Case Studies Paid Media

How to reduce advertising costs and increase ROMI by 772% — Autobaza case study

The process of changing a logo and renaming a project is always stressful for a team of internet marketers since the customers are persistently looking for a familiar name and design of an online store. So, the first thing to do is to update the content and inform as many target users as possible. Otherwise, they may see a new store name and leave the site.

We will show you how to improve conversion rates after implementing a new logo of an online store, how to reduce advertising costs and redirect the rest of money to branding

Service: PPC.
Niche: ecommerce.

Results: we decreased advertising costs and increased ROMI by 772%.

The Client

We have been cooperating with Autobaza online store since 2014. This is the largest network of сar accessories in Ukraine that works only with the proven brands and official suppliers. The “Autobaza” store chain entered the market in 2001. Since that time, the range of products has considerably increased, and now the online store can cover all the requirements of car lovers. Therefore, the company decided to change its name to Autobaza.

The Challenge

Our task was to reduce the cost of conversion and increase the number of sales within the current budget.

Since a user accustoms to brand visualization, moving to a new logo can’t be "painless". Therefore, we resorted to all kinds of conversion sources before changing the name and the logo.

The Solution

We used Google Ads tools to accomplish the Autobaza’s goal on increasing sales within the current budget.

Marketers are usually wary of new products from Google Ads — sometimes they have insufficient knowledge and experience, and sometimes there are no suitable projects.

For Autobaza, we decided to test two relatively new tools:

Shopping campaigns;
Smart Shopping campaigns.

Let’s learn more about each of the tools.

1. Shopping campaigns

An ads example (we’re sorry for screens in Russian, the English version of the site is unavailable).

Setup

We have recently published an article on how to set up Shopping campaigns.

First, we added all the products to an advertising campaign. This allowed us to collect statistics for making further decisions on the campaign structure and optimization.

Optimization

We singled out the categories of products with the highest sales results and created individual campaigns for them. This helped us focus on efficient goods only.

Products with lower demand, being a part of the campaign that includes all products, receive less traffic: the budget is mostly spent on goods with higher demand.
We added remarketing lists with bids adjustments of 30-50% that target both a wide (all site visitors) and an overly narrow or specific (product card visitors/buyers) audience.

Bids adjustments are different at each stage of the sales funnel. The closer to a purchase a user is, the higher the bid is. Site visitors who viewed several product cards are more likely to make a purchase than those who just visited the homepage of an online store.

The Results

transactions increased by 65,22%;
the transaction cost decreased by 22,59%;
the income increased by 354,48%;
ROMI increased by 335,78%;

2. Smart Shopping campaigns

Smart Shopping campaigns encompass both traditional Shopping campaigns and remarketing campaigns on the Display Network. When showing ads of Smart Shopping campaigns in various networks, the system resorts to feeds, downloaded objects and Google machine learning. Unlike traditional Shopping campaigns, the products ads will be shown in search results, on the Display Network, on YouTube and in Gmail.

An ads example (we’re sorry for screens in Russian, the English version of the site is unavailable):

Some more samples (we’re sorry for screens in Russian, the English version of the site is unavailable):

Requirements:

Providing transaction-specific values for each conversion and tracking them.
Getting at least 20 conversions over the past 45 days for traditional Shopping campaigns. This is a strong system requirement (official Google Ads Help).
Adding a global tag to the site and creating a remarketing list which includes at least 100 users. The dynamic remarketing will allow to show personalized ads to those who have visited the site before.
Calculating ROAS (Return on Ad Spend).
ROAS = profit from an advertising campaign / costs for an advertising campaign.

The Results

We met the tool requirements and obtained the following results for all Shopping campaigns after connecting Smart Shopping:

costs decreased by 47,34%;
the number of transactions increased by 101,82%;
the transaction cost decreased by 73,91%;
the income increased by 133,24%;
ROMI increased by 772,54%.

Testimonials

Yana Merkotan, a leading marketer of the Autobaza project:

We think that Netpeak team is one of the best on the market, as evidenced by the company’s case studies and numerous clients’ reviews. Our effective cooperation has been confirmed by positive results in concrete figures.

The results described in this case study were achieved due to the extensive use and testing of new Google tools. We don’t stop promotion even during the crisis but still get positive results and grow from year to year.