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Google Ads on a Limited Budget Using “Worst Sellers” To Convert Bestsellers
20th December 2023 • The Google Ads Podcast • Solutions 8
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Discover how Regina achieved an impressive 83% boost in ROAS overnight, even with a limited budget. Learn her smart budget management strategy that uses “worst sellers” to boost Google Ads performance.

Furthermore, explore the benefits of remarketing and how it supercharges conversion rates. This approach can transform the game for businesses on tight ad budgets, delivering results and profits. Listen to this episode now to learn this valuable lesson.


This video is from StarterPPC’s YouTube channel, check it out if you want to maximize ad spend & achieve better results with a smaller budget:   

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0:00 Google Ads on a Limited Budget: Using “Worst Sellers” To Convert Bestsellers

2:17 The cons of only promoting bestsellers

6:19 Need help scaling Google Ads with a limited budget? Let StarterPPC help you!

11:17 Recommended ad budget increase rate


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Transcripts

Kasim:

Hey, everyone.

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Regina here from Starter PPC.

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This is one of our newest clients.

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They just went live about three

weeks ago, and we can already see

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that the performance has gone way up.

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I don't have their media efficiency

ratio yet for their total business.

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So I can't tell you with Certainty

what they're getting as far as

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returns as a whole, but inside of the

dashboard in Google ads, I can already

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see that the return on ad spend is

reporting an 83 percent increase.

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Okay.

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That's a really big

increase to have overnight.

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And, the way that we achieved this we

took over one of their campaigns, but

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we launched another campaign that's

helping that campaign to, succeed.

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This ties right back to the whole question

of what do you do when your budget is

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extremely limited and you know that you

can't just promote all your products, but

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you also know that if you just promote

a few of your products, you're hurting

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the performance as far as, remarketing

and you're leaving opportunities on the

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table that could be wildly profitable.

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this is going to be a happy medium

between, Focusing on your high

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margin, best selling products and,

promoting your entire store as a whole.

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So it's some happy medium, in between

because our budget is too limited to

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promote all the products as a whole.

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If you want to promote all your

products in your store, you

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have to make sure that you have.

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Such a velocity of sales that the

Google algorithm can afford to take

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good chunk of your budget, put it

towards, testing products that haven't

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been shown yet, or I haven't found

their little niche pocket that's gonna

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work for that product and get enough

clicks on each of its tests that it's

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able to build its knowledge, right?

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But if you only have, depending on

how much your cost per clicks are,

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if you only have a few clicks a

day, it's not smart to just throw

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all your products at the algorithm.

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but then you have the

opposite problem, right?

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Where you're just, restrict

your Promotion your ads to just

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your favorite five products.

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And the reason why this isn't ideal

is because there's a lot of reasons.

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Let me see if I can send this up.

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One reason might be that people

who are searching for those five

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products and then go to the store.

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Decide not to buy that product.

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They want something else.

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And it might take them a few days

to actually make this sale, right?

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Most businesses, does take a

few days for people to decide to

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actually come back and purchase.

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And since you don't have the other

products being promoted, the other

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products that they looked at while they

were on the store, you're not doing any

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remarketing on the products that they

ended up actually being interested in.

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Okay.

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Another reason is you could find that.

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out of all your other products.

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There's one that gets really good

cheap impulse clicks to the site.

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And then from there, people are

upselling and buying your highest

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margin best selling product, right?

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because you don't know which product that

is, and you're not promoting that product.

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You're just not getting enough traffic

to the site that can then be upsold

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because people might not be searching

it in a high amount of people for that.

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for your top five products.

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Usually those tend to be highly

competitive products as well.

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So this is a great strategy

for someone with a limited budget.

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Let me just pause and say, even

though I'm using e commerce as an

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example here, this same concept

would apply to a lead gen business.

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Who's also limited by budget, right?

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So let's say you have three services,

but one of them is the most profitable.

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You would apply this same strategy.

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So you're going to focus on that

service while also still promoting the

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other two services with a lower budget

in a more restrictive way to make

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sure that the performance is there.

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let me minimize my face and I'll

show you guys in around the account.

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this is a success story basically

because we took over the account and

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we're immediately seeing increases.

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we Love it when that happens.

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So here you can see this square

says starter PPC takes over

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management the week of July 27th.

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We have return on ad spend in blue and

we have cost in red and you can see

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the cost didn't really change much.

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I'm gonna compare date ranges in a second

so you can see exactly how much the

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cost changed, how much the ROAS changed.

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But the ROAS went way up.

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Okay, now how do we do this?

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Let's take a look.

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We took over management on July 26th.

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So I'm going to go July 26th until,

let's do yesterday, whole days, and

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then we'll compare it to the previous

period of equal amounts of days.

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Okay, compared to not.

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Stick.

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Let's try again.

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So first of all, we can

see cost went up only 6%.

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So basically cost stayed the same.

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I always start by looking at

costs because when you change

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the spend that has the biggest

influence on the performance of the

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ads than anything else you could do.

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That and like seasonality or like

major website redesigns, right?

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Those are like usually.

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Those will affect the performance

more than any change we could

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make, like adding a new campaign

or adjusting the bid strategy.

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So cost and change, which is good.

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It makes it a little

easier for us to look at.

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roas as I mentioned, went up

83% went up from 2 48 to 2 55.

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And by the way, in case you guys

are wondering, this is an e-commerce

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business that sells B2C products.

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let's see, have an average

order value of about.

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Hi there.

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Quick interruption.

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Do you know the main thing that

prevents small business owners from

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getting their Google ads account

into a position to grow and scale?

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Budget.

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A lot of businesses, especially

those that are just starting

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out, have limited budgets.

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And so because of this, they're turned

away by most ad agencies because most ad

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agencies have minimum budget thresholds

that they're willing to work with.

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So what happens is the business owners

end up learning Google ads themselves.

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And the problem with that is

that most of the advice online is

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geared towards larger accounts.

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And the advice doesn't have any of those

strategies or tricks that can kickstart

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the algorithm into giving a small

account a leg up over larger competitors.

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So it often just doesn't work.

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And the business just ends up

losing money month over month.

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If this sounds familiar,

starter PPC can help.

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We offer Google ads management services

that are designed for accounts that

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have between 1000 and 5, 000 budgets.

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Because all of our clients are just

starting out, we've come up with

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ways to keep our management fees

significantly lower than most agencies.

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Because we know that every dollar saved

on management fees just goes towards

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the ad budget, which is going to help

the algorithm gather speed and power.

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So if you're serious about growing your

business and you'd like a team of Google

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ads experts to help you without breaking

the bank, check us out at starterpbc.

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com.

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Okay.

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Back to the video.

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188, 145.

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Oh, interesting.

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Average order value

went up 29 percent too.

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Interesting.

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I don't exactly know what caused

that, but we could theorize.

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Let's come back to that.

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Okay.

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So this campaign here, this is

a full PMax campaign, which means

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it's a performance max campaign

that has assets in it, right?

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It has, we've given it all the ad copy.

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We've given it as many images

that we can lifestyle images,

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ideally not just product images.

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Yes, it has the product feed

of course, except we've Oh, and

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we've given it some videos too.

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The thing about this campaign is

that it's a high margin products or

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best selling products only campaign.

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Now this was true, even when the

clients came to us, we actually

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basically just took this campaign

over and renamed it in our name.

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We didn't make too many changes to it.

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Okay.

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I think we added one or two products

based on feedback we got from the

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client, but, we did not change too much.

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We might've swapped out a few headlines

if we found some that our copywriters

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wrote that we liked better, but

nothing that's going to cause nominal

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changes, nothing that you can see.

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nOw when the client came to us, they said,

we only want to promote these products.

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These are the ones that

are most profitable for us.

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And they knew their budget

was very restricted, right?

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Let's see their monthly spend

their monthly budget is 4, 100.

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Dollars.

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U.

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S.

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Dollars.

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We said to them what we would like to

experiment with is promoting all the

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products except with a restrictive budget

on the non high margin non best sellers.

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So what we did is we

set up a P max campaign.

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That's feed only.

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So this is essentially,

this is a campaign.

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All it has is the product feed.

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It's like a smart shopping campaign

because we haven't given it any Ad

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copy, we haven't given it any images.

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All it has is the images

from the feed, right?

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So it can do shopping ads or it

can do display remarketing using the

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shopping, using the product information

only like title and product image and

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description, but it can't do much else.

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And what we've done is

we've restricted it, right?

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So 79 78 a day on the high margin

campaign, but still 30 a day on

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the feed only campaign and What I

think is interesting is, so here

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you can see, this campaign got

started this feed only all products.

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Actually, I think this campaign

has all products except for

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the high margin products.

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So we basically split the products

into two different campaigns.

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Feed only with restricted budget and

then so here we've started spending

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money on the feed only campaign.

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We actually spent a tiny bit less on

the full PMAX, but not a huge change

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in budget, only 9 percent less.

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And that was just to make room

for some of the other campaigns.

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And here's what I find interesting is.

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Not only is the feed only campaign

bringing in a 400 percent return almost,

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which is crazy high, you guys, but

usually that happens when you have a

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very restricted budget on a bunch of

products, what happens is the algorithm

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finds it to be very easy to just scoop

up the bottom of the barrel and get

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some conversions and get a high return.

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It does not mean.

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You should increase the budget

in that campaign, right?

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You can try incrementally increasing

it, but just because it's getting a

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high return doesn't mean it's going

to continue getting a high return.

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When you start to increase, we

start throwing budget at it.

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I would recommend no more than a 20

percent month over month increase on

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this campaign, as well as all campaigns.

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okAy, here's the part

where I find interesting.

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I keep coming back to this, the P

max High margin bestsellers campaign.

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performance here went up, right?

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So ROAS went up by 50

percent in this campaign.

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Why is this?

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It's because they feed

off of each other, right?

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So this campaign now has

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users on the website viewing

the bestselling products.

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Even though the people that clicked

on ads to get there, many of them

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were looking at other products,

maybe lower priced products,

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less competitive products, right?

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Products in the all the, in the

ads that we don't really want to

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be pushing, but we want to use

it to bring people to the site.

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I hope I'm making sense.

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So you have to look at the account

holistically because campaigns, they

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do interact with each other, right?

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what do you mean?

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Don't even get me started on brand because

we added a brand campaign, which is

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helping as well because of attribution

and if anything, this campaign is taking

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attribution away from the other campaigns.

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Actually, I think if this brand campaign

didn't exist, then the performance on

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this campaign would be even higher than

50 percent increase, because it's probably

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that the algorithms now attributing some

of the conversions to brand if the last.

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Click that came through was someone

searching for the business name,

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even though they interacted with a

PMAX campaign, a product ad first.

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I'm curious see something.

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just as I suspected you guys.

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Okay.

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So cost per click on the all

products campaign is only a dollar.

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Whereas in the high margin best

selling campaign, it's a 1.

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45.

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That is a lot of money

compared to a dollar, right?

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That's closer to double than anything.

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this kind of confirms my suspicion

that this campaign is doing a great job.

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Of getting some people that think

they want to lower price products.

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They come to the site.

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They start looking around and those best

selling products are sitting right there.

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Right now.

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We can remarket to them in the

full P max with the high margin

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products that they just looked at.

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Try to get them back in.

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Let's see if the conversion

rate went up on that campaign.

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Oh my gosh.

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Curve conversion rate went up 227%.

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So that's definitely what's happening.

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, so 0.6% conversion rate up

to a 2.02 conversion rate.

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And again, it's from this campaign

feeding cheap leads that can then

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be upsold into this campaign.

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So don't underestimate the power of.

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Yes, focusing on your high margin

campaigns, but still letting the

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rest of your store be promoted.

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And have remarketing going for all

products, you guys, because if someone

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views a product, you definitely want

to show them that product and have

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it follow them around the internet.

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It will increase the conversion

rate like crazy, like we just saw

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and average order value, which I

mentioned earlier in the video, went

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up 8 percent on the existing full P

max high margin bestsellers campaign.

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Why?

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Because of those that

upsell opportunity, right?

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It's because people are coming in looking

for the product that they thought they

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wanted to buy being upsold to another

product, which, looks like oftentimes

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it is those best selling products.

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So lesson learned don't

restrict your ads.

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Even though you do still want to

focus on your favorite products

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when your budget is limited.

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Now, someday if you have a hundred

thousand dollars a month, 200, 000 a

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month and your budget, you can just go

hard on all the products and you don't

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have to worry about splitting campaigns

or focusing on one over the other because

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the algorithm is just going to figure

out what's, what works at that velocity.

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Everything's easy.

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It's when you have smaller budgets

that things are hard and you have

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to come up with secret hacks and

workarounds to try to get the algorithm

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to do what you want it to do because

it just doesn't have the data that

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it needs to make decisions for you.

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That's that.

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Thanks for watching.

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I hope this has been informative.

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If you liked the video, don't

forget to hit and subscribe

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and I'll talk to you later.

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