[Case Study] 85% Increase in Revenue by Using Custom Labels to Prioritize High Margin Products

Many online shops treat all products as equal, but you most likely have products that sell better than others because they have a higher profit margin.

Finding the right segment and making sure you focus your advertising budget and effort into the highest performers is a time consuming process.

That was a reality for our client who is a Nordic retailer and web shop of pregnancy tests, ovulation tests and dietary supplements. Luckily, we could automate the segmentation process with DataFeedWatch custom labels.

The Problem
The Solution
The Results
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The Problem

We were not hitting the revenue goals we wanted and were challenged by a high cost on low margin products. That lead to a low ROAS for the customer as his spend budget was being spend on products that weren't highly profitable.

The Solution

We knew that Google Shopping was the right solution for the customer, but since we didn't see the return on ad spend we wanted we were limited by budget for this campaign.

When trying to improve Google Shopping in the Google Ads interface, you only have a few options to play with such as increasing or decreasing the CPC for certain products.

However, that alone was not enough to give us the results we wanted because not all products have enough margin to be profitable. 

What we instead did was - we selected some high margin products from the product catalog that we saw had a high conversion rate and we knew were making good profit and used a custom label to map these products in the feed through DataFeedWatch.

That allowed us to automate the process of segmenting product inventory in different product groups.

By identifying high margin products and making them a high priority we were able to separate them from the rest and bid more aggressively on them.

We then also mapped GTINs and sales prices in the feed as well, the former opened up for showing ads in Googles price comparison feature while the later allowed for showing discounts on products in search results.

We finally had to rearrange our campaigns in the Google Ads interface to break down those high margin products into new campaigns. That allowed for prioritizing the campaigns differently so that we could make sure that Google was favoring the products that were highly profitable.

The Results

By labeling and prioritizing products with a high margin, we saw overall performance lifts on the client´s Shopping campaigns.
In this case we were able to increase the client´s revenue by 85% and transactions by 68%.

There was a 22% lift in conversion rate while we were able to reduce the price per click with 45%.

Overall the client was getting more value for their advertising budget which could be re-invested in getting more traffic and thus conversions from their ecommerce shop.