American Personal Care Brand – Performance Max Case Study


by Mladen Maksic | Sep 04, 2023

 Driving E-commerce Success with Performance Max Campaign: A RoAS Revolution

Introduction:

In this case study, we will describe how our agency achieved remarkable conversion results for an e-commerce business in the electronics industry by implementing a Performance Max campaign. The primary focus was on maximizing conversions while maintaining a target Return on Ad Spend (RoAS) of 300%. This campaign significantly outperformed all other existing search campaigns in terms of conversion numbers, cost per conversion, and RoAS.

Client Background:

The client is an established e-commerce business operating in the electronics industry, offering a wide selection of different product variations. They had been running various search campaigns across Google Ads to promote their products and drive sales. The client’s main objective was to increase the number of conversions without compromising on the RoAS target, which they had set at 300%.

Challenges:

Before the implementation of the Performance Max campaign, the client faced several challenges, including:

  1. Finding the Right Customers for the Right Products: The client’s extensive product catalog made it challenging to effectively target the most relevant customers for each product, leading to suboptimal conversion rates and increased ad spend inefficiencies.
  2. Limited Scale: The client’s existing campaigns had reached a plateau, making it difficult to scale up conversions and achieve growth targets.
  3. RoAS Achievement: The client struggled to consistently achieve the target RoAS of 300% in their existing search campaigns.

Strategy:

To address the challenges and exceed the client’s expectations, our agency devised the following strategy:

  1. Performance Max Campaign: We recommended the implementation of a Performance Max campaign, leveraging Google’s machine learning and automation capabilities. This campaign type optimizes ad placements across various Google properties, including Search, Display, YouTube, and Discover. By utilizing multiple ad formats and placements, we aimed to reach a broader audience and maximize conversions.
  2. Target ROAS Bidding: To achieve the desired RoAS, we set the target at 300% for the Performance Max campaign. This bidding strategy allowed Google’s algorithm to adjust bids in real-time based on the likelihood of conversions, ensuring that we reach the optimal RoAS.
  3. Creative and Asset Optimization: To ensure maximum impact, we optimized ad creatives and assets, including images and ad copy. A/B testing different ad variations helped us identify the best-performing ones, leading to improved click-through rates and conversions.
  4. Audience Segmentation: We analyzed the client’s existing customer data and created audience segments based on demographics, interests, and behavior. These segments were used to deliver tailored ads to relevant audiences, increasing the chances of conversion.

Implementation:

The Performance Max campaign was launched, incorporating the strategies mentioned above. The campaign’s performance was closely monitored to make data-driven adjustments and optimizations in real-time.

Results:

The implementation of the Performance Max campaign yielded outstanding results:

Graph 1 – Performance comparison between DSA & Keyword-based Search Campaigns vs. the Performance Max Campaign for Q1

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Conversion Numbers: The Performance Max campaign significantly outperformed all other search campaigns, making up over 3x conversions as the other 2 search campaigns combined.

 

Cost per Conversion: The cost per conversion was also significantly reduced and each conversion through the Performance Max campaign cost 4 to 6 times less than for the others.We can see the results on the Graph 3 below.

 

Graph 2: CPA Performance (per campaign)

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RoAS Achievement: Despite the increased ad spend due to a higher volume of conversions, the Performance Max campaign consistently achieved the target RoAS of 300%. In fact, the RoAS was even exceeded by reaching an average of 350% over the campaign’s duration. We can see the results on the Graph 3 below.

 

Graph 3: RoAS Performance (per campaign)

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Conclusion:

The adoption of a Performance Max campaign, coupled with meticulous targeting, bid optimization, and creative enhancements, enabled our agency to overcome the client’s challenges and achieve remarkable results. The campaign’s ability to drive substantial conversions while maintaining and increasing the target RoAS of 300% set it apart from the other search campaigns. As a result, the client experienced unparalleled growth and success in their e-commerce business, cementing the Performance Max campaign as a driving force behind their exceptional performance in the electronics industry.

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