How has the big e-commerce store mitigated the effects of the market downturn?

The market decline was mainly experienced by large e-shops. See how Tanganica helped to mitigate the decline of an e-commerce store.

Introduction
‍

2022 has been a hard hit on reality for a large part of e-commerce stores. After a long period of huge acceleration of e-commerce due to the pandemic, the growth of markets has slowed down and many stores are solving problems with purchased goods in stock, some of them even laying off their employees, and all players perceive a slight cooling.

Since we are very interested in this topic in Tanganica, we decided to start analyzing it more on specific e-commerce stores. In this case study, we will detail a large store, which is now experiencing a year-on-year decline in revenue from paid Google of about 34%.

‍

Basic information:

Overall performance of the e-shop in 2021: 4 682 892 €

Overall performance of the e-shop in 2022: 3 502 168 €

Year-over-year decrease in total sales: - 25.21%

‍

Explanatory notes:

google/cpc = client campaigns on Google, including brand

tanganica/cpc = campaigns launched in Tanganica (Google only)

*The store first launched Tanganica campaigns in July 2022.

‍

‍

Performance of store's own campaigns
‍

In this off-peak season, we see relative stability in client campaigns, with a decline of just over 7% from the previous period, which is almost negligible.
‍

Tanganica Launch
‍

Looking at the Tanganica campaigns launched at the beginning of July, we see a significant increase in sales, namely more than 40 000 EUR. When we compare the minimum decrease in client campaigns (7%), we see incremental (additional) revenue, which is not negligible, without any spillover of traffic.

‍

COS from google/cpc for this period: 9.12%
‍COS from tanganica/cpc for this period: 8.95%

‍Revenue from google/cpc for this period in 2022: 396 059 €
‍Revenue from google/cpc for the period in 2021: 605 781 €
‍
‍YoY difference: — 34.60%
‍Sales from tanganica/cpc for this period in 2022: 136 697 €
‍google/cpc + tanganica/cpc in the period 2022 = 532 867 €
‍YoY difference: -- 12.80%

When we add up the peak season sales from Tanganica and the client's campaigns, we are only 12% smaller compared to last year, which was boosted by the pandemic. The YoY decline in sales of the entire store is more than 25%, and that means that thanks to Tanganica and additional sales, the decline in sales from paid Google was not so significant overall.


What our customers say about Tanganica

I have been working with Tanganica for about a quarter of a year and I can say for myself that I am maximally satisfied. Tanganica brings me roughly 35% of the total revenue. Traffic, number of orders and revenue have increased significantly. All the while managing to keep the ROAS only slightly above the set level.
Martina Habrova
www.premioveseno.cz
It has been almost a year since our store started cooperation with Tanganica and became their customer. Everything works as it should and to our liking. Services and their functionality are constantly being expanded and improved. The personal approach and interest in us as a customer is above standard these days and I highly recommend it. In a word, PERCEPTIVE. I recommend and put my hand in the fire. In addition, the owner Filip is a sympathetic and normal person. May they prosper!
Jan Škaloud
www.svarecikukla.cz
Very good experience. Compared to other similar services or agencies, they manage to comply well with the target ROI. I would also like to expand to other advertising channels like List, Instagram, etc. The statistics could be more detailed. Especially for individual campaigns. Otherwise, I recommend it for anyone who does not have time to sit over the campaign and debug it.
Daniel Krečmer
www.oriental.cz
I didn't believe Tanganica, but we tried, and I have to say I haven't met a better advertising tool. Money for advertising is not wasted, the setup is clear and the most important orders on our store have grown at a record pace. I recommend.
Elena Fojtková
www.vasesvicky.cz
Tanganica approached our e-shop on its own and we were immediately interested in the clear, clear and simple rules of cooperation. Setting up the whole system took a few moments. The performance and effectiveness of Google PLA campaigns is gradually increasing, we look forward to the next step in the form of the takeover of Google DSA ads and product advertising on Facebook by Tanganica.
Aleš Verba
www.elevensportswear.cz
So far, we only work with Tanganica with selected clients, but we can still say that the results pleasantly surprised us. The overall setup is within a few clicks and campaigns can run. What we would still like to highlight is a helpful and kind attitude, great communication and follow-up care. We certainly plan to expand to other clients in the future.
Tereza Šmejdířová
www.mediaheroes.cz
I must highlight the great communication and focus on product and development — as well as the clear menu and easy tool operation. Thanks to this, virtually anyone can manage to deploy a feed and start graduation.
Tomáš Ventruba
marketingový specialista
Tanganica is the fourth company we approached to manage PPC campaigns. Compared to agencies, I would like to highlight a very simple way of establishing cooperation. It was enough just to check the feed, set the min. ROAS, clarify the rules of the game and without the need to sign a contract, everything could have started.
Ondřej Ťupa
www.obalyvysocina.cz
We started to cooperate with Tanganica to a limited extent, but gradually we included both our Czech stores. The current numbers look good and the main eshop is expected to catch on. Tanganica provides us with the agreed ROAS, the cooperation is almost effortless.
Roman Ďuriš
www.grund.cz
They are big professionals in Tanganica and they have a great, pro-customer approach. The application itself and its results pleasantly surprised me, as in a very short time it generated very nice additional revenue with a good ROAS, which we would hardly have achieved in another channel. The operation of the application is simple and intuitive, I appreciate the connection to GA4 and the optimization possibilities. Overall, I highly recommend it.
Dalibor Malina
www.ajprodukty.cz
Tanganica has become our key partner and their campaigns play a major part in the success of our e-shop. Their work is well thought out and effective, which allows us to achieve excellent results. We are very pleased that Tanganyika has managed to keep the ROAS required by us for a long time. The customer support is perfect, always available to answer our questions and solve any problems. Overall, we are very satisfied with Tanganyika and would definitely recommend their cooperation to anyone looking for a reliable and professional partner for their business.
Michal Aniol
www.eandilek.cz