing an ad. There may be more than one thing they want, and that is fine. You can write an ad for each one and see which converts the best.
The clue to what the prospect wants may be in the keyword / search term they typed in. Alternatively we might have to think more broadly if they have typed in a very generic search.
This is a good reason to have different ad groups, because people with different search terms want different things. We need to align the ad copy with their particular goal.
Most of the time a person will want at least one of these things:
Money / wealth / financial security
Health / restoration of health / increase in vitality
Social / recognition / love / peer acceptance (keeping up with the Joneses) / status / family time
Short term pleasure / fun / eating & drinking / sex /
Knowledge / intellect / resolve a curiosity
Comfort / better quality / better fit / easier to use
To generate a few different ads, write out 5-10 different benefits that a user would get if they got the product or service being offered and sprinkle one or two into each ad. Bonus points if if you can cover one of each of the dot points above!
When we write an Google Ads Search ad we need to focus on three things:
1) What does this prospect want?
2) What does this prospect NOT want?
3) How does the prospect get 1. and avoid 2. ?
— Petra Manos High ROI Ecommerce Google Ads Specialist
Ultimately when people are shopping or researching an online purchase, they are doing so because they want a transformation of some kind. To describe the transformation you are offering to them, you will need to be able to clearly articulate what you offer in terms of what they do and don’t want.
Example copy: “Are you looking to lose weight without giving up chocolate? Treat yourself to The Dark Chocolate Diet Cookbook today. Now with 100 new recipes”
In the copy above, the person wants to lose weight, doesn’t want to give up chocolate, and can get 1 and avoid 2 by buying a cookbook.
Some transformations are complex in their nature, such as losing weight, looking for a new relationship, buying a high ticket item, or embarking on self education. When selling these “big” kinds of items, the transformation you describe in the ad may be the end goal, or it may be just one step in the overall solution.
Other transformations are very small, but still important to the searcher. For example, a person may want to buy a new stapler. Even with simple item there is a transformation. For example:
Sick of your old stapler not getting through the paper? Stop picking out staples! The Staple-o-Tron will staple up to 200 sheets of paper with minimal effort. Shop today.
For every ad, make sure you really get into the head of your prospective customer to understand what they do and don’t want and then the ad will come naturally.
Your ads can still serve outside your targeted location if people specify the location in as part of their search terms. If you want to definitely prevent people from other geographic regions from seeing your ads, you may need to exclude locations.
— Petra Manos High ROI Ecommerce Google Ads Specialist
To find out which locations people were in when they were shown your ad and clicked to your website, go to the Locations settings in Google Ads. Switch your view from Targeting Locations to Matched Locations. If your Matched locations include a whole lot of locations that you did not target then you are wasting your money. First up, make sure the location setting on your campaigns is set to “People in or regularly in your targeted locations” to restrict users to people who actually live or work there. If the problem persists, you can manually “exclude” locations to prevent them from ever being shown your ads.
You may be advertising to people who live overseas! By default Google advertises to people who are “interested in” your targeted location. Make sure the location setting on your campaigns is set to “People in or regularly in your targeted locations” to restrict users to people who actually live or work there.
— Petra Manos High ROI Ecommerce Google Ads Specialist
To find out which locations people were in when they were shown your ad and clicked to your website, go to the Locations settings in Google Ads. Switch your view from Targeting Locations to Matched Locations. If your Matched locations include a whole lot of locations that you did not target, then you have fallen prey to this particularly frustrating setting! Keep in mind you are paying Google for each of those clicks, so this is an important source of wasted budget.
Are your ads set up to target the people most likely to buy from you? Because Google can spend your money indiscriminately if all you want is a “click” to your website.
— Petra Manos High ROI Ecommerce Google Ads Specialist
There are lots of ways to target people in Google Ads, make sure you do them! Otherwise Google will have no issue with spending your money if that’s all you want Google to do.
Here are some ideas for different ways you might want to target people:
a. By geographical region b. By keyword c. By in-market audience d. By affinity audience e. By device type (mobile, computer etc) f. By website placement (where your Display shows up) g. By gender h. By age i .By product they are looking for
Usually we would split up campaigns by some combination of these so that we can weight your advertising budgets towards the segments we care the most about. If you lump everyone into one campaign and apply an automated bidding strategy Google will do its best to bid according to these different targeting factors anyway, but then you are giving up your control and strategy to the same entity who is happily taking your money!
It is better to pay to be #1 for a small number of best users than to pay for a whole lot of clicks from people who are unlikely to buy.
— Petra Manos High ROI Ecommerce Google Ads Specialist
I might have set up a false dichotomy here, as the most profitable outcome will be somewhere in the middle since you don’t have to get the absolute top rank to get a click. But the thing is, if clicks from the best audiences cost you $1.20 and clicks from the worst audiences cost you $0.50, you’d want to set up your campaigns so that you only paid for the cheap traffic if there were no “best” people left.
If the better audience are many times more likely to purchase from you, targeting the cheaper audiences to get more traffic would just be a waste of money. Always seek to be the undisputed leader for your best prospective customers, and let your competitors fight over the rest.
Google gives us some valuable targeting options based on what users have searched for, what they have shopped for, what their interests are, and which other websites they have been to.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Rather than just targeting everyone, your campaigns have a much better chance of being profitable if you can pinpoint the criteria that makes up an ideal customer and target them first. Your campaigns should be set up like a waterfall – first target the best people, then if we run out of opportunities and we still have budget left target these next best people, etc etc. Obviously if you are running Search ads a targeting criteria will be keyword and if you are running Shopping ads a targeting criteria will be inventory. Cold audience display targeting requires laser focus in order to give you a return on your investment.
People can click on your organic listing if they want your homepage or click on your paid ads if they want to go straight to a product. A combination of paid ads and organic listings cause you to fill the search results. Ads can make you appear the category leader even if you are only a small business.
— Petra Manos High ROI Ecommerce Google Ads Specialist
The best way to look like a big business is to show up wherever your customers are and take up as much space there as possible. This is akin to taking out a full page ad in an industry magazine. To get this working well, use dynamic search ads or expanded text ads combined with structured snippet extensions to take up as much space in the customers search results as possible. Add images in Google My Business as well so that your competitors don’t even get a look-in. Set the structured snippets to go to product categories, best products or service pages since the organic listing will probably just go to your homepage.
Google Shopping ads can show more than one product at the same time. If you have multiple products in the top 10 for a good keyword, you get the benefit of being seen as the market leader.
— Petra Manos High ROI Ecommerce Google Ads Specialist
One of the best strategies behind Google Shopping ads is to have quite a few items of inventory that rank well for the same (best converting) keywords so that searches are comparing between your products rather than comparing you with your competitors. There are several fields in Google Merchant Centre that help you to rank better for specific keywords. Optimize these and you will be well on your way.
Maximising ROI from Google Shopping campaigns requires good feed management. You need a great Shopping rank for your best keywords and you must maintain impressions on your most profitable inventory.
— Petra Manos High ROI Ecommerce Google Ads Specialist
I’ve seen many a disaster come from setting a Merchant account up once and then walking away from it. Some examples include: suspended account due to warnings being missed, inventory being disapproved due to data errors, highly profitable inventory not showing up for the correct keywords, paying too high a CPC due to not ranking well, fields missing, inability to filter inventory for ads, invalid shipping rates, missing descriptions and more! If you or your agency are not managing your Merchant Centre data you’re skating on thin ice.
You can use the Google Display channel to share the same information you would share via email to your remarketing list. Low open rates become no longer an issue.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Maybe you never thought of Display advertising for this purpose, but did you know that anything you send via email can be sent via display? Take advantage of long-term remarketing lists to reach out to people who know you and love you but who hate wading through emails.
Unlike email, you do need to pay for remarketing ads. But you are not getting unsubscribed, and you’re not competing for attention in a crowded email inbox.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Maybe it’s just me, but I am so exhausted from all the email these days that I just unsubscribe from almost everything, or filter them away to a promotions folder. I’d much, much, much rather receive a targeted ad over an email. I am sure there are others out there like me. No need to ditch all your email addresses, but instead take advantage of the far-reaching power of Display remarketing campaigns to reach a wider audience of people who know and love you. Display remarketing will share your promo or content efficiently, and you only pay for people who are interested enough to click on it.
By default, Google gives you only 30 days user retention on a remarketing list. This is akin to deleting your email contacts every month! Create additional lists up to 540 days.
— Petra Manos High ROI Ecommerce Google Ads Specialist
The default remarketing list that comes with Google Analytics is “All Users” and it is a 30-day list. This means it includes everyone who came to your website in 30 days, even the people who bounced immediately, but the people who know you and love you (such as past customers who last transacted 3 months ago) are no longer on your list! Not having your best audiences on your remarketing list is crazy, because these are the people who are most likely to buy from you again since they had such a good experience last time. Google lets you create lists up to 540 days. I recommend creating a 540-day list of anyone who interacted favourably on your website for at least a minute and running it as a separate campaign alongside a shorter-term cart saving one. (And the cart saving list shouldn’t count people who bounced). You’ll be surprised at how profitable your past customers can be when they are reminded to buy from you again.
You can specify remarketing audiences with Google Search and Shopping campaigns if you want to targer users who have previously clicked through from Social Media promotions.
— Petra Manos High ROI Ecommerce Google Ads Specialist
Essentially you set this campaign up just like any other Search or Shopping campaign, but you set your campaign to “Target” your remarketing audience. Set up a long term remarketing audience for this; for example up to 540 days! (You will need at least 1000 people in your list, so make sure you use a long time frame).
Now that you have your remarketing campaign set up you might want to bid a little more in the Google Ads auction for these users so that you get more clicks from them. Depending on how you adjust your bid, you will want to set it up to offer a little more than usual. With manual CPC you can add a “Bid Adjustment” on the Audience itself. So for example a 20% bid adjustment means you are prepared to pay 20% more per click from these users. If you are using automated bidding, you can adjust the target to a higher CPA or lower ROAS target and this will cause Google Ads to set a higher CPC in order to reach more people in this group.
The people on your remarketing list won’t always click on the ads, but you will be top of mind, and when they want your products they will search for your brand or come to your website directly.
— Petra Manos High ROI Ecommerce Google Ads Specialist
The way that advertising works online is not always as cut and dry as simply “They clicked. They bought.” Online is simply an extension of offline shopping, and the way people shop generally is a random jumble of what brands they like best, what they saw the day they needed one, what was on sale, what was promoted in a catalogue they read, which one their friend just bought etc etc. You can bet that your online shoppers buy in pretty similar ways.
You can get ahead of your competition by using Display advertising to say “top of mind” (brand of choice) so that this becomes one of the considerations your shopper uses to decide where to buy from. When you are the brand of choice, your shopper will type in your brand name and go straight to your store, so you might not see that your Display advertising was the one that worked.
These days, the most profitable campaigns are typically remarketing campaigns because you are capturing the attention of people who are already in your market.
— Petra Manos High ROI Ecommerce Google Ads Specialist
I find that remarketing campaigns typically outperform almost every other campaign type, but the catch is that if you want to grow, you need to continually add to the remarketing list as not everyone on your list wants to buy right now. You can’t rely on remarketing alone, but it should always be a part of your advertising mix.
You can afford to pay more in advertising if you have bigger profit margins.
— Petra Manos High ROI Ecommerce Google Ads Specialist
When it comes to making profits from retail sales online, purchasing and/or manufacturing practices may be as important as your advertising techniques. If you can negotiate a wider margin then you can afford to advertise more and should therefore make more revenue.
If your product range has quite varied margins, you would want to split your campaigns based on profit margins rather than have everything in one campaign. That way you can advertise more of the inventory that makes you the most money!
— Petra Manos High ROI Ecommerce Google Ads Specialist
You might not realise it, but if you advertise a product with better profit margins you can make a huge impact on your profit from advertising. The reason being, if you advertise a product with small margins, the advertising cost will take up all of the profit margin, leaving you with break even or a small loss from selling the product. If you sell a product with wide margins, you will make a profit as long as your advertising cost is smaller than the margin. For an in-depth look into how to set up your advertising to take advantage of different profit margins, download our white paper at https://www.thequantifiedweb.com/google-shopping-ads-cheat-sheet
The problem with running search ads for a very general market is that text Search results are often clicked on for the purpose of comparison shopping, and general keywords are usually much more expensive… If you sell bags for example, and you run a search ad under the keyword “bag” then you will pay a lot of money for the term, and you run the risk of paying for a lot of clicks that don’t turn into sales.
On the other hand, if you run your ad to your competitors’ brand names, you will get people clicking on your ad when they are just about to buy from a competitor. This may be a cheaper cost per click, and the person clicking may be more likely to buy from you because they are already in a buying frame of mind. This is especially true if your product is very similar or identical to what your competitor sells.
