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How a US online Liquor Retailer increased Revenue using Google Adwords by 200 percent in just 6 months

 

The following case study is about one of our clients, who is one of the best liquor and wine providers in the greater Los Angeles area. The client has been in the alcohol business for over 10 years and deals with hundreds of liquor brands and unique offerings from around the world.

Their product range includes domestic and imported beer, wines, champagne, spirits, and liqueurs. Apart from that, non-alcoholic beverages, bar accessories, and gift baskets are also sold on their site. The client has shown great commitment to their customers by expanding some of their stores to include a wine tasting room and a “Freeze Room” as well.

But despite a flourishing business and well-designed website with friendly navigation and reasonable filterings they were dissatisfied with the way their Google Adwords was performing.

The client then approached Ebizon- with the intention of improving their overall Google Adwords ROI. This required clearly understanding the problem at hand and the actual objectives that our client wanted to achieve.

Challenge

The main finding was that their key competitor was also advertising on Adwords with increased budgets, this was leading to lower ad positions for our client and also higher competition for key search phrases.

Their Adwords ROI was just 2.5 times of their Ad Spend, with an average product profit of $45, they were actually bleeding.

Clearly they were spending more and getting less revenue thus we were posed with a challenge to:

  • Increase their ROI a minimum of 6-8 times
  • Bring down their Ad spend/ Total Conversion Value to at least 15 percent(15/100)

Approach

Our initial approach was to realign all of their existing Google Adwords campaigns with the user behavior on the client’s website. This helped us in understanding what they were actually missing, the campaigns were not aligned with specific Product categories and this was the main reason their ROI was not so good.

This led us to devise a series of strategies for them. Below is the list of activities that we performed for them:

  1. Restructuring Campaigns( Structuring good Google Ads)
    Created different campaigns as per Product categories such as Wine, Spirits, etc. Also, in order to gain more visibility we created different campaigns such as Search, Display, and Shopping.
    This resulted in:

    • More User Acquisition
    • Greater Brand awareness
  2. Smart Campaigns
    We started running Smart Campaigns for product categories that were not performing well. Smart campaigns helped in highlighting selling points for these categories and how can we attract more customers.
    This resulted in:

    • A better understanding of how well the website meets customers expectations
    • More number of conversions
  3. Scrubbing out Negative Keywords
    We added negative keywords to avoid irrelevant traffic to the client’s website.
    This resulted in:

    • Targeting customers having a buying intention.
    • Reduced Ad Spend
  4. Bidding Strategy
    Activated Maximise Clicks Adwords Smart Bidding Strategy and changing the bid strategy to maximum clicks.
    This resulted in:

    • More Conversions
    • Stable cost of conversions
  5. Competitor Campaign-Product Brands
    Created separate competitor campaigns for the top-selling brands as competitors were different for different brands.
    This resulted in:

    • More User Acquisition
    • More number of Clicks

Results

With our continued effort, in around 6 months we were able to:

  • Increase revenue through Google Adwords by 223%.
  • Cost per conversion(CPC) decreased from $5.47 to $3.32
  • Percentage of Ad spend/total conversion decreased by 8.5% in 6 months

High-quality day-to-day optimization is certainly the key to the success of effective online advertising campaigns.

Our team used to monitor the campaigns on a regular basis and adopt different strategies based on competition to make sure we don’t lose out on any potential customers. Clearly, the results were beyond our client’s expectations and totally worth the effort that we had put in.