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Case Study: 239,7% ROI on Remarketing Lists for Google Shopping

Service: Contextual advertising in Google AdWords and Yandex Direct
Website Specification: gardening and horticulture
Region: Russian Federation
Google Shopping remarketing lists testing period: 17.09 – 27.12.2015
Expenses (excluding agency commission): $67
Income: $569

Project Specifications

We used the full arsenal of services [PPC 2.0] for the client. However, in the current case we want to focus on testing the concrete instrument—the remarketing list in Google Shopping. Google rolled out the list linking feature in September 2015, and we decided to test it immediately. The remarketing lists in Google Shopping allow showing ads to users who have previously visited your website while they search for similar products in Google. The tool expands the capabilities of search remarketing companies (RLSA), and pushes the boundaries of purely textual advertisements (now they can also include product listing ads (PLA). Product listing ads (PLA): Product listing ads

How to set up remarketing lists in Google Shopping?

1. For Google Shopping remarketing you have to make sure your AdWords and Merchant Center accounts are set up. 2. You have to go to “Audiences” tab in the existing trade campaign, add remarketing list (it’s desirable to use larger audiences) and set up bid adjustments. Setting up adjustments in remarketing list 3. While adding remarketing list, you’ll be able to choose: “Target and Bid” – only people from the chosen lists will see advertisements. “Bid only”– if you set up bid adjustments for remarketing lists, they’ll be taken into account when showing ads to the users from the chosen lists. All done! But are Google Shopping remarketing lists profitable?

Testing Results

Impressions: 27 766
Visits and Links: 884
Number of Transactions: 19
Ecommerce conversion rate: 1,97%
Cost per conversion: $3.53

Let’s Calculate ROI:

Income = profit (ecommerce data) * average margin ROI = (income-ad expenses) / ad expenses
Total Income = $569
Average Margin = 40%
Income = $569 * 0.40 = $227.6.
ROI = ($227.6 − $67) / $67 * 100% = 239.7%

The advertising campaign has been completely recompensed and brought up to 239,7% ROI. In comparison with the other campaigns, there were no big sales (we used minor remarketing lists), but Google Shopping showed good ROI and high conversion rate. Furthermore, this tool is easy and quick to tune up. Do you know any other campaigns that succeeded in Google Shopping ROI growth? Share your thoughts in the comments! Good luck with your campaigns!

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