Solved: Scaling Google Ads Strategy for High-End Clothing

Hi there,

Thanks for getting in touch. Happy to give you some initial thoughts and guidance based on the information you've provided. Scaling paid advertising for high-end clothing, especially with recent changes in the market, can certainly present its challenges, so let's dive straight in.

Overview of Recommended Actions

To help you see a clearer path forward, I've put together a quick overview of the actions I would recommend you to consider to help boost results. This is based on the info you've provided, of course, and would require a deeper dive to be super specific, but hopefully, this helps!

We can start diving into each of these points in more detail.

I'd say you need to give it more time...

Firstly, with regards to only recently turning off the US campaigns and focusing on the UK market, you need to give the campaigns time to find their feet. Paid advertising algorithms need time to adjust to significant changes in targeting, budget, and market conditions. A sudden shift in focus, like the one you experienced with the tariffs, can disrupt established performance patterns. The algorithms learn and adapt based on the data they receive, and when the data changes drastically, it takes time for them to recalibrate.

Expect some initial turbulence as the system explores new avenues for optimisation. It's not uncommon to see performance dip temporarily while the campaigns gather new data and identify the most effective strategies for the revised market. Resist the urge to make rapid, knee-jerk reactions to short-term fluctuations. Give the campaigns a few weeks to stabilise and allow the algorithms to find their new rhythm.

Speaking of your current setup...

Consider the 'Top Performers' and 'Low Performers'

Splitting out the top, mid, and low performers from the catch-all campaign was indeed a good starting point. However, the fact that only the mid-performers grew is telling. Let's analyse this a bit.

The "top performers" might have already reached their saturation point. In other words, you might have already tapped into the most readily available audience for those products or ad variations. Attempting to scale them further might only result in diminishing returns or higher CPCs, as you're essentially trying to squeeze blood from a stone. You might want to consider whether these “top performers” are really top performers anymore.

On the other hand, the "low performers" might be fundamentally unprofitable and should not be scaled. It's tempting to try and turn them around, but sometimes, it's best to cut your losses and reallocate resources to more promising areas. Don't be afraid to be ruthless in pruning underperforming campaigns. It's better to focus on what's working than to waste money on what isn't.

You've mentioned you want to scale. If CPCs are increasing and ROAS is slowing down, I'd focus on other areas to boost results. What's next?

We'll need to look at traffic quality and your website...

When CPCs rise and ROAS declines, it's time to examine the quality of the traffic you're attracting and how well your website converts that traffic into sales. After all, it doesn't matter how many people you get to your site if they don't convert.

Improving website/funnel conversion rates: Any increase there will help you convert more traffic and so lower your CPA. Even small tweaks to your website can have a significant impact on your bottom line. Start by analysing your website's analytics to identify areas where visitors are dropping off. Look at metrics like bounce rate, time on page, and conversion rate. Use this data to identify bottlenecks in your sales funnel and areas for improvement. We tend to use tools like Hotjar to get a sense of customer behaviour on site. This can provide insights that analytics can miss.

For example, is your checkout process too complicated? Are your product descriptions compelling enough? Are your call-to-actions clear and persuasive? A/B test different variations of your website to see what works best. Small changes, like optimising your product images or streamlining your checkout flow, can lead to significant improvements in conversion rates.

And, as mentioned, you need to...

Focus on testing and your campaign structure

Proper split testing and campaign structure: We've had some really good results with clients from proper split testing and improving the campaign structure. You'll be surprised how often things you wouldn't expect to work end up doing so. Campaign structure really is the foundation of your entire advertising effort. Organise your campaigns around specific product categories or customer segments.

Within each campaign, create tightly themed ad groups that target relevant keywords. This will allow you to tailor your ad copy and landing pages to the specific needs and interests of each audience segment.

Next...

Creative testing is key

Creative testing: more creative formats, different messaging, mix things up to increase your chances of finding new winning creatives. After all, you can't keep showing the same ads to the same people all the time. Ad fatigue is a real thing, and it can lead to a decline in performance. That means that you'll need to test new creative formats, experiment with different messaging, and keep your ads fresh and engaging. This could mean testing entirely new ad copy, or new creative assets.

Don't be afraid to take risks and try something completely different. You might be surprised at what resonates with your audience. We've had several eCommerce clients see really good results with creatives. UGC videos are a really hot topic at the moment. Lots of angles to test there as well.

Finally...

Don't forget Retargeting

Retargeting: this can help activate more users, reduce abandoned carts, and convert more of your website visitors. Which all works to lower your acquisition costs. It's a great way to re-engage people who have already shown an interest in your products, so don't ignore retargeting.

Implement robust retargeting campaigns to capture website visitors who didn't make a purchase on their first visit. Show them targeted ads that remind them of the products they viewed or offer them a special discount to entice them to complete their purchase. You can also use retargeting to cross-sell or upsell to existing customers.

Abandoned cart emails are a must-have for any eCommerce business. Remind customers of the items they left in their cart and offer them an incentive to complete their purchase. This could be a discount, free shipping, or a special offer. You’d be surprised at how effective they can be. I think they make up around 10% of our eCom revenue.

Why consider expert help?

I've run quite a few campaigns for eCommerce brands, and I know how much hard work goes into achieving the best results, and how much time it takes. The strategies I've outlined above can certainly help you get there if you have the time to invest, however, if you're looking for expert support, it might be worth considering getting outside help. From campaign structure, to ad copy, landing pages, and funnels... there are a lot of moving parts. It might be beneficial to work with someone with expertise in scaling clothing campaigns and who has the team and resources to implement these things quickly and effectively.

We offer a free consultation where we can discuss your specific needs and goals in more detail. We can assess your current campaigns, identify areas for improvement, and develop a customised strategy to help you achieve your desired results. I hope this letter has been helpful!

Regards,
Team @ Lukas Holschuh