Atan.cz

How we increased revenue by 252% and reduced the cost-to-revenue ratio by 46% in six months

+252%

Revenue

-46%

Decrease in cost of sales

ATAN is an online and brick-and-mortar retailer that sells furniture. In 2015, it was even a finalist in the ShopRokucompetition.

The e-shop owner approached us with a problem - they needed to increase revenue while their current cost of sales significantly exceeded the company's target.

We can reveal upfront that we succeeded. In six months, we increased Atan's revenue by 252.53%. At the same time ROAS decreased by 46.39%

Nárůst tržeb klienta od 15.1.2020 do 15.7.2020 oproti minilému roku o 252,53 % a snížení PNO o 46,39 %.
Revenue growth with a decrease in ROAS for the monitored period vs. last year

What else did we achieve?

  • Conversion rate +31.27%
  • Increase in visits +76.49%
  • Pages per session +14.62%
  • Avg. session duration +29.54%

Read about our approach and pick up tips for your ads. Or just get in touchif you want to grow like ATAN.

1. Search campaigns

The Google Ads account has been active since 2016, with the client spending several million in it. We faced a major task, as the account contained 34 active campaigns.

We knew we needed to make significant changes. We started by reviewing the account history. Turning off underperforming campaigns or ad groups.

2. Search campaign optimization

Campaigns with potential underwent thorough optimization.

We optimized based on:

  • impression share, impression percentage, average cost per click
  • cost, conversion value, ROAS
  • location, demographics, website behavior, and more

We conducted a detailed review of search queries. Queries that led to purchases were added as new keywords to the campaigns. We also checked negative keywords. It can happen that something is excluded that wasn't in the product range before but was restocked later.

For example, we sell various types of chairs, but no office chairs. Our ad might appear for the keyword "chair" even for the search query "office chair." Since we don't carry those, we use "office" as a negative keyword. This prevents our ad from appearing for irrelevant search terms.
However, a problem arises if we start stocking office chairs, as the negative keyword will block the ad from showing.

Based on the defined USP (the client's competitive advantage), we adjusted or added headlines, descriptions, and missing CTAs (calls to action). We reviewed and updated all extensions with:

  • subpages
  • labels
  • structured snippets
  • call
  • location
Expanded text ad
We typically work with SKAG (Single Keyword Ad Groups). This is a campaign structure that allows for greater control over displayed ads and optimization. However, we would consider it a mistake to pause campaigns that have been active for 4 years and contain a wealth of data that we can use for optimization and further development.

Dalibor Klíč (Industry Manager at Google) at the PPC Offline 2019 event stated: "The 8 largest CZ and SK e-shops invest 60% of their funds into Shopping campaigns, and these bring them 60–70% of their conversions." That is why we also reduced investments in search campaigns so that we could shift the budget to Shopping campaigns.

TIP: If you use Enhanced CPC and are an e-shop, make sure you are optimizing for conversion value. By doing this, you are telling Google that you don't want a high volume of low-value orders, but rather fewer orders with a higher revenue value. This saves you time and logistics costs.

3. Shopping campaigns

As an advertising system, Google Ads excels at machine learning and neural networks. These increase advertising efficiency by learning from historical conversions and adjusting cost-per-click and targeting accordingly.

Because the client had a long account history and a sufficient number of conversions, we were able to leverage existing data for machine learning. That is why we launched a Smart Shopping campaign combining standard shopping campaigns with dynamic remarketing.

Google recommends advertising all products in a single Smart Shopping campaign. However, if you have different margins on your products, segment these margin groups and create multiple Smart Shopping campaigns. Just remember that each campaign should have at least 20 conversions every 45 days to ensure it has enough data to learn.

4. Optimizing shopping campaigns

For Smart Shopping campaigns, it is essential to optimize your feed, for example in Mergado.  

An important element of Shopping campaigns is the product photo, as it is the first thing potential customers see. We therefore ensured it is high-resolution, has a white background, and the product is centered.

We also checked other parameters in the feed, such as name, description, EAN, parameters: size, weight, color, material, etc. We must commend the Atanu team for a perfectly prepared feed.

TIP: If you are deciding whether to launch a Smart Shopping campaign, first check that you are sending the correct data to Google Ads via your remarketing tag.

5. Data Studio

For clearer reporting, we created a Data Studio dashboard that provides the most important metrics and charts with a single click.

By automatically importing costs, we also integrated data from Heureka and Zboží.cz into Google Analytics and subsequently into the Data Studio report.

Report klíčových metrik klienta v Data studiu.
Visualized and interactive e-shop data in Data Studio

6. Results

All these changes led to results that moved ATAN significantly forward. Revenue increased by 252.53%, while the cost-to-revenue ratio (PNO) dropped by 46.39%.  

Testimonials

What our clients say

I am satisfied with our collaboration. I appreciate the effort to find new ways to improve our promotion and the focus on keeping up with the latest trends in online marketing, whether it's PPC, social media, or SEO.

Marek Javorský
Atan.cz
Owner

Let's talk. A call doesn't cost you anything.

Try working with us for just a month. You will see for yourself that your e-shop is growing.
And if not? You can always go back to doing things the old way.

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