Solved: Best Google Ads Strategy for a New, Lean E-Commerce Store?

Hi there,

Thanks for getting in touch. I'm happy to give you some initial thoughts and guidance on how to structure your Google Ads campaign for your new ecommerce store.

I understand the feeling of being overwhelmed with so much conflicting info out there, but don't worry, it's very common. Let's break it down.

We'll need to look at simplifying campaign structure...

With a lean product catalog, my main advice would be to avoid overcomplicating things right from the get-go. It's tempting to split your campaigns into tightly themed ad groups thinking it'll give you more control and better results. The thing is that it will probably spread your budget too thin and you won't be able to properly optimise. You can spread yourself too thin and just end up with not enough data in each ad group to make meaningful decisions.

One campaign to start with is definitely enough. As you gather data and see which products are performing well, you can always create separate campaigns for your top sellers later on.

I remember one campaign we worked on for an outdoor equipment client. Initially, they'd split their campaigns into various product categories. It became a nightmare to manage, and the performance suffered. We found that when we consolidated their campaigns, the performance improved massively. So, try not to fall into that trap!

I'd say you should consider the PMax vs Search/Shopping Ads...

Now, let's talk about Performance Max (PMax) versus Search and Shopping campaigns. PMax can be really useful for initial testing, especially if your margins can take it. It allows you to see what converts across different channels without having to set up a bunch of separate campaigns. Google will essentially test the waters for you and find the best placements for your ads.

The catch is - and it's a big one - you can't blindly trust Google's automation. You absolutely need to keep a close eye on the search terms it's pulling in. Otherwise, you might end up wasting a lot of money on irrelevant traffic.

I remember another client who had an online gift shop. They were getting hammered with irrelevant traffic from PMax before we managed to reign it in. It was pulling in searches for things that were vaguely related to their products, but weren't actually what people were looking for. It's important to monitor it regularly and add negative keywords to block out the irrelevant searches.

You probably should consider manual bidding...

As for bidding strategies, manual bidding and exact match keywords can give you a lot more control over your campaigns, especially when you're on a tight budget. You can make sure you're only bidding on the most relevant keywords and that you're not wasting money on broad or phrase match keywords that might bring in irrelevant traffic.

The downside is that manual bidding can be time-consuming to manage, and you might miss out on opportunities if you're not constantly monitoring your campaigns and adjusting your bids.

But with that said, you probably should avoid broad match early on. I've seen it burn through budgets far too quickly. You can use broad match later on, once you know what's working and what isn't.

Another thing you could do, if you have enough data, is to switch to ROAS optimisation. Then the system will try to keep your ROAS stable while you increase ad spend.

You'll need great website analytics...

I just want to quickly talk about website analytics. Make sure you have Google Analytics set up properly on your website so you can track where people are dropping off and what's preventing them from making a purchase.

Are you getting lots of product page views but no adds to cart? Then there's something wrong with your product photos, product descriptions, or pricing. Or maybe people just aren't ready to buy now and need long-term retargeting.

Analytics is so important because you need to be able to see where people drop off on your website. This is like detective work, you need to investigate what happens when people land on your website.

I've detailed my main recommendations for you below:

Hopefully, this gives you a bit of clarity on how to approach your Google Ads strategy. Paid advertising can be a proper head ache, so this should give you a head start.

One thing to keep in mind: every business is different, so what works for one ecommerce store might not work for another. You'll need to test different strategies and see what works best for you. This is particularly relevant if you need to consider internationalisation.

If you're still feeling overwhelmed or would like some more detailed help with your Google Ads campaigns, you might benefit from getting some expert help.

We offer a free initial consultation where we review your strategy and account which can be really helpful. I'd be happy to book you in for a consultation.

Regards, Team @ Lukas Holschuh