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Through BlueWinston, you can create product campaigns for Google search. Such campaigns are especially suitable for online stores, as they help advertise hundreds or thousands of products very effectively. In BlueWinston, you can also set how to create keywords and ads for each product in the campaign.
Quite often we come across questions related to the performance of product campaigns. Agencies and PPC specialists alike are interested in knowing what performance should be expected from campaigns created through BlueWinston. This is mainly about ROAS, ACoS, CPA and similar metrics.
What factors influence ROAS?
Here, it’s important to note that a number of factors go into campaign performance. We can see this for example on one product (e.g. Apple iphone 13 512GB Blue), i.e. if we did the same campaign (same keywords and ads) for two different eshops (one known and the other unknown eshop). The differences would be quite big, in the known eshop ROAS could be around 1000 – 2000%, in the unknown eshop between 400 – 800% ROAS. The same factors also affect other performance metrics, e.g. ACoS and CPA.
The most common factors that affect campaign performance:
- Brand awareness – this is about how people perceive the eshop, whether they know it and whether they trust it. The more well-known an e-shop is, the higher the performance of product campaigns. To strengthen brand awareness, eshops and agencies use various branding campaigns.
- Quality of customer service – speed and price of shipping, pick-up and return options, dispensing points, customer support in the local language, etc. Smaller eshops can often compete with larger eshops in this, customers expect delivery within 1-2 days nowadays. Of course all product descriptions on the e-shop should be in the local language.
- Product price – in case of less known eshops the price of the product should be lower than in case of well-known and big eshops. If the product price is the same or higher than in a more well-known eshop, the lesser known eshop may have a problem selling the product. However, smaller eshops may have lower margins for the same products.
- Reviews for products – reviews written by previous buyers for a given product. This is useful information for prospective buyers who find it helpful in making a decision.
- Campaign management – for campaigns to perform at their best, it is recommended that they are managed by an experienced PPC specialist at an ecommerce agency or by a PPC freelancer. Campaign management can have a significant impact on campaign performance and therefore better ROAS.
- Season for the products – generally, the season for all products is considered to be fall in a given year, but some products may have a season in spring (e.g. lawn mowers, chainsaws), summer (e.g. swimming pools, air conditioners) or winter (e.g. skis, snowboards). During the season there is usually more competition in Google searches, but also more people interested in buying.
What ROAS can you expect in the different segments?
As we mentioned above, there are a number of factors that affect the performance of product campaigns, which can both worsen or improve the performance metrics in campaigns.
We’ve looked at a number of eshops in several segments and bring you a benchmark of how ROAS is trending. If you have lower campaign performance (e.g. lower ROAS) in your campaigns, there will be a problem somewhere and you will need to optimize your campaigns, tweak your eshop, or improve your campaign management.
| Segment | ROAS | ACoS |
|---|---|---|
| Books | 700 – 1500% | 6 – 14% |
| Tyres (for mobile cars) | 800 – 1600% | 6 – 16% |
| Electronics (TVs, washing machines, refrigerators…) | 700 – 2000% | 5 – 14% |
| Fashion (clothes, watches…) | 300 – 700% | 14 – 33% |
| Furniture | 400 – 1200% | 8 – 25% |
| Home decoration | 500 – 1000% | 10 – 20% |
| Medicine and nutritional supplements | 400 – 1400% | 7 – 25% |
| Auto Parts | 700 – 1200% | 8 – 14% |
| Alcohol (whisky, gin, brandy, wine…) | 650 – 1600% | 6 – 15% |
Figures are approximate and may vary from shop to shop. However, if your ROAS is lower than the table, your campaigns are probably loss-making. You can drop us a line and we can help you fine-tune them. At the same time, the results also depend a lot on the store (brand awareness, buying process, support etc) and on the products (variety of products, prices, reviews) and so on.
If you have better numbers from product campaigns, congratulations 🙂 You’re doing very well!
