Is $30.00 per day spent on AdWords too much for a new store?

Tourist
17 0 2

Hi. 

 

I launched my store around mid-October and I've gradually increased my Google AdWords daily spending from $10 per day to $30 per day.   My current traffic has lingered around 120 or so uniques per day since I've bumped up my budget to $30/day.   I was wondering if this was too much?  Especially because my sales are sporadic and inconsistent.  I will have days where I won't get a sale for three to four days straight, then I'll get sales for the next two or three days, like one or two sales a day.   

My CTR for my campaigns (currently have four running at the moment) have been ranging from 3% to 6%, which is pretty good, but I'm just not converting them into sales.  And that's something I've been working on.  I've tried scarcity apps, timers, etc.  Yet I only get about 3-4 add to carts per day out of the 120 or so unique visitors.   

So yeah, should I lower my budget per day to maybe $15.00 total because I feel like I'm wasting money.   I've only had about 20 sales since I launched my store last month.

 

NOTE: I am not using Facebook because they keep on deactivating my credit cards even after numerous proofs of identification sent to them.  

 

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Highlighted
Shopify Expert
246 0 38

I would review a few things and see if you can focus your spend more on people who convert:

Are you tracking  trasactions as conversions in AdWords? You want to know what is causing sales.

Review all search terms your ads show up for. Are they terms that people search on when your are about to buy your products? Terms like "I want to buy a xxxx" are far more likely to be of value to you than "my xxxx is broken". If your seen broad terms without buying intent, tighten up your keyword choices, use exact, phrase, modified broad and negative keywords to control things better.

Check which keywords your money is going on. I often see most of a budget going on one very broad and untargeted keyword.

Make sure your ads are very clear on what you offer. A good CTR may be an indication that the ad is too vague and everyone thinks what you offer is relevant to them.

Avoid being "limited by budget". That means you are over bidding for what you can afford.

Shopping/Product campaigns can perform well. They take a bit to set up, but then they are mostly self managing.

Technical SEO Consultant - Specialising in setting up Structured Data for Rich Snippets, Google Analytics for advanced reports and the Google Search Console for efficient crawling.
1 Like
Tourist
7 0 3

First of all if you not installed google analytics do so check you bounce rate etc.

to get an affective Google add words campaign takes time and effort.

I check my search terms in the management console regularly. When I started I did it daily.

put as negative any terms which are not relevant. If your using broad match it will be quite a few. also you cam block particular words  I for my site added "recipe" in quotes as a negative keyword this saved a pound a day

 

Look at you quality score its needs to be around 8 if it's lower investigate.

 

Do do you have separate add groups and addes for cycles, clothing etc ?

once a month check how much each key word costs and number of conversions if it's not performing pause it

A service such as this can point you in direction of best practice (trying to sell you service but the free grade is worth while)

http://www.wordstream.com/google-adwords?src=AdWords&kw=word%20stream&fromppc=yes&cid=Paid_GGL_Searc...

 

and rember Google is looking to spend you money. It's up to you to control it.

 

1 Like
Shopify Partner
261 1 46

Hi Vince,

The important part about running campaigns is that, you need to be evaluating what is working effectively and what is not. If you're just blindly running campaigns, and just hoping for results, then yes, you are wasting your money. You need to be A/B testing various types of ads to measure the effectiveness of them. For instance, the text you use in one ad, may have better click-throughs, then text from another. If so, you should scrap the worse performing one, and create a different variation of the better one, to see if you can improve it. In the same way, you would want to test other aspects like:

- Ad text
- Media (images/video) used in ad
- Landing page
- Target demographic
- Target keywords

It's important that when you run your tests, that you do not change more than 1 variable at a time. Otherwise, you won't be able to tell, what specific aspect is working, and what is not. Also, as mentioned by others, it is important that you look at your analytics to see how people are engaging on your site. If not many people are adding to cart, your targeting may be off, or there are severe issues with your site design.

If you're looking for free apps to help with conversion, I would recommend the following:

Trust Seals - https://apps.shopify.com/trust
Ad Exchange for free traffic - https://apps.shopify.com/ads
Conversion Checkout Timer - https://apps.shopify.com/conversion

Cheers,
Ryoma

Utilize Trust Seals with Reviews Generation to increase your sales conversions - https://apps.shopify.com/trust
1 Like
New Member
1 0 1

Yes. Google Ad Words is generally a waste of money. Think of it this way. Hypothetically, let's say you are paying $1 per click through. 100 people click through so it costs you $100. You convert 2 into sales. Believe it or not, that is a rather common conversion rate. So, under this scenario it is costing you $50 per sale. Can your product support that? If so, then maybe you have a shot of making it work for you. However, boosting Facebook ads will get you far better results at a tiny fraction of the cost. I am talking from experience. I did a lot of Google Adwords until I wised up. Now I do strictly Facebook ads.

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Tourist
7 0 3

Hi

Looking at the bikes you do not show the frame geomitry so how does one kow what size to buy

see 

http://www.wiggle.co.uk/avanti-corsa-er-2-2016/ (and click on size guide)

Also I would have a page on how the bikes packed and what need to be done when delivered

Is your colour guide group set selction as it should say group set not colour.

Peter

1 Like
Tourist
12 0 2

keep it low till you a/b test, optimize it and then go up.  The same ad in the same site thru adwords will give you three times the value comppared to most platforms directly (at least for me at modifyfurniture.com)

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Tourist
11 0 1

I agree with BeenThere.  Adwords was a waste of money for me.

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Tourist
12 0 2

i disagree. adwords worked for me but it took a long time to weed out the bouncers and optimize where the ad was posted. I noticed that the group on one site spent much more time on my website whereas the same ad on another platform had 95% bounce. you need to constantly reevaluate the results on google analytics to get it right

1 Like
Tourist
17 0 2

Hey thanks for all of the input and advice, everyone.  I really appreciate your words.  I have gone ahead and spoken with the Google AdWords team these past few days and they've helped me tremendously as well.  What they've told me also resonates with what some have mentioned here.  

I guess my problem was mainly only looking at CTR alone and banking on that, and constantly adjusting my bid strategies on a near daily basis based on CTR results after each day.   In essence, I guess I've just been quite impatient with results.  I really need to let these campaigns mature and use the data after some time to see which ones are truly performing well.   

Google has helped me with campaign rebuilds and I'm gonna see how all of these rebuilt campaigns perform after 2-3 weeks to get a better evaluation.  

Thanks again for all of your help!

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