Home Store Google Ads PPC Case Study

How We Increased The ROI Of A Home Store 8X With PPC Ads 


Home stores, the places where you buy furnishings, lifestyle and designer items to decorate your store face a lot of competition lately.

Even when they manage to attract buyers from going to larger department stores, like IKEA, Home Depot or Leroy Merlin, they face increased competition from local stores as well.

How can e-commerce stores leverage traffic and bring in more buyers that are ready to buy? The answer is pay-per-click or PPC advertising.

Keep reading below to learn how we helped an online home store to reach more customers and increase their revenue with an 8x return on investment by utilizing Google Shopping!

Background

This client reached out to us in March 2020. They’re located in Germany and have been selling design items for more than one year.

The home store capitalised on social media, mostly Pinterest and Instagram but their traffic stalled… They had a nicely managed website but they needed help with paid ads. Their entire revenue business comes from their e-commerce operation. 

They were looking to increase revenue by reaching more potential customers. Specifically, their goal was to get a 5X return on investment by having the cost of ads be 20% or less of total revenue.

The PPC Strategy

The client was very adamant early on that their competition is using Google ads and remarketing and to be able to compete they needed to be there as well.

The problem was that they ran ads on Google and its network without seeing any results – just lots of wasted budget. We immediately audited their live campaigns and found that the client had a high-performing Standard Campaign, delivering a 6X return.

PPC Home Stores Audit - Centis Digital

We immediately switched this to a Smart Shopping Campaign because it allowed for more targeted placements across Google Shopping and the Google Display Network.

As a next step, we started crunching the data from their Standard Shopping campaign. We exported all products on an excel sheet and identified the ones that were high performing. Anything that was not being clicked on was removed and we relaunch the campaign.

Next on our list was the remarketing campaigns. We started identifying which products were getting the most clicks, and then which of these were being revisited, so we tried to expand on the touchpoints. Touchpoints are crucial because the client’s Google Analytics data showed us that higher-priced products take weeks to sell when compared to low-price items with a much lower commitment.

This remarketing campaign would be another touchpoint reminding potential customers of the item they were interested in.

Results

As expected, we surpassed the client’s goal by delivering an 8X return on investment!  While our original audit found the Standard Campaign earning a 6X return, we were able to bump that up to over 8X by focusing on higher-priced items.

After switching to a Smart Shopping Campaign, we spent €21,983 on advertising and generated €183,853 in revenue.

Metric Before Centis After Centis
Ad Spend € 18,162 €21.983.97
Conversion € 113,896 € 183,853.04
ROAS 8.04X

The cost of ads was only 12.6% of the overall revenue generated versus the 20% goal they set in the beginning

Here are some additional statistics to demonstrate the campaign’s success:

  • Unique purchases have increased 54.55%
  • The average price of each purchase is up almost 10% overall (9.47%)
  • Paid search revenue increased 81.25% 

We showed this client that the right strategy can beat a bigger company and a bigger budget.

Conclusion

PPC ads are an effective way for you to get more sales. Owners of e-commerce stores, regardless of what they’re selling, should be setting up Google Shopping Campaigns.

While it seems like the process of creating these ads is simple, it takes hours of monitoring and tweaking to perfect a campaign. The Google Shopping platform can also be complex for beginners.

Are you interested in launching or optimizing your PPC ads but you don’t know where to start? Centis’ PPC For Ecommerce is here to help you create or improve Google Shopping ads, boost conversions, and get you more sales!

Book a call with one of our digital marketing experts to get started.