Grey’s Fine Foods PPC Case Study

How Edge45 more than doubled Grey’s Fine Foods PPC revenue whilst simultaneously cutting PPC costs by 37%

Client: Grey’s Fine Foods

Website: 
www.greysfinefoods.com

Segment: Food & Drink, E-commerce, B2C

Background: Grey’s Fine Foods is an online Spanish food shop that specialises in sourcing and importing authentic, top quality Spanish foods, ingredients and drinks from Spain into the UK where they are then sold online.

The Christmas period has always been the most lucartive time of the year in terms of online sales for many E-commerce businesses and Grey’s Fine Foods is no exception. Keen to maximise the profits made over this period of time, Grey’s Fine Foods set up a PPC campaign to run throughout December 2014 to supplement the organic search revenue which at that time was low.

However, when the PPC campaign performance was reviewed in January 2015, Grey’s Fine Foods found that overall, due to product margins, postage and packaging and most importantly, Google AdWords costs, the campaign actually made a loss.

Despite this setback, Grey’s Fine Foods still wanted to understand & explore if PPC could work for them for the following Christmas period of December 2015 and enlisted the help of Edge45.

Goal 1: Assess, analyse and conclude if PPC performance for December 2016 could be improved over that of December 2015 and made profitable.

Goal 2: If Edge45 felt a profitable PPC campaign was possible, set up and manage the campaign during the month of December 2015.

What We Did

Our starting point was to analyse the PPC data collected from the Christmas 2014 campaign where a number of issues became apparent that gave us a clear indication that a more profitable December 2015 campaign was achievable. Our analysis discovered that:

  • Ads were running for the entire product range. Many of these items were low price, low margin items with Cost Per Click (CPC) bids that were in-proportionally high. This was leading to a lot of clicks and cost on products that could not make the cost of the unconverted clicks back no matter how many were sold.
  • Analysing the search terms report uncovered a large number of terms triggering the ads and costing clicks that were not relevant to the product or service offering. For example, the term “overcooking sausages” was triggering some Chorizo ads ad was accruing clicks that would never convert.
  • We also found that the ads were being run on Desktop, Tablet AND mobile where we could see that the tablet campaign lost money (15 pence was lost on every pound spent) whilst the mobile campaign also made a loss once margins and P&P costs were factored in.
Device PPC Cost 2014 £ PPC Sales 2014 £ ROI £
Desktop 597 1181 1.98
Tablet 249 213 0.86
Mobile 168 192 1.14
Edge45 concluded that a more profitable and therefore successful 2015 Christmas campaign was achievable by setting up a new campaign under the following criteria:

  • Run ads on only high value items (and therefore higher margins)
  • Eliminate campaigns on highly competitive categories such as Wine where CPC bids from Tesco etc. make bidding too expensive
  • Exclude all unrelated search terms that triggered wasted clicks & cost
  • Eliminate the mobile campaign entirely (Unfortunately, AdWords does not allow you to do the same for tablet)
  • Run enhanced CPC on high value items

The Results

The results speak for themselves:

PPC Metric December 2014 December 2015 YOY % Increase
Visits 1711 835 160%
Cost £764 £482 -37%
Revenue £1587 £3627 129%
# Transactions 23 44 91%
E-commerce Conversion Rate 1.34% 5.42% 292%
Average Order Value £68.98 £82.43 19.5%
By using historical data to structure a much more efficient, leaner and streamlined PPC account, Edge45 was able to double the PPC revenue with almost half the number of visits AND reduce costs by almost 40% in the process.

Takeaway

Google made $66 billion dollars in revenue in 2014. 62% of this came from their AdWords platform and here is one big reason why – Google makes the barrier to entry to experiment with running paid ads easy for anyone, even if you don’t have any prior knowledge which is great.

However, the advice they give for how to set up your ads and the default settings in the AdWords platform when you do are set to incur an unnecessary amount of wastage that can often leave all but the most seasoned of AdWords pros disheartened at the lack of performance.

For example, if you run a chauffeur service in Manchester and bid on the term “manchester chauffeur services”, you’d expect to pay for a click each time that term generated your ad and was clicked on? Wrong. The default settings will have your ad firing for all kinds of unrelated terms that will cost you money. In the above example, would you be happy if your ad was showing and being clicked on for “chauffeur jobs in manchester”? – No, we thought not! But that’s exactly what was happening for one new client of ours whose AdWords account we were asked to clean up and make more profitable.

Javier De La Hormaza Greys Fine Foods BascoWhat the client said

“Edge45 has helped us develop a much clearer vision of our online business, better web structure, better focus on those who matter – our customers, better page rankings, increase in traffic, increase in number of enquiries and most importantly, increase in turnover.

Fundamentally, Edge 45 has made a significant difference to the way we do business online. They’ve grown our online revenue to a point that we can start treating it as a standalone business & thanks to Colin’s SEO knowledge & experience, our brand is ranking 100 times better in Google. – Javier De La Hormaza, owner of Grey’s Fine Foods.

Think PPC Might Work For You?

If having read our PPC case study, you want to know more about how PPC might help you, visit our PPC services page here.