A health brand client who sell their products online via their own e-commerce site as well as selling in large high-street stores.
The high-street sites often run promotions on their products, including reducing them to half price or offering a buy one get one free deal. This meant we found our products priced out of the market in the ultra-price competitive world of Google Shopping, with users choosing to purchase elsewhere.
In April, following some advice and suggestions from ourselves, the brand took the decision to price match and the results speak for themselves –
Since price matching/matching the offers of a high-street store since 10/04 until 24/05 compared to the previous period 24/02-09/04 –
- Cost – up 252%
- Clicks – up 210%
- Impressions – up 105%
- Conversions – up 620%
- Conversion rate – up 126%
- Revenue – up 482%
- ROAS – up 65%
The key hero product which was price matched achieved the following over the same time period –
- Cost – up 590%
- Clicks – up 465%
- Impressions – up 198%
- Conversions – up 1,077%
- Conversion rate – up 106%
- Revenue – up 1,034%
- ROAS – up 65%
We can’t underestimate how crucial pricing is when it comes to successful Google Shopping campaigns. If competitors are selling the exact same or very similar products elsewhere for cheaper then you may well struggle to achieve a strong return on ad spend and conversion rate.
In many cases like this it’s certainly worth considering dropping your prices to compete, and although it may shorten your margins per sale, if it brings a significant uplift in revenue and return on ad spend, as the above campaign has demonstrated.