In today's highly competitive e-commerce landscape, businesses must find ways to reach their target audience and drive sales effectively. Google Shopping ad is a very effective and powerful marketing tool that can serve the purpose of reaching the target audience effectively and efficiently. This case study explores how an internet marketer generated close to $150 000 a month in revenue using Google Shopping Ads for his Shopify dropshipping store.
With a strategy that can be easily implemented and a convincing proof of earnings, this article will teach you how to use Google Shopping Ads to drive sales and achieve similar results achieved in this case study.
Caomhan Daly is an entrepreneur and an expert dropshipper who has built many successful e-commerce stores, and he has a YouTube channel where he teaches dropshipping. He mainly focuses on using Google Shopping Ads and Snapchat Ads with Shopify stores and he also offers consulting services.
Result Breakdown
In a day, Caomhan made $1 294.87 in revenue; not only that, he made $147 450.17 in revenue in a month. The screenshot above shows that the store had 952 customer shopping sessions daily, and 20 visitors were in the store when the screenshot was taken. Also, the store has over 50 orders still waiting to be fulfilled.
The traffic source to this store was Google Shopping Ads and the store has an average daily ROAS (Return On Ad Spend) of around 3x to 4x with a low level of fluctuation. This is because Google is very effective in driving traffic due to its highly efficient search engine algorithm, which consistently produces positive results. Also, there was no need to test the product because it was a fully guaranteed profitable product obtained from a spy tool that will be shared later in this article.
Similarly, there was no need to test Ad Creatives because Google could precisely target the people that would be most interested in the ads. The store's average daily net profit margin is around 35%, which was because of the post-purchase upsells.
Reasons to Use Google Shopping Ads For Promoting a Dropshipping Store
There are so many ways to get traffic to a dropshipping store: Tiktok, Instagram, Google Shopping Ads, and so on are some of the ways of getting traffic to a dropshipping store. Of all these ways, Google Shopping Ads is the best way according to Coamhan.
Most dropshippers use social media platforms to promote their stores probably because they don't know how to set up profitable Google Shopping Ad campaigns for their stores. Caomhan said,
"Using Google shopping ads, the potential is not only for anyone who's already running Google shopping ads but also for people who want to get in it. There are a lot of potentials to try out with Google shopping Ads."
Apart from the stability of Google in generating traffic and consistent revenue, there are other benefits of Google Shopping Ads over other ad platforms; one is low competition. There is low competition in most niches because online entrepreneurs mostly don't want to spend money on ads. Caomhan's view on this was that,
"On Google, most niches are quite undersaturated now, so you don't get random account bans, and you can scale up easily. If you're doing some sketchy things, you'll get banned immediately, but if you're running ideal products, you won't run into any issues."
In addition, the store can be profitable instantly using Google ads without waiting so long for the store to break even as it is always in the case of using organic social media forms of promotion that takes a long to first build the account. Caomhan's store, for example, has 35% profit margins within a short time which is almost impossible using free traffic sources. With that, he can easily make enough money in the first month of running the ads while putting some profit back into running the ad campaign.
Likewise, maintaining Google Shopping Ads is more automated because the ad requires little attention to become profitable. The reason is that there is no wasting of effort trying to test ad creatives or even scaling the ad campaign; Google has taken care of all these things with its efficient algorithm.
Other benefits of using Google Shopping ads include:
- The Adwords platform does not require any special tools for advertising since all you need is to be creative and have a good marketing budget to give you a positive result.
- Potential customers can be targeted based on location, demographics, interests, and past behavior. As a result, you can tailor your campaigns to reach the most appropriate audience without testing.
- By monitoring the performance of your campaign, you can adjust your ads spontaneously to improve the results.
- Through remarketing campaigns, you can reach out to people who have already been to the store or know about the product.
Types of Google Shopping Ad Campaigns for Shopify
There are primarily three types of Google shopping ad campaigns best suited for Shopify dropshipping.
Search Campaigns
This campaign aims to increase consumer awareness of the products being sold. Since search campaigns make it more difficult to see immediate results, they're typically used as a long-term strategy. The advantage of creating this type of ad for an e-commerce store is to help customers find the store and drive more traffic to it.
Google Shopping Ad Campaign
Google shopping ad campaigns are the most popular type of Google ads for dropshipping. It allows the promotion of products on top of the SERP (Search Engine Result Page). The power of Google Shopping campaigns is that there is no need to create any ads, all the data needed for an effective campaign comes from the product listings in the Merchant Center.
Product Ad Campaigns
This type of campaign is also one of the most commonly used Google ads for Shopify. With this campaign, you can show the customers interested in your products what the product is all about and also promote your offers through email campaigns, social media, mobile sites, and apps that are subscribed to Google Adsense. Of all these three campaigns, Coamhan used the Google Shopping Ad campaign.
How to Design a Converting Dropshipping Store
Caomhan recommended building any e-commerce stores with a simple layout that will help improve Google's ranking easily and ensure that Google can easily crawl the content on the store. Most importantly, the store should be a niche store because usually, niche stores give a high conversion rate which means more revenue.
Lastly, on setting up a store, he recommends that there should be a lot of positive comments from people who have used the product in the store. Humans are social beings, and we love it when many other people buy what we want. This builds trust in any potential customer that visits the store.
How to Conduct Product Research For an E-commerce Store
The tools Caomhan uses for product research are Ecom Hunt and Drop Point. However, this does not imply that they must be used for product research, as any dropshipping spy tool will suffice. These tools aim to know what is happening or trending in the market. After knowing the trend, you can get the main keywords for these trends and verify their search volume on Google.
Using Ecom Hunt, for instance, many things were trending in the market that this tool has scraped, culminating in over 200 pages. Using a practical example, as seen in the screenshot below with Ecom Hunt, you can copy the keyword "New Eyelash Curler" and paste it into the Google search bar.
A search volume of 74 000 is excellent for this product and it should be noted that a good product in this category should typically have over 5 000 monthly search volumes. To take it even further, you can set the benchmark at 10 000 search volumes per month. Another essential metric to consider when conducting product research is the profit margin, which should be $30. The idea behind the margin is that $15 would be spent on advertising, and the remaining $15 would be the actual profit. You should also keep in mind that the product should be priced around the competitors' prices.
How to Create a Google Ad for An E-Commerce Website
For this store, two ad channels were used. The first was Google Shopping Ads, which accounted for 95% of the traffic. The other was the Bing Shopping ad, responsible for the remaining 5%. For Google Shopping Ads, Coamhan normally goes for two types of campaigns, which are: the standard shopping ad campaign and the performance max campaign. He started with the standard shopping campaign for this store and slowly moved to the performance max campaign.
However, it is advisable to always have a standard shopping campaign running all the time, but people who have campaigns running on Google Shopping Ads may try out a performance max campaign only if the ROAS is positive, especially the targeted ROAS.
Setting up feed optimization for beginners may be difficult at first because it's an advanced feature. But it should be implemented because it can make all the difference in an ad campaign.
When doing feed optimization, you give Google some data sets to find customers who are interested in the product based on the data you provide. Caomhan stated that
"I always ensure I have an SEO-optimized title so Google can show my ads for the most relevant searches."
Let's take the eyelash curler as an example. In the product's title, we could have something like "eyelash color for women" or "best eyelash curler."
Feed optimization sets you apart from your competitors, and ranks your ad for the main keyword while ranking for the additional keywords too. Also, you can put the keywords in the product description. Caomhan recommended having a lengthy product description of about 5 to 6 paragraphs.
Revenue Review
- Revenue for one month (November): $147 450.17
- Number of customer sessions for November: 952
Conclusion
In this post, we've examined how Coamhan generated almost $150 000 in monthly revenue from a Shopify store using Google Shopping Ads. We considered why it's best to always use Google shopping ads to promote one's Shopify store, one of which is that Google Shopping Ads consistently generate traffic from a well-targeted audience. Plus, there's a low risk of being banned on Google shopping ads.
Coamhan researched his products using a spy tool called Ecom Hunt. Lastly, we briefly analyzed how to set up profitable Google shopping Ads. Although this strategy can be capital-intensive, the profit margin is always high.
