Home goods sales case: difficulties with Performance Max

Кейс з продажу товарів для дому: труднощі з Performance Max Cases

Hello everyone. My name is Yana Lyashenko, Google logistics specialist. In today’s video, show the case.

The period during which advertising campaigns were carried out

Here approximately the period is possible from December 13th. Somewhere here we were the first, on December 13, maybe on December 14, we received the first conversions there and the clicks apparently started on the 13th or 14th. And the client left us for vacation. I went on vacation on the 26th, it seems we have suspended all advertising campaigns.

What the client wanted and what he received

So, what did the client want from us? He wanted to reach 100 sales per day at a cost per conversion of 50 UAH, preferably. Now I will show the dynamics and what the client came with, and why he is satisfied, in principle. During this short period, we managed to reach 1000 sales. Here you can see the red graph of how we increased to this amount. Here you can even see on December 25 that at 45.10 – 197 is not even 100 sales.

That is, we were in a hurry. We started with about 42, and our goal was to grow to a hundred. Of course, if the client had arrived a little earlier, most likely this peak would have been much larger. The fact that his task was 300 sales per day, but he set us the task of reaching at least a hundred within 50 UAH, conditionally. Well, profitability, of course, you can also see the average for this entire period.

That is, we received 1000 sales. Yes, not 50 UAH. average cost, not immediately 100 sales per day. Keep in mind that December 14 – 26 is not that many days, and now I’ll show you what the client came with so that you can see the dynamics that even in projects where, in principle, even a poorly configured advertising campaign will generate sales. Still, a very important nuance is how to launch it correctly, optimize it and achieve your KPIs.

What indicators did the client pass

That is, I will show you what the client came with, what he could not cope with for a very long time. In the 22nd year, in the 23rd year. And what, for example, did my team do. So what did he come with? Here, accordingly, the schedule is already visible – this is our direct work. This is what he came up with.

This graph shows clicks and conversions. You can immediately notice that, firstly, we started making conversions on December 19, well, you see much more here. And, directly, there wasn’t much traffic being generated. That is, you see, that is, traffic, the amount of traffic does not always correlate with your KPIs.

The need to focus on traffic quality

The second thing I wanted to show is how to focus on the quality of traffic. The quality of traffic determines the conversion rate. He always gives the ratio. But, relatively speaking, the lower the conversion rate, the more likely you will receive a higher cost per conversion. That is, here you see the conversion rate before and the conversion rate, which began to increase accordingly after.

This period of decline is precisely on the 26th, when we simply suspended advertising campaigns at the request of the client, because he left earlier for the weekend.

About conversion cost

Anything else I can show you? Cost of conversion let’s be objective. What did the client come with? Cost of conversion. Well, here, too, I think it’s not difficult to notice 151 hryvnia, 75 or even here 62. 62 hryvnia for all the advertising campaigns that he worked here.

How many do we have? As I already focused on this, 45 UAH, 197 conversions, we basically left at the peak. 26 we ruled out there very early in the morning and, in principle, there was no task 26 to get all the sales. That is, it’s not even a full-time job, so to speak. That is, here you can see an objective picture of what the team did that was useful for the advertising account.

What was the client’s difficulty?

Product structuring

I would also like to show, for example, an accent. Let’s say, what was the client’s difficulty? We see that here he received conversions, but the price was quite expensive. And, in principle, isn’t that what he could have done?

Firstly, we achieved this result on Performance Max, not on a regular product. That is, not with regulation of the average cost per click. The client, well, of course he’s smart, he came up with a structure in which he managed to at least somehow not overinflate the cost per conversion, because the advertising account wanted higher than 150 UAH, 300 UAH. This made him very sad, to say the least. That is, on average he received 70 conversions here, 80 somewhere. Yes, per day. There are 87 here, almost 100.

But objectively, in order to increase the number of conversions as a result of tests, he understood that he would have to, and the cost per conversion would go up. He came up with a very large, voluminous structure for himself, when he placed one product item in one campaign. This is a working structure. She works. It is quite effective. You can very conveniently edit traffic volumes, cost per click and at the same time, in principle, you can receive these sales.

But there is one big caveat. This nuance is that such a structure is very difficult to control. Well, if you have 10 products there, okay. 20, okay. If you have more than a thousand product items, it is quite difficult to control each advertising campaign. Secondly, your product is most likely flexible and adaptive, right? That is, where it fell out of advertising, where some new one was added. And this may, for example, as a result of some sales or sales occur during a certain day. How can you edit and control a thousand advertising campaigns at the same time? If you are not experts, you cannot control this entire set of advertising campaigns.

Ineffective client performance with Performance Max

Secondly, you must remember that performance, unfortunately or fortunately, gives faster results in conversions and is better, conditionally, objectively. Even here when a customer tested the Performance Max. Here I will show you old performances. Here they worked in June 22 and April 23. That is, it can be seen objectively that the client gave this type of advertising campaign a chance.

But the cost per conversion, if you take the average, is 110. If you take the same graph of the conversion rate, you can see that it has improved somewhere, but here the number of conversions has dropped. And if we take the cost of conversion, yes, 153, 187 here, somewhere around 121, he was not able to reduce this number so significantly.

That is, in a month he received 2558 conversions. Or let me take this one for 77 UAH. 2886 – this only happened in March. He never had such success again. I think it’s unlikely that he changed anything very radically in the structure there, because he wasn’t happy with the preliminary result. Here, for example, 2500 for 121 UAH. How many do we have? 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26. Well, we’ll take it. How much is this? This is 13 days. And we made 1000 sales in 13 days. This is despite the fact that we started smoothly and tried to increase this number of conversions. If you look at it objectively, the situation is completely different. Moreover, the cost per conversion is also half the price, to be objective.

The performance definitely gave the client a chance. He didn’t like it. It is quite unstable and a type of advertising campaigns. He returned to his usual companion. An ordinary friend didn’t bring him any joy either.

Ineffective client work with trade advertising campaigns

Even if we take and filter ordinary shopping campaigns with its sufficient strategy. Let’s take last month, the month of November. Here we will see the following picture. Well, 1700 sales, cost 128. You see, it’s a kind of plateau. He could neither move up nor for the better.

At the same time, the cost of conversion, as you can see, began to rise. 65 hryvnia, these are conversions. 179, 116. How much is here? 168 cost per conversion. Here it was still 100 UAH.

Objectively, even with such a structure, which is called “Ordinary trade advertising campaigns,” he would not have been able to leave for quite a long time. Also, given that the account had insufficiently positive dynamics, we, well, relatively speaking, had to rework it.

Conclusions. What else could we improve

That’s why you see this picture. This is an example of the fact that this case very demonstratively shows that even in conditions when you have a very cool product, there is now a very great demand for these product items – still, an experienced specialist can make a more beautiful doll, picture, candy out of an advertising account or how this can be explained there, roughly speaking. Therefore, this picture is an example of a case.

The only caveat is that, in principle, this could have been done even more smoothly and first of all, the average cost per conversion would have been in the region, perhaps even somewhere around 47 – 52 UAH, if we were not in a hurry. But this is the end of December, then, relatively speaking, it is better to catch the last train quickly than to regret the lost time. So we will continue to work with the client after the new year on the 24th.

Comparison of results based on 2022 data

Here is an example of what can be done. If there are non-believers in terms of that, well, it’s December. It’s very easy to do here. We can look at the work of the performance, last year, we take the whole of December, we take the 22nd, the 12th month. 22nd here. Let’s take December. December ’22 also Performance Max. How different?

We have an average ROAS of 1300. 722. Our conversion rate is half that, 56. We only have sales for how many, in 13 days – 1000. And here, well, when here, is it also suspended on the 26th? Here in 26 days 732. Just a minute. And even if we add a trading campaign, we started with slightly smaller volumes. The goods here usually did not work at this moment.

Well, and, in principle, a performance together with a product – they cannot work at the same time, because anyway the performance will receive more traffic. Well, in principle, this result would not have been achieved without adequate knowledge, experience, and the direct work of a specialist.

Яна Ляшенко
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