Which marketing channel is right for you?
Episode 1 Testing
Do you have a new e-commerce store, or has it been working for some time, but still don't have the courage or time to start advertising? Not sure how to start which channel to choose and how much to invest? We will advise you how to do it.
There are many factors that influence the selection of the resulting platform (Are you promoting a service? Is it a single product or multiple products? Are you selling a well-known brand?). It is therefore impossible to determine in advance which is the most effective and testing is essential. Whether you plan to set up your ads yourself or entrust the setup and optimization to the pros, you can't avoid it.
Before starting it, it's important to consider the stage of the buying process the customer is in and the campaign's objective:
Building the brand
Bringing in new people
Engaging with existing customers
What is testing
Testing is the process of moving budget from channel to channel, between ads and settings, to determine the profitability of each strategy. Costs decrease in less efficient channels and increase in profitable ones.
There are several marketing channels for advertising products on the e-commerce store:
Google ADS - Search Campaigns, Google Shopping, Remarketing, Dynamic Search Campaigns, Content Campaigns
Sklik - Search campaigns, Remarketing,
Facebook and Instagram - Acquisition, Remarketing, Catalog
Zboží.cz - goods comparator
Heureka.cz - Comparison Engine
How much does testing cost
Normally, the budget needed for testing is between 10 000 - 50 000 CZK. Testing takes a week to 14 days. This time is sufficient to collect a sample of the data from which the evaluation is performed. The time is sufficient to collect a sample of data from which the evaluation is performed.
How to perform testing
In practice, you will find that each marketer has their own strategy. Some prefer to make larger investments from the beginning, others prefer to increase them gradually.
From the beginning, we recommend deploying according to the following priorities:
Search campaigns for the main keywords of the e-shop
Search campaigns on longtails = less search terms in search engines with less competition and higher potential for conversion
DSA Campaigns (Dynamic Search Ads)
PLA Shopping Smart (Product Listing Ads)
The size of the e-shop is also considered in the planning of the strategy:
For smaller companies, it generally makes more sense to put more into branding from the money brought in by performance advertising.
The initial investment is for example 10 000 CZK, of which advertising on the most profitable platforms will bring 30 000 CZK. The profit is then invested in expanding the campaign and building brand awareness, e.g., by deploying banners in the content network, creating a Facebook target group and reaching out to them.
Example of budget distribution for a small e-shop:
Google ADS - 50%
20% PLA 20% Search campaign, Brand campaign, 10% DSA
Facebook ADS - 30%
10% Catalog, 20% Remarketing
Sklik - 20%
10% Search Campaigns, 10% Remarketing
Medium e-shops with a larger number of products should focus primarily on catalogue sales, PLA shopping, product comparisons and then use more remarketing strategies.
Example of budget distribution for medium-sized e-shops:
Google ADS - 50%
30% PLAs, 20% Search Campaigns, Brand Campaign
Facebook ADS - 25%
10% Catalog, 15% Remarketing
Sklik - 15%
5% Search Campaigns, 10% Remarketing, Dynamic Remarketing
Product Comparison Sites (Zboží.cz, Heureka.cz) - 10%
How to evaluate the results of testing can be found in the next article.