Case Study: 104% Gross Profit Increase Using Google Shopping / PLAs
Client: E-commerce retailer that sells seasonal residential products nationwide
Overview: Our client’s focus is to acquire customers cost-effectively over the spring, summer and fall seasons. Google’s Product Listing Ad (PLA) program had produced sales for them in the past and once the program shifted to a paid model mid-year, we began managing the campaign on their behalf. By using a tiered approach in which we targeted products and categories that had historically produced the most sales, we were able to mitigate risk while allowing testing to go on during their slower Fall season. In addition to the product-specific campaign, we created an ”All Products” PLA campaign, which included all products in their feed at bid prices lower than the product-specific campaign.
Results: The ”All Products” campaign reached profitability within its first month. PLA monthly sales, as a whole, increased 27% with a 41% higher average order size and 104% higher gross profit per sale than original PLA campaign. All of this occurred during their “slow” season.