How We Doubled Revenue in Two Months by Switching From Performance Max to Standard Shopping

[00:00:11] Carmen: Hi, everyone. My name is Carmen. I am a senior client manager here at Solutions 8. And today I wanted to share with you the strategy that we used to move from performance max to standard shopping campaigns and how that doubled our client's revenue in just under two months. it.

[00:00:29] Carmen: Just to give you a bit of context in terms of our client, they sell pushchairs or strollers, buggies for infants or toddlers. in the UK market. It is a very competitive market because there are a lot of retailers who sell the exact same product. We were running a performance max campaign for them in 2023, and with performance max campaigns, there is, very little control in terms of how we can optimize the campaign.

[00:00:59] Carmen: So at the end of November 2023, we decided to switch over for Performance Max campaigns to Standard Shopping. these are the different product categories that we broke out the Standard Shopping campaigns into. This gives us better control over the search terms because now each one of these Standard Shopping campaigns have their own unique search terms.

[00:01:24] Carmen: we can also control the budget that's being allocated to each one of these products. So sometimes the client will tell us, hey, we actually have a lot of stock for this particular product. Can you help us increase the budget for this particular set of shopping campaign? With the Performance Max campaign, we were never able to do that.

[00:01:45] Carmen: that's one additional thing that we were able to have more control over. So it took around two months for the campaigns to really pick up. So we made the change again in November, 2023, December 1st to the 31st, we spent 5, 500 approximately, and the revenue was 27, 000. divided by the five five, zero zero, is already a 4.

[00:02:11] Carmen: 92. Previously this client we've been really just seeing the MER at around a 3 to 4x. The client's goal is to hit a 5. 5x MER overall. So with the switch from the performance max campaign to standard shopping, we already saw an improvement in just the first month of December. what really happened was in January, as the Standard Shopping campaigns started to learn more, we doubled the revenue here.

[00:02:41] Carmen: 108 percent compared to December. So we doubled the revenue and also the MERF of the campaigns. 56, 000 here divided by, again, the same time frame. is divided by 7. 48, which is the cost of our ad spend. And this client is not doing any other, marketing. It's just Google ads for paid media and overall marketing strategy.

[00:03:09] Carmen: So hit a 7. 5 on Google, 7. 5 Mer overall. So doubled the revenue for the client. And also was hitting a 7. 5 MER since we switched over from doing a performance max campaign to standard shopping campaigns, breaking it out into individual product categories, having more control over the spend, the search terms that were coming through.

[00:03:37] Carmen: we not only switched over for performance max to center shopping, but we also decided to focus on one key thing that helps differentiate the client from competitors. as I mentioned, this client is a retailer for push chairs and strollers for infants.

[00:03:53] Carmen: There's not much differentiation between the different competitors that are in the landscape, but what's different? about what our client offers is that they offer refurbished products. So refurbished products are those products that, come back. So people, clients return, customers return them to my client and the client can then discount the product itself and sell it at a lower, lower price point.

[00:04:19] Carmen: there's really not much differentiation between the different retailers selling it. Seeing in the standard shopping campaigns when someone searches up this product and seeing that, hey, there's this one particular product that is much cheaper compared to others, it doesn't matter that it's a refurbished product, because people are going to be interested.

[00:04:41] Carmen: they'll click into it and potentially purchase another product that could be even a full price product on Amazon. inside of the website after they've made it in. But the fact is that we were able to get them into our website, and then they started checking out our website, and potentially didn't just buy the refurbished product, but actually went on to buy a full priced item.

[00:05:04] Carmen: in this example here, the product here was 945. So that's what attracted them and it's a refurbished product. That's what attracted the people to click onto the ad.

[00:05:13] Carmen: But once they came onto the site, they didn't actually just purchase this product. They actually went and purchased a full priced item. This is the value per conversion, once they came to our site, they saw the refurbished product. They're like, okay, cool. And then they ventured around and they ended up in the end, purchasing a different product, a full price item.

[00:05:34] Carmen: This is one example. Another example right here is again. People clicked onto the refurbished campaign, saw the cheaper refurbished product, and then when they came onto our site, they didn't purchase the refurbished product, they actually went on to buy the full price item. the refurbished standard shopping campaign is a really great strategy that, We've utilized for this client to have a differentiation compared to our competitors where there's not much, competitive advantage that can be seen just by showing the product.

[00:06:09] Carmen: So price differentiation was a great factor for us to have that leverage compared to other retailers. these are the two strategies that we used for our client. First, switching over from performance max to center shopping campaigns, and then also figuring out the one key factor that gave a competitive advantage to our client that helped them to double their revenue and also increase their MER.

[00:06:39] Carmen: In just two months. Hope this was helpful. let me know in the comments if there's any questions and happy to jump into it. Thank you.

[00:06:47] Carmen: