Growth Strategy for E-Commerce Site
We have some unique and interesting clients and aim to find data-driven insights to help overcome challenges and grow their businesses. We have a client that is one of Australia’s largest online stores for its niche in the e-commerce industry. See the performance metrics below that prove how great this outcome was!
From January 2018, they were no longer allowed to promote their biggest selling product category in the US market. This was going to cause a problem to their revenue margin. We had to figure out a way to continually increase revenue and Return On Ad Spend (ROAS) to make up for the loss in the US market.
We decided to test out various European countries based on historical organic conversion rates, to make up for the loss in the US market, these included, the UK, France, Spain and Germany. Due to the size of the market we were able to conservatively test both search and social with a ROAS strategy (Return On Ad Spend).
What’s a ROAS strategy, we hear you ask? A ROAS objective based strategy is the automation of bids depending on the ROAS target. For search activity, within Google AdWords, it factors in historical conversion data to predict future conversion opportunities and optimises towards the return of these opportunities.
Within the test data we found the top converting countries and began to chase these markets more aggressively within search and social ad channels, using the conversion objective.
After finding the top converting markets in each country, we implemented a growth strategy, this meant if we reached the ROAS objective every month, the media budget would increase by 10%.
From January 2018, revenue increased by +75%
Search ROAS = 27
Social ROAS = 7
Search was growing remarkably well, so we put 85% of the budget to search. The Brand search group grew the most over this period, this indicated people were responding well to our other awareness ads on Social Media etc. Due to this, we wanted to make sure we weren’t spending most of our search budget on the brand ad group, so we limited branded keywords to 15% of the search budget. Making for a beautiful balance in our digital marketing mix, see the performance metrics to prove it!
Contact us to find out more about how we can implement a growth strategy with your business.