What we have learned by spending $ 100,000 in AdWords
From October 1, 2015 to October 1, 2017, we invested more than $ 100,000 in Google AdWords advertising campaigns. It's time to analyze the effectiveness of various strategies based on Google Analytics and calculate how many orders are received in CRM.
Part 1. The principle of the formation of ad campaigns AdWords
In October 2015, the business owner decided to reorganize the company and increase the advertising budget. Within 2 years more than 30 advertising campaigns were carried out. Of these, only 6 seemed interesting to the target audience. More than 25 campaigns we tested on the market but in practice did not receive the expected response.
Conclusion: 80% of AdWords advertising campaigns failed. They simply did not interest the target audience.
It was a painful blow given that we thought that we had studied our client well, we understand what, how and when he pays money. Nevertheless, no matter how attractive to the visitor an advertising campaign may seem to us, the practice and only practice will show it so or not.
')
According to the time schedule, it is clear that most of the experiments took place in February-March 2015. Those. we came up with a new idea, allocated a small advertising budget before and for 2 weeks, watched how the audience responded. Further correction was carried out and if, after correction, the conversion did not improve, the idea was discarded as failed.
Part 2. Distribution of the advertising budget.
A few words about the customer: we are talking about the manufacturer of designer perfumes. The company produces exclusive perfumes in small series and elite perfumes to order. The main market for the United States. The last 3 months started advertising campaign in the Canadian market.
Advertising budget is distributed by campaign:
Broadband Campaign . The campaign is focused on high-frequency requests (perfume to order, designer perfumes, luxury perfumes). More than $ 37,000 has been invested in this ad campaign.
Campaign USA Designer Perfumes . In this advertising campaign, there is already more specifics and mid-frequency requests (order exclusive perfumes with delivery in the USA). More than $ 26,000 has been invested in this ad campaign.
Campaign USA Elite Designer Perfumes . This advertising campaign is based on low-frequency queries. More than $ 19,000 has been invested in this ad campaign.
Remarketing campaign. This is an advertising campaign to collect the subscription base. As part of this campaign, we collect email addresses for subsequent distribution (promotions, hot offers). For all the time almost $ 6,000 has been invested in it.
Canada Designer Perfumes campaign and Canada Elite Designer Perfumes . These are similar advertising campaigns launched in Canada. Together they invested more than $ 7.000
These advertising campaigns form 94% of the advertising budget. 6% of the advertising budget was spent on testing and debugging advertising campaigns. On the one hand, this is money, and on the other, without it. In general, the correction of advertising campaigns occurs regularly. Keywords, for example, we update every week.
For us, the highest priority in Google Analytics is conversion. By conversion, we mean the number of visitors who went to the target page - the page for filling out the form and sending the application. We also understand that some of the visitors as a result of viewing the site wrote us a letter or called the American office. They could do it all at once, because on all pages of the site listed phone and email. We will clarify this later by getting data from CRM.
On average, if you look at the statistics on advertising companies, you can draw the following conclusions:
Part 3. Analyzing CRM. How many orders, letters, applications
Next, we analyze the indicators of CRM. Based on the overall picture, we see that AdWords is the main channel for attracting new visitors to our site. In addition, since the start of advertising campaigns on Facebook and Google, we have increased the attendance in a “natural” way by about 7%. If this is true, in our case, the presence of paid AdWords advertising campaigns increases site traffic by about 3-4% .
Another interesting indicator is Direct Traffic. We see that more than 15.000 times users have moved to our website by entering the name of the perfume brand in the search box. This is not just AdWords credit. In CRM, you can see that many visitors are driven by Facebook. Nevertheless, AdWords remains the largest channel for attracting visitors and its contribution to this indicator is the largest. You can also make the assumption that a direct search affects the previous indicator - organic output.
Next, we look at the transactions that were made for the period from October 1, 2015 to October 1, 2017. How did we determine that the transaction was with a visitor who came for paid advertising? CRM uses a script that gets the ClientID from Google.
Overall, the situation is as follows:
By investing $ 90,414 in Google AdWords advertising campaigns, you can earn $ 305,189. This is in theory. In practice, the campaign earned $ 184,092, it is expected to confirm orders for $ 14,119 * and did not earn $ 106,978.
* - the sale of elite perfumery to order is a step-by-step process and takes time (consultation, composition development, production of probes, placing an order for production, delivery, etc.). Expected closing deals within 7-50 days.
More precisely:
Broadband Campaign . An advertising campaign for high-frequency queries does not pay for itself. Even with an ideal set of circumstances (all interested visitors fully confirmed all their orders), the campaign would not have paid for itself. This means that during a crisis or in conditions of more severe budget savings, the program will be curtailed. Now this advertising campaign continues to work since the owner has decided to expand the reach of the audience and develop the client base.
Campaign USA Designer Perfumes . An advertising campaign for medium-frequency queries for each invested dollar returns 2.16-2.28 dollars.
Campaign USA Elite Designer Perfumes . An advertising campaign for low-frequency queries for each dollar invested returns 4.35–4.65 dollars.
Campaign Canada Designer Perfumes . An advertising campaign for mid-range requests for each dollar invested returns 2.82-3.10 dollars.
Canada Elite Designer Perfumes . An advertising campaign for low-frequency queries for each invested dollar returns 3.75-4.3 dollars.
From this we can draw another important conclusion. Google AdWords advertising campaigns allow you to determine market capacity and earning potential. A cross-cutting analysis of Google Analytics and CRM clearly shows the weaknesses of the business. In our case, we see that in general, 35% of interested visitors did not place an order. Those. they consulted, specified the terms of production, delivery terms, quality assurance ... but in the end, the order was not issued.
Another interesting indicator is the average time of the transaction (Average Days to Close). Those. from the moment of the first contact to the transaction. Here we see that a visitor who came to our site from a search engine for paid advertising makes the transaction the fastest - an average of 7 days.
For comparison, a visitor who came to our site in a natural way, makes an order within 55 days. A visitor who subscribes to an email newsletter places an order for an average of 29 days.
Part 4. Conclusions.
So, the main thing we learned by spending $ 100,000 in Adwords:
Before investing serious money it is useful to test advertising campaigns on a small audience . In our case, testing took 6% of the budget. And this is despite the fact that the company has been on the market for more than one year and, as it seemed to us, we know our target audience, its desires and needs quite well. Nevertheless, in practice it is impossible to foresee everything and the only working way to conduct effective advertising campaigns is to invent - test - evaluate - correct. And so in a circle.
The advertising campaign for high-frequency clicks did not pay for itself . For testing, it also went bad because it requires a more serious budget.
The key parameter of an advertising campaign’s effectiveness is not clicks or conversions, but revenue . Advertising is displayed for money. Therefore, the effectiveness must also be assessed in money. From this point of view, the most effective was an advertising campaign on low-frequency queries USA Elite Designer Perfumes. For every dollar invested in advertising, we received 4.35–4.65 dollars in profit from customer orders.
Visitors who come from search engines for paid advertising fastest place orders . In our case, the order is made 8 times faster than this happens if the client came to the site through a search engine in a “natural” way. 4 times faster than e-mail subscriber.
Google AdWords advertising campaigns allow you to determine market capacity and earning potential . A cross-cutting analysis of Google Analytics and CRM clearly shows the weaknesses of the business and work to eliminate them. In our case, it turned out that 35% of visitors have an interest in our products but in the end do not make a deal.
The presence of a paid advertising campaign affects
- position in the issue . According to CRM, the number of natural visitors to our site has grown by about 3-4% (for Google, Bing, Yahoo).
- direct search . More than 15.000 times users have moved to our site by entering the name of the perfume brand in the search box. This is not just AdWords credit. In CRM, you can see that many visitors are driven by Facebook. Nevertheless, AdWords remains the largest channel for attracting visitors and its contribution to this indicator is the largest. You can also make the assumption that direct search affects organic output.
Part 1. The principle of the formation of ad campaigns AdWords
In October 2015, the business owner decided to reorganize the company and increase the advertising budget. Within 2 years more than 30 advertising campaigns were carried out. Of these, only 6 seemed interesting to the target audience. More than 25 campaigns we tested on the market but in practice did not receive the expected response.
Conclusion: 80% of AdWords advertising campaigns failed. They simply did not interest the target audience.
It was a painful blow given that we thought that we had studied our client well, we understand what, how and when he pays money. Nevertheless, no matter how attractive to the visitor an advertising campaign may seem to us, the practice and only practice will show it so or not.
')
According to the time schedule, it is clear that most of the experiments took place in February-March 2015. Those. we came up with a new idea, allocated a small advertising budget before and for 2 weeks, watched how the audience responded. Further correction was carried out and if, after correction, the conversion did not improve, the idea was discarded as failed.
Part 2. Distribution of the advertising budget.
A few words about the customer: we are talking about the manufacturer of designer perfumes. The company produces exclusive perfumes in small series and elite perfumes to order. The main market for the United States. The last 3 months started advertising campaign in the Canadian market.
Advertising budget is distributed by campaign:
Broadband Campaign . The campaign is focused on high-frequency requests (perfume to order, designer perfumes, luxury perfumes). More than $ 37,000 has been invested in this ad campaign.
Campaign USA Designer Perfumes . In this advertising campaign, there is already more specifics and mid-frequency requests (order exclusive perfumes with delivery in the USA). More than $ 26,000 has been invested in this ad campaign.
Campaign USA Elite Designer Perfumes . This advertising campaign is based on low-frequency queries. More than $ 19,000 has been invested in this ad campaign.
Remarketing campaign. This is an advertising campaign to collect the subscription base. As part of this campaign, we collect email addresses for subsequent distribution (promotions, hot offers). For all the time almost $ 6,000 has been invested in it.
Canada Designer Perfumes campaign and Canada Elite Designer Perfumes . These are similar advertising campaigns launched in Canada. Together they invested more than $ 7.000
These advertising campaigns form 94% of the advertising budget. 6% of the advertising budget was spent on testing and debugging advertising campaigns. On the one hand, this is money, and on the other, without it. In general, the correction of advertising campaigns occurs regularly. Keywords, for example, we update every week.
For us, the highest priority in Google Analytics is conversion. By conversion, we mean the number of visitors who went to the target page - the page for filling out the form and sending the application. We also understand that some of the visitors as a result of viewing the site wrote us a letter or called the American office. They could do it all at once, because on all pages of the site listed phone and email. We will clarify this later by getting data from CRM.
On average, if you look at the statistics on advertising companies, you can draw the following conclusions:
- The average cost of attracting an American visitor to the landing page for our business is $ 68. Canadian visitor - $ 45.
- The highest average conversion rate for mid-range queries is 11.24%. The conversion by low-frequency and high-frequency queries is comparable and amounts to 6% and 4.8%. For us, this was a surprise.
- About 3 months ago, we launched an AdWords advertising campaign in Canada. After 3 months, we came to understand that the Canadian market is less saturated with competitive offers and attracting a Canadian visitor costs 34% less.
Part 3. Analyzing CRM. How many orders, letters, applications
Next, we analyze the indicators of CRM. Based on the overall picture, we see that AdWords is the main channel for attracting new visitors to our site. In addition, since the start of advertising campaigns on Facebook and Google, we have increased the attendance in a “natural” way by about 7%. If this is true, in our case, the presence of paid AdWords advertising campaigns increases site traffic by about 3-4% .
Another interesting indicator is Direct Traffic. We see that more than 15.000 times users have moved to our website by entering the name of the perfume brand in the search box. This is not just AdWords credit. In CRM, you can see that many visitors are driven by Facebook. Nevertheless, AdWords remains the largest channel for attracting visitors and its contribution to this indicator is the largest. You can also make the assumption that a direct search affects the previous indicator - organic output.
Next, we look at the transactions that were made for the period from October 1, 2015 to October 1, 2017. How did we determine that the transaction was with a visitor who came for paid advertising? CRM uses a script that gets the ClientID from Google.
Overall, the situation is as follows:
By investing $ 90,414 in Google AdWords advertising campaigns, you can earn $ 305,189. This is in theory. In practice, the campaign earned $ 184,092, it is expected to confirm orders for $ 14,119 * and did not earn $ 106,978.
* - the sale of elite perfumery to order is a step-by-step process and takes time (consultation, composition development, production of probes, placing an order for production, delivery, etc.). Expected closing deals within 7-50 days.
More precisely:
Broadband Campaign . An advertising campaign for high-frequency queries does not pay for itself. Even with an ideal set of circumstances (all interested visitors fully confirmed all their orders), the campaign would not have paid for itself. This means that during a crisis or in conditions of more severe budget savings, the program will be curtailed. Now this advertising campaign continues to work since the owner has decided to expand the reach of the audience and develop the client base.
Campaign USA Designer Perfumes . An advertising campaign for medium-frequency queries for each invested dollar returns 2.16-2.28 dollars.
Campaign USA Elite Designer Perfumes . An advertising campaign for low-frequency queries for each dollar invested returns 4.35–4.65 dollars.
Campaign Canada Designer Perfumes . An advertising campaign for mid-range requests for each dollar invested returns 2.82-3.10 dollars.
Canada Elite Designer Perfumes . An advertising campaign for low-frequency queries for each invested dollar returns 3.75-4.3 dollars.
From this we can draw another important conclusion. Google AdWords advertising campaigns allow you to determine market capacity and earning potential. A cross-cutting analysis of Google Analytics and CRM clearly shows the weaknesses of the business. In our case, we see that in general, 35% of interested visitors did not place an order. Those. they consulted, specified the terms of production, delivery terms, quality assurance ... but in the end, the order was not issued.
Another interesting indicator is the average time of the transaction (Average Days to Close). Those. from the moment of the first contact to the transaction. Here we see that a visitor who came to our site from a search engine for paid advertising makes the transaction the fastest - an average of 7 days.
For comparison, a visitor who came to our site in a natural way, makes an order within 55 days. A visitor who subscribes to an email newsletter places an order for an average of 29 days.
Part 4. Conclusions.
So, the main thing we learned by spending $ 100,000 in Adwords:
Before investing serious money it is useful to test advertising campaigns on a small audience . In our case, testing took 6% of the budget. And this is despite the fact that the company has been on the market for more than one year and, as it seemed to us, we know our target audience, its desires and needs quite well. Nevertheless, in practice it is impossible to foresee everything and the only working way to conduct effective advertising campaigns is to invent - test - evaluate - correct. And so in a circle.
The advertising campaign for high-frequency clicks did not pay for itself . For testing, it also went bad because it requires a more serious budget.
The key parameter of an advertising campaign’s effectiveness is not clicks or conversions, but revenue . Advertising is displayed for money. Therefore, the effectiveness must also be assessed in money. From this point of view, the most effective was an advertising campaign on low-frequency queries USA Elite Designer Perfumes. For every dollar invested in advertising, we received 4.35–4.65 dollars in profit from customer orders.
Visitors who come from search engines for paid advertising fastest place orders . In our case, the order is made 8 times faster than this happens if the client came to the site through a search engine in a “natural” way. 4 times faster than e-mail subscriber.
Google AdWords advertising campaigns allow you to determine market capacity and earning potential . A cross-cutting analysis of Google Analytics and CRM clearly shows the weaknesses of the business and work to eliminate them. In our case, it turned out that 35% of visitors have an interest in our products but in the end do not make a deal.
The presence of a paid advertising campaign affects
- position in the issue . According to CRM, the number of natural visitors to our site has grown by about 3-4% (for Google, Bing, Yahoo).
- direct search . More than 15.000 times users have moved to our site by entering the name of the perfume brand in the search box. This is not just AdWords credit. In CRM, you can see that many visitors are driven by Facebook. Nevertheless, AdWords remains the largest channel for attracting visitors and its contribution to this indicator is the largest. You can also make the assumption that direct search affects organic output.
Source: https://habr.com/ru/post/341884/
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