Truckit is Australia’s largest online freight marketplace, helping connect freight customers to transport providers. Truckit is made up of 1000s of transport providers vehicles backloading freight around Australia at any one time.
Increase Conversion Rate
Increase in Revenue
Increase in Ad Spend
Profitably Scale the Demand Side of a Online Freight Marketplace
Having spent the better part of the last 5 years scaling a two-sided marketplace (Felix Vendor Marketplace FLX:ASX) it was an obvious choice to outreach to local marketplaces in Brisbane when we started Farsiight.
Here’s Truckits’ Founder and CEO Rob’s two cents on how things kicked off – “We operate in a similar industry as some of their other clients. They identified us as a business that their team could help so Farsiight approached us. Their team had marketplace knowledge, which was a key interest of mine. They were approachable and there was an instant click between the type of personalities their team had and the people I wanted to work with.”
Through the discovery process with Truckit we uncovered that outside of SEO, Google Ads was the driving force for demand generation for the marketplace. Now I want to provide a quick shout out to Rob here as even to this date he is one of the only founders that we have met that was able to scale up a Google Ads account to the size he had on his own without any outside help. It’s very rare that we meet founders who are as dangerous at Google Ads as Rob.
With that being said, through a Google Ads Performance Review of his account we uncovered massive opportunities for scale.
As always with any marketplace we work with the biggest challenge of all was going to be understanding the nuances of how supply and demand work together and how they affect our paid advertising efforts.
Rebuilding Rome, Deep Data Analysis and Test, Test and Test Some More
“We need to take the best road, not the easy road.”
Now whilst that might not be exactly what we said to Rob when explaining the way forward it was the truther of the matter. From our detailed analysis of the Google Ads account our recommendation was that in order to truly scale, we needed to rebuild the campaign structure from the ground up
And that right there, is a very scary proposition for most founders.
Rob was quickly reassured as we have a migration strategy which ensures that there is as little disruption as possible to performance as we move to a new campaign structure.
In order for us to profitably scale up the demand side of the marketplace we identified three areas which would move the needle the most;
- Rebuilding the Google Ads Account From the Ground Up
- Setting up a Data Analysis Framework to Inform Our Marketing Strategies
- Driving Consistent Improvement Through Consistent Testing of New Strategies
“They understood the marketplace which isn’t a typical e-commerce store. Their team understood the challenges of bringing the two sides of the market together to actually make a transaction.”
– Robert Russell, Founder & Director
Rebuilding the Google Ads Account From the Ground Up
Our hats off go to Rob. Having previously run an e-commerce business and now Truckit, he self-taught himself Google Ads, and speaking candidly, he was doing a better job than most. We could speak in PPC acronyms and it all made sense to him, it was beautiful.
However, Rob’s biggest barrier to scaling Google Ads was his lack of time and as such, the account structure was set up in a way to accommodate for this.
For us to inevitably scale his monthly ad spend 350% and ROAS 22% we had to create a lot more work for ourselves. The existing 7 campaigns which were all using automated bidding strategies have since expanded to 98 enabled campaigns with various bidding strategies set based on campaign performance and objective.
We spent countless hours reviewing his Google Analytics data to identify types of freight and their respective average order value (AOV). This data then informed 3 groups – high, medium, and low transaction value.
This group label was appended to our campaign naming convention and guided us to ensure we optimise campaigns according to their respective AOV.
For example, we could let the CPA for heavy machinery go significantly higher than, say, motorcycles due to the higher transaction value associated with heavy machinery.
“Farsiight had a broad range of knowledge and came in with a good experience level that exceeded our abilities with paid search. They understood the marketplace which isn’t a typical e-commerce store. Their team understood the challenges of bringing the two sides of the market together to actually make a transaction. They analyzed and identified points to turn our business around quickly. Now, Farsiight runs all of our paid campaigns and comes up with ideas. In particular, their team has supported our Google AdWords and BingAds efforts.” – Robert Russel
Setting up a Data Analysis Framework to Inform Our Marketing Strategies
As any marketplace owner would know all too well, there are countless metrics outside of paid ad campaigns that can impact the performance of paid advertising. It’s very much the case in the world of Truckit.
As such, it is of the utmost importance that Farsiight remains on top of these business metrics each day.
To do this, we created Rob custom Data Studio reports that used multiple data feeds (Google Analytics, Google Sheets, Google Ads) to pull in this critical data in realtime.
It’s these internal metrics that inform how we adjust bids and how much budget we should be allocated on a week-to-week basis to ensure ROAS is above target.
Driving Consistent Improvement Through Consistent Testing of New Strategies
Here is a sample of some of the new strategies we have tested to date. However, we will keep this high-level so as to protect our clients IP:
- We reached statistical significance that searches that include locations have higher conversion rates. Armed with this data, we made changes to our campaign structure to ensure more budget went towards these terms.
- Setup remarketing campaigns for search to alter messaging and increase budgets & bids for previous visitors of the Truckit website.
- Identified days of the week which consistently underperformed and blew out the CPA. Bid adjustments were implemented in order to pull back on these days to ensure ROAS remained consistent throughout the week.
- Implemented a display remarketing campaign to hit visitors that had created a listing to remind them to come back to Truckit to complete their booking. The ads are contextual to the type of freight in which they are looking to move to improve CTR.
- Identified top-performing in-market audiences and used these to create targeted search campaigns to maximise impression share.
- Advised on new landing page structure and copy to improve website conversion rate on category specific pages.
- Identified top performing segments (match type, device, age, etc) to inform campaign segmentation to ensure the budget is going towards highest performing segments.
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Profitable Year on Year Revenue Growth and Record Months of Marketplace GMV
In the case of our partnership with Truckit the saying “There is no such thing as an overnight success” rings very true. It’s been incremental progress month over month since starting as we optimised the new campaign structure and relentlessly pushed out new strategies. So far the results speak for themselves;
– 83% Increase in Revenue
– 24% Increase in Conversion Rate
– 54% Increase in Ad Spend whilst Maintaining ROAS
Here’s what Rob had to say about the partnership to date – “Farsiight has been great. Their team was able to grow our business with their range of experience. We’ve measured all of our return on ad spend using standard tracking tools such as Google Analytics and Google AdWords. Our goal has been to profit as well as to grow and the results of their efforts have been very good.”
At the time of writing this case study, Truckit is still a partner of Farsiight two years on and we’re excited for the road ahead . With a Series A capital raise on the horizon our advice is to keep your eyes out in the future for Truckit, this is an Australian IPO success story in the making.