case study
Online advertising for furniture
stores
PRIVATEFLOOR
Location
UK and Europe
Start date
August 2020
Category
Furniture
View
Website
Task
- Increase ROAS;
- Scale results with stable CR and ROAS;
- Achieve new markets;
Project features
- High competition;
- Ads in English for people in not English speaking countries;
- Restrictions in using for some brands;
- The high goal in ROAS which we should hold during campaign scaling;
Tools and services
Project description
The Privatefloor store is a modern furniture store that operates in the UK and wants to expand to the markets of France, Germany, Spain, and Italy. Our mission is to help you enter new markets and increase sales while maintaining ROAS.
Solution
Google Ads Furniture – Case Study for Furniture eCommerce
First of all our task was to get good stable ROAS and develop options for scaling. So we decided to divide it into 2 stages:
- Optimize ad campaigns to get good stable ROAS;
- Then scale successful campaigns;
To get a good return on investment we decided to use smart shopping campaigns on Google ads. It was a good step because this campaign type can give us results much faster than any other. Our results for smart campaigns were next:
To optimize smart google campaigns we started testing different campaign structures. We tested everything from audiences to product groups. In one of the tests with product groups that were divided by priority, we received the next results:
So after this stage of testing, we decided to fix our results and use the structure “brand + effectiveness”. Then we started ad campaigns scaling. There are several options for scaling in smart shopping campaigns: increase the budget, decrease or remove ROAS goal in campaigns’ settings. The main thing to remember: everything should be done slowly and carefully. Our profit on campaigns decreased a bit, but we achieved our goal. Scaling results were next:
The next goal for us was to scale campaigns without a drop in profit.
To continue our scaling more effectively we used search campaigns and DSA with a structure that was similar to shopping campaigns. The dynamic was next:
Similar campaigns were launched for all the countries where we were able to launch shopping ads in English.
To decide which country we should scale or not, we checked the performance data per country and compared it with our goals. Traffic increase by countries:
Also, we added promo campaigns in the Merchant center to increase audience engagement and interest.
Then we, again and again, checked the results, compared them with goals, and optimized campaigns.
To have stable ROAS for all the campaigns and countries we tested strategies for “target ROAS” and “target CPA”. Sometimes we created our own strategies to get better results and optimize campaigns manually. After this stage of optimization, we achieved a good increase in conversions (conversion = transaction).
At this moment we are testing different combinations of smart + usual shopping campaigns and use custom strategies for bids.
Conclusion:
Using custom strategies and machine learning allows us to get better results much faster. If you work with a professional advertising agency you always can test new features and get better results. In our case, we had enough traffic for machine learning and it helps us to get results in a shorter time.
Even smart campaigns should be carefully optimized to save budgets and get good results.
+100%
ROAS increase
+521%
Revenue increase
+10
New countries covered
Results
Using automatic strategies and machine learning allows you to get results faster with the right approach and management. On the one hand, high budgets can make it difficult to work with the account, on the other - to ensure sufficient effectiveness.
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