Client Profile
Finding growth in an incredibly competitive and fast-paced vertical. The Canadian online grocery market is crowded with well-funded incumbents. Our client needed to carve out market share through precision targeting and relentless optimization — not bigger budgets.
Objectives & Challenges
When we began the campaign overhaul in late 2023, the client faced five interconnected challenges that required a unified strategy:
- Accelerate sales growth: Achieve at least 10% year-over-year net sales increase in a market where competitors were spending aggressively on brand terms and shopping ads.
- Boost order volume: Increase both one-time and subscription-based orders through targeted Google Ads campaigns across Search, Shopping, and Display.
- Optimize AOV & ROAS: Raise average basket size where possible while maintaining efficient ad spend and a sustainable return on ad spend.
- Enhance tracking & attribution: Address significant data gaps caused by iOS privacy updates, cookie deprecation, and the migration from Universal Analytics to GA4. Implement conversion tracking that would actually hold up.
- Refine sales funnel & UX: Streamline on-site search, checkout flow, and post-click landing pages to reduce drop-off rates and increase conversion.
Strategy & Execution
1. Google Ads Campaign Overhaul
The foundation of the strategy was a complete restructuring of the Google Ads account. We moved from broad, catch-all campaigns to granular segmentation by basket type:
- Produce campaigns targeting fresh fruit, vegetables, and organic searches with high purchase intent.
- Pantry staple campaigns for bulk, repeat-purchase items with lower CPCs and high conversion rates.
- Meal kit campaigns targeting convenience-driven shoppers willing to pay a premium.
- Responsive Search Ads (RSAs) with 15+ headlines and 4 descriptions per ad group, letting Google's machine learning optimize the best-performing combinations.
- Performance Max pilot: Launched PMax campaigns with audience signals based on purchase history to capture high-intent shoppers across Search, Display, YouTube, and Discover from a single campaign.
2. Creative & Messaging
- Seasonal bundles & promo extensions: Created ad assets promoting "Weekly Meal-Kit Bundle" and "Fresh-Box Subscription" with countdown timers for urgency.
- Dynamic remarketing: Deployed feed-based display ads reminding users of previously viewed items, with personalized promo codes for first-time buyers.
- Ad copy testing: Systematic A/B testing of benefit-led vs. price-led messaging across all campaign types.
3. Enhanced Tracking & Attribution
- GA4 & Consent Mode v2: Full implementation ensuring accurate channel attribution while respecting privacy consents — critical for Canadian PIPEDA compliance.
- Offline conversion imports: Synced CRM order events back into Google Ads for end-to-end ROAS visibility, connecting the dots between ad clicks and actual revenue.
- Enhanced conversions: Implemented first-party data matching to recover attribution lost to cookie restrictions.
4. Customer Acquisition & Funnel Refinement
- Audience layering: Layered in-market and affinity audiences to expand reach among health-focused, organic, and convenience-driven buyers.
- Landing page A/B tests: Tested simplified checkout flows and product-category landing pages, reducing bounce rate by 18%.
- Smart bidding strategies: Switched top-of-funnel search campaigns to Maximize Conversions with target CPA, and bottom-funnel campaigns to Target ROAS for maximum efficiency.
5. Website & UX Optimization
- Enhanced product filters: Added "organic," "gluten-free," and "family pack" filters to accelerate product discovery and reduce search friction.
- Subscribe & Save module: On product pages, introduced one-click subscription options — this single change boosted recurring revenue by 12%.
Full-Year 2024 vs 2023 Results
| Metric | 2023 | 2024 | Δ YoY |
|---|---|---|---|
| Total Sales | $941,247 | $1,062,737 | +13% |
| Net Sales | $932,180 | $1,052,226 | +13% |
| Gross Sales | $990,927 | $1,148,946 | +16% |
| Orders | 9,422 | 13,465 | +43% |
| Products Sold | 272,372 | 320,511 | +18% |
| Avg Order Value | $98.85 | $78.15 | –21% |
Key highlights:
- +43% orders: The combination of subscription wins, dynamic remarketing, and Performance Max expansion drove a massive surge in order volume.
- +16% gross sales: Broad campaign coverage across Google's full ad inventory captured demand the previous account structure was missing.
- Lower AOV (–21%): This was a deliberate strategic shift. The push toward smaller, more frequent baskets via Subscribe & Save increased customer lifetime value even as individual order sizes decreased. More orders at lower values still produced 13% more total revenue.
Q1 2025 vs Q1 2024: Accelerating Momentum
| Metric | Q1 2024 | Q1 2025 | Δ YoY |
|---|---|---|---|
| Total Sales | $304,658 | $393,054 | +29% |
| Net Sales | $302,276 | $389,960 | +29% |
| Gross Sales | $328,997 | $424,339 | +29% |
| Orders | 3,524 | 5,319 | +51% |
| Products Sold | 90,267 | 126,374 | +40% |
| Avg Order Value | $85.24 | $73.31 | –14% |
Q1 2025 takeaways:
- Rapid order growth (+51%) driven by fresh Subscribe & Save placements in ad extensions and optimized remarketing sequences.
- Sustained sales lift (+29%) while cost-per-order actually declined — meaning more efficient spend at higher volume.
- AOV compression (–14%): Continued emphasis on frequent, lower-ticket subscription baskets. The trend is intentional and the LTV math works.
Key Takeaways
- Performance Max is a growth catalyst for e-commerce. PMax campaigns expanded reach across channels that traditional Search and Shopping campaigns never touched — particularly YouTube and Discover. The key is feeding it strong audience signals from existing customer data.
- Campaign segmentation drives efficiency. Splitting campaigns by product category (produce vs. pantry vs. meal kits) allowed us to set different ROAS targets and bidding strategies for each, matching ad spend to actual margin profiles.
- Attribution accuracy is foundational. Without GA4 + Consent Mode + offline conversion imports, we would have been optimizing blind. Getting tracking right before scaling spend is non-negotiable.
- Lower AOV can mean higher LTV. The Subscribe & Save strategy deliberately reduced average order value while dramatically increasing order frequency. Revenue grew because customers ordered more often, not because they ordered more per visit.
- Landing page optimization compounds. The 18% bounce rate reduction from A/B testing had a multiplier effect — every campaign benefited from better post-click conversion rates.
What's Next
- Expand Performance Max signals: Incorporate lifetime-value-weighted audiences to prioritize long-term customer acquisition over one-time purchasers.
- Video creative for top-of-funnel: Add YouTube Shorts and Discovery video ads featuring meal-kit unboxing and recipe content to capture demand earlier in the funnel.
- On-site AI search: Reduce search friction with natural-language query support, helping shoppers find products faster and reducing abandoned sessions.
- Zero-party data collection: Implement product preference quizzes and dietary profile builders to personalize both the shopping experience and ad targeting.
Through a comprehensive Google Ads rewrite — spanning campaign structure, creative assets, tracking infrastructure, and funnel improvements — this online grocery not only met but exceeded its growth targets, setting the stage for an even stronger 2025.
Frequently Asked Questions
Can Google Ads work for online grocery delivery?
Yes. In this case study, a Canadian online grocery store achieved $1.06M in revenue and a 43% increase in orders year-over-year through targeted Google Ads campaigns including Search, Performance Max, and dynamic remarketing. The key is granular campaign segmentation by product category and smart bidding strategies optimized for return on ad spend.
What is Performance Max and how does it help e-commerce?
Performance Max (PMax) is a Google Ads campaign type that runs across all Google channels — Search, Display, YouTube, Discover, Gmail, and Maps — from a single campaign. For e-commerce, PMax uses machine learning with your product feed and audience signals to find high-intent shoppers wherever they browse. In this case study, PMax was a key driver of the 43% increase in orders.
How do you track Google Ads conversions for e-commerce?
Modern e-commerce conversion tracking requires GA4 with enhanced e-commerce events, Google Ads conversion tags with Consent Mode v2 for privacy compliance, and ideally offline conversion imports that sync CRM or backend order data back into Google Ads. This gives you end-to-end visibility from click to purchase, including accurate ROAS calculations.
What ROAS should a grocery e-commerce store expect from Google Ads?
ROAS varies significantly by market, competition, and average order value. Online grocery typically operates on thin margins, so a 4:1 to 8:1 ROAS is a strong benchmark. The key is optimizing for total revenue growth while maintaining efficient cost-per-acquisition — in this case study, the client grew revenue 13% while increasing orders 43%, indicating highly efficient spend.
How much does Google Ads cost for a grocery store?
Google Ads costs for grocery depend on your market, competition, and goals. Rather than focusing on a fixed budget, the focus should be on ROAS and cost-per-order. A well-optimized account can scale spend profitably — this client grew orders by 51% in Q1 2025 while reducing cost-per-order, meaning more efficient spend at higher volume. Start with an audit to identify your biggest opportunities.
Want similar results for your business?
Whether you need a full Google Ads overhaul, Performance Max setup, or conversion tracking audit — we have driven these results before.