Citrus Success Story: How to Reduce Transaction Costs by 48% with Automated Strategies in Google Ads
Niche: Gadgets and accessories.
Results: Increased conversion rate by 32%, decreased cost per click by 23%, and reduced transaction cost by 48%.
The Client
The Netpeak team has been working with Citrus.ua since 2012. Citrus is the first Ukrainian specialized retail chain for electrical appliances. Currently, Citrus has more than 70 shops spread across regional centers and large cities in Ukraine including Kyiv, Kharkiv, Dnepr, Odesa, Zaporizhzhia, Mykolaiv, Izmail, Chernomorsk, and Kramatorsk. Besides an online store, there are four rental stores for personal urban mobility vehicles.
We decided to dedicate one month to test out the strategy, as this is the most appropriate time frame for gathering conclusive statistics.
The Challenge
The client approached us with a goal to lower the conversion (transaction) cost and increase sales on the current budget. We decided to test the smart bidding strategy Target CPA (target price per conversion), because it is often the best way to reduce the transaction cost.
The Solution
We created draft versions of ad campaigns and experimented with Google Ads. Two bidding strategies were put to the test:
- Manual CPC (manual bid management — current campaign settings).
- Target CPA (target cost per conversion — automatic strategy).
We also tested the ads rotation:
- The current campaign was designed to show ads with more possible clicks.
- The experimental campaign settings enabled the display of ads with higher chances of generating conversions.
The Results
The positive effects of the experiment were evident.
- Cost per click dropped by 23%.
- Expenses was reduced by 45% on the tested advertising campaigns marketing.
- Transactions grew by 5%.
- Cost of transactions reduced by 48%.
- Conversion rate increased by 32%.
We achieved our goals in terms of reduced conversion costs and increased sales. The smart bidding strategy has worked amazingly.
Testimonials
Anna Sergeeva, PPC specialist at the Netpeak agency:
The key to successful ad campaign promotion is excellent daily optimization. Experimenting usually offers new horizons and yields better results.
Oleg Vereitin, head of online marketing at Citrus:
Setting up contextual advertising is a delicate matter. No surprise, Netpeak specialists embrace innovations in advertising platforms. We implement the most relevant novelties. As to this experiment, the result fully met our expectations. Citrus advertising campaign became smarter and more effective.
Read more:
- Outpost Club Success Story: How Website Conversion Can be Increased by 32% Within Three Months.
- Eva success story: how to recoup advertising campaigns with and without Google Smart Shopping.
- OLX (by Naspers) Success Story: 50,000 Clients Ready to Launch Their Online Stores.
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