Next month the worldwide semiconductor industry will formally acknowledge that Moore’s Law may finally be coming to an end. The principle which describes the doubling of transistors on microprocessor chips has led to the advancements of home computers, the internet, iPhones and even cars has also shaped advertising as we know it.
While Moore’s law is starting to falter, performance marketing continues to get more complexed and interesting. Below I’m going to take a look at 5 smarts that all online retailers should be using. We’ll start with an infographic and go into more detail below, enjoy!
- Industry Leading Feeds
It’s easy to forget that Google Shopping (previously Product Listing Ads) has only been around for 3 years and for most of that time it was pretty basic in the way it matched searches to your feed. Now it’s much more advanced and too many times we run into retailers who just “have a feed”, which today just doesn’t cut it. Your feed management company should be adding as much relevant information as possible into the feed in order to make your search campaigns work harder. We know the basics like stock, price or color are essential but what about adding individual product margins and then using that to make a decision on when and who you should bid on?
With more and more spend being directed towards this channel having richer product information in your feed will improve bid and budget management.
- Align strategy with product
This follows on closely from the above and may be stating the obvious but let me explain. Another thing that we see across new clients is a flat approach to the way they promote their products on search or social. Too often we see bid management being carried out across a bulk of products, when in reality products have varied margin and profitability. For example, when I search for ‘Leather NFL Football’ I get the below:
I’d expect Wilson to be considering a number of different aspects when bidding on my search. Firstly let’s take seasonality, how likely am I to purchase 2 weeks after Super Bowl? Secondly local trends, is there a spike in demand in Denver or other areas? Thirdly, product KPI tiering around product life cycles. For example, at what point do I start to lower bids on the ‘Official 2015 Super Bowl ball’ knowing that the 2016 one is about to launch? All of these decisions, and more, are essential for making your advertising budget go further and deliver more.
- Collect and Overlay Audiences
Paid marketing is getting increasingly expensive, budgets are having to increase to deliver the same results and competition is on the rise. One way to counter this trend is by using as much first party data as possible. By using information like, age, gender, location, previous site behavior, previous purchase behavior or google analytics audiences you can ensure you’re only bidding on the people you know something about. Bidding on ‘Leather NFL football’ for a small independent retailer may be too expensive, but knowing they are a customer, have bought from me twice before and were on my website yesterday means I’d likely up my bid for that user rather than not play at all.
As an example – we used 3 and 7-day basket abandoner data for one of the biggest marketplaces in the world. With this we were able to identify that searchers were hot prospects and could then bid much more aggressively. This allowed us to improve their conversion rate in Canada by 15x and the UK by 6x compared to more generic campaigns.
- Automate the heavy lifting
There is a direct correlation between doing more work and getting better results and this point is about doing just that. Spending your time more efficiently and exploring ways in which you can automate tasks that don’t need human touch. Our internal data shows that around 30% of account management can be automated – so we do exactly that. By using Google’s API and scripts you can ensure the 30% is being spent doing tasks that will have a significantly higher impact. As an example you might use Google scripts to assess hourly ad scheduling, and if there is statistically significant evidence to say performance is better at certain times throughout the day – change your bids. Or maybe you use The AdWords API to build heat maps of the locations you see the cheapest CPCs with the highest conversion rate and assign more spend.
- CRM Data
Lastly and possibly most interesting is your CRM data. Specifically, we’re talking about using CRM information to power products like RLSA and Customer Match on Google or Custom audiences on Facebook to be hyper relevant and hyper profitable. Firstly, it’s worth stating we would not recommend just uploading all of your customer’s emails and starting lookalikes and remarketing, you’re better than that. None of your customers are the same and you shouldn’t treat them like that, this is an area that requires a bit of thought and planning. For example, you should be analyzing frequency of purchase, was it in the last 15/30/60/90/120 days and avg basket value, $0-$50 $50-$100 or $100+. Once you’ve segmented your CRM to a level that makes sense, then you can begin testing these different audience segments and accordingly assess the results.
All of the above points are designed to make you spend your budget more efficiently – and if executed correctly will have a marked impact on your marketing performance.
For expert SEM services and excellent Google Shopping campaigns, contact the team at Croud Australia.