Why Classic Shopping Campaigns Turned Out To Be More Effective Than Performance Max

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The Client: a manufacturer of metal office and industrial furniture, security systems, storage systems, and other metal items. The production facilities are equipped with modern equipment for laser cutting and bending metal, and the latest technologies are used in the manufacturing process.

The Niche: eCommerce

The Task: to set up an effective advertising strategy for stable online sales

The Goals:

  • Optimize and configure eCommerce on the website
  • Launch and set up advertising campaigns with a clear focus on product sales
  • Ensure the scaling of advertising efforts to reach a broader audience and increase sales

The Challenge: intense market competition, high cost-per-click in contextual advertising, and a significant portion of B2B sales, which complicates targeting.

Project Period: March 2024 — ongoing

Building and scaling ads for a metal furniture manufacturer

Case Description

Performance Max

After analyzing the client’s ad account, we decided to pause the existing search campaigns and launch a new shopping campaign using the Performance Max tool*.


*Performance Max is a powerful Google Ads tool that automatically optimizes ads across all Google channels. To achieve the best possible results, we set Sales as the campaign goal and chose Maximize Conversions as the bidding strategy.


To increase overall revenue, we segmented products in the Shopping feeds by price. This allowed us to increase the profitability of each product group and use the advertising budget more effectively.

After some time, we performed a more detailed product segmentation.

Performance of the Performance Max campaign for mailboxes over two weeks:

We came across a rather unusual situation: despite high bids per click, the click-through rate (CTR) was significantly lower than expected. The results showed that our products weren’t sufficiently represented in Shopping Ads.

Performance of the Performance Max campaign for metal cabinets over two weeks:

Despite our efforts to optimize and segment products, the advertising campaign, particularly the one focused on mailboxes, showed unsatisfactory results. Other campaigns, while not generating significant profit, cost the client approximately the same amount as the revenue received.

We created test search campaigns for each product category, and most of them failed to achieve the set goal of increasing sales. A search campaign is a powerful tool for attracting customers, especially when users are actively searching for a specific product or service. However, Shopping campaigns are more effective for eCommerce projects, as the testing demonstrated.

Classic Shopping Campaigns

Although Google Ads algorithms are being continuously improved, they do not always take into account all business specifics and campaign goals. Since Performance Max campaigns did not bring the expected results, we decided to switch to classic Shopping campaigns with manual bid management. This allowed us to optimize costs and gain more control over the campaigns. At the client’s request, we launched Shopping campaigns focused on the most popular products: metal cabinets and mailboxes.

 

Metrics during the first month of the advertising campaign for metal cabinets:

According to our observations, classic Shopping campaigns maintain the visibility of the products in search results more effectively. Manual bid management allows us to optimize costs and ensure the consistent presence of the products in search results, even with lower budgets.

To reach the interested audience more effectively, we plan to launch an additional search campaign focused on branded queries and dynamic remarketing.

The conversion rate growth in dynamic remarketing indicates the effectiveness of our customer acquisition strategy.

Conclusion

Our experiment proved that for LevMetal, classic Shopping campaigns are more effective in achieving the company’s main goals — growing sales and increasing brand awareness. Despite the intense competition in this niche, where the cost per click often exceeds the average figures, we managed to effectively control the advertising budget and deliver the desired results with the help of manual bid management. This approach allowed us to tailor an optimized advertising strategy that significantly increased the efficiency of the budget and strengthened the brand’s position in the market.

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