by Austin LeClear
on July 22, 2024
In the fast-paced world of Google Ads, it’s easy to get stuck in a rut, relying on what you believe are the best practices without questioning their effectiveness. This mindset can (and often does) lead to stagnation and missed opportunities.
If something is not working (even if it’s a strategy everyone is recommending), test it. You just might be surprised by the results (like we were, when one simple test led to a 500% increase in conversions for our client).
Rather watch a video? We’ve got you covered. Check out our video on YouTube here:
Still with us? Good, because we’re going to explore exactly what happened in this particular Google Ads account. Let’s dive in:
The What: Investigating the Google Ads Account
This is a sneak peek inside of an account that (historically) has done well for us:
This client sells digital products. As with many digital product sellers, our client’s average order value was fairly constant over time. In other words: this is not your typical ecommerce play, but is still ecommerce. Now that you have a bit of background, let’s return to the fundamental issue that was facing our client’s account.
Identifying the Problem
Looking at the graph above, you may notice the low conversion volume at the start. What happened? Simple. Google’s smart bidding had started to suffocate the account.
We see this a lot when auditing client accounts. Often, the reason behind it has to do with the rigid way we’re approaching the account:
The trouble is, as media buyers and analysts, we often get stuck in this mindset that Google Ads strategies are set in stone. We think a target return on ad spend (tROAS) bid strategy is the only strategy to use for ecommerce, while maximize conversions (with a cost per acquisition (CPA) goal attached to it) is the only strategy to use for lead generation.
While this is often the case, it isn’t always.
Staying flexible and being willing to test the received wisdom are key to long-term success with Google Ads. But don’t just take our word for it. Here’s what happened when we tested things for ourselves:
The Experiment
For this particular campaign, the average Cost Per Acquisition (CPA) was historically around $20 to $30, which was profitable for our client.
So instead of changing keywords or swapping out ads in their ad campaigns, we decided to test something simple, but fundamental. We switched from a target return on ad spend (tROAS) bid strategy to a target cost per acquisition (tCPA) bid strategy. What happened next was nothing short of astonishing.
We went from this (an account barely scraping by with 3 conversions per week):
To this (an account with 37 conversion per week, and growing) :
Almost immediately after changing the bid strategy from tROAS to tCPA, we saw a massive acceleration in conversions, and the Google ad campaign began to grow again. No need to create new ads, add negative keywords, build new campaigns, or even adjust landing pages. Instead, we kept it simple.
During this testing period, the campaign’s conversion rate shot up by a whopping 500%.
Our ad spend increased, but that was a trade-off we were willing to accept to revive the campaign. (For context, it went from spending a modest $350 to a few thousand dollars again).
The Takeaway
The key takeaway from this case study is the importance of not getting stuck in what you believe is the best practice in Google Ads. Sometimes, questioning your fundamental strategy is necessary to achieve the best results. Don’t be afraid to test. Simple tests can lead to significant improvements.
In this case, we didn’t do anything crazy. We didn’t have to resort to complex CRO or overly sophisticated Google Ads strategies, and we didn’t have to build out unicorn ad campaigns. A straightforward adjustment in the bid strategy was enough to achieve remarkable results for our client.
Smart Bidding: Unpacked
Smart bidding strategies like target return on ad spend (tROAS) and target cost per acquisition (tCPA) are powerful tools in Google Ads, but they must be used correctly. Here’s a quick breakdown of what you need to know about each bid strategy:
Target ROAS aims to maximize revenue by focusing on the return on ad spend, which is ideal for products with a clear and consistent order value (as was the case with our client). However, if the strategy starts to underperform, it’s crucial to test alternatives.
Target CPA, on the other hand, focuses on maintaining a specific cost per acquisition, which can be more flexible and responsive in certain situations. By switching to tCPA, we allowed our client’s campaign to optimize for conversions rather than revenue, which proved to be more effective in this scenario.
Bottom line: Smart bidding is a powerful tool, and can help take your Google Ads strategies to the next level if used correctly (and creatively).
Practical Steps for Your Google Ads Campaigns
If you’re managing a Google Ads account or own a business that advertises on Google, consider the following steps to ensure your campaigns are performing at their best:
Regular Audits: Regularly audit your Google Ads campaigns to identify any issues or areas for improvement. This can help you stay ahead of potential problems and make informed decisions about your bidding strategies and ad spend allocation. To quote Peter Drucker, “what gets measured, gets managed.” It’s good advice in most aspects of business, and Google Ads is no exception.
Continuous Testing: Don’t be afraid to test different bidding strategies or other campaign elements. Even small changes can lead to significant improvements. Keep a testing sheet to track your experiments and their outcomes. Ours looks something like this:
Flexible Strategies: Be flexible with your strategies. Just because something has worked in the past doesn’t mean it will work indefinitely. Stay open to new approaches and be ready to pivot when necessary.
Manage Your Ad Spend: Keep an eye on your costs, but don’t be afraid to invest more if it leads to better performance. In this case, increasing the ad spend helped revive our client’s ad campaign and boost conversions.
Seek Expert Advice: If you’re unsure about how to proceed or want a fresh perspective, it might be time to talk. A professional audit of your Google Ads account is a great place to start, as it can provide you with valuable insights and recommendations.
Fancy a Free Google Ads Account Review?
At Grow My Ads, we’re committed to helping businesses like yours succeed with their Google Ads campaigns. That’s why we offer free account audits.
Set up a discovery call with us by filling out a fast, easy form. We’ll have a chat to learn more about your business and your Google Ads account, and then provide a detailed breakdown with actionable strategies to help you improve performance in Google Ads.
Whether you choose to implement the recommendations yourself, hand them over to your agency, or hire us, our goal is to help you achieve better results. Don’t miss out on this opportunity to optimize your campaigns and drive more conversions:
Book in your discovery call here >>>
Final Thoughts
In the dynamic world of digital marketing, staying flexible and being open to testing new strategies is critical to achieving success (in both the long- and short-term). The case study above demonstrates how a simple change in bid strategy led to a 500% increase in conversions. By regularly auditing your campaigns, testing different approaches, and being willing to invest in what’s working, you can achieve remarkable results in Google Ads.
If you’re running Google Ads campaigns, take a moment to reassess your current strategies. Don’t get stuck in what you believe is the best practice.
Instead, be proactive in testing and optimizing your approach. And if you need help, don’t hesitate to reach out for a free audit. Your next big breakthrough might be just one simple test away.
This case study serves as a powerful reminder of the impact that testing and flexibility can have on digital advertising success. By sharing our experience and offering free audits, we hope to empower more businesses to achieve their marketing goals. Stay curious, keep testing, and watch your campaigns thrive.
