GHS Case Study: Google Ads 2x ROAS Per Month + Bonus Tip (How we got 23x ROAS) - Growth Hacking School 📈

GHS Case Study: Google Ads 2x ROAS Per Month + Bonus Tip (How we got 23x ROAS)

What's GHS?

Oct 3, 2021

Reading Time: 5 minutes

Disclaimer: we are not claiming that we are better than anyone else, we are just sharing our POV on this exact strategy.

There are thousands of agencies around the world that work Pay-per-Click campaigns, mainly on Google and Facebook.

It’s pretty obvious why most of the people focus their efforts on these 2 networks. 

It’s where 90% of the Internet Traffic is leading their attention.

This Case Study focus on Google Ads and how we achieve to increase ROAS 2x per Month for a Quarter from May to July.

What Was The Challenge?

This Case Study is about a company working on the Consumer Bedding Department.

For who doesn’t know nothing about this market, it is a highly competitive market.

The main characteristics are:

  • Highly Competitive
  • High Friction to Buy
  • High Average Order Values
  • Low Repeated Buys From The Same Customer
  • Price Aversion

Besides all of this, this customer is an established brand with more than 40 years of existence.

The only catch is that in their 45 years in market, they mainly worked in B2B, working alongside several retailers.

They just started explore the B2C market in the last couple of years.

We’ve started working with them in May 2021.

In 2019 their online store sold almost zero.

2020 they picked up a little bit to €2k – €5k per month.

2021 was when they exploded to €10-€20k.

Looking to a business as a whole, not individual services.

We were hired to help them build a strategy to grow from €10k to €30k per month.

Heads-up: we haven’t yet achieved that.

That takes time and needs preparation.

Growth is not something that happens overnight.

Our biggest challenge was that when we picked up the account in May, they were back to their €5k per month.

The first thing that we do when we get a new customer is to use our Growth Process© Methodology that is based on our Growth Loop.

  1. Analyze
  2. Ideate
  3. Priorize
  4. Test

We’ve started Analysing each path that was explored up now.

They were having some stable recurring revenue on Facebook.

Things were looking bad at Google Ads.

Almost no organic traffic and PR.

Haven’t started working Email Marketing campaigns.

The first thing we did, was creating a digital ecosystem that needs to be worked in order to break from €20k to €40k where we should be working all of the above. 

🚂  But, we cannot stop a train that is already moving.

Focus on First Things First

Priorizing what we needed to do was the most important thing.

Organising beats cleverness.

Our 3 Steps where:

  1. Optimize the Running Campaigns and Ads: we had lots of data to analyze and learn
  2. Start creating the tools that were not made or worked
  3. Tune what was working well

Picking up the PPC accounts we changed everything.

The investment in Facebook was higher than Google.

 

Of course, the biggest Acquisition revenue was coming from Facebook, why not bet all of your money there?

Well, when Google is not well optimized, you can think twice.

Average Facebook ROAS was at 3x, Google was at 1,2x.

First challenge was to increase this Google account to an average ROAS of 3x (minimum).

So our North Star Metric was simple.

3x ROAS.

Where to Start Optimizing A Google Ads Account?

First things first.

What were the best-performing keywords?

Could we improve on those?

Were they using SKAGs? Or was it just a bunch of stuff keywords into an Ad Group?

You got it right, the latter.

To which pages were traffic being sent?

Did the Ads correlate with the language on the website?

Nothing of this was optimized.

We can turn on automated Google Ads and let Google find the right audience, and try to build the right Ads for us.

But Customization always wins.

Working to Find the Right Message!

Well, we did something quite simple.

Started to isolate search terms.

Filter the better placements.

Create engaging content.

Do and test a TON of Ads!

Not good.

First Month Results (May 2021)

Were we happy? No!

We know things take time.

At least metrics were better than in April. 

So we decide to kept doing the same.

In June, the results were different.

 The ROAS started to pick up.

Second Month Results (June 2021)

3,68x. Good, but not great!

We reached our NSM, but we understood that we could get more from this Ad Account.

Don’t take us wrong.

This was great, we saw that things were picking up.

But as you can see the results were coming from 2 campaigns!

We needed to keep fine-tuning what we are doing.

The thought process was: “Let’s keep experimenting with what’s not working and see what happens.”

Breaking the 5x ROAS in July

We keep optimizing the account towards better results.

More Ads.

Different Ad Groups, Placements, and Retargeting to Hotter Audiences.

Target Initiate Checkouts, go further on product or collection pages.

Use Small but more Engaged Audiences with Highly Targeted Messages.

With this Customisation, these are the main metrics that changed in July vs June:

  • CTR increased: 3,88% > 1,94%
  • Cost Decreased
  • CPC Decreased
  • ROAS Increased to 7,68!!

Perfect!

The store also had an increase of 108% since vs Last Year.

But let’s not pop-up the Champagne Bottle right now.

It’s Amazing, but …

There’s always a but right?

Now we will be facing other issues.

Retention… and Seasonality.

June and July tend to be the best months for this market.

We need to keep pushing to keep our mojo!

Creating for the Future

Remember that we started to create and work on tools that where not made?

One of the things that we did was apply an SEO strategy.

Organic Traffic was not bad, but we could make it better.

Results were pretty good for the first 3 months of work:

  • Increase in Clicks
  • Impressions
  • SERP Position

Working on Email Marketing is still something we will do, in tandem with more PR.

With this ecosystem of different strategies and finding niche markets we believe that we will help this business grow quickly, but most important in a stable way.

The most important thing is that we do care about their success!

What's GHS?

Grow With Us: