AliDropship Blog

Get marketing tips, tricks and dropshipping inspiration right into your inbox!
Sign up today not to miss out a single post:
Case studies

How To Increase ROI Of A Google Ads Campaign Launched For A Dropshipping Store

By

A Perfect AdWords ROI Campaign for a Dropshipping Store

When a dropshipper needs to measure the effectiveness of advertising campaigns, one of the main metrics is ROI (return on investment). Google Ads ROI is a figure showing the profit you’ve made from your ads compared to the amount of money you’ve spent on them. To calculate ROI, take the revenue from your ads, subtract your overall costs, and divide the difference by your overall costs.

So, ROI formula is the following: ROI = (Revenue – Cost of goods sold) / Cost of goods sold.

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 dropshipping stores, we try to test all possible traffic sources, and then focus on those that convert better.

We’ve been testing Google Ads 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 in Google Ads which is a great result for this traffic source.

Today we are pleased to share this “Huge ROI” Google Ads strategy and give all the details:

The work was done in two steps:

  1. Search campaign
  2. Remarketing campaigns

How to increase ROI with Google Ads Search Campaign

Finding Keywords and creating Ad groups in Google Ads

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.

A Perfect AdWords ROI Campaign for a Dropshipping Store

Using the Keyword Planner, we’ve picked the appropriate keywords for each of these pages. These keywords will be used as the basis for the future advertisements.

Also, we’ve opened the Organic Search report in Google Analytics, and picked the most popular keywords that commonly attract the Internet users to our website:A Perfect AdWords ROI Campaign for a Dropshipping Store

Then, we’ve distributed all the selected keywords between several Campaigns and Ads Groups.

We used the following principles: “one item – one Ads Group” and “one Campaign – several related Ads Groups”, for example:

Keywords for the “Gryffindor Scarf” ads group:

 A Perfect AdWords ROI Campaign for a Dropshipping Store

As the result, we got more than 10 Ads groups in 7 Campaigns:

ad group for a perfect adwords roi campaign

Creating ads for every separate group

On the next stage, we have created 2 ads types, and tried them for every item. From the experience of our team and acknowledged Google Ads users, we’ve learned that every advertisement should contain:

  • Keyword in the Headline
  • Keyword in the Description
  • Keyword in the URL
  • A discount or special offer
  • The item’s price (if possible)
  • A call to action

Here are the ads types that we have created:

Template 1

A Perfect AdWords ROI Campaign for a Dropshipping Store

Template 2A Perfect AdWords ROI Campaign for a Dropshipping Store

 

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.

A Perfect AdWords ROI Campaign for a Dropshipping Store

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

A Perfect AdWords ROI Campaign for a Dropshipping Store

We added extensions for the whole campaign:

Additional links: A Perfect AdWords ROI Campaign for a Dropshipping Store

Refinements:

A Perfect AdWords ROI Campaign for a Dropshipping Store

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 advertising channel.

How to increase Google Ads ROI with Remarketing Campaigns

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

  • Visitors who’ve spent 30+ seconds on the website
  • Visitors who’ve spent 20+ seconds on the pages of the specified items

For both Audiences were created separate remarketing campaigns in Google Ads (for the whole webstore and for the bestsellers).

Creating the ads

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

A text ad for the whole website looked as follows:

A Perfect AdWords ROI Campaign for a Dropshipping Store

These text ads were copied from the relevant search campaigns:

A Perfect AdWords ROI Campaign for a Dropshipping Store

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.

A Perfect AdWords ROI Campaign for a Dropshipping Store A Perfect AdWords ROI Campaign for a Dropshipping Store

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.

A Perfect AdWords ROI Campaign for a Dropshipping Store

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.

How we achieved the 400% ROI of Google Ads

We discovered a great potential of Google Ads 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.

So, Ads ROI is probably the most significant marketing measurement for dropshippers since it shows the real impact of Ads for your business. 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!

By Polina B.
Polina Beletskaya, the Head of Marketing Department at AliDropship, has spent over 7 years as a strategy consultant, working with brands across the world to deliver results from their online presence.
9 Comments
ZbigniewO December 12, 2016 11:48:32

First ! 🙂

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

    MikeV. December 29, 2017 20:34:52

    Hey ZbigniewO I just read this article. It has been 1 year since you posted. What were your results? Thanks!

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.

    yaros January 10, 2017 4:49:12

    In order to avoid competition for these particular keywords.

Cai January 27, 2017 20:06:36

May I know what budget do you spend on each Search Campaign? $5/day?

Molabir May 1, 2017 16:33:25

How do you get Google to approve copyrighted / trademarked terms (Harry Potter) in your ads?

    yaros May 1, 2017 17:33:35

    We did nothing, Google just accepted these these ads.

Leave a comment