Introduction

In the bustling world of digital marketing, finding ways to trim down your cost per conversion while keeping conversion volume steady can be quite the challenge. At 3P Digital, we’ve taken on this challenge for a mid-tier B2B and B2C product-based company and delivered stellar results, reducing their cost per conversion by 23.5% month on month. Here’s a look into how we achieved this through four key Google Ads tactics.

Client Background

Our client, a mid-tier B2B and B2C company, specialises in a diverse range of products catering to both business and consumer markets. Despite a considerable investment in Google Ads, their cost per conversion was high, eating into their marketing budget and hampering overall ROI. They needed a strategic overhaul to make their ad spend more effective and to drive better results.

Challenges Faced

1. High CPCs: The client’s campaigns were plagued by high costs per click, which directly inflated the cost per conversion.
2. Suboptimal Conversion Rate: Although traffic was ample, the conversion rate lagged, indicating misalignment between ad targeting and audience intent.
3. Inefficient Budget Utilisation: Funds were being expended on low-performing keywords and ads, resulting in subpar returns.
4. Ad Relevance Issues: A significant portion of the ads lacked alignment with user search intent, leading to lower Quality Scores and higher costs.

Tactic 1: Keyword Optimisation and Negative Keywords

First up, we dove deep into keyword research to fine-tune the client’s keyword strategy. We focused on:

• Refining Keyword Lists: Zeroing in on long-tail keywords with lower competition and CPCs but high relevance to the client’s products.
• Implementing Negative Keywords: By adding negative keywords, we ensured the ads weren’t shown for irrelevant searches, slashing wasted spend and boosting ad relevance.

This targeted approach ensured ads reached the right audience, enhancing CTR and conversion rates.

Tactic 2: Ad Copy Testing and Optimisation

We employed robust A/B testing methodologies to refine the ad copy. By crafting multiple ad variations and testing them, we pinpointed the most effective messaging. Key strategies included:

• Highlighting Unique Selling Propositions (USPs): Showcasing the client’s competitive advantages, such as product quality and exclusivity.
• Utilising Dynamic Keyword Insertion (DKI): This tactic automatically inserted relevant keywords into the ad copy, improving relevance and Quality Scores.
• Compelling Calls to Action (CTAs): Encouraging immediate action with phrases like “Shop Now” or “Get 20% Off Today.”

By continuously iterating on ad copy based on performance data, we boosted ad relevance and engagement, driving Quality Scores higher and CPCs lower.

Tactic 3: Bid Adjustments and Smart Bidding Strategies

We leveraged advanced bidding strategies to maximise the client’s ROI. By employing Google’s Smart Bidding options, we were able to:

• Target CPA Bidding: Setting bids to achieve the lowest possible cost per acquisition, maintaining profitability.
• Enhanced CPC Bidding: Real-time bid adjustments based on conversion likelihood.
• Bid Adjustments for Devices and Locations: Upping bids for high-performing devices and locations, and reducing them for underperforming ones.

These smart bidding strategies ensured the budget was spent efficiently, prioritising the most promising conversion opportunities.

Tactic 4: Audience Targeting and Remarketing

To further hone in on potential customers, we implemented sophisticated audience targeting and remarketing techniques:

• Custom Audiences: Developing custom segments based on users’ past interactions with the client’s site, and tailoring ads specifically for these audiences.
• Remarketing Lists for Search Ads (RLSA): Targeting users who previously visited the client’s site but didn’t convert, with tailored ad messages to nudge them towards purchase.
• In-Market Audiences: Targeting users actively searching for products similar to what the client offers, indicating a higher purchase intent.

These strategies increased the likelihood of conversions by focusing on users who had already expressed interest, thereby reducing overall cost per conversion.

Results and Conclusion

After a few months of implementing these strategies, 3P Digital achieved a 23.5% reduction in the client’s cost per conversion month on month. The standout results included:

• Enhanced ROI: Significant improvement in ROI due to lower CPCs and higher conversion rates.
• Increased Conversion Volume: Despite the reduced cost per conversion, the number of conversions rose, demonstrating the effectiveness of the optimised campaigns.
• Higher Ad Relevance and Quality Scores: Continuous optimisation led to better ad placements and reduced costs.

This case study showcases how 3P Digital’s strategic, data-driven approach can transform a client’s digital marketing performance. Through meticulous keyword optimisation, ad copy testing, smart bidding, and audience targeting, we delivered tangible, impressive results that aligned with the client’s goals. For businesses aiming to optimise their ad spend and enhance conversion rates, our pay-per-performance model offers a proven and compelling solution.