Maximizing Key Ad Returns

Maximizing Keyword Ad Returns for a Potato Chip Seller

Boosting profits by identifying top-performing ad keywords and improving future ad spending for higher returns.

Executive Summary

This case study focuses on the performance of a keyword ad campaign for a potato chip retailer. It highlights which keywords worked best, allowing the retailer to optimize future ad campaigns for higher ROAS and revenue. The campaign, which ran from January to March 2024, used 50 keywords and produced actionable insights to refine future ad strategies.

Problem Statement

The retailer was unsure which keywords delivered the best return on ad spend (ROAS), conversions, and customer engagement. The goal was to determine the most effective keywords and make recommendations to optimize future campaigns for efficiency and profitability.

Approach

Data Collection & Aggregation: We used SQL to gather data on key metrics like ad spend, impressions, clicks, ROAS, and revenue for each keyword. The data was analyzed to identify top-performing keywords, focusing on ROAS, CTR, and conversion rates. A correlation study was conducted to determine how ad spend related to sales.

Results

1. Overall Campaign Performance

  • Total Ad Spend: $18,265.67
  • Total Units Sold: 11,353
  • Total Revenue: $170,295
  • ROAS: 9.32

For every dollar spent, $9.32 in revenue was generated. The cost per unit sold was $1.61, indicating a cost-effective campaign.

2. Top-Performing Keywords

  • "Potato chips online" and "healthy potato chips" had high ROAS (11.1 and 11.65) and generated strong revenue ($4,575 and $4,275).
Top-Performing Keywords Visualization

3. Underperforming Keywords

  • "Salted potato chips" and "limited edition potato chips" had lower ROAS (6.78 and 7.39), leading to less revenue and higher costs per sale.
Underperforming Keywords Visualization

4. Correlation Analysis

  • High CTR, Low Conversion: Keywords like "imported potato chips" and "potato chips for parties" had high click-through rates but low conversion rates, suggesting a mismatch between ad content and customer expectations.
High CTR, Low Conversion Visualization
  • Low CTR, High Conversion: "Healthy potato chips" had a lower click-through rate but higher conversions, indicating potential for better targeting or bidding strategies.
    • Low CTR, High Conversion Visualization

    Visualization

    Explore the full interactive visualization here:

    Recommendations

    • Increase Budget for High-Performing Keywords: Allocate more budget to keywords like "healthy potato chips" and "cheap potato chips" with high ROAS and low cost per conversion.
    • Refine Underperforming Keywords: Reduce spending on low-performing keywords like "salted potato chips" or improve the ad copy and landing pages to increase conversions.
    • Improve High CTR, Low Conversion Keywords: Adjust landing pages or ad content for keywords with high click-through rates but low sales, ensuring the content matches customer expectations and increases conversion rates.

    Conclusion

    By focusing on the most effective keywords, this analysis enables the retailer to refine their ad campaigns, maximize ROAS, and boost overall sales. With data-driven adjustments, future campaigns can become more cost-effective and profitable.