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How to Earn More Profit from Google and Bing Ads on Shopify
Last modified: September 8, 2024
One of the key aspects of running an online store isn’t about generating money. Any business can earn lots of revenue, it is about earning more profit from your investments. There are several ways that you can build profits on Shopify, but you need to look at investments you’re making and ensuring they’re cost-effective.
If you advertise on Google and Bing Ads, this is one area where many shop owners fail to consider cost-effectiveness. In July 2020, statistics showed that Google Ads had an average cost per conversion of between $56 and $91. However, the average transaction for online shopping is between $80 and $128. Therefore, the best case scenarios suggest that online advertising can actually be more expensive than a sale’s transaction.
If you’re lucky, before costs of goods and delivery, your profit margins on a sale could be less than 30%.
Therefore, you need to look at ways to optimize your Google and Bing Ads.
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Google Tag Manager Suite
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SEO Manager
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Google Ads Conversion Tracking
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Google Ads & Google Shopping
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Customer Tags
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AVADA Google Tag Manager
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ROAS Calculator (Return on Ad Spend)
ROAS (Return on Ad Spend) measures the effectiveness of your advertising by showing how much revenue you generate for every dollar spent on ads. It’s calculated by dividing the revenue earned from an ad campaign by the cost of the campaign:
ROAS = Revenue from Ads / Cost of Ads
For example, if you spend $100 on an ad campaign and generate $500 in sales from it, your ROAS is 5, meaning you made $5 for every $1 spent.
Here’s why knowing your ROAS is important:
- Evaluate ad performance: ROAS helps you quickly see which ad campaigns are making money and which aren’t. The higher the ROAS, the more efficient your ads are at driving sales.
- Optimize budget allocation: Knowing your ROAS allows you to allocate your budget to the campaigns with the best return. This ensures you’re investing in ads that actually deliver profits.
- Improve profitability: By focusing on campaigns with high ROAS, you can maximize your profit from advertising. If a campaign isn’t performing, you can adjust or stop it before wasting more money.
- Guide marketing strategy: ROAS shows you which strategies, platforms, or products are driving the most revenue. You can use this information to refine your marketing approach and target more profitable channels.
- Control ad spending: Tracking ROAS ensures you’re not overspending on ads that don’t bring in enough sales. It helps you make smarter decisions about scaling campaigns.
- Assess overall business growth: ROAS reflects how well your business is leveraging ads to grow revenue. A consistently high ROAS is a strong indicator of a sustainable and scalable business model.
ROAS Calculator – Try it out!
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Step 1 – Tracking
The first thing that you need to do is to track your performance across Google and Bing Ads. To do this, you can install apps like this one here. Or install tracking codes yourself to check your benchmarks.
On-page optimization plays a crucial role in improving your advertising ROI. Tracking is very important if you want to know what the costs are for your advertising and how much money you’re making per sale from traffic generated by online advertising.
Step 2 – Screen Recorder
Now you need to have a session recorder on your website. This enables you to look at what people are doing on your website and what is stopping them from converting. There are numerous screen recorders that can be used on Shopify stores, and they can help you find obstacles you didn’t know about.
Step 3 – Analyze
Now you need to analyze the results of your website. You want to start putting money into adverts that are generating higher profits than others. You can adjust certain adverts if you want to, but if customers aren’t buying a certain product from an advert, then you might want to consider the product rather than the advert.
Step 4 – Edit Website Design
You might find that there are barriers on your website that are preventing a sale. For instance, customers might read your shipping terms and conditions and not like something there. Therefore, you can change your website’s shipping terms to something that customers might prefer. This could be the length it might take for your customers to get their products.
Step 5 – Abandoned Carts
Sometimes you can’t help someone abandoning your cart. About 70% of visitors will abandon a cart on your website. However, you want to increase the number of recovered carts. Therefore, you should look at installing some cart recovery apps. These are easy to install and use.
Conclusion: How to Earn More Profit from Google and Bing Ads on Shopify
When it comes to Google and Bings Ads, you can find yourself sinking money into their programs. That is why you need to look at optimizing them so they make you a profit on Shopify. Use lots of tools to adjust your campaigns and spending so you’re making a profit, not just sales.
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How can I ensure my Google and Bing ads stand out against competitors on Shopify?
Create unique and compelling ad copy, use high-quality images, and offer exclusive deals or promotions to attract attention.
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How do I target the right audience with my Google and Bing ads on Shopify?
Utilize demographic and psychographic targeting options in Google and Bing ad platforms to reach your ideal customer profile effectively.
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Can I integrate Google and Bing ads data with Shopify analytics for better insights?
Yes, integrating ad data with Shopify analytics provides a comprehensive view of your marketing performance and customer behavior.
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