DTC POD #342 - Google Ads for Growth: How to Build, Test, and Scale Campaigns
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Really excited for today's convo because I know offline before we started, we're chatting a little bit about Google Ads, how brands that are, you know, a million dollars and above, how they can think about really scaling out this channel. It's, you know, one of the big channels to grow on. So why don't you first give us a little bit of background about yourself and then we'll dive into everything, growth and Google Ads.
Yeah, of course. Well, first of all, thanks for having me here, but a little bit more about me. My name is Sri Konase. I started in e commerce back in 2017 with my own e commerce grant. That's how I initially got into the Google Ad side of things, the Facebook ads world and whatnot. Flash forward to 2020 2021, when a lot of Facebook ad account suspensions and policy violations start to happen. That's when my own e commerce brand ended up getting destroyed because I was so reliant on meta ads on TikTok ads, anything besides Google Ads. So that was kind of the turning point for me personally to just go all in on Google Ads.
That's when I transitioned my own e commerce brands to just fully focusing on Google Ads. And right now I do run an agency, but that came on later in 2022 after I had really wasted my own money, learned my own strategies to find out what's working versus what's not working with Google Ads.
Awesome. So why don't you give us a little bit of a background then about, you know, you start the agency. What kind of brands do you typically work with? Like, um, you know, who comes to you, what's your team set up? Like? Just give us the whole run out of.
Yeah, usually it's a very kind of broad approach, but we work with any type of ecommerce brand that sells legal products. And the reason why I say this is because with Google Ads, the main thing to make things work for any commerce brand, it's not just the niche itself. Rather, it's the average order value. So if you sell products which are basically legal, doesn't matter if your average order value is $20 or $500 or 5000. There are working strategies and working approaches which can be taken according to that. So that's usually the brands kind of which we like to work with. Now, in terms of my team, we have a total team size of seven. However, any e commerce brand we work with, it only comes with me, along with one other team member who works on the brand itself.
Because I personally don't believe that any brand out there should be working with an agency. That just makes you a number on the screen. There's a lot of agencies out there, super big, 5000 thousand different people, but all you end up becoming is a number on their roster, which is something you never want. So this is why really, we really prefer a boutique kind of approach to anybody, for sure.
And, and one thing that I'd kind of love to talk a little bit about, um, with you guys. Cause like, you're saying you're working with that business, every business is a little bit different from each other. What's your typical approach? Right. Business comes to you. Um, you guys want to figure out a plan. Like, how do you guys approach what a, you know, a good Google Ad strategy should be? Are there brands that should be advertising on Google? Are there brands that shouldn't be advertising on Google? Should every brand be on Google? Like, how do you think of it? How do you evaluate it when, you know, when you're, when you're onboarding a new brand.
Yeah, that's actually very interesting because unlike Facebook ads, unlike TikTok ads or any other ad platform, Google solely works off of search volume. So if you sell a product and there's even ten people searching for it, you should be on Google, period. It doesn't matter what your conversion rate is, it doesn't matter how many people you end up getting, because the search volume is the crucial key to really making Google Ads success for your brand.
Perfect. And then let's assume that there's good search volume, there's search intent around whatever we're selling. Like, what are next steps? Like, let's keep things really actionable when you, when you're getting an account set up right. You know, talk to me about the brands that come to you. Are they typically brands that are already, like, running a Google Ad strategy and they are, you know, trying to kind of take it to the next level? Are they brands that have just dabbled with Google Ads? Are they brands that have not been on Google Ads and have been strictly relying on meta? Um, I'm just trying to get kind of a feel for how, how you work to get brands, you know, doing the right things.
Yeah, usually it's actually a very big mixture. We, because we work with the brands doing a million dollars a year or more. About 80% to 90% of the brands already have some kind of presence on Google Ads where they have, even if it's not a great strategy, they have something that's running and serve something that's potentially work. The other 510 percent of the brands are usually those brands which have zero presence on the Google Ad side of things. But once these brands have found out that there is enough keyword search volume, it's that about starting from the ground up with Google Ads. I see, I still see so many ecommerce brand owners out there who believe majority of the success comes from just clicking buttons within the Google Ads account. Because technically that's what works with meta ads. You need the right kind of campaign strategy, the creative, and then it works.
Unlike meta ads, unlike TikTok ads, Google Ads is very different because your true success, it's not found on the campaign side. You could be clicking buttons all day and night and your brand still would fail to scale to the next level. Real scale with Google Ads comes from the ground up, the foundation of the keyword search volume. That's one part of it. But the other parts of it include things like the product feed. How good is your product image versus your competitors? Because keep in mind with Facebook ads. With TikTok ads, you are basically forcing somebody to stop scrolling on their Facebook newsfeed, stop them from watching their cat videos to look at your ads and to buy something from you. Whereas with Google, your competitors, 510 50 of them are right next to your own ad on Google, at least if you do shopping.
So this means you need to make sure you're creative on Google, which is the product image title, what you do in the Google Merchant center, if you have reviews or not, all these are basically the opposite of your competitors. From here is where you build that strong foundation. And when you combine that with the right keyword search volume, when I say right keyword search volume, it could be anywhere between 10,000 to 10,0000 and above. Because yes, you do need a decent amount of search volume to make some drastic impact from Google Ads. But once all of these things come together, that's when Google really starts to kind of take off in with any brand really perfect.
And let's talk about a couple of things you mentioned, including, you know, keywords and strategy around that, right? Like brand. Let, let's talk about a brand that's just getting started out, because I know you guys, like, typically work with like a million dollars plus, and we'll definitely talk about that. But imagine someone's just launching a brand, right? They're spinning up their first Google campaign. They're like, you know, I want to be advertising on Google because, you know, I know there's already search intent around my keywords. A couple things, like you said, they're like, I think my brand is different from the competition. So if I rank for a couple of these keywords, we're going to do really well. What's your advice to someone who's just getting started out, right? Is it like, what type of campaign should they run? Can they target just a particular keyword? Are they showing up in, you know, in the, like, traditional results? Or do you recommend them being in the shopping results or both? Like, imagine walk us through, like, you know, a founder who's, like, hopping into the Google Ads platform for the first time. What's, what's that first campaign they should be setting up if there's, like one hero keyword that they want to go after.
What now? Do I start with my own, like, you know, just a keyword campaign, or do I, you know, let PmAx rip for broad match? Like, what do I do?
Yeah, that's a great question. And this is where so many founders kind of get stuck up on. They want that perfect approach that perfect strategy which goes exactly after their right ideal audience right from the beginning. Unfortunately, that's not how Google works. Because unlike Facebook ads, unlike TikTok ads, where you have interest targeting, with Google, there's no such thing as interest targeting. You can't just go inside a campaign and say, hey, this is my interest. I want to target all dog lovers or cat lovers and then magically the algorithm just goes after them. So because it's a search based platform where users come to you first by doing a search on Google, you need to keep things broad, especially in the beginning.
So forget that one individual keyword, forget that one ideal audience. You need to broaden up your approach as much as possible. So what that means is if you're selling dog shirts, for example, or cat shirts instead of just going after maybe people who own a dog, who also love shirts, you want to go after dog lovers in general or cat lovers in general. And with Google Ads, this means not really going first after search campaigns, although they can work extremely well, but rather keeping your efforts focused more on the shopping side of things right in the beginning. Like performance max campaigns, like standard shopping. Ideally, if you have no data within your Google Ads accounts, it's always better to go with a manual bidding based approach using these shopping campaigns. Because if you right off the bat, just go after like a performance maximum with crazy high target roas values or target CPA values, what's going to happen is these performance max campaigns are designed to maximize performance. If you have zero performance within your ad account, what are they going to maximize? Right? There's nothing to maximize.
So it's about taking a manual bidding based approach, starting with maybe low bids. Forty cents, fifty cents. Again, these are arbitrary numbers. It depends on your niche and your average order value. But from that manual bidding approach, then letting the campaign get some data and it doesn't have to be profitable results. By the way, in the beginning, if it's unprofitable, that's fine. It's all about testing initially, that perfect bid to find out where you get some initial momentum. Once you start getting that some initial momentum, that's when you can then start expanding into smart bidding via performance max and whatnot.
But initially, you want to first really make sure that product feed is strong with proper keyword research and proper keyword strategy. When I say proper, I'm just referring to using number one, the most relevant keywords to what you sell. Number two, keywords with decent search volume individually, so more than 10,000 each keyword search volume or at least 1000 bare, bare minimum. And then number three, when you search up that keyword on Google, do you actually see other competitors selling the same product or in the similar niche as what you want to sell, or is it something completely different? Because if it's not relevant, then you're going to be getting the wrong audience and that's going to lead to a big kind of going in the wrong rabbit. Holistic.
Yeah, and one question that I had just to follow up. So you said, did you say you don't want to go after the key, just like individual keywords starting off and you want to go for like broader match or you do want to go after the individual keywords?
So when I say don't go after individual keywords, I mean don't launch like a campaign, like, for example, search campaign targeting just one individual keyword or a select few individual keywords. Instead, you want to go with a broad approach, which means doing keyword research and adding 510, 20 different keywords to your product titles and descriptions. You don't want to have that many for the product titles because there's a character limit. But the more you have, the more keywords that are relevant and especially within your descriptions, because the Google Ads algorithms crawls through your landing page and reads the description to note these keywords. So the more keywords you have, and again, making sure they're broad, not going after dog lovers who also like shirts, for example, but going after just the keyword, dog lovers in general, because it's much broader. When you keep things broader, that's when the algorithm notices these keywords as they cross through your landing pages and they cross through your product feed, and then it's able to then kind of get an idea of what you sell based off of that.
So that, so that's actually really interesting. So basically what you're saying is even if I say, oh, wow, I found my keyword, I know the people searching this keyword have really high intent for my product. There's 10,000 searches for this keyword. You're saying don't just go for just that keyword because Google isn't going to, like, figure it out the right way. So instead you should, you know, have that be one of your keywords, but also go for a broader match. So Google can kind of figure out buying intent and all this other stuff. Is that. Is that right?
Yes. Because think of it like a fishing net, right? The smaller your fishing net is, you're going to get a little bit of fish. It might be what you want, it might be not what you want. But the moment you expand your phishing net size, the moment you make it bigger, sure you're going to get some trash in that fishing net, but at the end of the day, you're going to have much more fish and much more volume within that net. Right? Same thing here. Although you know that that individual keyword is exactly what you want. There might be 50 other competitors. Like maybe all your competitors are also targeting that keyword.
And if you're just a brand new brand and you have a competitor who's Amazon or the size of Amazon, well, there's no way you're going to get anything from that because that brand probably has been going after that keyword for months and years with millions of dollars of ad spend to back it up. Right? So you cannot just rely on an individual keyword. That's why you got to keep things broad, let the algorithm narrow it down for you, and then when you get some results, then you can start narrowing things down.
Awesome. And then could you explain, like, you know, how long should I, should a brand expect for one of these campaigns to take to, like, learn and optimize? Right? Like, imagine you're a founder. You start, you launch your campaign. Um, you know, your Google tells you, hey, we think that if you spend x amount of dollars. Cause I know right now, Google Ads has this thing where if you sign up, you know, you spend 1000, $1,500 in your first however long, they'll give you $1,000 in ad credits, stuff like that. Um, so imagine you're a founder, you're like, oh, that's sweet, I want to dip my toes in. I want to get spending. I think Google also tells you, oh, here are your key words.
We think that if you bid x amount or spend this amount per day, you'll be able to move this amount of product. It looks really good, right? And then imagine you do that, and then, you know, Google's like, we're serving, we're learning, and, like, you're not getting conversions. How long, how long should a founder, like, expect that stuff to be happening before Google really starts to figure it out? Like, what budget are we talking? How much should you be spending per day at minimum? And how long does it take to, like, for these campaigns in Google to, like, really optimize?
Yeah, well, first of all, if you're just starting out with Google Ads, your brand new founder, first thing you want to do is close all the recommendations from Google, because those recommendations, they're designed to make Google Ads more money. Most founders don't realize this, but Google Ads is a business. They want your money and the way they do it is by recommending increase the budget, spend more here, bid more, etcetera. That's always what they will say. You want to not listen to it at all because it's going to lead you down the wrong path. But in terms of expectations, what to expect? Keep in mind if your ad account is brand new. Zero data. Google initially goes through something called the warm up period where because Google Ads is a search based platform, it's not a platform where you do interest targeting.
It needs extra time to even figure out if, number one, you're a real brand and you're not some scammy drop shipping store. Number two, what products you sell. Number three, it needs time to crawl through your landing pages and whatnot to understand your ideal keywords and whatnot. But this takes time. And usually you can expect maybe the first one to three weeks where you don't spend a single dime on your campaign. Even if your budget is a million dollars a day, you'll notice that it struggled to spend any money at all. It might send a few spends few cents a day. This is normal.
It's because it's going through this warm up period. But once that warm up period is over, that's when it rapidly starts to ramp up your budget. Because Google is smart, it doesn't want to just waste your money initially, especially if you have some sort of smart, smart bidding based campaigns going on. But once you have that going on, what you want to know is the more your budget is, the better it is. Ideally $100 to $500 a day. And this depends entirely on your average order value, because let's say you run a very high ticket store, your average order value is 5000. If you run a campaign at dollar 100 a day, you can spend maybe 2000 to get a sale. Well then you're going to wait a long, long time just to get that initial sale.
So you have to keep that in mind. What is your average order value? What is your break even cost per acquisition you want to go after? And from there, you can work backwards to figure out your budget bare bare minimum. Nowadays, I recommend 100 to 500 a day. Once you have that campaign running though, and once that warm up period is over, that's when you can start to really look into the campaigns every seven to 14 days. This is kind of the optimization period, which we still use. Doesn't matter how big the brand is, seven to 14 days is the sweet spot. Do it any quicker and you end you basically risk completely destroying the momentum of your brand and your ad accounts. Because keep in mind, Google Ads is a search based platform.
It has to deal with millions of keyword searches every single day. It's not like Facebook, where it's just one interest that's going after a select few. So keeping that in mind, optimization schedule is very important. Seven to 14 days is ideal regardless of the budget. If you wait too long, then what will happen is you're not giving the campaigns enough insights to know if it's performing well or not. There's two things you need to be keeping in mind during this process. First is you need to be rewarding the algorithm when it's doing well. Second, you need to be punishing the algorithm when it's not doing well.
And this happens during the seven to 14 day period where, for example, it's not performing well. You have some bad products in there, you punish the algorithm by completely excluding those products from there. Or maybe if it's doing really bad, maybe lowering the bids, maybe adding more restrictions or lowering the budgets. These count as punishments in the algorithm's eyes, and it will actually force itself to perform better. On the other hand, within the seven to 14 day period, if things are going well, you can maybe reward it by increasing budgets, by lowering restrictions. So it goes both ways, but ideally, seven to 14 days is ideal.
We are really excited to announce that DTC Pod is officially part of the HubSpot podcast network. The HubSpot podcast Network is the audio destination for business professionals, and we're really excited about being part of the network because we're gonna be able to keep growing the show, bringing you guys amazing guests, and obviously helping you guys learn from the best founders, marketers, and builders of the most successful consumer brands. So anyway, keep listening to DTC pod and more shows like us on the HubSpot podcast network@HubSpot.com. podcastnetwork. So that's really interesting. So could we just go a little bit deeper on what you were talking about? About like, the signals that you can send to Google? So you said that you are rewarding the algorithm when you're like opening up budget, increasing budget, adding more keywords, that sort of stuff, and you're penalizing it when you were, when what? You were reducing budget, taking keywords away, like reducing ad sets, like what, what qualifies as punishing versus rewarding?
Yeah, absolutely. So again, going back to what I said earlier, Google Ads wants your money, right? That's the main business model of Google, to tell you to do things to spend more money. And punishing the algorithm is in a way punishing Google Ads by not giving it the money it wants. Right? And we do this by first of all, lowering budgets by maybe ten to 20% every seven to 14 days if the campaign performance is terrible. We also punish the algorithm by excluding the bad products from those campaigns. Because this is a punishment. Because sometimes what ecommerce brand owners will notice is the bad products are eating up majority of the budgets. This happens especially if that bad product has a lot of Windows shoppers.
You know, maybe your product image is not good enough, but people are interested, but it's just not purchasing. Because one of these things, the product image is not good enough, the landing page experience is bad, et cetera. What you want to do is punish the algorithm by removing that impression share. It's giving to that bad product. Because keep in mind, every impression you give to that product, every click it gets, Google charges you for that. And when you take that out, Google is like, hey, maybe these are not the type of products we want to go after. And then it completely switches up its approach. Right? And then third way to punish it is by adding restrictions.
So let's say you have a target roas that you want the canvas go after, which is 500%. Google is not achieving that. What you can do is you can add a little bit more restriction to it. You can make the roas a little bit higher. And this usually what it does is it forces the algorithm to then stop spending as much money and just focus on profitability fully. Or if you're running like manual bidding, for example, you can lower the bids. If it's 50 cent bid and it's not performing well, make it $0.40, it's going to bid lower, it's going to be a little bit higher quality, and that could lead you to more profitables. Wow.
Okay, that's really interesting. Now I want to talk about some of just the differences in where Google can like serve ads. Right, so how do you think about it? Are you traditionally, are you just going after like the shopping results that are like, you know, sort of product focused or in DC, do you see brands also going after like just the traditional SERP results, like the web results where, you know, in terms of placement, what, what do you see performing for your clients and where do you want those ads to be showing?
Yeah, great question. So majority of the brands we work with, and when I say majority, I mean like 99%. Basically there's three different placements we like to go after initially and master and become the best at before we expand anywhere else. Number one is shopping. Number two is search and search. Placements include things like brand search, which is just going after your brand keywords, and also prospecting search, which is completely cool traffic. Third placement is YouTube. Believe it or not, YouTube nowadays is really picking up, especially for those brands which have already winning creatives from Facebook, TikTok, etcetera, YouTube is the place to be.
But these three placements, once you get going on this, once you gain enough momentum, this is going to allow you to then start wasting money on other placements. And I say wasting because placements which are display traffic based, like display campaigns, demand gen, all these things, they're not designed to make you money. They're designed to increase your brand awareness. And you don't want to be increasing brand awareness initially if you don't have any profitable results to begin with. Right? So three placements, shopping, search, YouTube, these are the ones you should be after. This is enough to get you over seven and even eight figures per year in revenue.
Yeah, I think that's that. I think that's a great call out. Um, I'm actually curious because all the things that you just mentioned, that like each one, Google shopping versus Google search versus display versus YouTube, the assets you would need for those are like all slightly different, right? And I know if you go through the onboarding into Google Ads, you'll like throw in a bunch of your images, or like, especially like, if you just set up Pmax. So Pmax will be like, hey, give me logos, give me images, give me creative, give me videos, give me text, give me ideas. And then Vmax starts to kind of like assemble all your different ad sets for their, their different properties. But like, how do you think about it? What type of content do you want to be providing for Google? Can you just take your same ads that you created that you saw performing on meta and like, put them over? Do they need to be reformatted? Is there a certain type of, you know, creative that you want to be using that, that you see performing well? How do you think about it from a creative standpoint? Do you think about it? Do you create specific assets for Google where you just kind of recycle what you've got from across your stack, or do you just like Google, do its thing?
Yeah. So personally, as an agency, we don't create these assets for the brands we work with. It's the brand's responsibility to create these assets. And the reason why is because every brand, it knows its audience the best. They already know what's working for them because they are in direct relation and connection to the customer itself. But in terms of the creatives, what works versus what doesn't. Of course, for performance Max gimmicks, you're going to need to have different image sizes, you're going to need to have different videos, logos, etcetera. That's a given.
It should all be based around what's the highest quality kind of product image, or just a general banner image which has ideally worked in the past on different placements or just in general. Those are the, some of the ones that do the best. Now, in terms of YouTube, what we have seen in terms of creatives is UGC styled content and anything that's below, like 30 seconds to a minute long. Shorter videos have been proven to work extremely well on YouTube. Especially those are testimonial based, especially those where it's showing your product and use. These are the types of videos to be using on YouTube ads, and they can actually even work well with the performance max out.
Awesome. And then let's talk a little bit about, a little bit more about YouTube. Right? Like what are you seeing? Are the shoppers that are coming from YouTube, are they on mobile, are they on desktop? You know, what are you creating specific, like you said, are you just, are you strictly seeing YouTube work with these like short form UGC style videos? Are you seeing other sort of creatives? Maybe like statics or other things like that work on Google that are more like inline? You know, what's working in the world of YouTube for consumer brands?
Yeah. So the good thing about YouTube, it's very, very similar to TikTok ads and meta ads in the sense of how the customer interacts with your ad, right? Because you're doing, what is something, I call it pattern interrupt on Facebook, on TikTok, you're interrupting whatever they're doing to click on your ad and to interact with it. Same thing with YouTube. And that's why with YouTube ads, shorter form content works the best. Because these people, if they're watching a video, like a cat video or a dog video, whatever they're watching, they don't want to be bothered technically, but you're bothering them by adding your video in and the last thing they want to do is sit down and watch a 20 minutes ad of your product, right? So it's shorter, the sweeter. And again, in terms of just the types of people that come through, usually it's all based on the creative itself. If you have a high quality creative, which not only showcases and displays your brand in a very powerful manner. With high perceived value, you're gonna get higher people, higher quality people onto your website.
Whereas if you just throw something up, it's very simple, it's very basic. The party's not that great. Well, you're just gonna get a bunch of Luna shoppers. So you have to really be focused on that creative aspect, not just what the creatives about, but the perceived value of that creative. How does the user view your brand as a whole when they see that creative? It's not just about selling the product, it's about through that video showing that, hey, you're a high quality brand and you only deal with high quality customers. That's what, when you kind of get these pieces together, that's when I've seen YouTube ads really shine the most. But technically, again, if you have something that's already winning, most likely it will do well on YouTube.
Awesome. And then what else do we need to know about Google? You know, uh, I don't know if we really dove into PMax, but, you know, how do you think about like PMax and maybe some of the other properties? How do you, uh, yeah, how do you think about it? Do you just kind of hand over the budget to PMax and let it do it do its thing? Or like, how do you make sure if you're using PMax, you're using it in a successful way?
Yeah. So it's, it's funny because with performance Max campaigns, again, I think it's a money pit unless you do it the right way. And this is because Google Ads introduced PMAx to steal a lot of your own control away from you. Basic, because P Max, what do you do? You just push in a bunch of assets. You push in like a target robot setting, or maybe you don't do that and you click launch and that's it. You have no control over keywords, you have really no control over anything else. And if you do this the wrong way, PMax can again be like a way for Google to extract a lot of money from you and, you know, make themselves rich. So performance Max image, you have to be a bit careful and a bit more strategic.
One of the best ways I've seen performance Max work in the best possible way is through something I call the feed only approach. The feed only approach in performance Max campaign forces that performance Max campaign to become a shopping placement only campaign. And the reason why this is beneficial is because when you, when you push in a bunch of assets within a P Max, a bunch of images videos, logos, headlines, et cetera. What happens is instead of this Pmax being a master of one thing, it's not forced to be a jack of all trades because these assets literally go after Gmail traffic. It goes after display traffic, discovery, random blog pages, you know, YouTube, even along with shopping. So it's like doing six different things at once. And if you have like a day budget, well, how much are you going to distribute that $100 a day budget across six different things? Right? Is this not efficient, at least to a lot of wasted money? And you will notice by the end of the month that your top product, your top spending product, barely spend like $50 in the whole month, even though your budget is $100 a day. And e commerce brand owners, they get confused as to why this happened.
Well, the reason why it happened is because PMAG decided to spend your money on this display traffic, because that's how it makes most of the money. Right? So this feed approach only forces those products to be shown first amongst, you know, amongst everything else. And then if you want to, if, let's say you do have a bunch of images, videos, et cetera, in which you think are good, then you can launch a separate P max approach, adding those assets in, or you can launch a different asset group within that first p max to test the feed only approach side by side with the different images, logos approach. And what this will do is it will now force Google to choose which one is working better over the other. Or even if it doesn't choose it, let's say it still pushes your budget more towards those images and whatnot. At least you personally know, based on looking at the profitability, which one is actually working for your brand. And then from there, you can take a bit more narrowed approach, but ideally, never just push everything into a p Max, because that's when it becomes a money pit, 100%.
And what, what else should I. What else do you see for brands that are really starting to scale? Right, like you said, bunch of brands that are coming to you, they've already like, figured some stuff out and they're really looking to scale. What's your strategy when working with the brands? How do you make sure that, you know, Google doesn't become a money pit for them, it becomes profitable. What are you doing on a day to day basis as those brands are like actually starting to scale and spend efficiently? Yeah, why don't you walk us through that?
Yeah, of course. So after you initially start gaining that momentum, which again comes after building that strong foundation, that strong base, you will start to notice that, you know, whatever performance max campaign or whatever campaigns you're running, they are starting to pick up a little bit of sales and a little bit they're starting to scale. Essentially. At that point it becomes extremely crucial to now guide the algorithm even a bit further. What I mean by that is instead of just now focusing on that one individual pmax you have running or that one individual campaign, it's now time to segregate those products out into their own separate approaches based on the incoming data. This is a strategy which I developed myself. It's called a TPS approach, which stands for testing profitability and scaling. This TPS approach is perfect for any brand, doesn't matter the niche or industry you're in, where after you're getting some general momentum, you now need to guide the algorithm even further by separating out those products which are getting tested versus those products which are already profitable and scaling.
Because let's say you have a testing campaign going on right now. You have some products in there which are eating up majority budgets and they're actually profitable. You don't want to let those products continue to run in that same campaign because what will happen is Google will spend 80% to 90% of your budget just on those, and everything else will remain untested forever, basically. So to prevent that from happening, to make sure almost all of your products get the ad spend they deserve, you need to implement a separate testing approach now where what you do is you don't touch those profitable products or scaling products within that original campaign. You take out those products which are not spending any money or barely have spent any money and have not gotten tested, and you give them their own separate performance max and bin approach, could be feed only, could be assets, whichever way, you know, you decided based on the results that came in. But from there, just pushing those testing based products into its own separate campaign. This now leaves you with two different performance max campaigns. So the original one became a profitable campaign only.
Why? Because now it only has those profitable products in there. And eventually what you want to do is as you start getting more and more momentum, you can now turn that profitable campaign into a scaling campaign where now you aggressively start increasing the budget, lowering the restrictions on that campaign because you should already have products in there which are working. And the testing campaign you created originally, well, that's just for testing, right? So what that means is any product that starts to perform well in there, you can now transition it into the profitable approach. And you keep doing this, you keep segregating out until you have a completely different segregation strategy for testing versus those products are profitable. Some segregation strategies which work extremely well include things such as segregating based on the product price points. If you have products, let's say between one hundred dollars to five hundred dollars, you want to give them their own testing campaign strategy versus those products which are $5000 to $10,000. Right. Because the product that's five to 10,000 is going to have a completely different customer base for it.
It's not going to be the same person as somebody who buys a $500 product. So this is where you give those products their own separate approaches and you scale them separately as well. So little by little you start segregating and segregating until pretty soon you'll see that you have like 510 different performance masks going on, all with different kinds of, you know, products, different products aggregation approaches. And this is the beauty of Google, because now what you have done at this point is you have given the algorithm enough direction to know exactly how to find a customer for a $10 product versus how to find a customer for a $5,000 product. And trust me, these two customers, they're not the same. It's completely different from each other. The last thing you want to do is push all of these products together inside this one general holistic approach and hope the algorithm kind of scales your brand for you because this is where majority of the brands plateau and this is where their profitability starts to plummet when they take this.
Oh, so that's really interesting. So you're basically saying that rather than let Google optimize across all the different products in your suite, you know, you want to segregate campaigns based on what the targeting, what the price point is, all the different things based on the unique product, rather than just saying, hey, I sell, you know, this product and a super high end product and just, you know, figure it out in a singular campaign.
Exactly. And you want to think of it as a funnel, right, where a funnel at the very top when you're getting started, it's very big. It goes back to, you know, going broad initially, but once you start getting some momentum, slowly and steadily, that funnel starts to become smaller and smaller because now the algorithm has enough real data to go after who you want exactly, you know, at the right time, et cetera.
Awesome. And Sri, as we wrap up here, what, are there any other things that are, like, exciting you about in the world of Google Ads? Any other last tips or tricks you've got for people who are looking to scale up and win on Google?
Yeah, absolutely. So one thing you want to understand is Google Ads. Again, I'm going to keep repeating this, but Google Ads is a business. It wants your money. But at the same time, Google itself is not a startup business. It has billions of dollars of incoming ad spend. It has, you know, millions of different advertisers at this point of time. So what Google wants at the, at this point of time at least, is the highest quality advertiser.
A lot of brand owners, what they still believe is, hey, I'm going to launch Google Ads. I'm going to run the budget at $5,000 a day, I'm going to have to bids the highest possible, and they want to take an approach where it's bidding based or they want to start price wars where they want to have the lowest product price for their products compared to their competitors. And this is not the way to go in Google anymore. You, if you want to win auctions with Google Ads, if you want to rank in the front, if you truly want to scale your brand, it's going to have to be more of a strategic approach that focuses on the perceived value of your brand as a whole. Things such as your product images, your product titles, the way your landing page speaks to your customers, all these things, they might seem, you know, very broad and just very general, but this is where true success is found. Because keep in mind, when you fix all these things up, that's when you have high thing, high metrics. Just click through rates as high average border value because now more people want to buy from you and they want to buy more stuff from. All these things influence your return on ad spend.
All these things influence your cost per acquisition. So next time you start looking to just focus on the roas, you start panicking like, hey, my roas is low. This that. Take a step back and look at what's causing that low roas. Is it really just a profitability because your product sucks? Or is it because maybe your ctrs are too low? Or maybe your average order value is way too low? Or maybe your quality score for your ad account dipped because you didn't focus on the landing page enough? All these things influence the roas. Roas is an end metric. It's not where you begin. So always keep that in mind.
As you know, doesn't matter where, in what aspect your e commerce brand is in terms of scale. You could be new, you could be scaling to millions a month. Doesn't matter.
Sri, this is super helpful. Um, no, I, I just love it. It's already got my mind spinning in all the different ways that, you know, we could be structuring and thinking about our Google campaign. So this was awesome. For anyone who's tuning in and wants to connect, where do we find you? Where do we connect? Why don't you shout out, um, how to get in contact in your socials?
Yeah, absolutely. So if you want to follow me on social media, I do have an Instagram account. It's just edicatedyoung. You can also follow me on YouTube. I post a lot of ecommerce shop Google Ads videos. Just my name is Shree Kanasi and you'll be find those videos. But if you want to work directly with me, you can go onto my website at your marketing.com and just fill out a quick form where you know, you can get to directly speak with me and we can understand more about your brand. Sweet.
Thanks so much for coming on the show. Sree. It was awesome.
Thank you. Thanks for having me.
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