Many companies invest large sums of money in campaigns to generate sales. When you advertise, you naturally want every dollar invested to be used as effectively as possible. To achieve this, insight into the performance of your ads is essential. This applies not only at the campaign level, but also at the product level.
While your campaign results may be positive, this does not automatically mean that every product is profitable. In fact, there are usually product ads in your campaigns that only cost money and do not generate sales. This offers room for optimization.
Insight at the product level
The Channable 'Analytics and Insights' module offers detailed insights at the product level. Namely, you can see exactly how many clicks, costs, sales and ROAS (ratio of costs to sales) each product generates. This data can be expanded to include other insights of interest to you, if you wish.
With this information, you can easily identify which products are performing above your target. These products you will likely want to highlight more often to increase your healthy sales.
On the other hand, you can also see which products receive many clicks but perform below your target. For these products, you may need to lower bids or add additional information on your product page so that visitors will proceed to purchase faster.
Segment
Channable makes it easy by segmenting your products into four categories, namely:
- Stars: Products with high traffic and a healthy cost-to-sales ratio.
- Underperformers: Products with high traffic but a negative cost to sales ratio
- Potentials: Products with little traffic, but a healthy cost to sales ratio
- Invisibles: Products with low traffic
You decide what you see as low or high traffic and what is a healthy cost to revenue ratio.
Campaign Strategy
One possible strategy is to divide your campaigns based on these four segments.
You want to further increase sales on your Stars, so this is where additional budget will need to be deployed.
Underperformers cost money, but generate revenue. By lowering your bids, you can achieve a healthier ratio.
Potentials still get little traffic, often because they don't get enough attention next to the Stars. By setting them apart you will create new Stars from this segment.
Invisibles are products with low search volume or few clicks. In many cases, 80% of an assortment is invisible. Within this group of products are often undiscovered Stars, which you want to give the opportunity to grow.
Need help?
EasyAds effortlessly sets up the Insights module for its clients and knows exactly which strategy is best to use in which situation. Would you like more information about this? Then contact us and we will be happy to help you.