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Unit 5.case

Case Study: Google Ads for a Kathmandu Electronics Retailer

IT 204: E-Commerce

Kathmandu Retailer Digital Title

Learning Objectives

By the end of this case study, you will be able to analyze a real-world application of the concepts covered in Unit 5.

  • ✅ Analyze the impact of account structure on PPC performance.
  • ✅ Understand the critical role of conversion tracking, especially for Cash-on-Delivery (COD) models.
  • ✅ Evaluate how localized ad creative improves relevance and results.
  • ✅ Connect theoretical search advertising concepts to a practical business case in Nepal.
Challenge Leaking Bucket

The Challenge: A Common Scenario 📉

An electronics retailer in Kathmandu faced common digital marketing hurdles with their Google Ads account:

  • Broad Ad Spend: Budget was spread thinly across brand + generic terms with low purchase intent.
  • Poor Structure: A disorganized account meant low relevance between keywords, ads, and landing pages.
  • No Measurement: Ineffective tracking made it impossible to calculate true Return on Ad Spend (ROAS).
  • Wasted Budget: Significant ad spend was wasted on irrelevant clicks and promoting out-of-stock items.

Simulator: Budget Allocation & Waste

Drag the slider to see how spreading budget thin vs. focusing it on high-intent keywords changes your results.

Scattered Focused
Daily Budget
NPR 3,000
Wasted Spend
60%
CTR
1.8%
Est. Conversions
2
Effective Spend 40%

Move the slider to change focus level.

Strategy Pillars

The Strategy: A Foundational Rebuild 🏗️

The solution was a complete account overhaul focusing on four key pillars.

1. Structure & Targeting

  • Tight ad groups for top sellers (SKAG-like).
  • Consolidated themed groups for other categories.
  • Aggressive search term mining to build a negative keyword list.
  • Switched to Phrase/Exact match to reduce waste.

2. Creatives & Measurement

  • Localized Responsive Search Ads.
  • Implemented GA4 E-commerce Tracking.
  • Enabled Enhanced Conversions.
  • Crucially: Set up Offline Conversion Imports for COD sales.
Structure Chaos to Order

Account Structure: Before vs. After

BEFORE 👎

Ad Group: "All Electronics"

Keywords: `buy electronics`, `tv price nepal`, `samsung phone`

Ad: "Best Electronics in Kathmandu!"

Result: Low relevance, low CTR.

AFTER 👍

Ad Group: "Samsung 4K TV Nepal"

Keywords: `"samsung 4k tv price"`, `[buy samsung smart tv]`

Ad: "Samsung 4K TVs | Official Dealer"

Result: High relevance, high CTR.

Key Takeaway: Granularity links user search intent directly to the most relevant ad and landing page, boosting Quality Score and performance.

Explorer: Keyword Match Types

Type a customer search query and see which of the retailer's keywords would trigger an ad.

Broad Match
samsung 4k tv
Phrase Match
"samsung 4k tv price"
Exact Match
[buy samsung smart tv]
Enter a search query above to test match types.
Localized Creative

Ad Creatives: Winning with Nepali Context 🇳🇵

Relevance goes beyond keywords. The ads were rewritten to resonate with the local market.

Example: Responsive Search Ad


Headlines:

  • Samsung TV - Official Retailer
  • Free Delivery in Kathmandu Valley
  • EMI Plans Available | 0% Interest

Descriptions:

  • Genuine products with brand warranty. Visit our showroom in New Road or order online. Trusted by 10,000+ customers.
  • 🇳🇵 Special Dashain Offer: Flat 15% Off! Limited Stock. Buy Now.

This approach builds trust, highlights local value propositions, and leverages cultural events.

Analyzer: Ad Relevance & CTR Builder

Toggle the ad features the retailer added. See how each one affects the predicted CTR and Quality Score.

Predicted CTR
1.4%
Quality Score (est.)
4/10
Enable ad features to increase relevance and CTR.

The Measurement Revolution: Tracking What Matters 🎯

To truly optimize, the retailer needed to see the full picture of their sales funnel.

GA4 E-commerce

Tracks online credit/debit card purchases and user journey events like `add_to_cart` and `begin_checkout`.

Enhanced Conversions

Uses hashed customer data (email/phone) to improve tracking accuracy and attribute conversions across devices.

Offline Conversion Import

The game-changer for COD! Imports confirmed cash sales back into Google Ads, attributing them to the original ad click.

Offline Conversion Loop

Practical Application: Solving the "COD Problem"

The Problem: In Nepal, a high percentage of e-commerce sales are Cash-on-Delivery (COD). Without tracking these, a campaign's ROAS is severely underestimated because Google Ads only sees an online "lead," not a confirmed "sale."

The Offline Import Workflow:

User Clicks Ad ➡️ Places COD Order Online

(Google Ads records a "lead" with a unique click ID)

Delivery Confirmed & Payment Received ➡️ Sale Data Uploaded to Google Ads

(The click ID is matched, and the "lead" is converted to a "sale" with its actual value)

Result: Google Ads now optimizes for *actual revenue*, not just online form submissions.

Calculator: COD Tracking & True ROAS

Adjust the sliders to see how ignoring COD sales drastically understates your real Return on Ad Spend.

Reported ROAS (no COD import)
1.50x
(what Google Ads thinks)
True ROAS (with COD import)
4.50x
(actual performance)
Without offline import, this campaign would appear unprofitable and be incorrectly cut.
Results Dashboard

The Results: Data-Driven Success 📊

The strategic changes produced significant, measurable improvements within just 6 weeks.

Key Metric Improvements

  • 📈 Click-Through Rate (CTR): +45%
    (Higher ad relevance)
  • 📉 Cost-Per-Click (CPC): -22%
    (Improved Quality Score)
  • 💹 Conversion Rate: +38%
    (Better user journey & tracking)
  • 💰 ROAS: Improved 2.1x
    (True measurement & optimization)

Operational Wins

Inventory Sync: A data feed connected to the retailer's inventory system automatically paused ads for out-of-stock items.

Impact: This simple automation drastically reduced wasted ad spend and prevented customer frustration.

Calculator: Campaign ROI — Before vs. After

Model the retailer's 6-week improvement. Adjust the base inputs and see how the key optimizations compound into real NPR profit.

BEFORE Optimization
CPC:
NPR 38
CTR:
1.4%
Conv. Rate:
1.2%
Conversions:
29
Revenue:
NPR 2,49,100
Net Profit:
NPR -35,198
AFTER Optimization (+6 weeks)
CPC (−22%):
NPR 30
CTR (+45%):
2.0%
Conv. Rate (+38%):
1.7%
Conversions:
50
Revenue:
NPR 4,27,500
Net Profit:
NPR 4,050
The combined effect of lower CPC, higher CTR, and better conversion rate turns a loss into profit.

Summary: Key Lessons & Unit 5 Connections 🔍

  • Structure is Strategy (Ch. 5.2): A granular account structure is the non-negotiable foundation for relevance, performance, and efficient scaling.
  • Measurement is Everything (Ch. 5.3): For COD-heavy markets, offline conversion import is essential to calculate true ROAS and make informed budget decisions.
  • Contextual Creatives Convert (Ch. 5.1): Localization, trust signals (badges, local offers), and clear value propositions are what turn a click into a customer.
  • Relevance Reduces Waste: Tightly matching keywords to ads and landing pages, combined with negative keywords, directly leads to lower CPC and higher ROI.

Thank You

Questions?


Next Topic: Unit 6.1: 'Unit 6 Intro: Social, Mobile, and Local Marketing | IT 204 Notes

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