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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Hey, everyone.
2
:Regina here from Starter PPC.
3
:This is one of our newest clients.
4
:They just went live about three
weeks ago, and we can already see
5
:that the performance has gone way up.
6
:I don't have their media efficiency
ratio yet for their total business.
7
:So I can't tell you with Certainty
what they're getting as far as
8
:returns as a whole, but inside of the
dashboard in Google ads, I can already
9
:see that the return on ad spend is
reporting an 83 percent increase.
10
:Okay.
11
:That's a really big
increase to have overnight.
12
:And, the way that we achieved this we
took over one of their campaigns, but
13
:we launched another campaign that's
helping that campaign to, succeed.
14
:This ties right back to the whole question
of what do you do when your budget is
15
:extremely limited and you know that you
can't just promote all your products, but
16
:you also know that if you just promote
a few of your products, you're hurting
17
:the performance as far as, remarketing
and you're leaving opportunities on the
18
:table that could be wildly profitable.
19
:this is going to be a happy medium
between, Focusing on your high
20
:margin, best selling products and,
promoting your entire store as a whole.
21
:So it's some happy medium, in between
because our budget is too limited to
22
:promote all the products as a whole.
23
:If you want to promote all your
products in your store, you
24
:have to make sure that you have.
25
:Such a velocity of sales that the
Google algorithm can afford to take
26
:good chunk of your budget, put it
towards, testing products that haven't
27
:been shown yet, or I haven't found
their little niche pocket that's gonna
28
:work for that product and get enough
clicks on each of its tests that it's
29
:able to build its knowledge, right?
30
:But if you only have, depending on
how much your cost per clicks are,
31
:if you only have a few clicks a
day, it's not smart to just throw
32
:all your products at the algorithm.
33
:but then you have the
opposite problem, right?
34
:Where you're just, restrict
your Promotion your ads to just
35
:your favorite five products.
36
:And the reason why this isn't ideal
is because there's a lot of reasons.
37
:Let me see if I can send this up.
38
:One reason might be that people
who are searching for those five
39
:products and then go to the store.
40
:Decide not to buy that product.
41
:They want something else.
42
:And it might take them a few days
to actually make this sale, right?
43
:Most businesses, does take a
few days for people to decide to
44
:actually come back and purchase.
45
:And since you don't have the other
products being promoted, the other
46
:products that they looked at while they
were on the store, you're not doing any
47
:remarketing on the products that they
ended up actually being interested in.
48
:Okay.
49
:Another reason is you could find that.
50
:out of all your other products.
51
:There's one that gets really good
cheap impulse clicks to the site.
52
:And then from there, people are
upselling and buying your highest
53
:margin best selling product, right?
54
:because you don't know which product that
is, and you're not promoting that product.
55
:You're just not getting enough traffic
to the site that can then be upsold
56
:because people might not be searching
it in a high amount of people for that.
57
:for your top five products.
58
:Usually those tend to be highly
competitive products as well.
59
:So this is a great strategy
for someone with a limited budget.
60
:Let me just pause and say, even
though I'm using e commerce as an
61
:example here, this same concept
would apply to a lead gen business.
62
:Who's also limited by budget, right?
63
:So let's say you have three services,
but one of them is the most profitable.
64
:You would apply this same strategy.
65
:So you're going to focus on that
service while also still promoting the
66
:other two services with a lower budget
in a more restrictive way to make
67
:sure that the performance is there.
68
:let me minimize my face and I'll
show you guys in around the account.
69
:this is a success story basically
because we took over the account and
70
:we're immediately seeing increases.
71
:we Love it when that happens.
72
:So here you can see this square
says starter PPC takes over
73
:management the week of July 27th.
74
:We have return on ad spend in blue and
we have cost in red and you can see
75
:the cost didn't really change much.
76
:I'm gonna compare date ranges in a second
so you can see exactly how much the
77
:cost changed, how much the ROAS changed.
78
:But the ROAS went way up.
79
:Okay, now how do we do this?
80
:Let's take a look.
81
:We took over management on July 26th.
82
:So I'm going to go July 26th until,
let's do yesterday, whole days, and
83
:then we'll compare it to the previous
period of equal amounts of days.
84
:Okay, compared to not.
85
:Stick.
86
:Let's try again.
87
:So first of all, we can
see cost went up only 6%.
88
:So basically cost stayed the same.
89
:I always start by looking at
costs because when you change
90
:the spend that has the biggest
influence on the performance of the
91
:ads than anything else you could do.
92
:That and like seasonality or like
major website redesigns, right?
93
:Those are like usually.
94
:Those will affect the performance
more than any change we could
95
:make, like adding a new campaign
or adjusting the bid strategy.
96
:So cost and change, which is good.
97
:It makes it a little
easier for us to look at.
98
:roas as I mentioned, went up
83% went up from 2 48 to 2 55.
99
:And by the way, in case you guys
are wondering, this is an e-commerce
100
:business that sells B2C products.
101
:let's see, have an average
order value of about.
102
:Hi there.
103
:Quick interruption.
104
:Do you know the main thing that
prevents small business owners from
105
:getting their Google ads account
into a position to grow and scale?
106
:Budget.
107
:A lot of businesses, especially
those that are just starting
108
:out, have limited budgets.
109
:And so because of this, they're turned
away by most ad agencies because most ad
110
:agencies have minimum budget thresholds
that they're willing to work with.
111
:So what happens is the business owners
end up learning Google ads themselves.
112
:And the problem with that is
that most of the advice online is
113
:geared towards larger accounts.
114
:And the advice doesn't have any of those
strategies or tricks that can kickstart
115
:the algorithm into giving a small
account a leg up over larger competitors.
116
:So it often just doesn't work.
117
:And the business just ends up
losing money month over month.
118
:If this sounds familiar,
starter PPC can help.
119
:We offer Google ads management services
that are designed for accounts that
120
:have between 1000 and 5, 000 budgets.
121
:Because all of our clients are just
starting out, we've come up with
122
:ways to keep our management fees
significantly lower than most agencies.
123
:Because we know that every dollar saved
on management fees just goes towards
124
:the ad budget, which is going to help
the algorithm gather speed and power.
125
:So if you're serious about growing your
business and you'd like a team of Google
126
:ads experts to help you without breaking
the bank, check us out at starterpbc.
127
:com.
128
:Okay.
129
:Back to the video.
130
:188, 145.
131
:Oh, interesting.
132
:Average order value
went up 29 percent too.
133
:Interesting.
134
:I don't exactly know what caused
that, but we could theorize.
135
:Let's come back to that.
136
:Okay.
137
:So this campaign here, this is
a full PMax campaign, which means
138
:it's a performance max campaign
that has assets in it, right?
139
:It has, we've given it all the ad copy.
140
:We've given it as many images
that we can lifestyle images,
141
:ideally not just product images.
142
:Yes, it has the product feed
of course, except we've Oh, and
143
:we've given it some videos too.
144
:The thing about this campaign is
that it's a high margin products or
145
:best selling products only campaign.
146
:Now this was true, even when the
clients came to us, we actually
147
:basically just took this campaign
over and renamed it in our name.
148
:We didn't make too many changes to it.
149
:Okay.
150
:I think we added one or two products
based on feedback we got from the
151
:client, but, we did not change too much.
152
:We might've swapped out a few headlines
if we found some that our copywriters
153
:wrote that we liked better, but
nothing that's going to cause nominal
154
:changes, nothing that you can see.
155
:nOw when the client came to us, they said,
we only want to promote these products.
156
:These are the ones that
are most profitable for us.
157
:And they knew their budget
was very restricted, right?
158
:Let's see their monthly spend
their monthly budget is 4, 100.
159
:Dollars.
160
:U.
161
:S.
162
:Dollars.
163
:We said to them what we would like to
experiment with is promoting all the
164
:products except with a restrictive budget
on the non high margin non best sellers.
165
:So what we did is we
set up a P max campaign.
166
:That's feed only.
167
:So this is essentially,
this is a campaign.
168
:All it has is the product feed.
169
:It's like a smart shopping campaign
because we haven't given it any Ad
170
:copy, we haven't given it any images.
171
:All it has is the images
from the feed, right?
172
:So it can do shopping ads or it
can do display remarketing using the
173
:shopping, using the product information
only like title and product image and
174
:description, but it can't do much else.
175
:And what we've done is
we've restricted it, right?
176
:So 79 78 a day on the high margin
campaign, but still 30 a day on
177
:the feed only campaign and What I
think is interesting is, so here
178
:you can see, this campaign got
started this feed only all products.
179
:Actually, I think this campaign
has all products except for
180
:the high margin products.
181
:So we basically split the products
into two different campaigns.
182
:Feed only with restricted budget and
then so here we've started spending
183
:money on the feed only campaign.
184
:We actually spent a tiny bit less on
the full PMAX, but not a huge change
185
:in budget, only 9 percent less.
186
:And that was just to make room
for some of the other campaigns.
187
:And here's what I find interesting is.
188
:Not only is the feed only campaign
bringing in a 400 percent return almost,
189
:which is crazy high, you guys, but
usually that happens when you have a
190
:very restricted budget on a bunch of
products, what happens is the algorithm
191
:finds it to be very easy to just scoop
up the bottom of the barrel and get
192
:some conversions and get a high return.
193
:It does not mean.
194
:You should increase the budget
in that campaign, right?
195
:You can try incrementally increasing
it, but just because it's getting a
196
:high return doesn't mean it's going
to continue getting a high return.
197
:When you start to increase, we
start throwing budget at it.
198
:I would recommend no more than a 20
percent month over month increase on
199
:this campaign, as well as all campaigns.
200
:okAy, here's the part
where I find interesting.
201
:I keep coming back to this, the P
max High margin bestsellers campaign.
202
:performance here went up, right?
203
:So ROAS went up by 50
percent in this campaign.
204
:Why is this?
205
:It's because they feed
off of each other, right?
206
:So this campaign now has
207
:users on the website viewing
the bestselling products.
208
:Even though the people that clicked
on ads to get there, many of them
209
:were looking at other products,
maybe lower priced products,
210
:less competitive products, right?
211
:Products in the all the, in the
ads that we don't really want to
212
:be pushing, but we want to use
it to bring people to the site.
213
:I hope I'm making sense.
214
:So you have to look at the account
holistically because campaigns, they
215
:do interact with each other, right?
216
:what do you mean?
217
:Don't even get me started on brand because
we added a brand campaign, which is
218
:helping as well because of attribution
and if anything, this campaign is taking
219
:attribution away from the other campaigns.
220
:Actually, I think if this brand campaign
didn't exist, then the performance on
221
:this campaign would be even higher than
50 percent increase, because it's probably
222
:that the algorithms now attributing some
of the conversions to brand if the last.
223
:Click that came through was someone
searching for the business name,
224
:even though they interacted with a
PMAX campaign, a product ad first.
225
:I'm curious see something.
226
:just as I suspected you guys.
227
:Okay.
228
:So cost per click on the all
products campaign is only a dollar.
229
:Whereas in the high margin best
selling campaign, it's a 1.
230
:45.
231
:That is a lot of money
compared to a dollar, right?
232
:That's closer to double than anything.
233
:this kind of confirms my suspicion
that this campaign is doing a great job.
234
:Of getting some people that think
they want to lower price products.
235
:They come to the site.
236
:They start looking around and those best
selling products are sitting right there.
237
:Right now.
238
:We can remarket to them in the
full P max with the high margin
239
:products that they just looked at.
240
:Try to get them back in.
241
:Let's see if the conversion
rate went up on that campaign.
242
:Oh my gosh.
243
:Curve conversion rate went up 227%.
244
:So that's definitely what's happening.
245
:, so 0.6% conversion rate up
to a 2.02 conversion rate.
246
:And again, it's from this campaign
feeding cheap leads that can then
247
:be upsold into this campaign.
248
:So don't underestimate the power of.
249
:Yes, focusing on your high margin
campaigns, but still letting the
250
:rest of your store be promoted.
251
:And have remarketing going for all
products, you guys, because if someone
252
:views a product, you definitely want
to show them that product and have
253
:it follow them around the internet.
254
:It will increase the conversion
rate like crazy, like we just saw
255
:and average order value, which I
mentioned earlier in the video, went
256
:up 8 percent on the existing full P
max high margin bestsellers campaign.
257
:Why?
258
:Because of those that
upsell opportunity, right?
259
:It's because people are coming in looking
for the product that they thought they
260
:wanted to buy being upsold to another
product, which, looks like oftentimes
261
:it is those best selling products.
262
:So lesson learned don't
restrict your ads.
263
:Even though you do still want to
focus on your favorite products
264
:when your budget is limited.
265
:Now, someday if you have a hundred
thousand dollars a month, 200, 000 a
266
:month and your budget, you can just go
hard on all the products and you don't
267
:have to worry about splitting campaigns
or focusing on one over the other because
268
:the algorithm is just going to figure
out what's, what works at that velocity.
269
:Everything's easy.
270
:It's when you have smaller budgets
that things are hard and you have
271
:to come up with secret hacks and
workarounds to try to get the algorithm
272
:to do what you want it to do because
it just doesn't have the data that
273
:it needs to make decisions for you.
274
:That's that.
275
:Thanks for watching.
276
:I hope this has been informative.
277
:If you liked the video, don't
forget to hit and subscribe
278
:and I'll talk to you later.