Background
Outdoor Solar Outlet sells solar-powered lighting for yards, gardens, and sidewalks. Their inventory includes string lights, lanterns, pathway lights, and even floral lights; all of their products convert sunlight into electricity, so no electrical wiring or plugs are needed! The company’s focus on environmentally friendly lighting and their generous return policy has made them a favorite for homes and commercial buildings nationwide, and Outdoor Solar’s business has seen rapid growth over the past few years.
Key Metrics
12x
Return-On-Ad-Spend on Paid Social
153%
Increase in Revenue from Paid Search
$107,000
Monthly Revenue from Paid Search
Why’d They Come to LP?
Outdoor Solar’s owner had been running smart campaigns through Google Ads on his own, and felt like he was doing okay. After a few months, the owner noticed he was seeing diminishing returns—his costs were increasing, and performance wasn’t making up the difference. He was referred to Logical Position (LP) through one of our existing clients; while he was hesitant to trust us at first, he knew it was time to make a change. During our initial meeting, we ironed out Outdoor Solar’s initial goals: to grow the company’s sales, as efficiently as possible.
What Strategy Was Used?
Since Outdoor Solar has a modest product inventory, our paid search team decided to run both search and shopping ads. Running paid search ads with a small inventory is easier, as fewer keywords need to be built out. We began by segmenting Outdoor Solar’s campaigns into Single Keyword Ad Groups (SKAGs) and Single Product Ad Groups (SPAGs). This build style segments each individual keyword or product into a singular ad group, which allows us to set bids at the keyword level. This gives our team greater visibility into account performance; we can see which keywords or products are seeing the best returns and adjust our budgets accordingly.
As our Google Ads campaigns started to gain traction, our team decided it was time to expand our strategy. Outdoor Solar started on Microsoft Advertising, which gave the company an entirely new audience to market their solar lighting to. Most consumers browse the internet using either Google or Bing as their search engine, but not both. If companies don’t advertise on both platforms, they’re not getting their ads in front of as many people as they could be. Our team also decided it was time to expand our geographic presence; we started running ads for Outdoor Solar in Canada to increase our market share there.
A digital marketing strategy works best when a holistic approach is taken. Knowing this, our team suggested that Outdoor Solar begin running ads on paid social in addition to our paid search campaigns; soon after this suggestion we began running dynamic remarketing ads on Facebook and Instagram. These ads are a great way to target highly qualified customers; we’re able to retarget ads to users who have shown interest in and are actively in the market for Outdoor Solar’s products. Dynamic remarketing works by displaying a carousel of ads to the consumer, which are specifically tailored to the product that person viewed on Outdoor Solar’s website. The best part is, as Outdoor Solar’s brand awareness increases through our paid search campaigns, the remarketing audience for Facebook and Instagram grows as well—our products working in tandem to grow Outdoor Solar’s business even more.
What Were the Results
Outdoor Solar Outlet saw an immediate reduction in cost and an increase in revenue when they started working with us. In the first month we took over, we cut costs by 26% and increased revenue by 25%. Outdoor Solar’s return-on-ad-spend (ROAS) went from a 2.28x (pre-LP) to 4.30x—in just one month! Outdoor Solar saw $43,000 in revenue before working with LP; we’ve since increased revenue by 153%—last month we generated $107,000 in revenue from paid search.
Our paid social results were equally impressive. In 6 months, our paid social team generated 669 purchases with a total conversion value of over $60,000. Our paid social ROAS is a 12x—that’s $12 back for every $1 Outdoor Solar spends on paid social! As the months progress, things just keep getting better. In one month, our purchase conversion value increased by 136% compared to the previous month, earning Outdoor Solar an extra $8,000 month-over-month (MoM).
Our digital marketing efforts have had a larger impact on Outdoor Solar’s business than just revenue growth. The company’s owner had been running the business by himself; our campaigns brought so much business that he couldn’t handle it all on his own and had to hire two additional employees. The owner had been running his business out of a 300 square foot garage, within 6 months of partnering with LP, he needed to expand to a 7,000 square foot warehouse to accommodate how quickly he was moving inventory.
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