Increasing PPC Revenue While Maintaining Gross Margins
Our Audience first approach led to a 37% increase in customer purchases
Presentlines Limited (trading as Gardenlines) is an ecommerce company specialising in garden machinery and tools. Established in 2002, Gardenlines was a client for over ten years before SilverDisc acquired the business in 2014. We now spend six figures a year marketing Gardenlines through PPC, as well as providing social media management, email marketing and web development services.
Gardenlines is a £1.2m revenue business looking to grow, but 2017 was a difficult year for garden machinery suppliers and manufacturers. Despite operating in a difficult climate, we recognised that new Google Ads features could enable us to reach the following aim set by Gardenlines:
- Grow revenue by 20% without decreasing gross margin
To reach this goal, SilverDisc’s work on the PPC account included:
- Using Google’s artificial intelligence (AI) to evaluate session quality and target similar audiences to those that were performing best
- Using Audiences in Google Ads to focus on users who have browsed product categories such as lawn mowers
As a result of the above actions, Gardenlines saw:
- Revenue in March-May from AdWords increase by £93K from £186K to £279K (50%)
- A 72% increase in conversion rate through use of AI and better audience targeting
- Ad spend remaining relatively constant (actually decreased slightly)
- Gross margin maintained and net income increased
Finding the Right Audience with AI
Much of our success in 2018 can be attributed to our use of Audiences in Google Ads. In spring 2018 we spent 37% of the total PPC budget on Audiences, compared to 8% in 2017. 35% of the revenue was driven by Audiences remarketing lists for search, compared to 12% in 2017.
Not only did we see increases in customer orders, revenue and conversion rates, but we also reduced our spend by £829.37 (3%). The advancements in AI for PPC meant that we were able to deliver on our targets for Gardenlines and we continue to use the latest advancements in marketing technology to our advantage for this client and many others.