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Eng

Cosmetics online store promotion: increase of ROAS by 1.5 times without reducing income and without increasing budget for clicks

Author
Author: Alexander Shilin
Context specialist
Reviewer
Head of PPC specialists
2022-01-13

*with a 15.17% decrease in the click budget

Client

Online cosmetics and manicure products shop with a network of offline shops in Kyiv. Macro-level customer base is divided into two parts: B2C (small average check, mostly one-time purchases for personal use) and B2B (wholesale orders from salons and masters, with a high average check and LTV).

Period of work

Work on the project is ongoing from 01/07/2019 to the present.

Our task

Since any business is a living organism, constantly changing under the influence of external factors, in 2 years the original objective from the client "To increase sales" was transformed into a more complex but financially effective objective — to maximize advertising revenue.

Description of work

Over such a long period of work on the project, we have accumulated many interesting statements, and it is virtually impossible (we tried) to describe them all in one story. Therefore, we decided to share the most significant and interesting aspects. Conventionally, all work on the project can be divided into 3 periods, each of which had a different impact on the final result of promotion.

Period I — the start of the project

At the time of launch, the client was already running contextual advertising campaigns on Google. After the audit, the Aweb team prepared an account development strategy to increase conversions.

The ad campaigns in the account were set up at a high enough level, but the client was interested in growth and scaling, and for that, the global strategy needed to be reviewed, and the approach changed.

Global objectives:

Advertising campaigns set up at the start of the project work:


Cosmetics online store promotion: increase of ROAS by 1.5 times without reducing income and without increasing budget for clicks 1

Cosmetics online store promotion: increase of ROAS by 1.5 times without reducing income and without increasing budget for clicks 2

Optimization and adjustment actions in the period I

We have set up 74 advertising campaigns: search, CMN, sales, and video campaigns. The main principle behind optimizing campaigns across all networks is a non-linear approach to measuring effectiveness, which consists of the following principles:

In addition to additional traffic, this format also reduces the price per click.


Cosmetics online store promotion: increase of ROAS by 1.5 times without reducing income and without increasing budget for clicks 4
Cosmetics online store promotion: increase of ROAS by 1.5 times without reducing income and without increasing budget for clicks 5

Data after the first full month of cooperation (August 2019) compared to the same period (August 2018) last year.

Traffic by 67.43% Transactions by 91,05% Revenue by 42,06%

The budget for clicks increased by 34.81%


Cosmetics online store promotion: increase of ROAS by 1.5 times without reducing income and without increasing budget for clicks 6

Period II — COVID-19 pandemic, lockdown, and antiseptics

The global challenge for this period is to squeeze the most out of a fixed budget for clicks. Testing new hypotheses, launching ad campaigns in new areas, or increasing the budget for more effective ad campaigns: all within a fixed budget. Accordingly, the main task of the team is to react quickly to changes in the performance of already launched campaigns, suspend the least effective campaigns and use the released funds to either test new hypotheses or scale the already successful campaigns in the account.

Optimization


Cosmetics online store promotion: increase of ROAS by 1.5 times without reducing income and without increasing budget for clicks 7

After three months of active shopping, demand started to drop a little, competitors came in, and then efficiency started to decline. Therefore, from meeting the demand for antiseptics, the task was transformed into the distribution of the budget between the priority areas in order to obtain an optimal number of conversions.

Aweb sp. z o.o.
Domaniewska 37 M2.43
02-672 Warszawa, PL