A Ukrainian online store offering accessories and gadgets with a wide selection. In 2012, a brick-and-mortar smartphone store opened in Kharkiv.
Ukraine
1.05.21 - 31.07.23
- Increase the number of transactions from the site
- Increase revenue from Google/CPC
At the end of March, a client approached us with a request to optimize their existing advertising, update their advertising campaigns, and, most importantly, increase the number of transactions from their website.
At that time, classic shopping (Google Shopping) and search advertising campaigns were active in the account.
Performance Max, or a maximum-performance campaign, is not a new format for advertising campaigns in Google Ads, but it is the newest format. It allows you to reach impressions and get traffic from Google Shopping, Search, the Display Network, and YouTube within a single campaign.
Some of the features include:
- full automation (machine control and the use of Google Signals take into account many parameters to achieve efficiency)
- automatic generation of ads from entered campaign objects
- coverage of all Google platforms (interaction with users at all stages of the sales funnel)
- targeting conversions
Even before the summer of 2023, many Google Ads advertisers argued that allocating budget to a Performance Max campaign was like throwing money into a black box, since there was no way to track the search queries of users who clicked on the ad, nor to determine the effectiveness of individual referral channels.
But now there are excellent scripts that allow you to analyze the P Max format in more depth.
Since our client's account had a sufficient amount of conversion data, we decided to launch a P Max campaign and compare its effectiveness with other formats.
Given the full-scale invasion (in 2022, advertising was paused from February to August), it is currently impossible to compare the reporting period with the previous year:
Therefore, we compare the effectiveness of advertising campaigns with the year before last from May to July inclusive (2023/2021)
With a cost increase of only 4,53%, the number of transactions increased by 93,73% and revenue by 180,55%. Considering the time span, the average cost per click increased over the selected period (by 25%), but the quality of the traffic received improved significantly, as evidenced by a 1,17% increase in the transaction rate.
The conversion rate is the ratio of users who visited the website to users who made a purchase on the website. The higher the quality and relevance of the traffic we receive, the higher the conversion rate.
Therefore, let's compare individual campaign types by transaction rate and cost per click:
1. Shopping — transaction coefficient 0.72%, CPC — 1.5 UAH.
2. Search — transaction coefficient 0.46%, CPC — 2.56 UAH.
3. Performance Max — transaction coefficient 1.55%, CPC — 2.36 UAH.
April/March 2023
With an increase in price of 108%, the number of transactions increased by 170%, and income by 120%
May/April 2023
With a price increase of 37% compared to the previous month, the number of transactions increased by 47.1%, and income by 42%.
We can now confidently say that Performance Max is the most effective advertising campaign format for e-commerce websites. Machine-based advertising no longer inspires the same distrust it once did, but to save money, it's especially important to prepare the groundwork for Performance Max training and do your part to ensure that a "maximum efficiency" campaign truly delivers.
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