Here's my 4-Step Profit-Based Bidding Strategy for eComm Brands in Google Ads
(I used this to help generate a couple of million in revenue for my clients in Feb -- so it might be helpful for you too)
/a google ads thread/
(I used this to help generate a couple of million in revenue for my clients in Feb -- so it might be helpful for you too)
/a google ads thread/
My 4-Step Profit-Based Bidding Strategy
1. Unit Economics (boring but needed)
2. COHORT(S)
3. StRaTeGy
4. Algorithm Feeding
5. Bonus: Cart Data
let's dig in
1. Unit Economics (boring but needed)
2. COHORT(S)
3. StRaTeGy
4. Algorithm Feeding
5. Bonus: Cart Data
let's dig in
1. Unit Economics
> you need to break down your brand goals & specific economics
> start brand-wide, then dig into particular collections/hero products
Question to ask: why do you "need" this specific return goal you have in your head
So what data do you use?
> you need to break down your brand goals & specific economics
> start brand-wide, then dig into particular collections/hero products
Question to ask: why do you "need" this specific return goal you have in your head
So what data do you use?
1. Unit Economics - CONT
Revenue Side
> AOV (est or actual) = _____
> LTV (1 year or cohort) = _____
Blended COGS Side
> COGs = _____
> Merchant Fees = _____
> Customer Return % = _____
> Shipping costs = _____
> Fulfillment cost per unit = _____
Now, what do you do?
Revenue Side
> AOV (est or actual) = _____
> LTV (1 year or cohort) = _____
Blended COGS Side
> COGs = _____
> Merchant Fees = _____
> Customer Return % = _____
> Shipping costs = _____
> Fulfillment cost per unit = _____
Now, what do you do?
1. Unit Economics - CONT (2)
Find 2-4 Return on Ad Spend (ROAS) targets
> w/ Contribution Margin (CM) & Return on Invested Capital (ROIC) #'s as well from your LTV #'s
Now you can dig into and decide which makes more sense for your brand, 1st Order Profitability or LTV
NEXT
Find 2-4 Return on Ad Spend (ROAS) targets
> w/ Contribution Margin (CM) & Return on Invested Capital (ROIC) #'s as well from your LTV #'s
Now you can dig into and decide which makes more sense for your brand, 1st Order Profitability or LTV
NEXT
2. Analyze Cohort(s)
1. Choose a cohort to test
> ex: product launch, promo, etc
2. Use Unit Economics from step 1
> ex: brand avg, hero products, etc
3. Choose your ROAS target
> keeping in mind CM & ROIC
NEXT
1. Choose a cohort to test
> ex: product launch, promo, etc
2. Use Unit Economics from step 1
> ex: brand avg, hero products, etc
3. Choose your ROAS target
> keeping in mind CM & ROIC
NEXT
3. Create a Marketing Strategy
Now that you have your target KPIs, let's develop an account structure to achieve your goals
How?
Use my "eCommerce PPC Vortex System"
What is the system?
Now that you have your target KPIs, let's develop an account structure to achieve your goals
How?
Use my "eCommerce PPC Vortex System"
What is the system?
3. Create a Marketing Strategy - CONT
There are 4 strategy types in my vortex
1. New Customers
2. Nurturing
3. Brand
4. LTV
For this example let's say we need to push a collection w/ 1st Order Profitability needed
Here's an examples strategy
There are 4 strategy types in my vortex
1. New Customers
2. Nurturing
3. Brand
4. LTV
For this example let's say we need to push a collection w/ 1st Order Profitability needed
Here's an examples strategy
3. Create a Marketing Strategy - CONT (2)
Push: Collection
Goal: 1st Order Profitability
New Customers
> Tiered Standard Shopping Strategy
> Dynamic Search (Product Pages)
Nurturing
> Dynamic Display
> Discovery or Video
> Search RLSA
Brand
> Search
> Shopping
Push: Collection
Goal: 1st Order Profitability
New Customers
> Tiered Standard Shopping Strategy
> Dynamic Search (Product Pages)
Nurturing
> Dynamic Display
> Discovery or Video
> Search RLSA
Brand
> Search
> Shopping
4. Feed Algorithm Profit Metrics
a couple of levels to this...
Lv 1: Revenue Bidding
> bidding for Revenue #'s
> never stop here
Lv 2: Profit-Influenced
> targets based on profit
> most end here
Lv 3: Profit-Based
> pass back product margin data
> use custom columns
a couple of levels to this...
Lv 1: Revenue Bidding
> bidding for Revenue #'s
> never stop here
Lv 2: Profit-Influenced
> targets based on profit
> most end here
Lv 3: Profit-Based
> pass back product margin data
> use custom columns
BONUS: Cart Data inside Google Ads
Unlock deeper reporting metrics across Google Ads
Attributes Sales Metrics
> Orders
> Revenue
> COGS
> Gross Profit
> AOV
> ACS
Offer Sales Metrics
> Product Gross Profit
> Product Revenue
> Units Sold
(setup through GTM)
Unlock deeper reporting metrics across Google Ads
Attributes Sales Metrics
> Orders
> Revenue
> COGS
> Gross Profit
> AOV
> ACS
Offer Sales Metrics
> Product Gross Profit
> Product Revenue
> Units Sold
(setup through GTM)
If you have any questions or disagree with what I said drop em below
If you liked what you read, you'll like this thread too π
If you liked what you read, you'll like this thread too π
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