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How Our Google Ads Campaign Achieved a 2.1% Conversion Rate on Ecommerce Sales For CBD Products

Case Study: CBD Advertising Using Google Search Ads

The following CBD case study will use Google Ads campaign data to provide an overview of 3 successful Google Ads campaigns for CBD oils, CBD edibles, and THC edibles.

The data for this CBD advertising case study was collected over 90+ days from August 1, 2019, to October 31, 2019.

Here’s the Executive Summary. The full data is included in the chart below.

Executive Summary: CBD Advertising Case Study

Period: Aug 1 – Oct 31, 2019

  • Total Clicks: 11.2K
  • Average CPC: $1.76
  • Click-Through Rate: 7.4%
  • Impressions: 150.6K
  • Conversions (all three): 1.4k
  • Conversion Rate 12.2%
  • Cost Per Conversion/CPA: $12.76
  • E-commerce Conversion Rate/Sales: 2.09%
  • Total Cost: $17.5k

Analysis & Key Metrics To Note


1. Cost Per Click (CPC)

  • The average cost per click (CPC) on each ad in the CBD advertising case study was $1.76. This is on the lower side for CPC’s for CBD oil, CBD edibles, and CBD edibles.
  • We came in $0.48 lower thanks to our campaign management and optimization of target keywords, audience targeting, and landing page optimization.
  • The image below shows the average CPC for one of the search terms we’re bidding on – “buy hemp oil” – can be as high as $2.24 or higher.
Buy hemp oil search volume from Google Keyword Planner.

2. Cost Per Aquisition (CPA)

  • Our cost per conversion or cost per acquisition (CPA) was $12.76. Our goal was to come in under $20 CPA, and ideally under $14 CPA. We did it!

3. Conversion Rate

  • Our total conversion rate for 3-conversions: Newsletter Signups, Account Signups, and/or Online Sales, was 12.2%!
  • Any campaign with a double-digit conversion rate is a successful campaign!

4. E-commerce Conversion Rate – Online Sales

  • We achieved an e-commerce conversion rate of 2.1%! An average conversion rate would be 3%.
  • This e-commerce conversion rate is the conversion rate for online sales from our Google Ads.
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Our CBD Client

The client and our agency are under an NDA agreement so their company name and website will remain anonymous, but the data from this CBD advertising case study will be 100% transparent.

Client’s Background & Goals

This client’s goals were to:

  • Boost brand awareness
  • Increase qualified traffic to the company’s e-commerce website and blog
  • Build brand awareness
  • Increase account memberships and newsletter signups.

We suggested and implemented a combination of SEO, blog content, and native ads/sponsored content to target the top of the funnel. That is people who are just looking for information about CBD, not looking to buy just yet.

We also suggested and implement a unique Google ads campaign for 3 of their priority product categories:

  1. CBD Edibles
  2. CBD Oils
  3. THC Edibles

In order to set up the most effective ROI, and target each CBD customer interested in each product category, the client agreed to one campaign for each product category with a media spend of $100/day.

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Our CBD Google Ads Campaign Setup

Each campaign required the following basic setup in order to get our Google Ads approved.

Campaign 1: CBD Edibles

  • 1 Ad Group
  • 3 Ads
  • 15 approved keywords (short-tail and long-tail, hemp, and CBD based)
  • Up to 3-match-types for each keyword
  • 8 Callouts (Ad Extensions)
  • No Site Link Extensions
  • No Dynamic Search Ads
  • No Call Extensions
  • Media Spend: $100/day

Campaign 2: CBD Oils

  • 1 Ad Group
  • 3 Ads
  • 25 approved keywords (short-tail and long-tail, hemp, and CBD based)
  • Up to 3-match-types for each keyword
  • 8 Callouts (Ad Extensions)
  • No Site Link Extensions
  • No Dynamic Search Ads
  • No Call Extensions
  • Media Spend: $100/day

Campaign 3: THC Edibles

  • 1 Ad Group
  • 3 Ads
  • 10 approved keywords (short-tail and long-tail, hemp, and CBD based)
  • Up to 3-match-types for each keyword
  • 8 Callouts (Ad Extensions)
  • No Site Link Extensions
  • No Dynamic Search Ads
  • No Call Extensions
  • Media Spend: $100/day
CBD advertising case study data from CBD marketing company ColaDigital.ca.

Our Results

The data below shows stats for all three campaigns in total.

You’ll see key performance indicators (KPIs) as well as the keywords that were used in this Google Ads campaign. You’ll also see KPIs for the website engagement from this CBD advertising campaign.

We tracked 3 types of conversions in these campaigns:

  1. Newsletter Signups
  2. Account/Membership Signups
  3. Online Sales
Google Ads data for CBD Advertising from ColaDigital.ca

Summary of the Data Above

Period: Aug 1 – Oct 31, 2019

KPIs

  • Total Clicks: 11.2K
  • Average CPC: $1.76
  • Click-Through Rate: 7.4%
  • Impressions: 150.6K
  • Conversions (all three): 1.4k
  • Conversion Rate 12.2%
  • Cost Per Conversion/CPA: $12.76
  • E-commerce Conversion Rate/Sales: 2.09%
  • Total Cost: $17.5k
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We Can Help You With Strategic Google Ads Management

Are you interested in running Google Ads to increase website traffic and online sales for your CBD products?

We can help you with Google Ads Campaign Management specifically for your focus products and targeted to your specific demographic.

Call us for a free 30-minute consult to discuss your project, or email us to request a quote.

We’re Ready To Help You Grow!

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