Limiting Google Ads Search Budget Increases E-Commerce Revenue By 273%
CHALLENGE
A large, multi-location furniture retailer in the Northeast had been running paid search ads for years, but recently started to see a decline in new customers in store and online. After Phelps Digital provided a thorough audit of the clients Google Ads strategy, it was clear that a huge amount of budget was going towards their brand name in all ad groups. When we tallied it up, nearly 45% of a 6-figure yearly budget was being spent on branded terms. Phelps understands there is a positive correlation between users searching for your brand name and existing customers (not new!) so this was our main focus.
SOLUTION
Phelps Digital recommends any branded searches are capped at 10% of the total budget to help facilitate search appearances to users who might not be as familiar with the furniture retailer. In this instance, scaling down from 45% to 10% in one move is a huge jump that could cause some larger issues with the Google Ads account. Due to this, Phelps worked with the clients provider to establish a tiered scale down over the course of 4 weeks. Once the branded terms were capped, 35% of that old budget was redistributed to furniture and mattress campaigns to help support a pre-existing limited budget issue and allowing the clients ads to be shown to a wider range on non-brand search queries.
RESULTS
After those 4 weeks had passed, Phelps came back to assets the month over month return on the recommendations made to the clients paid search provider. They were thrilled with what Phelps found. Paid search campaigns resulted in a 25% increase in new users to the website, a 35% increase in conversions, and a 120% increase in e-commerce revenue. In addition, the clients organic listings were also getting better placement and more click volume since the number of branded paid ads had decreased. These organic listings being able to perform resulted in a 50% increase in new users, 51% increase in conversions, and a 273% increase in total e-commerce revenue.
