

Get monthly notifications
Top 3 ways to increase ROI in Google Ads
Running an e-commerce business today isn’t what it used to be. The general trend for Swedish retailers is that the profit margin on average is as low as three percent. The fast-growing e-commerce segment makes it even harder to keep the margins up. That’s why it’s becoming really important to focus on ROI by improving the digital marketing strategy of e-businesses. Here we present you with three top strategies you can use.
1 Business Intelligence
The BIG change today is that 60% of all clicks for US e-commerce are derived from Google shopping. Many customers have seen even bigger challenges. The challenge comes in working on your product feed and how you use your data. Based on brand/category/product, find your top and bottom 20% and understand what customer behavior you see in each segment and why. Product titles are key here. Structure them based on brand, category, and attributes, and use different structures for different product titles.
You also need to evaluate pricing, ROAS, margins, and ROI on a continuous basis and take data-driven decision to drive your targets. When setting your ROAS target, you should include logistic, warehouse, sales and return costs. If you have a buying frequency of 0.5+ per month, also make sure to evaluate the lifetime value setting. You need to look at how your price affects the outcome of your advertising, how you are pricing compared to the competition and how that affects ROAS. You also need to change your ROAS targets based on your product margins. You need to make a data-driven decision for each product/brand/category level depending on your pricing strategy.
Read more about pricing strategies here: Pricing strategies for e-commerce and retail companies.
2 Buyer Personas
Since it’s more important than ever to know your buyers, you must invest in target and personalized advertising campaigns based on data at scale. Typical for e-commerce companies are geographic location, age, gender, device and day of the week.
You then see how those factors relate to ROI, and steer your budget to where your ROI is the highest. This is best perceived in a data-driven way, as it will provide you with great insights for future actions.
3 Social Proof
Social proof has shifted. Let’s look at a practical example of a restaurant. In the age before world wide web, it could be hard to find a good restaurant. You would look for places that were busy, and look to see if the customers looked satisfied. Back then you built a business solidly over many years, and it was commonly based on word of mouth.
Offline it was a bit more subtle, but online we need to be a little more obvious. Social proof today is fast-paced. Social proof indicates that many people have bought something, or that they've gotten good reviews. Today people do their research and look for validation.
Good reviews = Proof of success
By using product ratings, you can stand out in the crowd, increase click-through rates and attract high-quality traffic to your website.
Another way is through rich snippet stars, which means that you collect reviews and then display them through an ad snippet code. It’s a quick and effective way to increase traffic to your page.
In this example with LensDirect.com, they increased the traffic to their website by the use of rich snippet stars. By leveraging reviews socially and on paid acquisition channels, they were able to measure performance against their companies KPI's which include social engagement, the click-through rate on search results, and conversions.
Articles by Jonas Hagströmer Theodorsson
Google Shopping structure – How does it work?
The first thing you should know about Google Shopping is that it’s primarily great for attracting new customers. Returning users will find you in completely different ways – through newsletters, brand searches on Google, or your direct website or webshop.
The possibilities with Google Shopping ads are multiple, and requires wise targeting, multiple campaigns as well as an updated product feed in Google Merchant Center. This is how Google Shopping works!
Similar Articles
Google Shopping structure – How does it work?
The first thing you should know about Google Shopping is that it’s primarily great for attracting new customers. Returning users will find you in completely different ways – through newsletters, brand searches on Google, or your direct website or webshop.
The possibilities with Google Shopping ads are multiple, and requires wise targeting, multiple campaigns as well as an updated product feed in Google Merchant Center. This is how Google Shopping works!
Shopping Success Story: Finnish retailer Stockmann & S360
S360 is a digital marketing agency located in Denmark and in this article Hermanni Nurila goes into detail as to how they've leveraged their digital marketing skills to grow an 150 year old retail company like Stockmann.
Identifying Ecommerce Trends & Account Practices for Peak Season
The Google Holiday 2020 Calendar brings a great webinar hosted by Julie Vandingen which offers many great insights into the consumer market in Northern Europe.
Glossary Cheat Sheet for marketers – SEM, CPC & ROAS
SEM, CPC, ROAS, DSA, QS – the abbreviations in digital marketing are many and sometimes completely incomprehensible. From A-Z – this is the e-marketers glossary cheat sheet for some of the most common terms and words in search engine marketing!
The ultimate tool for setting your ROAS targets in Google Ads
Return On Advertising Spend (ROAS) is a marketing KPI many marketers use to track performance in Google Ads. It’s calculated as ROAS = conversion value / cost. In short, you can evaluate if your investment in online advertising is successful or not. With ROAS Target, you can take it to the next level by automatically adjust your bids depending on what goal you have.
You need a customized Google Ads solution for your unique market
Your market and every customer in it is unique with their own set of demands and needs. The goal is to identify their individualities and try to adjust to the customer's specific needs. And if you do it the right way – it will be very profitable for your business.