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Is Adwords advertising good for us?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Ours is an eCommerce website and we wanted to try out adwords advertising program to increase our online sales. But the problem is we didn't had any idea to set the benchmark for the metrics, so we just came up with a solution of running a 7 Lakhs budget campaign with a goal of 2% conversion rate at an Avg. CPC of Rs.6 so our projection was 


Budget:                          700000

Projected Conv. Rate:      2%

Projected CPC:               Rs.6

Projected Clicks:             116667

Projected Conv.:              2333

Cost/Con.:                      300


whereas below is what the actual outcome we got from the adwords program and to make it straight, the entire sales volume made out of adwords program was Rs.1500000 (including profit), 


Clicks:                                                 92,165

Impr.:                                                   2,634,958

Avg. Pos.:                                            2.2

CTR:                                                    3.50%

Avg. CPC:                                            Rs.7.34

Cost:                                                   Rs.676,539.13

Conv. (1-per-click):                                1,887

Cost / conv. (1-per-click):                       Rs.358.46

Conv. rate (1-per-click):                          2.05%

Conv. (many-per-click):                          2,800

Conv. rate (many-per-click):                   3.04%

Cost / conv. (many-per-click):                Rs.241.58


Can anybody tell whether the Adwords program is good for us or we should look for other options.

1 Expert replyverified_user

Re: Is Adwords advertising good for us?

Top Contributor
# 2
Top Contributor



To be honest, if I look at what you projected and what you got, looks to be similar in many metrics like CTR is good, Conversion rate is 2% and you spend less as compared to what you planned to spend.


I don't know for how much time period the data you have shared, but let me tell you that Adwords is an ongoing advertising platform where you have multiple options which you can explore if you are willing to spend and if there's someone who can take care of the account on regular basis fine tuning the campaign and working on other activities, then definitely Adwords can prove to be a good business achieving source for you.


You can work on things like whatever the profit you got, allocate some portion of that to your existing monthly spend and then see what you are getting. As you said you have ecommerce site, you have various options like Product Listing Ads, Remarketing on Google Display Network, Dynamic Search Ads campaign etc...


So my point is that if you have achieved some business from Adwords, you should continue with Adwords and based on the potential spend, you can work in the right direction to expand your presence online with Google Adwords.


My thoughts!


Re: Is Adwords advertising good for us?

Explorer ✭ ✭ ☆
# 3
Explorer ✭ ✭ ☆
As Pankaj pointed out, you are looking good wrt your projection and actual. The only place where it went higher is your CPC.
1. Are you using Display Network? - If not, I would suggest you go through the materials available in adwords learning center. Start using it. For a long term strategy, display network provides you better conversion for e-commerce. Please make sure monitor the placements closely.

2. PLA (Product Listing Ads): Very good response and you should try this. You should go through Google Merchant Center and link it with Adwords to create Product Ads.

3. Re-Marketing (Re-Targeting): Target your visitors (especially visitors who added some products but left before they purchase) who already visited your webpage but did not convert using Re-Marketing feature in Adwords. Just go to and type re-marketing you will get so many resources there.

4. For search, analyze your current performance segment wise. For example Top Vs Other segment analysis should provide you better details on where you actually getting the profit from (whether it is from top or other (search or search partner)

Check your geographic performance and focus more on geo location where you get better profit

Introduce more keywords variations for those keywords with better conversion rate.

Increase CTR for exiting good keywords by introducing ads variations to acquire more relevant visitors and hence more conversions.

I would say, you should proceed and focus more on how to improve the profit from Adwords.


Re: Is Adwords advertising good for us?

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭
Hello pankaj1782, thanks for your time in analyzing our campaign performance. The data is for a period of 30 Days and I do agree that Adwords is an ongoing program; there is something I want you to understand, As you know we are an eCommerce entity and books are the main stream of our business and the campaign results which you saw was out of promoting a bunch of books, to tell you the truth, the CPA Rs.241/- is almost 5 times higher than what we can get as profit from selling a book. It is like we are spending Rs.241/- to sell a book which is just a worth of Rs.50/- profit.

Although as you said the results were mere to what we projected, do you think this strategy will do good for our business?