Shownotes
John scaled campaigns to 130% without hitting a point of diminishing returns in either the Media Efficiency Ratio (MER) or Customer Acquisition Cost (CAC). Let's explore how he achieved this impressive feat.
In this episode, John shares a quick update on the low tROAS bidding strategy. He identified an issue many of you have also been experiencing and what you can do to improve your campaigns. The predictive bidding strategy is not as efficient as we expected, resulting in higher Cost Per Click (CPC).
To overcome this challenge and maximize campaign performance, John devised a strategy centered around removing Google's algorithm from Standard Shopping. Discover John's methodology and understand how you can apply it to your own Google Ads campaigns, listen to this episode now.
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Transcripts
Hey everyone, John Moran here.
2
:And today I'm about to share
with you a quick update to my
3
:low TROAS bidding strategy.
4
:There's actually been a
issue that I've been able to
5
:isolate, identify, and correct.
6
:And it's something that I think you'd be
interested in seeing, because a lot of you
7
:have been reaching out to me on LinkedIn
through direct messages, through comments
8
:about how you've been actually even
doing some posts mentioning me about how
9
:you're using a low TROAS bidding strategy
and your standard shopping campaigns
10
:and have been seeing some good success.
11
:And I have been as well.
12
:There's the inefficiency though.
13
:It sometimes will go
really high with our CPCs.
14
:And that's simply because the
bidding strategy doesn't know
15
:too much about these people.
16
:It's the first click that they've
ever potentially have searched
17
:or first click that, have ever
interacted with Google ads.
18
:So the predictive bidding strategy
is not necessarily as efficient.
19
:So low TROAS trying to get a low TROAS is
going to bid very high to make sure that
20
:they can maximize that conversion value
within a half attributed bidding strategy.
21
:When you're talking about attribution,
so with low TRO as the byproduct of
22
:that is, is going to bid high and
because it's going to be a bit high,
23
:it only really needs to average out to
at least 40 percent or 50 percent of
24
:what your actual, return needs to be.
25
:So when you're talking about the
campaign here, for example, you'll see
26
:that I have a headband campaign that
was getting a dollar 91 average CPC.
27
:On its own, but this is all July.
28
:I got 12 clicks, 12, 11, 10,
9, 8, 7, 6, 5, 5, 5, 5, 4.
29
:And we barely broke the bottom
of the 5 CPC in the first 50.
30
:Now there's 30, 000 search terms here.
31
:And the first page is above five ish, but
I still have an average of a dollar 91.
32
:Why?
33
:With the low TRO as bidding,
it says, okay, I can spend 12.
34
:And if I make a sale, that's coming
in around 40 percent TRO as if
35
:it's a six or seven or 8 sale.
36
:It's going to be inefficient.
37
:Now, typically a person would say
why don't I just set a bid cap to
38
:do a portfolio bidding strategy?
39
:And I thought instead of doing that
why are we leaning into an algorithm
40
:that knows a little bit about
the people when they first click?
41
:Again.
42
:This is the first time they've
ever actually searched with Google.
43
:Maybe.
44
:Maybe they've been looking at some
things online, and maybe you can
45
:find the people that have been,
identified by Google's algorithm.
46
:As this is the searches that they've
been doing on Google, or this is certain,
47
:not search, this is a search that they
may have done on YouTube, or they've
48
:may been looking at some blogs, or
they may been reading some articles,
49
:or maybe looking at competitive sites.
50
:But if it's a first click
inside of Google, Google
51
:knows very little about them.
52
:And so it doesn't know where
to actually set the bid.
53
:So what's interesting about
this is if I said, let's remove
54
:the algorithm altogether.
55
:Let's just say, rather than using a half
smart algorithm because of data driven
56
:attribution, giving too much to brand and
also a half smart algorithm, because it's
57
:also the first click, what if I just focus
on search terms and focus on new volume?
58
:So we're going, we're turning
the clocks back 10 years.
59
:We're going back to max clicks with a bid
cap and why max clicks with a bid cap.
60
:I'll tell you is because when
you're looking at the average
61
:cost per click of a dollar 91, but
you're getting 12 and 10 clicks.
62
:Every one click I get at 12 would
basically be six clicks at 2.
63
:I take my average CPC and I increase it by
about 25 to 50%, or what I would do here.
64
:For example.
65
:Has taken my search terms and
let's say adding in a CPC that
66
:is above, let's say a four.
67
:What is my, what does that
look like here for example?
68
:And do I have a lot of conversions
compared to the ones that are below?
69
:Yeah, you can see that you see the
differences, 45 conversions in July.
70
:And if my CPC though is over three.
71
:Okay, so that's 2000 clicks.
72
:There's 222 clicks.
73
:It cost me a thousand dollars made 10.
74
:All right.
75
:What about, let's say 3 and 50 cents?
76
:I'm just using a really.
77
:bad example here because it's
just the one that was come up,
78
:but now I have above three 50.
79
:It's still 4.
80
:2 ROAS.
81
:Okay.
82
:So conversion rate's decent, but what's
interesting is it's not necessarily
83
:producing the majority of the results.
84
:Now multiply that with a lot of
different shopping campaigns.
85
:And then you start to see some
potentially, some opportunity.
86
:If I have, if you're following
along with my 19 different
87
:standard shopping campaigns.
88
:And if I said, what if I just took.
89
:All of the TROAS, change it into max
clicks, set the bid cap 25 to 50 percent
90
:higher than my average CPC, cut out
the really expensive fat at the top.
91
:What would that do?
92
:So I started to look through each one of
my campaigns and I looked and said, man,
93
:anything that's above two on that one,
everything's above a three on that one.
94
:They actually start to have higher
conversion rates, but way higher
95
:CPCs, much lower amount of clicks,
and then much less conversions.
96
:So there's inefficiencies there.
97
:The ROAS inside the campaign, even though
it's only, Half attributed is lower than
98
:the clicks that are coming in at sub 2.
99
:what I did is I took the
campaigns and I changed them to
100
:a maximum click bidding strategy.
101
:So now I'm on max clicks across the board.
102
:I set a bid cap at each one
of these to 2 and 15 cents and
103
:said, let's see what happens.
104
:We did that on the 8th.
105
:So the 8th through the 11th, what
you'll see here, for example.
106
:Is my cost is down 16%.
107
:My clicks are up 78 percent and
my 62 percent more conversions and
108
:56 percent more conversion value.
109
:So I was able to cut my CPA in half
and almost double my row as in the
110
:first four days, I'm like that's cool.
111
:How is my positioning still good?
112
:How my search terms are still good.
113
:Excellent.
114
:Can I scale this?
115
:If I look at the last kind of 14
days, for an example, we can see
116
:a really nice, healthy scale.
117
:The clicks are going from 1100
and 28 half conversions or quarter
118
:conversions to 6, 000 clicks, 178.
119
:What about my cost and my
conversions costing conversions
120
:are ramping up with it very well.
121
:I can scale this to a one to one.
122
:Let's take a little bit of a deeper look.
123
:Let's take a look at all
of the campaign types.
124
:Actually, I have that already here.
125
:Let's look at all of the campaign
types that are search and shopping.
126
:And then let's look at everything
here that's not this one
127
:outside of the country search.
128
:Let's filter by that campaigns.
129
:What does that arch look like?
130
:That looks pretty good here as well.
131
:It's starting to ramp up in 3, 000,
cost in 400, all the way up to 11, 679.
132
:That's interesting.
133
:So now it's scaling.
134
:If my predictions are correct though, and
I should see a majority of these people
135
:coming back through my brand campaign,
my brand should look really good.
136
:Let's check the last seven days compared
to the previous seven days here now.
137
:And if I'm checking the last seven
days compared to previous seven
138
:days, my brand campaign only spent 4
percent more, but Oh, I broke Google.
139
:That's okay.
140
:Spend 500 more.
141
:So nothing too crazy, 12, 1 to 12, 6,
but I made 32, 000 more, 146 to 180.
142
:Excellent.
143
:So for pretty much no cost, I gained
32, 000 in new branded conversions.
144
:Where are they coming from?
145
:Everyone that's engaging in my search
campaigns that are getting more ROAS,
146
:sorry, not ROAS, more convergent
value, more convergent, excellent.
147
:So what we found out.
148
:Is that the T row as bidding
strategy was over clicking?
149
:Why?
150
:It was a too small of a goal.
151
:I had to do that though, because it had
too small of attribution as a proven here.
152
:It's going to come back
through the brand campaign.
153
:And then I thought, okay well,
let's let's actually verify this.
154
:Google ads is a horrible reporting model.
155
:So let's look at a couple
other things inside of the.
156
:Lifetimely.
157
:How was my week doing this last week?
158
:I gained 25 percent more net
profits and I'm up to a quarter
159
:million in net profit last week.
160
:That's good.
161
:That's scaling up well.
162
:What about if that was Facebook though?
163
:Facebook must has to be pushing, right?
164
:Let's verify that inside of the
dashboard of Norpe, you can see Google
165
:ads is 41 percent more spend 53 port.
166
:53 percent more new visits to the
site, my true cost of acquiring a
167
:first time customer globally dropped
and inside of Google went up 0.
168
:3 percent in the last seven days.
169
:So I made 32 percent more conversion
value off of 31 percent more transactions.
170
:Again, this is multi click attributed.
171
:I'm taking all of the clicks
that already came from Facebook.
172
:Out including brand and then
seeing what this is working with.
173
:So I was able to scale this up in
the last week, 41 percent get 32%.
174
:I didn't change my CAC.
175
:My CAC stayed about the
same, which is fantastic.
176
:That's what I want.
177
:And what's nice is we're on a really nice,
good ramp up here in the last 14 days.
178
:And we're going to continue to ramp up.
179
:So this is a really nice scale.
180
:Net profits holding CAC is holding.
181
:I'm scaling up.
182
:My campaigns are becoming much, much, much
more efficient all because we wiped out.
183
:The above where I needed to be clicks and
Google's algorithms don't know enough.
184
:The single click attribution is dead.
185
:Data driven is over attributing
to my brand campaign.
186
:Fine.
187
:But then I get to see my in app standard
shopping CACs, my in app standard
188
:shopping ROAS, and then measure the
brand return search, ensuring that
189
:no one else is actually scaling.
190
:Facebook spent about the same, made 6.
191
:6 percent more.
192
:Why?
193
:It's because they're running the advantage
plus shopping campaigns that are also
194
:capturing more new visits with less.
195
:With less ad spend.
196
:So we're competing with each other
there a bit, but the ratio of new
197
:visits to visits is actually 13.
198
:5 or 13 percent higher than visits.
199
:more new cold traffic, better better
efficiencies, cutting out the fat at
200
:the top, multiply that by 19 campaigns.
201
:And the best part is now I'm going to be
able to still continue to scale this up.
202
:And if you look at the, the
cost factor since the 10th.
203
:If I just look here, for example, I was
able to take my campaigns and increase
204
:them 130 percent more in one week
without hitting a point of diminishing
205
:returns in either my MER or my CAC.
206
:Top line actually got better.
207
:Why?
208
:Because Google ads sucks at attribution.
209
:And this is all that matters is your
clients about, bottom line or top
210
:line, whatever you want to call it.
211
:Low TRO is good.
212
:There isn't, there is an inefficiency
in there, but you still can scale.
213
:By taking a deeper approach,
removing the algorithm of what Google
214
:doesn't know and leaning into good
old fashioned quality marketing.
215
:Thanks so much.
