This case study showcases how a Google Ads Performance Max campaign and enhanced sales tracking boosted e-commerce conversions by 251%.
Introduction
The partner is an e-commerce company with over 7 years of experience, Arta Tradiției, in the market. They specialize in selling personalized gifts and decorations for important life events such as weddings, christenings, birthdays, and specific holidays.
The website required the proper implementation of Consent Mode v2, accurate sales tracking in Google Analytics 4 & Google Ads, and a restructuring of the Google Ads campaigns, as their budget was being spent with no measurable return.
After 2 weeks, Consent Mode v2 was activated, the tracking for both platforms was properly set up, and a Google Ads Performance Max Campaign was running smoothly.
The Challenge
Challenges in E-commerce Sales Tracking
The sales tracking was not properly set up, which led to incorrect attribution of conversions to their source – in this case, Google Ads. As a result, the budget was inefficiently spent, making it impossible to set a realistic Cost per Acquisition (CPA) or choose a consistent bidding strategy.
Discover the setups for monitoring e-commerce sales here.
Problems with Existing Google Ads Strategy
Solution
Consent Mode v2
Using a recommended CMP by Google, Consent Mode v2 was set on the website, providing the user a better understanding of how their data was being used.
Google Merchant Center
The Google Merchant Center account was configured to receive new data, such as Product Type so we can create Performance Max or Shopping campaigns to promote products from specific categories.
Improving Sales Tracking
At the heart of enhancing sales tracking are data layers. Once they are populated, we can transmit the relevant e-commerce data to GA4 or GAds, including transaction ID, value, currency, email, phone number, and address.
The following steps were taken to improve our website analytics and user behavior understanding:
- We used Google Tag Manager to push important data into the data layers.
- A Google Analytics 4 Key Event was created.
- Using Google Tag Manager:
- The conversion action was set up in Google Ads for future sales campaigns.
- The setup for Enhanced Conversions for Google Ads has been completed.
- The Dynamic Marketing for Remarketing setup was done.
- Hotjar was implemented on the website to gain better insight into user behavior.
Google Ads Performance Max Campaign Creation
The Google Ads account was audited, and the previous results were analyzed along with the data from Google Search Console and Google Analytics. The WooCommerce data was also analyzed and compared to existing data to determine the source of previous conversions.
The headlines and descriptions were created by analyzing user behavior on the site and search behavior shown by internal search and Google Search console.
The Google Ads strategy focused on Performance Max campaigns, promoting categories of products, and analyzing their performance based on their seasonality. A fair amount of products perform better in certain months or periods. (ex. Wedding gifts and decorations)
Results and Impact
The results were analyzed by comparing the performance one month before implementing all the mentioned setups and one month after, with ongoing monthly analysis. As mentioned earlier, it was not possible to obtain data on conversions from Google Ads for the month before the collaboration, as the tracking was not set up and the catalog created in Google Merchant Center was not used in the campaigns.
Therefore, the values for the previous month were derived from a correlation between Google Analytics and WooCommerce.
- 37.5% decrease in daily budget
- 251.43% increase in the number of conversions after the first month
- 82.08% decrease in Cost per Acquisition
- 1625.27% Return on Ad Spend (ROAS) after the first month, a 414.90% increase compared to the month before
Key Takeaways
- Improved Tracking Boosts Efficiency: Implementing Consent Mode v2 and properly setting up Google Analytics 4 and Google Ads tracking allowed for precise attribution of conversions, which was critical in optimizing ad spend. This led to a significant 82.08% decrease in Cost per Acquisition and a drastic improvement in sales tracking accuracy.
- Restructured Google Ads Strategy Drives Performance: The restructuring of the Google Ads campaigns, focusing on Performance Max and product category segmentation, led to a more targeted approach. This resulted in a 251.43% increase in conversions after the first month, even with a 37.5% decrease in daily budget.
- Data-Driven Decision Making: By integrating insights from Google Search Console, Google Analytics, and WooCommerce, we develop an effective strategy tailored to the seasonal performance of product categories. This drove a 1625.27% ROAS after the first month, a 414.90% increase compared to the prior month.
- Implementing tools like Hotjar for user behavior analysis provided deeper insights into customer journeys, allowing for further refinement of marketing strategies and improving the user experience on the site.
Conclusion
Strategic adjustments in tracking, data analysis, and ad campaign structure can significantly improve the performance of an e-commerce company. Key factors in the success of this project included the integration of Consent Mode v2, improved sales tracking through Google Analytics 4, and the use of Google Ads Performance Max campaigns.
These efforts not only streamlined the ad budget but also led to measurable improvements in conversion volume and a dramatic increase in ROAS. By continuously analyzing data from Google Ads Performance Max, WooCommerce, and user behavior tools, this e-commerce company has set itself up for sustained success with a scalable and efficient advertising model.
If you have an e-commerce and want to achieve similar results with Google Ads, feel free to reach out to me here.
Flavia Groza-Bocăneț
