How to Quickly Improve ROAS in a PLA Campaign?
Challenge
A PLA campaign for marketplace (second-hand) products was stagnating. Despite generating revenue, the ROAS remained at 9, which was not sufficient for the client’s profitability goals.
We needed to find a way to improve campaign profitability without significantly increasing the budget.
Strategy
After an in-depth analysis of the products in the campaign, we decided on a “less is more” approach.
We filtered the feed to include only the best-selling marketplace products and removed the maximum CPC limit to give the algorithm more freedom.
Results Achieved
Positive changes:
ROAS increased by 25% (from 9 to 11.25)
Costs decreased by 45%
Negative changes:
CPC increased by 123% (from 41 to 91 HUF)
Clicks decreased by 75%
Revenue decreased by 30%
Conclusion
We consider the experiment successful. Despite a moderate decline in revenue, overall campaign profitability improved, which aligned with the client’s main priority.
The increase in CPC was more significant, but the experiment confirmed that by selecting only top-performing products, we can achieve a better ROAS. The higher CPC was caused by removing the original campaign limit. If needed, CPC can be regulated again by setting a maximum CPC through bidding strategies.
The results of this experiment confirm that the “quality over quantity” approach works in PPC campaigns as well.
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