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Last year I got a chance to work with an eCommerce company. Their main focus was to sell firecrackers online for special occasions.
To drive the traffic beside social media traffic, their main goal was to drive traffic from Google. When I get accessed to the AdWords account here what I found:
Three hundred sixty-seven total keywords placed under one campaign. The average CPC was $1.17, and the conversion rate was 2.4%. The average per product they made a net profit of $22 (without deducting the advertisement cost).
When I calculate the monthly income, I was shocked:
They were spending $5,000 per month on AdWords every month. Estimated clicks from that money spent are 4273 clicks, which is approximately 4300 clicks.
Now, if we consider a 2.4% conversion rate, then on average the site was creating 103 sales. An approximate of 105 sales per month.
Per month they were generating profit (without deducting the ads spend) approximate $2,310 per month estimated $2350.
So, over ($5000 - $2350) = $2650 net loss.
Now, when I analyzed the account in detailed here where are a few main issues found:
- The keywords are broad matched and no negative keywords placed.
- Just 10 keywords were driving more than 80% of the traffic.
- The campaign is not structured in different ad groups, not dedicated landing pages as per the specific keywords.
- No AB testing placed.
- The landing pages are not responsive to all the devices. Although traffic was coming from mobile devices.
- The landing pages were presented properly with clear call-to-action, value proposition.
- Generic keywords are targeted. I need to have detailed keywords research.
And several other issues.
After a through AdWords account audit, creating new ads, changing landing pages, creating new designs and monitor the whole campaign for a month the result becomes as follows:
CPC: CPC reduced from $1.17 to $0.69.
CR: Improved from 2.4% to 5.2%.
Total budget: $4000
Total traffic: 5800
Total sale: 302
Total Profit (excluding ads cost - $22 per sale): $6,644
So, Net real profit: $6644 - $4000 = $2,644 per month
Although: We reduced the budget from $5000 to $4000 per month and allocate $1,000 to focus on remarketing budget. For long term remarketing budget will be increased and generate long term returning profits.
So, be careful using AdWords. Users behavior is changing, competition is changing to create a strategy as per your need. Remember,
"Changing rules for changing needs & unchanging rules for unchanging needs"
Over to you
How are you managing your AdWords Account?
