Initial Situation
The advertising for the online store selling electronics had been managed in-house with varying investments. The average monthly turnover is €9,249.
Actions Taken
We completely rebuilt the advertising account. We implemented Nostamo's developed account structure, allowing us to allocate the budget more effectively to the best-performing keywords. The targeting of the advertising was previously very broad - during the account reconstruction, the targeting was significantly tightened. In addition to search network advertising, we also introduced display advertising, which is targeted to "colder audiences" in addition to retargeting, i.e., to people who may not have heard about the company before.
Online Store Sales Immediately Increased. Previously, the average monthly turnover was €9,249 - now the turnover averages €29,260, which means an increase in sales of 216%.
Google advertising is undoubtedly responsible for 22% of the average monthly sales. In the comparison period, €1,969 was spent on advertising, resulting in total sales of €25,983, yielding a return on advertising of 132%. However, the majority of sales (55%) came from direct traffic. Direct traffic means that a visitor arrives at the website, for example, by typing the web address from memory into their browser.
This is a good example of how not all sales through the web can be accurately traced. A common example of a customer journey is as follows:
A person searches for information about a product they are looking to buy on their mobile phone.
On the Google search results page, they click on an ad, then spend some time on the product page before closing their mobile browser.
Later (for example, later that evening), they may continue their research on their desktop computer. The web address of the previously visited page is fresh in their memory, so they type it directly into their browser.
After a little research, they make the purchase, ensuring that the product is indeed suitable for them.
The more expensive the product, the longer this customer journey tends to be. From the perspective of tracking advertising effectiveness, the problem arises that, in the example given, all credit for the sale would go to direct traffic because the customer completed the purchase on a different device than the one they originally found it on.
In this situation of event tracking, a significant portion of the advertising revenue goes to direct traffic for the aforementioned reason. Since the products are expensive, they are often compared extensively before a purchase decision is made. However, no major changes were made to the advertising, so it can be said that a significant portion of the sales from direct traffic has come through Google advertising - how much exactly, we don't know. In any case, our service has brought a significant improvement to the company's overall turnover.
Would you like to discuss your company's Google Ads advertising with an expert? Nostamo is a Google Partner and we are completely specialized in Google advertising. We can audit your company's advertising account, and then we can tell you directly how we could help your company. The audit is free.
