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What kind of ROI are the large sporting good stores running?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I am trying to buy more traffic but I don't think I am bidding high enough. I sell hunting and fishing products and was wondering if anyone in the industry had any ideas as to about what ROI the big guys were taking? Anyone in the industry have a clue?

2 Expert replyverified_user

Re: What kind of ROI are the large sporting good stores running?

Rising Star
# 2
Rising Star
Hi Daniel, welcome to new adwords community.

ROI of your competitors depends on different factors such as their profit margin, operational expenses, adwords strategy. I don't think anyone here can reveal such info with you due to NDA and other reasons however you may use adwords tools to evaluate how your adwords campaigns are performing compared to your main competitors.
Let me give you some examples:

1) Auction insights report. It gives you access to such data:
- your impressions share (to evaluate your potential traffic volumes after increasing bids and budgets)
- who are you competing with
- average position of your and competitors ads
- how often competitors ads are appearing above yours (position above rate)
- how often his and your ad was shown on the top of the page (top of the page rate)
- in which % of auctions your ad was shown higher or your competitors ads didn't appear at all (outranding share)

You can check this report on different levels, read more http://adwords.blogspot.com/2013/06/new-ways-to-see-how-you-stack-up.html

2) Pais vs Organic report.
You would be able to spot new longtails which are earning great performance for organic and change your bidding and keywords strategy accordingly. Please note that you will need to link adwords with webmaster tools to have access to this report. Read more https://support.google.com/adwords/answer/3097241?hl=en

Cheers,
Alexey

Cheers, Alexey
UAWC Agency
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Re: What kind of ROI are the large sporting good stores running?

Top Contributor
# 3
Top Contributor
A good strategy is to always test. Let your experiment run for 7 days. And change accordingly.

Even if someone where to give you a good guide, it will be most likely not the same. Each niche and merchant is different.

For example if your data feed is of poor quality your going to be spending a higher CPC, where areas if you have a perfect data feed it will be lower. Alongside the data feed there is historic ranking, landing page experience etc...

So what you need to focus on is go through all the steps

1) Ensure you have a high quality data feed
2) Have a great landing page and checkout experience
3) Have special offers? Supply a Google Merchant Promotions feed
4) Change and improve settings extensions, bidding in Adwords.

The list goes on, but these are the basics.
Twitter | Linkedin | Community Profile | Shopping Feed Tips From FeedArmy
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Re: What kind of ROI are the large sporting good stores running?

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆
You are spending your money so you should only worry about whether things are profitable for you.
That is not very useful advice but is true.

Some more useful advice is:
If you are up against big/rich/etc. competitors then you need to be nimbler and play in their shadows.
usually big co.s have big budgets and their agencies/internal team get away with murder.
Sometimes their accounts are just like a big hammer - spend a lot and get a lot of impressions.
You on the other hand as a smaller independent operator need profit.

Focus on the long tail keyword - if they are just doing lots of broad campaigns but you put the effort in to have many exact match keyword ad groups going hard on QS you can often steal some great search and a great cpc. focus on your products that have the most margin.

My other advice is be aware of intensity.
If your competitors have a budget of 10k p/m and you have 2k p/m then over a month they will smash you.
BUT if you only bid for a week and use you whole budget suddenly you are basically an equal player - that plus tighter targeting makes you a true competitor.