Achieves 18x ROAS with Partner Logical Position A.E.S. Enters … · 2020-02-10 · Achieves 18x...

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A.E.S. Enters Auto Parts Market Achieves 18x ROAS with Partner Logical Position Growing Businesses

Transcript of Achieves 18x ROAS with Partner Logical Position A.E.S. Enters … · 2020-02-10 · Achieves 18x...

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A.E.S. Enters Auto Parts Market Achieves 18x ROAS with Partner Logical Position

Growing Businesses

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Table of Contents

Summary

Background

Challenge

Search

Shopping

Final Results

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Summary

● In response to AES’s central challenge — entering a market characterized by high prices, large economies of scale, and unstable supply chains — LP executed Search and Shopping strategies for finding a niche, adapting to change, and achieving rapid growth.

● Using a range of in-house tools and targeting tactics, LP built and optimized a new AdWords account for AES, creating a series of highly segmented Search and Shopping campaigns that allowed for sharper insights, more control, and increased efficiency in budget allocation.

● Since partnering with LP, AES has consistently seen substantial increases in conversions and revenue, driving its overall Search + Shopping ROAS to 18.18 and helping it become one of the largest auto parts distributors in the country.

Logical Position (LP) helped young auto parts distributor Automotive Equipment Specialists (AES) establish a foothold in the industry and grow into a market leader in less than 2 years. To do this, LP built and optimized a new AdWords account for AES, providing them with a full spectrum of high-performing Search and Shopping campaigns.

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Background

● Located in Burbank, CA, AES sells lift kits, brake lathes, and other auto parts equipment to body shops, mechanics, and dealerships throughout the U.S.

● Mr. Sorrentino attempted to generate sales through eBay and Connexity before turning to Google AdWords Express. With his hands full managing a new business, though, he lacked the time needed to learn the platform and launch his campaigns.

● In October 2016, Mr. Sorrentino reached out to Logical Position for help establishing a strong online presence with a new AdWords account guided by a comprehensive Search and Shopping strategy.

Although Mario Sorrentino had 20 years of industry experience when he founded AES in January 2016, he lacked the digital advertising expertise needed to quickly grow his new business.

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Challenge As a new competitor in the auto parts distribution industry, AES’s central challenge was establishing itself in a market characterized by large economies

of scale, unstable supply chains, and extensive inventories.

● Large Economies of Scale: When AES opened its doors, the online auto parts market was dominated by a small number of companies capable of offering a wide selection of products at lower prices. In order to grow within this context, AES needed to discover a profitable niche that would allow it to gain a foothold and gradually expand.

● Unstable Supply Chains: Fluctuations in price and supply would prove a significant challenge for AES, requiring the company to continuously adapt its advertising strategy and rotate product suppliers.

● Extensive Inventories: The number of products that AES needed to stock and advertise to stay competitive was itself a challenge. Efficiently building out campaigns for every product, and determining how to allocate budget across them, was a key objective.

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Search In order to help AES find a profitable niche and establish itself within the market, LP developed a granular Search strategy capable of maximizing the company’s budget and delivering insights into its most important areas for growth.

● The core of this strategy was optimizing account performance at the individual keyword level. By building product-focused campaigns and single-keyword ad groups, LP was able to isolate and test all variables to find the most profitable configurations for AES.

● LP leveraged a variety of in-house tools to efficiently build campaigns and monitor their performance.

As a result, AES has achieved a current ROAS of 28.51

on Search campaigns.

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Search - Strategy

LP initially funneled the majority of AES’s budget to the Search Network, segmenting campaigns for maximum control, rapidly identifying top-performers, and leveraging DSA’s to efficiently push a high volume of relevant clicks.

Given AES’s large inventory, LP launched comprehensive DSA campaigns to ensure that even lower priority products received

ad coverage.

Once top-performing product categories were identified, campaigns were further

segmented into ad groups of high value products and

brands.

In addition to product categories, Search campaigns were

segmented by branded and non-branded terms, and by

keyword match type (A= Exact Match; B = Phrase Match).

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Search - Strategy Creating single-keyword ad groups allowed

for fine-grain testing of fit between keywords, ad copy and landing pages. As a result, LP was able to create highly relevant ads, ultimately raising Quality Scores and lowering CPC’s.

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Search - Tools

In addition to RLSA’s, Marchex call tracking, and other in-platform/3rd party tools, LP leveraged a wide range of in-house tools to effectively build and monitor AES’s campaigns.

● Account Builders: In order to quickly build a complete spectrum of highly segmented campaigns, we developed custom account building tools using a combination of AdWords Editor and Microsoft Excel. These tools enabled us to quickly build a large volume of granular campaigns for maximum insight, control, and efficiency.

● Automated Scripts: We employed a range of scripts to grow AES’s new AdWords account. Described in more detail in the short answer section of this application, these scripts allowed us to identify needed campaign adjustments by automatically informing us to a wide range of performance changes.

● Google CS1 Integration: Because we integrated Google’s CS1 program into our CRM, we’ve been able to make rapid improvements to AES’s campaigns based on audience targeting, mobile bidding, and other suggestions from the Google system.

● Dynamic Search Ad Builder: In order to create more in-depth DSA campaigns, we utilized our custom DSA builder to quickly build a large scale of page-targeted and product category-targeted ads.

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Search - Results

Total Search Conversion Value Growth To-Date

Total Conversion Value has increased substantially over the lifetime of the account. Comparing the first year of performance to all performance-to-date, Total Conversion Value increased by 165%*.

*For dates 10/17/16-10/16/17 vs. 10/17/17-6/1/18

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Search - Results

Search ROAS Growth To-Date

Search ROAS has continually risen over the lifetime of the account to reach its current level of 28.51.

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Shopping As with Search, LP employed a granular Shopping strategy and in-house tools to help AES establish a foothold in the industry and achieve rapid growth.

● Campaigns were segmented by product category while ad groups were segmented by individual products.

● Top-performing product categories were identified and used as a launching pad to grow the account.

● Income-based targeting, promotions, and other tactics were implemented on a product-by-product basis.

● A “Catch-All” Campaign was used to round out account performance and drive a high volume of lower-cost clicks to the site.

● LP leveraged its in-house Product Feed Updater to ensure that AES’s constantly revolving inventory was always up-to-date.

As a result, AES has achieved a 26.21 ROAS across all Shopping Campaigns.

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Shopping - Strategy

Income-based audience targeting was applied to each product

individually, with some products targeted at top income brackets and others focused on middle

brackets.

Promotions were fully leveraged to drive sales of high-value and

seasonal products.

LP funneled the majority of Ad Spend into AES’s automotive lift

campaigns once that product category was identified as a

top-performer. Once that category was optimized, campaigns in

other categories were developed.

A “Catch-All” Campaign was used to round out account performance

and drive a high volume of lower-cost clicks to the site.

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Shopping - Tools In addition to the in-house account builders, scripts, and the CS1-CRM

integration utilized in Search campaigns, LP’s own automated Product Feed Updater was used to efficiently grow AES’s Shopping campaigns.

● LP developed a Product Feed Updater in order to efficiently update the large number of granular campaigns that were built for AES.

● The function of the tool is two-fold: to enable simple and fast comparison of Product IDs in AdWords Merchant Center, and to export information on all products in the Merchant Center.

● With the tool, our team can quickly and easily determine whether any of AES’s products need to be updated. As a result, we’ve been able to check for updates much more frequently than we would otherwise be able to.

● When missing products are found, we’re able to efficiently create new campaigns using the account building methods previously described.

● Ultimately, the Product Feed Updater has made product updates and shopping builds more efficient and less prone to error, both for AES and the rest of LP’s clients.

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Shopping - Results

Since working with LP, AES has seen continuous improvement in the performance of its Shopping campaigns. Comparing the first half of Shopping campaign lifetime performance to that of the second half, AES has seen substantial increases in ROAS, conversions, and clicks.

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Shopping - Results

Shopping ROAS Growth To-Date

ROAS has risen substantially over the lifetime of the account to reach its current level of 26.21.

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Shopping - Results

Total Shopping Conversion Value Growth To-Date

*for dates 10/17/16-8/8/17 vs. 8/9/17-6/1/18

Total Conversion Value has increased substantially over the lifetime of the account. Comparing the first half of account lifetime performance to the second half, Total Conversion Value increased by 124%*.

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Final Results - All Campaigns

Comparing the first half of account lifetime performance to that of the second half, AES has continually increased Ad Spend in response to rising ROAS, conversions, and clicks as well as a consistently low Avg. CPC.

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Final Results - All Campaigns

Total ROAS Growth To-Date

ROAS has continually risen over the lifetime of the account to reach its current level of 28.09

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Final Results

The overall performance of AES’s AdWords campaigns has enabled the company to grow into a market influencer in less than two years. Since

working with LP, AES has generated nearly 2 million dollars in revenue through AdWords alone, allowing it to scale into new offices and hire its first

employees.

Total Cost / Conversion Values for Lifetime of Account(10/16/16-6/1/18)