Launching Google Ads from scratch for a US cosmetics website

The works were started at the end of June 2023.

In the first month of working with the project, in order to obtain the most relevant traffic, we decided to launch two search advertising campaigns for priority categories (Essential Oils and Body Care Essentials), as well as a single Performance Max campaign with two different groups of objects for greater user reach.

Since the launch, we have been constantly working to optimize our advertising campaigns:

• Analysis and "cleaning" of search queries (expanding negative keywords at the account level, adding and adjusting keywords)
• adjusting rates/strategies
• Analyzing placements in Performance Max reports

Of course, getting incredible results from the first clicks on an ad is every business's cherished dream, but in practice, you can usually only count on feedback on your investment after the first month of operation.

Despite the maximum relevance of search queries, at the end of July, no direct transactions from advertising campaigns were received as a result. However, overall traffic to the site increased significantly and transaction results appeared, particularly through the Direct channel (direct clicks).

Found our audience

In addition to standard campaign optimization (bid/strategy adjustments, query analysis, expanding negative keywords, and adding keywords), we also adjusted audience signals. Based on search queries, we decided to remove more general audiences, such as "skin care," and added users with interests such as "soap making" and "candle making." We also added an audience for the "recently started a business" event to the signal, which subsequently contributed to positive conversion dynamics.

We also continually monitored auction statistics to improve the competitor list used in Performance Max signals.

Ineffective campaigns were excluded

In the second month of operation, we began receiving direct transactions from advertising, specifically from Performance Max campaigns. Thanks to a script installed to analyze Performance Max placements, we discovered that after the shopping results, a significant share of impressions were generated by the search network, and the cost per click was lower than in classic search campaigns, which at the time were not generating transactions. Therefore, in mid-August, Search campaigns were paused and the advertising budget was fully allocated to Performance Max.

Time for a Change in Performance Max Strategy

We typically don't launch Performance Max campaigns in "empty" Google Ads accounts, as this format requires a database for automated strategies. However, in the case of this project, our goal was to immediately reach users not only on the search network and Google Shopping, but also on the display network, using banners with a unique selling proposition (USP) that would not only attract users who were already interested in purchasing cosmetics but also interest new ones.

At the start, in the campaign goal settings, we used both transactions and "Add to cart" conversions, forms, and newsletter subscriptions.

In the second month of operation, with Google Ads transaction data available, the Performance Max campaign objective was adjusted to focus exclusively on purchases. By the end of August, the Google Ads channel's transaction dynamics were positive.

Google Ads advertising generated:

• 44 transactions
• ROAS exceeded 200%

I am again optimizing and scaling the results.

Observing the positive dynamics of Performance Max, it was decided to split the overall campaign into two separate ones based on priority categories and increase the budget in the Google Ads account.

This action became necessary because the average order value for purchases in the "Essential Oils" category was lower than that for the "Body Care Essentials" category. We knew the ROAS would differ, requiring separate strategies and a separate budget for these categories. At the end of October, after agreeing on an additional budget with the client, the campaigns were split.

We are not allowed to compare the results of our work with the period before our intervention in filling the site with traffic (through contextual advertising), because before that, e-commerce was not even set up on the site.

But in dynamics, since the start of work, we observe that from September 15 to November 30, compared to the same previous period of June 30 - September 14:

• The number of users increased by 11.5%
• The total number of site transactions increased by 138%
• Total revenue from the site increased by 156.7%

The main source of traffic is now the Cross-network channel, specifically our Performance Max campaigns. Relevant advertising traffic has also increased transaction rates and user numbers from the Direct channel.

It's worth noting that at the start of the project, the client planned to distribute the budget between the 50% / 50% priority categories, but dividing the Performance Max campaigns into separate categories allowed us to see the difference in the ROAS indicator:

• for the Essential Oils category, ROAS = 115%
• in the category "Body Care Basics" = 211%

We are currently allocating 80% of our advertising budget to the «Body Care Basics» category.

Thanks to a customized script for analyzing P Max placements, we discovered that 100% transactions in the Essential Oils category were coming from shopping results. Therefore, we have now removed ad assets from the campaign to direct the entire campaign budget exclusively to Shopping.