Jaukurai: 4x Higher AdWords ROI Within 3 Months

Good from far, far from good. This saying could also be applied to describe marketing situations where common online advertising tools for some reason do not seem to work. Jaukurai JSC – a retailer for heating, plumbing, conditioning and engineering network equipment – were facing this very problem when they called us for advice.

According to Jaukurai chief marketing manager Mindaugas Skersys, an opening of an e-shop was a significant step forward for company’s development. Therefore, lots of attention was paid to advertising, by making a solid investment in Google AdWords.

“We chose AdWords as one of the most effective online advertising tools. However, advertising did not deliver expected results,” said Mindaugas. “We realized that we made a wrong choice when we hired an AdWords agency that charged a percentage fee from ad clicks.”

It goes without saying that the more clicks an AdWords campaign receives, the higher the earnings of an AdWords agency. Chasing ad clicks and money can easily replace delivering actual results for a client.

We offered Jaukurai a different pricing model: a fixed fee for a pre-determined working hours that we needed to change adversiting results.

How to Increase AdWords ROI And Sales?

First, we analyzed keywords that were used to in Jaukurai campaign to help people find the company and its production in search results. Then we reallocated advertising budget to attract as many potential customers into company’s e-shop as possible.

We knew that people who searched for generic keywords were not ready to anything yet. Therefore, we reduced advertising budget and cost-per-click (CPC) bids for generic ad campaigns and increased CPC bids for narrow searches. This way we ensured that potential customers would see Jaukurai ads in the top three search results. Such a strategy brought significantly more potential – and actual – clients into the e-shop.

In addition, we suggested Jaukurai to promote short-term special offers that were only valid for e-shop customers. For discounted products, we created a separate Google AdWords campaign. In general, we stayed away from generic ads and focused on specific offers for customers.

Results

After reconfiguring advertising strategy and budget, within 3 months months Jaukurai e-shop income increased by one-fifth and advertising ROI by one-third. Furthermore, company employees noticed higher sales in physical chain stores and more interest in production being shown by visitors.

More than 3 years have passed since this story, and our cooperation with Jaukurai continues. The company is planning major updates in their  e-shop and has already called us to optimize it for search engines.

“Digital marketing agency fees should be based not on the number of ad clicks, but on working hours needed to achieve agreed upon results,” says Remigijus Kuliešius, Raibec CEO