cases-baner

industry

Online Household Appliances Store

marketing budget

$5,000

business challenge

The cost per lead (CPL) is equal to the average cost per order (CPO), therefore, the advertising does not pay off

Main concerns

First Problem

The cost per lead (CPL) is comparable to the cost of their products. Therefore, their advertising campaigns do not pay off.

Solution

Use Roistat's analytics report. We see that the category "Air Conditioners" has a high CPL. So we just reduce bids on this category. As a result, the CPL is lower, but the conversion stays the same, so therefore a positive ROI is achieved.

Second Problem

A lot of clicks, but no orders. Non-target audience clicks on the ad campaigns and therefore wasting advertising money.

Solution

Generate a report by keywords in Roistat. Then make bids on ad groups with the lowest number of orders lower. For those keywords that bring orders increase bids. As a result, the budget remains the same while the effectiveness of advertising has been increased.

Third Problem

Paid traffic is being placed in all regions while there are regions with no orders. Therefore, some of the advertising budget is being spent inefficiently.

Solution

First, build a report in Roistat by region. Then identify regions with a negative ROI and make bids lower for those regions. Bids for profitable regions, however, should be increased.

Fourth Problem

During the non-working hours, the number of clicks on advertising remains the same, while the number of sales orders is significantly reduced.

Solution

In the time report, we see that the cost per offer (CPO) during off-hours is higher due to the low conversion (CV2) and high cost per clicks (CPC). Therefore, bids should be lowered for the period of time when it is not profitable to run paid ad campaigns. Also, priority for sales managers to process such requests should be increased. As a result, the conversion rate and sales increase.

By using Roistat just for 2 months our customer:

ROI: from 2,078% to 4,413%

Increased return on investment (ROI) from 2,078% to 4,413 %

Advertising budget: -50%

Cut advertising budget in half

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