Adwords Spend, Time To Decrease? - My Annual Review.

Discussion in 'Ecommerce Forum' started by Phil., Jan 13, 2019.

  1. justleads

    justleads UKBF Newcomer Free Member

    27 0
    You will be surprised how many people keep low budget accounts, which are just loosing their money. They do not realise that loosing mean loosing, even on a low budget!

    Obviously, if one has a well performing account, it means low cost per conversion/order, which automatically invites increase in budget to the max possibility to dispatch orders. Therefore well performing account naturally has a tendency to increase the budget up and up… with profits going through the roof…

    On average, I find 90% of DIY accounts and 50% of "professionally managed" accounts to have gross errors, with potential to improve profitability at least 50% (usually 100%).
     
    Posted: Mar 1, 2019 By: justleads Member since: Feb 3, 2019
    #21
  2. wayzgoose

    wayzgoose UKBF Enthusiast Free Member

    777 114
    We have an average 7% conversion rate so quite happy with the results. It's just that with such a low spend it's difficult to get any help or advice on it. Had a couple of sessions with Google adwords specialists but they have gone through things at such speed both times, it's very difficult to take all the information in.
     
    Posted: Mar 2, 2019 By: wayzgoose Member since: Oct 9, 2007
    #22
  3. Peter Bowen

    Peter Bowen UKBF Enthusiast Free Member

    854 230
    @wayzgoose

    I have a client who's Google ad budget is about £50 per month. He's in a market where, like you, he's happy with his spend. There is nothing wrong with not spending a lot of money.

    You wouldn't be able to attract the interest of a large agency but I'm sure there are people who'd be happy to take you on as a client.
     
    Posted: Mar 2, 2019 By: Peter Bowen Member since: Jul 2, 2007
    #23
  4. Nochexman

    Nochexman UKBF Enthusiast Free Member

    1,853 286
    Hello Phil, you received a lot of good feedback - wondering what you made of it?
     
    Posted: Mar 2, 2019 By: Nochexman Member since: Jun 14, 2011
    #24
  5. Guy Incognito

    Guy Incognito UKBF Contributor Free Member

    68 7
    The conversion rate can differ significantly, depends on many factors. If a client searched for a specific car battery from a specific brand, and the price is "normal", the conversion rate can be >20%. But a special garment for wedding, here the same client might visit your website 5 times, and at the end buy from another place, so conversion rate of 1% is very good. (I am referring to real cases!).

    Plus, the marketer might prefer low conversion rate, provided the branding is achieved, and catch the same clients on remarketing, retargeting, social media, and endless other ways. Therefore, a the end of the day, for the business owner only two numbers are really important in the digital marketing: how much I spend to get 1 customer (partially corresponds to cost of conversion), and how many customers I get (it parallels to conversions number). All the rest is unreliable and may be very misleading.[/QUOTE]

    Our product is a niche product. We effectively started the sector we are in. It is rare for someone to instantly buy from us, it's a considered purchase so often people return days / weeks / months later and buy. Our brand is very important to us, and the value of the brand is likely to be part of the exit strategy. You cannot buy our products anywhere else online except through us.

    We have a high repeat customer rate of approximately 15%. We previously used an online agency and they just pushed our best selling items - which made the conversion rate and cost per order better, but meant we had excess stock sitting around. We're now seeing a much broader mix of product sales which should mean more profit (despite a currently increased cost per order). We are also expanding our product line.

    I'm sure we are getting some things wrong, but we will get it audited in a couple of months once we're fully up and running with this new company. Ultimately we want as many orders as we can at the cheapest cost!
     
    Posted: Mar 2, 2019 By: Guy Incognito Member since: Aug 2, 2016
    #25
  6. wayzgoose

    wayzgoose UKBF Enthusiast Free Member

    777 114
    From someone that probably looks at things far to simply - you started the sector you're in and nobody else sells it, it has to be bought through you. Why do you need Google ads at all? Why not just good seo on your site and be top of the organic rankings?
     
    Posted: Mar 2, 2019 By: wayzgoose Member since: Oct 9, 2007
    #26
  7. Guy Incognito

    Guy Incognito UKBF Contributor Free Member

    68 7
    We do SEO as well however as it's a niche we need to raise awareness of the product. So we need to advertise to people who we think will end up buying it (even if they are not looking for what we offer). We're on the first page and 6th in ranking for the usual search term however we have something different to others in terms of the material we use and the benefits of it.

    We want to get to the top of the first page but there are some national companies there who don't offer what we do but use the generic term.

    We see the greatest conversion from the shopping image ads, but the main thing we're trying to do is to raise awareness - we know it is usually a considered purchase, but it often leads to repeat business.
     
    Posted: Mar 3, 2019 By: Guy Incognito Member since: Aug 2, 2016
    #27