Advanced Bidding Strategies for Success
Blog
May 01
Your brand’s bidding strategy can set you up for success or failure. You could spend and spend on a poorly designed campaign with few results, or you could get a high return on investment (ROI) on a tightly controlled, well-designed campaign. Using the right bidding strategy for your brand can make a difference.
Let’s take a look at some advanced bidding strategies that can help you greatly improve your competitiveness in the market.
Understanding Ecommerce
Ecommerce, or electronic commerce, refers to the process wherein businesses and consumers exchange goods and services over the internet. Instead of traditional brick-and-mortar stores, companies can set up online shops, allowing customers to browse and purchase without having to leave the comfort of their homes or offices.
By 2023, global retail ecommerce sales soared to approximately $5.8 trillion. Looking ahead, forecasts suggest an impressive growth of 39%, setting the stage for sales to exceed $8 trillion by the year 2027. These findings should encourage digital marketers to search for every edge in a fiercely competitive landscape. Establishing your brand’s presence in the ecommerce space is key to leveraging the extensive reach of the internet, though navigating online advertising and marketing can be complex.
Developing a robust marketing strategy is essential for brands aiming to differentiate themselves from rivals and cater to the increasingly sophisticated preferences of digital consumers. Here are strategies to attract, engage, and keep online shoppers committed to your brand.
Common Challenges for Ecommerce Businesses
There are several challenges that ecommerce businesses can run into. To start with, you probably already know that you’ll have to spend money to advertise — and advertising costs can add up quickly. No matter how much you spend, you’ll want to get as much money as you can from what you invest in ads.
Most businesses face three primary challenges with their campaigns, and you may, too. These challenges could include:
-Having campaigns that are currently not reaching the target return on ad spend (ROAS)
-Struggling with improving profits, boosting revenue, or growing transaction numbers
-Trouble getting a leg up over the competition via an effective digital strategy
To get a deeper understanding of these common challenges for ecommerce businesses, here is a breakdown of what one of our clients was struggling with before working with our team here at Adtaxi.
Innovative Solutions in the Pet Supplies Retail Industry
In the case of a leading online pet supply retailer, they had the challenge of increasing their ROAS. They also wanted to maximize their profits from their Google Shopping campaigns and reduce their overall cost per transaction (CPA). They were hoping to do all this although they were competing against other online domains and suppliers.
Key Tactics for Success
Here are three key tactics you can use to improve your bidding strategy and how they impacted our client in the pet supply industry.
1. Use a Layered Approach
For our client, we used a layered strategy that can work for other businesses as well. This strategy involves segmenting products by item ID and brand. Additionally, those can be broken down into high-, medium-, and low-priority campaigns.
Some additional steps we took included using:
-Remarketing lists for search ads (RLSA) to maximize the number of transactions and to improve ROAS
-Negative keywords by match type to tighten up the campaign
2. Customize Your Scripts
The next tactic is to customize your Google Scripts. Creating custom Google Scripts for Google Shopping campaigns allows for bid adjustment. For our client, we created a custom script during our “High Priority, High Margin” campaign. That script looked at data from the last seven days, and it could adjust bids accordingly. The bids could be adjusted for each product automatically, cutting down on the need for manual input and changes.
3. Optimize Your Feed
Your Merchant Center feed needs to be optimized to have a successful Google Shopping campaign. At Adtaxi, we partnered with Feedonomics to capitalize on their feed optimization technology and improve feed management tactics for better efficiency.
With these strategies, we were able to improve our client’s ROAS by 1,633% over six months. They saw 64% more transactions and 612% more profits. Additionally, they were able to reduce ad spend by over 50%.
The right bidding strategy for your brand could mean the difference between failure and success. Pouring funds into an ineffective campaign can lead to minimal returns, while a carefully crafted and well-managed campaign could yield significant ROI. The adoption of an appropriate bidding strategy can greatly influence your brand’s outcome. By employing similar strategies as mentioned previously, your brand has the potential to meet its unique objectives and significantly enhance its competitive edge in the marketplace.
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