Aaron Young walks through a meeting with an angry e-commerce brand owner whose previous agencies made two critical mistakes: over-segmenting the account into ten campaigns for three product categories, and setting Target ROAS bids without realizing the brand needed over 200% ROAS just to break even. He rebuilt the account by consolidating campaigns and fixing conversion tracking.
I just finished an hour-long meeting with a really, really angry, rightly so, e-commerce brand owner. And the reason why she's so angry is because I walked her through the big mistake that her previous 2 agencies had actually made. And unfortunately, this is becoming an all too familiar problem when an agency doesn't know what they're doing and they just keep doubling down on the silly decisions. And it really, really comes from just a lack of understanding some of the core features of Google Ads, especially around the data that you need to be putting inside of your Google Ads campaigns so that you can get better results. And it's, it's crazy, but I'll show you what I mean right now. So what I want to show you here, this is the structure that this agency had put together and they were only spending, as you can see, $26,000 and they had a ROAS. I know that was reported inside of Google Ads of 1.39, but just look at what they've done here. They've got in 10 different campaigns. Now what's crazy about this is that this brand only has 3 core product categories and then they've got bundles. So it's just way overcomplication. And let me show you exactly where this gets wrong. Now, what this agency was trying to do, they'd obviously seen some video of doing it, is they're trying to segment out their different top performers and different performers. But there was 2 key problems. One problem is they're doing it in the wrong way. They're trying to use target ROAS to do this. So all of these campaigns you can see here, they're all targeting the same products. And they've only got, you know, really, really small variations in target ROAS. The other big problem here is that this brand actually needs a reported target ROAS inside of Google Ads of over 200% to even break even. And they want to get above the 300s and the 350s and into the 400s, which we're getting them to that path really, really quickly. But this is the big problem with over-segmenting your Google Ads campaigns. And it comes down to this column here, your conversion data. Now, what I want to show you in through here, we're looking at 30 days of data. And what you've got right here is you can see all of these conversion value metrics are really, really low. This one is brand. That out of the pitch, everything else is losing money. Now we rebuilt this account on the 26th of August, and you can see already here we've got this conversion value, um, or ROAS climbing up. Still not where it needs to be, but look at these campaigns. These are the 3 non-branded campaigns that we're running, and let me just show you over the last week, knowing that all their data is still not in, but we're hitting where it needs to be.
