I just audited an eCommerce brand that spent $30k last month to generate $41k in sales.
It's getting devastated by high ad spend and low profitability.
On the verge of bankruptcy.
Here's what they're doing wrong so YOU don't make the same mistakes.
๐งต THREAD
It's getting devastated by high ad spend and low profitability.
On the verge of bankruptcy.
Here's what they're doing wrong so YOU don't make the same mistakes.
๐งต THREAD
Context:
This eCommerce brand sells products in the footwear niche.
As a result, their AOV is only $35.
They spend about $8 on fulfillment costs.
The reason the CEO booked a call with me is because they're doing $5k+ per day in sales.
Only to end up with 5% margins.
This eCommerce brand sells products in the footwear niche.
As a result, their AOV is only $35.
They spend about $8 on fulfillment costs.
The reason the CEO booked a call with me is because they're doing $5k+ per day in sales.
Only to end up with 5% margins.
The first thing I always audit is the conversion tracking codes.
And immediately, I saw that this brand had only one code firing on the home page.
Most eCom brands have a total of 3:
- Global Site Tag
- Google Analytics
- Google Remarketing
This is a critical error.
And immediately, I saw that this brand had only one code firing on the home page.
Most eCom brands have a total of 3:
- Global Site Tag
- Google Analytics
- Google Remarketing
This is a critical error.
Moving on now to the campaign side of things.
We see many different campaigns running at crazy high budgets
However, a quick glance at the Conv. value / cost column shows that the strategy laid out here isn't working
The ROAS is too low and it looks like there is no strategy
We see many different campaigns running at crazy high budgets
However, a quick glance at the Conv. value / cost column shows that the strategy laid out here isn't working
The ROAS is too low and it looks like there is no strategy
After doing a deeper analysis into the Performance Max campaigns, I saw that all 3 had the same products running in them.
In essence, this brand is competing with itself.
Plus, there's a TROS of 127% set with the main pmax campaign - default without any value is 200%.
In essence, this brand is competing with itself.
Plus, there's a TROS of 127% set with the main pmax campaign - default without any value is 200%.
It doesn't take a rocket scientist to understand that this brand is failing because:
- it has unnecessary ROAS barriers which aren't helping
- there is overlap with products within Pmax
- there is no clear strategy for the account
The search campaigns aren't any different.
- it has unnecessary ROAS barriers which aren't helping
- there is overlap with products within Pmax
- there is no clear strategy for the account
The search campaigns aren't any different.
The same keywords are getting targeted in multiple search campaigns.
Worst part of all, the bidding strategy is target CPA.
Ideally, search campaigns work best when:
- they test broad & exact match
- they run on manual CPC until 50+ profitable sales are generated
Worst part of all, the bidding strategy is target CPA.
Ideally, search campaigns work best when:
- they test broad & exact match
- they run on manual CPC until 50+ profitable sales are generated
It's super crucial to have all parts of the wheel turning optimally for proper Google ads scale.
Follow me @EcomShri for more Google Ads & eCom content!
Follow me @EcomShri for more Google Ads & eCom content!
Summary:
This brand has many things lacking which is causing it to fail.
You always want to ensure conversion tracking is properly setup first.
Once that happens, you want to follow a set strategy.
This strategy should test properly and then scale as needed.
Avoid overlap.
This brand has many things lacking which is causing it to fail.
You always want to ensure conversion tracking is properly setup first.
Once that happens, you want to follow a set strategy.
This strategy should test properly and then scale as needed.
Avoid overlap.
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