It was spring of 2015 when we got a client who was actively advertising their accommodation capacities of their tourist facilities through their Adwords campaigns. After we did an audit of those campaigns, we immediately realized that there are many opportunities for improvement. We are not going to write here what exactly did we do to improve to improve the campaign, but we are going to write, among other things, how a better budget allocation may affect the increase in revenue for over a 90%!
But first things first. AdWords account had a total of 13 active campaigns in 2014. Of these 13 campaigns, 9 of them were the classic “search” (on Google search engine results page) and 4 of them were display campaigns (on websites and portals). One of the first things we noticed during audit is that all search campaigns had a very low search impression share.
Search campaign ads were losing their impressions – ads were not showing because of insufficient daily budget but also for targeting very low position of ad placement (search Lost IS – rank). In addition, the search campaign did not have a good structure and because of that some of the most important inquiries (according to number of conversion) were “losing” their (daily) budget. Because of that they would stop running during the mid-day.
Because of that we decided to give special attention to the allocation of the budget when planning optimization of those campaigns.
It was also interesting to note that during 2014 the campaigns had only 825 targeted words and phrases that had at least one impression. This is a very small number given the “nature” of client offer. In addition, search campaigns had only 2% CTR and average position of 4.8.
During the 2014 adwords campaigns have lead to 205 transactions and the total revenue of 1,530,429€
Based on the audit of clients Adwords campaigns we came to the main factors that needed to be “repaired” to get better results:
- optimization of the distribution of the available budget
- campaign structure optimization
- optimization and targeting of potentially better keywords and phrases
Based on this, we made a decision (and in light of the limited budget) to reduce investment in, or completely stop, display campaigns and all their budgets to be transferred to search campaigns. The display campaigns in 2014 accounted for some 30% of the total investment.
Results of optimization and distribution of budget
Note: we look at the entire period of 2015 although the optimized campaigns started in early April. We are doing this because it is much easier to compare the 2015 data with data from 2014.
The number of campaigns has grown to 35 – all campaigns were search campaigns. This is an increase of nearly 3 times!
During 2015 search campaign had a total 3911 targeted words and phrases that have had at least one impression (this is achieved thru proper silo structure of words, ad groups and campaigns, which is one of the main chapters in our PPC Academy) – an increase of nearly 4.5 times!
Search campaign CTR grew to 10.6% and average ad position now stands at 2.8. In other words, CTR increased by 5 times & ad position by almost double!
Also, there should be noted that we had about 50% less clicks on AdWords ads in 2015 (in comparison to 2014). This is because of targeting potentially better keywords and phrases.
The lower graph shows that the results have begun to appear within a few months after our takeover of AdWords account.
Increase of transactions by 77%
Increase of revenue by 90%
Such good results are not only attributed to the budget transfer (from display campaigns to search campaigns) but also to the optimization of the search campaigns.
Of course, we do not say that we should always pause the display campaign, because it all depends from client to client and his required goal (of advertising campaigns/actions). But sometimes it’s much more cost-effective, especially in the case of a very limited budget, to only activate those campaigns that give us the greatest return on investment.