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Google Ads webshop - the right Google Ads strategy

Are you a webshop owner and do you use Google Ads to advertise online? Then you undoubtedly understand the importance of this marketing tool to boost sales of your products. Perhaps you currently drive your ads based on ROAS (Return on Advertising Spend), focusing on achieving a specific revenue relative to your Google Ads budget.

But what if you went one step further and used your ads to maximize your profits? What if Google automatically allocates more ad budget to higher-margin products? And, what other optimizations can you make for greater success? Lots of questions, but we have the answers. You can read it in this blog!

Google Ads for your webshop: what is your profit margin?

A successful Google Ads strategy increases the chances of a successful webshop. It is therefore smart to optimize your ads on profitability instead of only on turnover. By doing so, you take advantage of the opportunity to optimize your ad spend, and you can drive your campaigns based on data. You approach this by following the steps below.

Step 1. Get insight into the profit margins

Do you know the profit margin of each product in your web shop? If not; take the time to get this insight. It is important to have full insight into the costs for a good strategy. By this, we do not only mean the Google Ads costs and/or admin costs of your account. Also map out what are the purchasing costs, shipping costs and warehouse packing costs.

Step 2. Set up your campaigns for profit

If you currently have Google Ads campaigns set up for your online store, chances are that these campaigns are set up for revenue. Thanks to step 1, you now know exactly which products generate a lot of profit and which products do not. Therefore, it is time to adjust the campaigns!

The choice of bidding strategy is important here. The bidding strategy allocates the advertising budgets. You should therefore carefully review and test which bidding strategy suits your profit goals. Bidding on profits is also called POAS: Profit on Advertising Spend.

To manage your campaigns effectively, ProfitMetrics is a useful tool that provides insight into the potential of specific products within your offer to generate more profit. By using this tool, Google optimizes ads, allowing you to target customers who contribute to profitability.

ProfitMetrics goes beyond just showing Return on Ad Spend (ROAS) and also provides insight into profit per conversion. All costs, including packaging, shipping, staffing, and more, are included in the tool’s calculations. New conversion actions are created, allowing you to not only keep track of ROAS, but also drive campaigns based on Profit on Advertising Spend (POAS).

The bidding strategies remain consistent, but the conversion value shifts to net profit. As a result, the bidding strategy steers toward the highest margin rather than the highest revenue. This is essential, especially when you are dealing with different margins per product.

Step 3. Optimize your campaigns

By applying the first 2 steps, you start to drive your Google Ads campaigns to profit. But it’s still important to continually optimize your campaigns. This way you can better respond to changes in the market and keep the hygiene of your account in order.

You also need to constantly optimize the product offering. You can do this by analyzing the collected data. Focus on the best performing products with high profit margins and see how you can improve your feed even further.

Don't forget Search campaigns for a successful webshop

Most webshops mainly use shopping (or Performance Max) for their shop. Also check out the possibilities of search campaigns. This is a useful way to attract visitors to your website. We give you some tips on how your search campaigns can contribute to a successful webshop.

Exclude irrelevant keywords

Whether you’re just using Google Shopping or you’re already deploying search campaigns: look at which keywords your ads are appearing on. Do you see keywords that aren’t interesting at all? Exclude them immediately. That way, you prevent budget from going to the wrong keywords.

Use items (formerly extensions)

Items, formerly known as extensions, are often forgotten to be used. While this allows you to share even more information about your webshop. This ensures that people are more likely to click on your ad.

Countdown to an event

Is your webshop currently running a special action, such as Black Friday or a Sale? Add a countdown to your responsive ad to indicate how long the action is still valid. This attracts extra attention.

Language settings

Did you know that many people have their browser settings set to English while speaking Dutch? If you only have your language settings set to Dutch, you will lose visibility with your target audience. So always choose to add English to your campaign settings.

Bonus tip: don't forget Microsoft Advertising!

Advertising through Microsoft Advertising can be interesting for many webshops. This is because there is often less competition, while many people use Microsoft’s standard browser. The reach is therefore often interesting and the cost per conversion low. Adverge is also happy to help you with this.

Ready for (extra) success?

If you choose Adverge, then you choose expertise. Our team consists only of specialists, not generalists. Remote working is our standard. The benefits of our approach are clear: less overhead, allowing us to offer our talented employees better salaries, and resulting in less turnover and satisfied clients. Choosing Adverge means embracing a new approach to marketing, where we are determined to challenge the norm and deliver exceptional results for our clients.

Google Ads for your webshop: request a free audit

Are you ready to get started with the strategy for your Google Ads account, to make your webshop (even) more successful? Adverge’s senior Google Ads specialists will help you with no obligation. Request a free audit directly below and stimulate the growth of your e-commerce business!

Ready to make more profit?

Let us review your account for free and get advice.

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