How We Reduced Wasted Ad Spend by 50% for an Interior Brand

Before:

• ROAS: 750%
• Budget Allocation: Inefficient due to mixed branded/non-branded traffic
• Conversions: High, but unable to scale

After:

• ROAS: 620% (initial dip due to better data separation)
• Budget Reduction on Branded Traffic: 50%
• Profitability: Increased due to better budget allocation

Problem Assessment:

This interior brand had initially achieved a high ROAS, but it was unsustainable due to inefficient budget allocation and an unclear separation between branded and non-branded traffic. This lack of segmentation distorted their campaign data, preventing them from scaling effectively.

Key issues included:

• High, but misrepresented ROAS due to branded traffic skewing results.
• No clear segmentation between branded and non-branded traffic.
• Inefficient use of budget with wasted spend on branded traffic.

Restructuring the Campaigns:

We implemented a full campaign overhaul, focusing on budget efficiency:

• Segmentation of Branded and Non-Branded Traffic: Split campaigns to separate branded and non-branded keywords, providing a clearer view of performance.
• Product Feed Optimization: Enhanced product titles and descriptions, improving relevance and reducing CPC.
• Custom Script Implementation: Installed a custom script to track performance metrics and optimize based on real data.

Improving Scalability:

Our focus shifted to improving scalability by reducing wasted spend:

• Budget Reallocation: Redirected ad spend from branded traffic (which converts organically) to non-branded traffic for better long-term growth.
• Non-Branded Conversion Optimization: Enhanced the performance of non-branded campaigns, resulting in a 25% increase in conversion value for non-branded keywords.

Key Results and Impact:

• 50% reduction in branded traffic spend, which was recaptured organically through SEO.
• ROAS adjusted from 750% to 620%, reflecting a more accurate picture of the account’s health.
• Increased profitability due to better budget management and clearer segmentation.

To Achieve Similar Results for Your Brand:

Here’s how you can improve efficiency:

1. Separate branded and non-branded campaigns for better performance measurement.
2. Optimize product feeds to improve relevance and reduce CPC.
3. Use custom scripts to track performance metrics accurately.
4. Reallocate ad spend from branded to non-branded traffic for long-term scalability.