The Boost Team started by identifying the products with highest ROI. Each of these profitable products were given their own ad groups, and we ended up with over 2,200 ad groups in total.
Here are the main focus points our team leveraged to elevate the return on ad spend and profitability of a company by dividing products into discrete ad groups – Product Profitability: The core objective of a return on ad spend is to increase company profitability. Mindlessly increasing ROAS by targeting popular products is easy. But doing this comes at a cost, specifically as a dip in the profitability of the company. We analyzed the products on offer and found the ones that had the highest margins to ensure we could increase ROAS sustainably, while improving company profitability at the same time.
Product Attributes: A study of product attributes revealed a correlation between specific types of queries and indecisive behavior by users. Since these potential customers didn’t seem to have an exact product in mind, we could point them to related products within the confines of the searched category; a product that featured high enough margins to boost profitability.
Search Queries: We noticed an interchangeable conversion rate for certain search queries. Since such SKUs could be grouped together, we categorized queries by the attributes searched, such as brand name, model number, etc. This grouping allowed us to lower ad spends without affecting the conversion rate in any way.
Campaign Budget Allocation: Once an ad campaign is successfully optimized and expanded, budget allocations can be made using the key metrics of ROAS. But since we don’t have these metrics during the optimization process, we kept a close eye on the campaign budget to ensure that it remains under control throughout.