Scale PPC spend, while also increasing ROAS

Read this tactic on the CXL blog.

Scale PPC revenue by segmenting PMax campaigns for best sellers

• The company: PPC specialist Adriaan Dekker, working for a construction materials company.

• The goal: Increase Google Ad spend without lowering ROAS.

• The tactic: Segment the PMax campaign, and increase budget for over-performing products.

• The result: 39% increase in revenue and 15% increase in ROAS, with an increased spend of 22%.

What's the fast marketing tactic?

Adriaan Dekker’s client wanted to increase their Google Ads spend, while maintaining their high ROAS (return on ad spend).

When analyzing the existing Performance Max (PMax) campaign, Adriaan saw that different products achieved very different results. Only a few products were dominating the conversion value, while many others were getting almost no impressions or clicks. 

Since this campaign had a large enough number of conversions (120 monthly), he decided to segment the campaign based on product performance, to gain more control on where the additional spend would go. This is how he did it:

1. Identified and kept only the company’s best-selling products in the existing PMax campaign.
2. Created a separate PMax campaign for all other products.
3. Increased the budget for the best-seller campaign.

What was the result?

After 4 weeks of running their segmented campaigns and increasing ad spend by 21.71%, the team achieved:

• 39.44% increase in conversion value (revenue).
• 14.97% increase in ROAS.
• 9.6% increase in clicks.

As a next step, Adriaan is working on automating further product segmentation using a script, which will automatically analyze product performance and categorize them as “over-performer,” “under-performer,” or “performs on target.” 

Why does it work?

Performance Max might perform better than standard shopping campaigns for some products, but in other cases, it can waste away your spend. 

By segmenting your campaigns, you can gain control over the specific products for which PMax works better, and increase the budget only for those.

Become great at Google Ads for Ecommerce with our dedicated course.

Meet the specialist behind this tactic

Adriaan Dekker is a PPC expert specializing in Google Ads. He has helped more than 100 companies grow and scale their paid ad campaigns.

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