Analysis of Google AdWords campaign optimization effectiveness over 4 months using Verseo Campaign Manager
The VCM platform is generating significant interest, which we're extremely pleased about. However, this also raises many questions about VCM's effects, effectiveness, and examples of its use among our clients. To provide a satisfactory answer, we've prepared a comprehensive case study that we hope will dispel any doubts and provide the information you need.
What is VCM?
Before we discuss the effects of VCM optimization, let's briefly explain what this platform actually is and how it works. Broadly speaking, it's a tool we developed for optimizing Google Ads campaigns . It's based on self-learning algorithms that collect data about a given campaign 24 hours a day, 7 days a week, and automatically make changes to it to help you best spend your advertising budget. The more data they collect, the more effectively they can optimize settings.
The use of machine learning, which underpins the VCM system, is one of the most forward-looking and promising trends in online marketing. We noticed this many years ago, which led us to the idea of creating a platform that would largely automate the process of optimizing advertising campaigns . VCM was born from this idea five years ago. Currently, the platform has been tested on over 1 billion campaigns, enabling users to reduce conversion costs for both large and small budgets. VCM offers over 50 optimization strategies, allowing us to tailor our approach to individual client needs and focus on achieving their most important goals. Available strategies include:
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- improved CPC,
- maximizing clicks,
- maximizing conversions,
- maximizing revenue,
- target ROAS,
- target CPA,
- target impression share,
- maximizing views,
- maximizing conversions based on budget,
- maximizing clicks based on budget,
- selected location on the search page,
- optimizing the quality score within the planned budget,
- minimizing the costs of obtaining a given number of clicks.
However, this is only a small part of the available options – for each new campaign, our specialists select the most favorable settings.
Example optimizations using VCM
However, in order not to be unfounded, we decided to present examples of what results can be achieved by optimizing your account using VCM.
For this case study, we analyzed 22 Google Ads accounts. We intentionally omitted December from our analysis because it's a period when 80% of campaigns experience significant increases in orders, and we're not looking for "creative" cases, as in accounting. We selected campaigns with a long history of stable monthly results (costs, revenue/orders, cost per order) and optimized performance. We have Google Ads accounts for both stores and services.
This case study excludes accounts with a short history, accounts where we ran concurrent brand campaigns, or where the improvement in results occurred significantly quickly, for example, within a few days. We also decided not to include in the sample accounts that had undergone a complete redesign to connect to VCM. The analyzed optimization time was four months.
We intentionally show results for both small accounts, below PLN 500 (monthly budget), to show how the system handles accounts with a small amount of data, and for accounts over PLN 10,000 per month (in this category we also have accounts with a monthly budget of PLN 50,000, but for the purposes of the analysis we have included them in the "over PLN 10,000" category).
The charts present the 2 main factors that we analyzed over a 4-month period.
- Number of orders
- Cost of a single order
Each graph is described.
Category of service or store, size of budget per month.
On the left side, in blue, we have the orders axis (in the case of services, orders mean acquired customers), which is represented by bars on the chart.
On the right side in red we have the cost axis of one order, which is represented by a red line on the graph.
Period 1 is the first month of optimization by VCM, period 4 is the fourth month of optimization.
Above the graph we have a percentage summary of the effects from the last month (4) to the first month (1).
Virtually all analyzed accounts show a significant increase in orders, accompanied by a simultaneous reduction in the cost per order. It's worth noting that the longer a campaign runs , the more data our algorithms acquire. They gradually "learn" about a specific campaign and analyze the behavior of ad recipients, which in turn creates opportunities for even better results in the future.
Summary
The above article covers the following topics:
- the functioning of the Verseo Campaign Manager (VCM) system and its impact on the effectiveness of marketing campaigns,
- the effectiveness of automatic campaign optimization based on historical data and machine learning.
