Ecommerce on the web continues to evolve, and you need to keep an eye on trends such as machine learning, voice search, Amazon Prime with shipping and logistics advantages, and mobile checkout options. For those running ecommerce campaigns on Google Ads, you have many challenges in managing campaigns to optimize profit and ROI. Consider some of these tactics you may manage:
- Google Shopping: managing feeds and product management, product listing ads, promotion management
- Unbranded search: Testing text ads for terms that describe your product or service; the problems you solve, or the products people search for.
- Retargeting management: dynamic ads, various retargeting platforms besides Google, audience management, offer strategy
Then, for each product you sell; you need to report on spend, conversion-rate, abandonment-rate, cost-per-conversion, lifetime value, assisted conversion, ROI.
How about online display advertising? We know most display is branding, and reminds audiences of your product, as the first step to purchase after multiple exposures and touchpoints. But, how would you like to see display advertising perform better regarding last-click purchases? Google has a bidding option, called Pay-Per-Conversion. Did you know that?
There are some qualifiers, however.
Your account must have more than 100 conversions in the past 30 days to be eligible for pay for conversions. Additionally, the time between click and conversion must be shorter than 7 days for at least 90 percent of those conversions. To see your conversion lag time data in the Google Ads UI, segment data from the past 30 days or more by Conversions > Days to conversion
All you have to do is set your bidding strategy to Target CPA and maximize conversions, choose a target CPA, and you’re set. If you choose a CPA of $30, for example, you only pay $30 per conversion. Google suggest using a daily budget of 10x your CPA, so that Google can serve more impressions, and optimize to audiences and placements most likely to generate an online sale. Keep in mind that you may not reach that budget, because you only pay for conversions. See below.
Think about it, you are not only building awareness of your brand and product, but you only pay for sales. Obviously this strategy is ideal for larger ecommerce stores due to the minimum monthly sales, but certainly worth testing. If you have any questions, or would like to explore ecommerce strategy, feel free to contact us.