MY SHOESTORIES | Past period

During the high season, we implemented Google Shopping Ads for a portfolio comprising over 2,000 products. In addition to Google Shopping Ads, we ran a Pmax campaign to maximize volume. Furthermore, we executed both branded and non-branded search campaigns for Germany, and The Netherlands. The average Cost Per Acquisition (CPA) during this period was approximately €10.50.

 

During the midseason, we already observed an increase in CPA. At that time, we set up various types of non-branded search campaigns, ranging from general keywords to specific ones. Towards the end of this midseason, we decided to only run branded, Pmax and shopping campaigns. We concluded the midseason with an average CPA of €60,-.

MY SHOESTORIES | Strategy

During the mid season we ran branded, Pmax and Google shopping campaigns.

The Google Shopping campaign will only be displayed if Google anticipates that it can achieve a purchase that meets the set target ROAS. If this is not the case, the consumer will instead see the other Pmax advertisement. This campaign is designed on a broader scale with the aim of generating maximum conversion value. Furthermore, we increased the ROAS for the NL campaign because the average order value is higher among German consumers.

 

Beside the branded campaigns, which run stabile, we ran the following Pmax and shopping campaigns:

  • NL Shopping Campaign with a Target ROAS of 520: Despite a substantial budget allocation, this campaign generated only 3 conversions.
  • DE Shopping Campaign with a Target ROAS of 220: Although the campaign aimed for a specific ROAS, it delivered only 4 conversions.
  • NL Pmax Shopping Campaign with Max Conversion Value: This campaign, targeting the Netherlands, achieved 6 conversions.
  • DE Pmax Shopping Campaign with Max Conversion Value: Unfortunately, the Pmax campaign for Germany did not yield any conversions.

MY SHOESTORIES | ISSUE

It’s noteworthy that the standard shopping campaign consumed a considerable budget but produced minimal conversions, resulting in the significant increase in CPA to €106.89 in the off-season. In an effort to address these challenges and improve the overall performance, we initiated an experiment within Google Ads.

MY SHOESTORIES | SOLUTION

To ensure an increase in revenue and a decrease in CPA during the off-season, we implemented a new approach for Pmax and shopping campaigns since November:
The product selection was streamlined, scaling down from over 2,000 to focus solely on the bestsellers, totaling 500 products (50 bestsellers in different shoe sizes).

  • NL Shopping Campaign with a Target ROAS of 600
    NL Pmax Shopping Campaign with Max CPA of €15
  • DE Shopping Campaign with a Target ROAS of 520
    DE Pmax Shopping Campaign with Max CPA of €20

WINS / RESULTS

The strategic decision to exclusively promote the best-selling products during the off-season has yielded remarkable results. We observed a substantial 81% decrease in the cost per purchase, indicating that the focus on these selected products was significantly more cost-effective. Simultaneously, there was a notable increase of 204.8% in the number of purchases, demonstrating a successful emphasis on the most sought-after items.
The positive impact on the revenue is equally significant, with a substantial increase of 139%. This growth indicates that the strategy not only resulted in more efficient expense management but also generated significantly higher returns.

hese results confirm that promoting only the best-selling products has been an effective approach, reducing costs and significantly improving performance. This underscores the importance of strategically allocating resources to the most profitable products, positively influencing both financial efficiency and overall business performance during the low season.
Looking at the overall performance from the past two years, the number of sales has reached unprecedented levels. Compared to the previous year (November and December), the number of purchases has increased by 53%.

In 2021: 373 purchases
In 2022: 308 purchases
In 2023: 471 purchases