800,000 PLN in revenue with Google

The Świat doznań online store is an additional project of the NPROFIT agency. It was set up to acquire even more expertise on the problems of our customers, and to solve them even more effectively thanks to Internet marketing. Choosing such an effective, and at the same controversial, industry, resulted from two factors. First of all, we did not want to open a store in the industry in which we would be competing against any present or future customer. Second of all, the erotic industry is one of the most difficult, and that due to very limited possibilities of conducting marketing activities.

ŚWIAT DOZNAŃ

Objective

Tapping into the acquired experience and expertise in order to achieve stable sales. Testing new solutions, which we will be able to tap into for developing the businesses of our customers. We are of the opinion that we should not learn when preparing the Web pages of our customers, therefore, we must verify each proposed solution in advance by us.

Solution

In our work, we tapped into, first of all, the services provided for our customers, and that means SEO, sponsored links campaigns, and also our own thematic services. In addition, in order to use the potential of supported conversions, we have included comparison shopping website, adverts on other Web pages, and also a loyalty scheme, into our strategy.

Result

In 2016, our online store generated the revenue amounting to about 1.5 million PLN. More than half of the sales were generated by the Google search engine, and that means our area of specialization. A feature of our sales is as well a very dynamic increase as already in the first quarter of 2017 store turnover exceeded 600,000 PLN.

Google Anlaytics

NOT FULL DATA

Our online store functions on the basis of the Redcart script, being a ‘off-the-shelf’ solution, which prevents us from interfering in the store source code in any way. In case of our sales, this is difficult inasmuch as the Google Analytics service does not include about 1/3 of the while counting deals. The discrepancy between the data from our sales systems and Google Analytics amounts to nearly 400,000 PLN. That makes it difficult to conduct some of the analysis, but, at the same time, shows what a big problem may be the lack of full control of the software in use.

It is worth adding as well that in the screen dump attached next to this text it is only the sum of the processed orders that is shown. Actually, the sales shown in Google Analytics should be additionally increased by adding the costs of cancelled orders, and also those of returning products.

Shop turnover

Increase perspective

Following the detailed long-range strategy which has been developed makes it possible to increase the online store’s turnover successively. This is possible both thanks to optimizing the existing campaigns, and also current testing the new sources of traffic.

INCREASE IN TRAFFIC

DESCRIPTION

Above, we can see the comparison between the first quarter of 2017 and the same period of 2016. As it can be noticed, all the parameters have improved. In turn, increase in the conversion factor is particularly important. This value shows the percent of visitors making a purchase. In practice, that means that each visit is more likely to generate sales.

CAUSES OF INCREASE

  • Significant increase in outlay on a sponsored link campaign and optimization,
  • Increase in traffic from organic results,
  • Large wholesale order (we do not conduct wholesale trade, however, we receive such orders as well).

Google Adwords

Objective

While preparing the Google Adwords campaigns, a fundamental criterion was the cost of acquiring a customer. Having at disposal the data concerning the average cart, margin in particular product categories, and also rate of repeat customer rate, the conversion cost acceptable for us amounts to 40 PLN. However, it is different in case of various product campaigns.

Solution

The erotic industry is connected with certain limitations. It is impossible to use remarketing, the Google Merchant campaigns are constantly blocked, and a campaign in a partner chain is of no use, either. In addition, campaigns in the recall network are very frequently classified in a way that makes it impossible to show adverts. Making any modifications in the contents of adverts results in blocking them in most cases.

Result

In 2016, the average cost of acquiring a customer amounted to 34.31 PLN, whereas in 1Q2017 it was possible to limit this cost to 30.72 PLN with the use of an extra campaign optimizing. A sponsored link campaign generated 413,250.66 PLN of the revenue in 2016, and also 169,488.42 PLN in 1Q2017.

Google Adwords

ANALYSIS

As it can be concluded from the screenshot above, Google Adwords is responsible for more than 1/3 of the entire value of sales in the store, which perfectly shows the effectiveness of this channel. A product campaign, and also remarketing targeted on people dropping their cart, would certainly improve the sales results even more, and also reduce conversion costs even further. When a product campaign was run in our store, the cost of acquiring a customer with the use of it did not exceed 25 PLN.

Making a decision to use a sponsored link campaign in marketing strategy, it is, however, necessary to bear in mind that the strength of a brand, and also price competitiveness, are a very significant factor determining the cost of acquiring a customer.

Testing various marketing strategies, we copied a very well working campaign for the Świat doznań store, and next we used it to promote a completely new online store. This shop was launched on the same platform, with the use of the same template, however, with the use of the modified logo. The results of the conducted campaign was the cost of acquiring a customer exceeding 60 PLN. Therefore, it was higher by 50% than the one acceptable for us. However, it is worth bearing in mind that the cost of acquiring a customer decreases in the further course of brand building.

Opinions

Prospect of the growth of Google Adwords

One of the greatest assets of Gogole Adwords is scalability, and also the short time it takes to see effects. Thanks to this tool, we can in a few hours reach the very top of the search engine, being able, at the same time, to verify the effectiveness of our strategy very quickly. Therefore, it is a channel worth investing in.

DESCRIPTION

As it can be observed, when traffic increased by about 61%, it was possible to increase revenue by 129%. This is, to a large extent, the result of temporarily disabling the least effective groups of adverts/key words, which, by the way, may be observed thanks to decreasing number of sessions. New contents are prepared, and then sent to moderators, to replace the old ones. The strategy of mass verification/replacing adverts is, unfortunately, made necessary due to the industry and high likelihood of automatic change in the classification of a domain for such which limits displaying adverts a lot. Then, manual verification by the Google support team is necessary. Making any advert modifications in this industry is, therefore, very difficult and time-consuming.

CAUSES OF INCREASE

  • Significant increase in outlay on sponsored link campaigns,
  • Adding new adverts,
  • Gradually disabling the least effective keywords/adverts,
  • Campaign optimization.

SESIONS AND INCOME

ORGANIC RESULTS (SEO)

Objective

Building visibility in a search engine taping into our resources to a very limited degree. As a company specializing in the SEO of Web pages, we have at our disposal a very large quantity of high quality web pages supporting SEO. Due to the profile of industry, we do not want, however, use this potential in full to promote our online store. That results from the fact that part of our customers might perceived it negatively.

Solution

Limiting access to our infrastructure supporting SEO, we lose our competitive advantage. It results in us being forced, like the competition, to use external sources of links, whose quality is very frequently far from satisfying. In addition, the profile of industry makes it difficult to acquire quality media links. Recognized portals are reluctant to publish contents relevant to erotic shops. Therefore, we decided to use the external websites (landing pages) in our strategy, and build the brand with them as intermediaries.

Result

In spite of the above-mentioned difficulties, we managed to achieve the visibility of the Web page allowing to generate more than 200,000 of turnover in 2016, and also nearly 80,000 in 1Q 2017. The satisfying results are as well those of sales directly from our external Web pages supporting sales. However, the statistical data do not take the latter into consideration. 

Organic results

ANALYSIS

For most of the year, traffic within a domain remained at a similar level. A small decrease at the beginning of the year resulted from the seasonal profile of this industry. The greatest sales is seen before Saint Valentine’s Day, International Women’s Day, Christmas, and also before New Year’s Eve. For that reason as well, there is a small decrease in traffic after International Women’s Day, and this decrease is observed until the end of the holidays period. In case of 2016, updating the Google Penguin algorithm exerted a strong influence on the visibility of the Web page in the Google search engine. As the screen dump above shows, Google appreciated our work, which brought the fruit of increase in traffic. In 1Q2017 as well, when year-to-year traffic is compared, increase by more than 66% in cost-free results traffic was observed.

Google Penguin

Why does the title refer to 800,000 PLN?

Calculating the sum of the revenue generated through Google Adwords, and also cost-free results, we receive 613,536.65 PLN. At the beginning of this case study, however, I mentioned that Google Adwords does not count conversions correctly. I was referring to conversions which would most likely have been evenly distributed over particular channels. Counting with the use of proportion: ‘lost conversions’, we obtain the share of Google exceeding 800,000 PLN. Moreover, the visibility in paid results, and also in the organic ones, supports sales in other channels as well. That concerns, in particular, sales from direct traffic, which amounted to 157,729.22 PLN in 2016.

Threats

Regardless of the profile of a conducted activity, it is always necessary to bear in mind the existence of potential threats. In our case, these may include, e.g., entering directly the market by Allegro, a stronger interest in our market for the part of Amazon, or the expansion of Chinese giants. A small market growth, and also its values itself, may be seen as threats as well. Analysing the data from TradeWatch, we can observe that sales of products in the entire ‘Erotyka’ (erotic industry products) category on Allegro does not exceed 4 million a month. In addition to that, this figure includes sexy underwear and condoms, and that means products which are not very attractive (from our point of view).

Opportunities

Whereas the opportunities to scale in our domestic market are very limited, expansion abroad provides enormous chances. It does not take a long time of observing our store Web page or sales Web pages to realize what a big potential is that of optimizing in terms of usefulness. Increasing inventories would help significantly increase turnover as well. However, the store is treated as an additional activity, in which we learn to help our customers, all the time.

Why a Case Study?

We contacted a few largest of our customers, whose turnover on the Internet reach a few millions a month, however, we did not receive a consent to describe the case study within the scope interesting for us. Online, it is easy to find success stories under very eye-catching headlines (just like that of our text), however, the contents do not make it possible to verify whether increase in the traffic by 500% meant: 5 visits rather than 1, or 500,000 visits rather than 100,000. We wanted to show something more, and I hope we managed to.

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