52% CPA Reduction and 385% Increase in Google Shopping Revenue
Chemist Warehouse is in the top 5 biggest retailers in Australia, and the largest home-grown one turning over more than $6bil in annual revenue. Their online store is an important part of their omni-channels strategy, turning over 9 figure annual revenues.
From 2018-2019, their Google Shopping ads program was being managed by an award winning Google Shopping Ads agency. While getting good initial results, the account performance was starting to plateau in terms of revenue growth and reduction in CPS (Cost Per Sales). An increasing competition in the space also drove up cost per clicks. With over 16,000 SKUs and a catalogue that experiences high fluctuations in prices due to being a discount chemist, it proved to be a challenge for the incumbent agency to take the account performance to the next level.
How We Helped
We performed a deep analysis of the account:
• Search Terms – There were millions of search terms in the account, making it difficult to perform search query optimisations
• Bidding – Automated bid strategies were implemented using the native Google Ads platform
• SKUs – With over 16,000 SKUs we had to identify product segments based on performance
• Used our Bag of words tool to find patterns in single keyword terms across the millions of search queries in the account to quickly optimise large scale optimisations
• Splitting up campaigns and budgets based on performance of product segments
• Migrated to Double Click for Search 360 and setting up advanced bid strategy options to scale up the account based on ROAS