Shopping Strategies That Never Go Out of Style By Jake Favaro

#SMX #14C @j_favaro

Shopping Strategies That

Never Go Out of Style

#SMX #14C @j_favaro

Shopping Strategies That

Never Go Out of Style

#SMX #14C @j_favaro

#SMX #14C @j_favaro

Q4 increases in both scale and efficiency with over 2x spend YoY

Sporting Goods Client Q4 Shopping YoY Performance

Year Cost CPC Purchases CVR CPA Revenue ROAS AOV

2015 $404,060 $0.31 47,693 3.66% $8.47 $5,054,882 12.5 $106

2016 $867,755 $0.28 125,488 4.08% $6.92 $15,408,893 17.8 $123

Delta 115% -9% 163% 12% -18% 205% 42% 16%

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Year Cost CPC Purchases CVR CPA Revenue ROAS AOV

2015 $404,060 $0.31 47,693 3.66% $8.47 $5,054,882 12.5 $106

2016 $867,755 $0.28 125,488 4.08% $6.92 $15,408,893 17.8 $123

Delta 115% -9% 163% 12% -18% 205% 42% 16%

Sporting Goods Client Q4 Shopping YoY Performance

Q4 increases in both scale and efficiency with over 2x spend YoY

#SMX #14C @j_favaro

Campaign Structure

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Common product group segmentation

Desired grouping of metrics by product group

Use “Product Type” to Define Your Bidding Structure

Category

BrandGender

Product

CPCCVRAOV

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Introducing SKU Value to product group structure helps better optimize to all 3 metrics!

Use “Product Type” to Define Your Bidding Structure

CPCCVRAOVCategory

BrandGender

Product SKU Value

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Segment according to click volume, not number of products, to ensure sufficient data for smart bidding decisions

Product Group Segmentation and Data Density

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Creating Individual SKU “Alpha” Ad Group

Shopping SKU

Report

Alpha Ad Group

1:1Bids for HighVolume SKUS

High Spend SKU with No Conversions(Burlap Scarf – SKU

666)

High Volume Converter

(Prada Bag – SKU 1234)

EXCLUSION

Unique bid set for Prada Bag – SKU 1234

Product Group: Prada Bag – SKU

1234 Exclude the Alpha SKUs from all other Ad Groups

#SMX #14C @j_favaro

Creating Individual SKU “Alpha” Ad Group

Shopping SKU

Report

Alpha Ad Group

1:1Bids for HighVolume SKUS

High Spend SKU with No Conversions(Burlap Scarf – SKU

666)

High Volume Converter

(Prada Bag – SKU 1234)

EXCLUSION

Unique bid set for Prada Bag – SKU 1234

Product Group: Prada Bag – SKU

1234 Exclude the Alpha SKUs from all other Ad Groups

Don’t forget to make a shared negative list of wasteful queries as well!

#SMX #14C @j_favaro

Campaign

Ad Group

Alpha

SKU 1

SKU 2

SKU 3

Ad GroupMen’s Outerwear

Vests Jackets

$100-250 $500-700

Coats

Ad GroupWomen’s Shoes

Exclude the Alpha SKUs from all other Ad Groups

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Brand vs Non-Brand

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Non-Brand Campaign Brand Campaign

Apply extensive list of Brand negatives

Scrub query report for new Brand negatives

Bid above Brand

Scrub for pesky Non-Brand queries to exclude

Bid below Non-Brand

Splitting Brand vs Non-Brand Queries

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Brand Attributed Non-Brand Campaign (BANB)

Create a remarketing list of userswho have clicked your Non-Brand

shopping campaign (Non-Brand Clickers) defined by

URL parameter

1

Accounting for Non-Brand à Brand conversion activity gives a better view into the true value of Non-Brand Shopping

#SMX #14C @j_favaro

Non-Brand

Brand Attributed Non-Brand

Brand

Brand Attributed Non-Brand Campaign (BANB)

Mirror your Brand campaign, with the same settings

Brand campaign #1 (BANB) –target and bid Non-Brand

clickers audience

Brand campaign #2 – exclude Non-Brand Clickers audience

2

3

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Bidding

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IdealBid Volume

Efficiency

Clean Shopping Structure = Effective Bidding

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It is almost alwaysbetter to have more clicks at a lower CPC

Budget Caps are Bad…

If Non-Brand campaign is capped,

Non-Brand queries waterfall into Brand

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Don’t rely on Adwords to tell you a campaign is limited by budget

…And So is Standard Delivery!

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Mobile

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Shopping Spend % of Total Shopping Revenue % of Total

Mobile Growth

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Q4 2016 Impressions Clicks CTR Cost CPC Conversions CVR CPA Revenue ROAS AOV

Desktop 46,247,732 767,850 1.66% $320,505 $0.42 46,236 6.02% $6.93 $6,089,970 19.0 $132

Mobile 107,373,664 2,001,189 1.86% $427,839 $0.21 65,145 3.26% $6.57 $7,449,812 17.4 $114

Delta 132% 161% 12% 33% -49% 41% -46% -5% 22% -8% -13%

Make sure your delta in mobile vs desktop CPC is greater than but similar to the delta in CVR to

balance ROAS across devices

Balancing Mobile Shopping Metrics

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CampaignStructure

Take advantage of

SKU bids forhigh volume

traffic

Brand v Non-Brand

SegmentBrand vs NB

queries + useBANB campaign

to improveNB attribution

Bidding

-Scale vs efficiency

-No budget caps or

standard delivery

Mobile

Find balance of lower CPCsfor lower CVRs

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