But losses mount for the home furnishings e-retailer that went public in October.
By using Google Product Listing Ads, Adorama increases its click-through rate 176%.
Adorama.com, a photography equipment e-retailer, started using Google paid search ads in 2003 and then launched a Google Product listings campaign in June 2011. Google Product Listings Ads are paid product ads on Google Shopping that are designed to give shoppers up-to-date information about prices and discounts, while also offering merchants control over where their product ads appear.
The campaign included ads for every item in the retailer’s catalog. Using Google campaign tools, the retailer was able to identify the best-performing ads and adjust bids for ads for each product and optimize ad text, including the title and product description.
These tools and insights, coupled with the help of digital marketing agency Adlucent, helped Adorama increase its click-through rates for the ads by 176% and conversion rates 100% in June 2012 compared to June 2011. That helped make up for a 73% jump in its cost-per-click.
The success has continued, the retailer says. Its click-through rates have increased an average of 10% each month since June 2011. Sales stemming from the ads, which are measured by the last click before purchase, were up 63% in Q2 2012 compared with Q1 2012. And, for August 2012 alone, Adorama experienced a 34% increase in clicks on its Google Product ads and a 7.5% increase in conversion rates when compared with the highest month for both in Q2. Also in August, total spending on the ads fell 18% from a month earlier.
“We are really excited to be capitalizing on product listing ads,” says Brian Green, vice president of marketing for Adorama. “We’re ensuring that our ads are exceptionally targeted and relevant in order to maintain continuous click-through rate and conversion growth ahead of cost-per-click [price] increases.”