In the latter part of 2023, an online store specializing in mobile phones, tablets, smartphones, and accessories faced significant challenges in a fiercely competitive market. The store's management identified several critical issues impeding growth: stagnating website traffic, high bounce rates, and declining conversion rates. Despite a broad product range and competitive pricing, the store struggled to maintain a strong online presence amidst increasing competition from established e-commerce giants and emerging niche players.
Between November 2023 and March 2024, the store sought to revamp its digital marketing strategy. The goal was to drive traffic, improve user engagement, and ultimately boost sales through a comprehensive contextual advertising campaign on Google. This period was chosen strategically, considering the holiday shopping season and the subsequent New Year sales, which historically see a surge in consumer spending.
Before the campaign launch, the store faced several specific problems. First, the store's monthly traffic had plateaued at approximately 50,000 unique visitors, with a bounce rate hovering around 65%. Second, the average conversion rate was a mere 1.2%, translating to roughly 600 monthly sales. Additionally, the average order value (AOV) was $220, which, although decent, needed improvement to enhance profitability. Finally, the store's customer acquisition cost (CAC) was alarmingly high at $45, cutting into margins and profitability.
To address these challenges, the store enlisted the expertise of a leading marketing and advertising agency. The agency's mandate was to design and execute a high-impact Google Ads campaign, leveraging contextual advertising to target potential customers precisely when they were most likely to convert. The campaign aimed to not only increase traffic but also to enhance the quality of visitors, thereby improving engagement and conversion rates.