Google Adwords Case Study
This Client provides an online service with products that sell for between £10-£30.
The maximum cost that they can afford to spend on acquiring a new customer was established at £5 .
Client had been self managing a number of PPC Overture and Adwords campaigns with many product groups. Monthly Click spend was over £12,000. The client had started with an Overture campaign which was definitely profitable, however he was having trouble with the Adwords campaigns and suspected they were unprofitable but was at a loss about what to do.
We agreed to take over the entire Adwords Campaign management of one of his website for a 3 month trial campaign. The remainder would be managed in house or by other PPC professionals. This would enable the client to assess how well we performed.
Work started at the beginning of February 2005. We immediately installed conversion tracking but made few other changes apart from tidying the campaign structure for easier management. Ads and keywords were left untouched. The account was then tracked through February using our web site statistics package while research was performed on the competitors and the market in readiness for the next step. The fig1 Shows the campaign we are managing, highlighted in Pink with a conversion cost of £14.71 The bottom Total is across all campaigns including those managed by others.
It was immediately apparent that the cost per conversion was unprofitable. This can be seen in this February screen shot showing the campaign at the end of February 2005.
We immediately restructured the entire campaign and started to manage for a conversion cost under £5, while maintaining the same volume of sales. Comparing the February figures with the March 2005 figures fig2. You can see below (green highlight) that we have maintained the average sales per day at 14 while reducing the conversion cost to £3.62 spending a staggering £4000 LESS in click costs.
This saving has paid for Webwordz 3 month campaign management fees many times over in less than two months. Cost of sales are now a healthy £3.62 each.
You can also see how the other campaigns for which we are not responsible, have not improved significantly.
The next phase will be to increase the sales volume while staying below the £5 cost per conversion budget.
As you can imagine our client is ecstatic.
If you would like us to manage your campaign - or create a new one - contact us for a no obligation quotation on 01782 450682.
