The Finch Blog — eCommerce Growth at Scale

The AdWords Holiday Performance Paradox | FINCH

Written by Bjorn Espenes | Nov 24, 2015 1:56:21 AM

This is exactly what online retailers are doing with their AdWords sales. You have the products in the warehouse, you have the staff trained and prepared, you have done all the work for your marketing and advertising programs to get the most out of the 2015 holiday season. Are you going to close the door at 1:30 pm every afternoon?

On average, Google AdWords delivers 25-40% of a online retail company’s revenues; you have it configured, setup and tuned so that you can generate as much sales as you can inside your cost constraints. The holiday season starts to ramp and you are seeing the payback from the hard work.

Then Cyber Monday came and by 1:30 pm your daily budget was maxed out. Your ads stopped showing. Your store closed for business on Google during the busiest time of the year! To make it worse, your competitors were still showing their ads and captured all the traffic and the revenue that came from it. Don’t let this happen through the rest of the holiday season!

From the time you give Google $1 for a click until you receive funds from your payment processor in your account from the corresponding sale, it takes 2 days in average. You turn your ad budget into cash from the profit in 2 days. Why on earth would any business owner chose to do limit their budget?

Here are the reasons:

1. We have a fixed AdWords budget; OK, but if you knew that for each additional $20 you give to Google you receive $100 back in profitable revenues… would that change your mind? If the owner of your company or the person approving the budget knew this they would instantly increase the budget so that the company could increase sales, increase profit and increase market share. Please show this blog post with that person.

This captures 95% of clients running out of budgets.

2. All the other reasons not relevant to leaving profitable revenues on the table.

It is our job to maximize revenues and profits for our clients on AdWords and it just kills us to see clients who are growth and performance focused practically lock their front door and shut off the cash register when there is a huge line of customers ready to buy. Act on it before the season is over!