Onefeed Crushes Automated Bidding Software in Head to Head Test
If you are looking for a way to manage your Google shopping feed there are 2 different ways to go, the automated and the managed campaign routes.
Onefeed are firm believers that the best solution for their clients is the managed option because they are able to deliver the best return on investment (RoI) for clients spend.
They are so confident in this model that the fees are based on the ability to increase your revenue while keeping the cost of sale (CoS) low.
A long term client was contacted by one of their competitors, a leading automated systems company and tempted by their promise of “set it and forget it” bid management.
Knowing that the automated software was very limited and not able to compete with a managed service, Onefeed suggested a test. The country was split in two and allocated the same budgets to each system. The winner would be the one that could demonstrate the best RoI for the client, generating the highest revenue with lowest CoS combination.
The test was to run for the month of November. What the data reveals is very interesting and highlights the limitations of a set it and forget it system.
The cost of sales target was set at 18% from the 14th November. The automated system passed the CoS target and continued to increase the bids. So the CoS just increased and increased day on day until it was at almost double the target figure.
The results were so conclusive that after just 3 weeks the client cancelled the test. Obvious to the fact the automated system was just continually increasing the costs of the bids and the CoS was almost double the target of 18%.
The Onefeed graph for the same time tells a very different story. The CoS target was set at 18% and although it did pass it on a few days it was consistently below the target and ended the month at below 15%. However, at the same time, the revenue achieved for the client was over £21,000 more than the automated system.
Google Shopping Test Overview
Conclusion
With automated bidding systems, the algorithms are not sophisticated enough to adjust the bids. In order to keep within a CoS target and also increase the revenue earned, the automated systems just try to “spend their way out of trouble” by continually bidding higher per click. This is a dangerous way to do things as it costs the client more and more of their budget as the system chases sales.
The Onefeed manual bidding platform has a Google Shopping Certified Expert looking at and adjusting the bids. Being able to find the sweet spot between increasing revenue and keeping the Cost of Sale under control. That is how Onefeed were able to increase revenue by £21,000, reduce the clients spend by £3,800 and have a CoS 5.8% lower than the automated system.
To learn more about the way Onefeed increases revenue and decreases the Cost of Sale for their clients please call on 0800 130 3140 to speak to the Google shopping experts.
If you wish to contact us please call on 0800 130 3140 to speak to the Google shopping experts or complete the form below and we will get back to you.
