The Challenge
NordicLiving was reporting a seemingly impressive 6.0x ROAS in Google Ads Performance Max (PMax). However, executive leadership noticed total business revenue was stagnant.
Upon deep audit, we revealed that over 70% of PMax conversions were coming from brand search queries (customers already searching for “NordicLiving dining table”). The automated PMax campaign was simply taking credit for sales that would have converted organically, while starving genuine non-brand acquisition.
The Solution
1. Brand Exclusion & Separate Brand Protection Campaign
- Applied a Brand Exclusion List to the primary PMax campaign, forcing the automated bidding algorithm to prospect net-new shoppers across Google Shopping, YouTube, and Display.
- Created an isolated Standard Search Brand Campaign with Exact match keywords and strict Target Impression Share bidding to protect brand territory at a nominal CPC ($0.18 vs previous $1.20 in PMax).
2. Margin-Tiered Feed Segmentation (GMC Custom Labels)
Instead of treating all 450 SKUs uniformly, we used Custom Labels in Google Merchant Center:
- Label 0: High Margin / Best Sellers (>50% margin): Aggressive Target ROAS (3.2x) with highest budget allocation.
- Label 1: Mid Margin / Volume Drivers (30–50% margin): Balanced Target ROAS (4.5x).
- Label 2: Clearance / Low Margin (<30% margin): High Target ROAS (6.0x) to avoid eroding net margins.
3. High-Quality Lifestyle Asset Groups
- Replaced generic low-res manufacturer product images with 4K Scandinavian interior photography, customer video testimonials, and responsive banners.
Results
- Blended Real Incremental Revenue: $408,000 on $85,000 ad spend (4.8x Blended ROAS).
- New Customer Acquisition Volume: +114% year-over-year.
- Average Order Value (AOV): Increased from $142 to $188 via high-margin bundling.