How We Created an AdWords Campaign with a 400% ROI for a Dropshipping Store: Detailed Guide

December 12, 2016 Category: Case studies
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adwords

What is the key factor of a webstore’s success? It is certainly the traffic, especially the quality traffic providing high conversions. Promoting our own stores, we try to test all possible traffic sources, and then focus on those that convert better.

We’ve been testing Google AdWords for a long time figuring out an optimal strategy, and after trying hundreds of keywords, ads and budgeting variants, we finally came to an extremely effective strategy with a 400% ROI which is a great result for this traffic source.

Today we are pleased to share this strategy and give all the details:

The work was done in two steps:

  1. Search campaign
  2. Remarketing campaigns

SEARCH CAMPAIGN

Ad groups and keywords

Before setting the campaign we carried out an analysis: what webstore items are the most popular and frequently sold. Google Analytics had already been installed on the website, so we could easily define the most visited pages and figure out the bestsellers – product pages with maximum conversions.

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The following items were chosen:

Keywords were selected for each bestseller and united into ad groups. For example, several groups were formed for this item: https://worldofharry.com/harry-potter-hogwarts-scarf.

Keywords for the “Hogwarts Scarf” group:

 

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Keywords for the “Gryffindor Scarf” group:

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Etc.

For the items with few keywords only one ad group was created.

 

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Ads

Two ad templates were written for each item:

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Quite soon it became obvious that CTR grows significantly if a discount rate is indicated in the headline, so only the first template was left.

 

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We duplicated the items names (the keywords) in the Path field, so that they were highlighted in the ad text to draw more attention.

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We added extensions for the whole campaign:

Additional links: 

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Refinements:

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Results

After a time we analyzed the ad groups performance and switched off the ones with low CTR and poor conversions. Finally we kept only items, keywords and ads that provided the highest sales from this advertizing channel.

REMARKETING CAMPAIGNS

Along with the search campaign we set the following Audiences in Google Analytics:

Visitors who’ve spent 30+ seconds on the website

Visitors who’ve spent 20+ seconds on the pages of the specified items

 

Separate remarketing campaigns were created for both Audiences (for the whole webstore and for the bestsellers).

Ads

Text ads and banners for graphic ads were created for every remarketing campaign.

A text ad for the whole website looked as follows:

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These text ads were copied from the relevant search campaigns:

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Banners for graphic ads were created in 8 sizes: 468*60, 160*600, 336*280, 250*250, 120*600, 300*250, 200*200, 728*90.

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All banners included the following:

  • Image (the product or the movie heroes)
  • Discount rate
  • Item price (for the banners with specific products)
  • “Shop now” button
  • Webstore name (otherwise Google would not approve the ad)

The most popular graphic ad format is 300*250 – it brings maximum conversions. Text ad format is the second in the list.

 

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Since the remarketing has shown the best effect (3 sales in the very first day), now we gradually add such campaigns for all the webstore’s popular products.

Results

We discovered a great potential of Google Adwords that we’d underestimated before. It’s not an easy or cheap traffic source, but it turns really effective when smartly used.

At the moment the cost per click (search campaign) comprises around $0,14 which is a very low price taking into account that we target people searching Google for a particular product and that we indicate the product price right in the ads. It is low click cost combined with thorough targeting that makes it possible to pay our AdWords expenses four times.

We hope this example will help you in your dropshipping business experience and you’ll share your own success story with us.

Download our free Guide to learn more about starting and running a successful dropshipping business!

 

5 Comments
ZbigniewO December 12, 2016 11:48:32

First ! 🙂

Thank You for such a great guide ! I’ll let You know about my resoults 🙂

Stew December 15, 2016 13:06:17

Thanks for sharing! Not that familiar with Adwords – do you target a specific country?

    yaros December 16, 2016 6:00:55

    We target all countries except China, Taiwan, India.

craig guthrie January 9, 2017 12:54:03

why hide the cpc?

    yaros January 10, 2017 4:49:12

    In order to avoid competition for these particular keywords.

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