Case Study: Adorama.

 CAPITALIZING ON PRODUCT LISTING ADS

Adorama Sees Increased Ad Performance and Revenue Impact Using Precision Product Targeting

Micro-segemented Targeting & Optimization

Adorama began testing PLAs relatively soon after Google launched them in late 2010, but investing in PLAs long-term hinged on the media being at least as profitable and efficient as their PPC text ads.

Using their Precision Product Targeting approach to PLA management, coupled with Adorama’s text ad performance analytics, Adlucent was able to confidently and quickly launch the Adorama program with targets for every product in Adorama’s catalog and bids tied directly to proven customer intent. Doing so has allowed Adorama to clearly identify performing products, adjust bids at the product level, as well as optimize ad text (i.e. product title and description) for top performers.

Product Listing Ads Prove to be an Additive
& Efficient Revenue Channel 

Adorama has seen the performance and efficiency in their PLA program needed to continue investing in the media type. For the month of June 2012, Adorama saw a year-over-year average clickthrough rate (CTR) increase of 176% and average conversion rate (CVR) increase of 100%. Similar year-over-year increases were also seen in July 2012.

This is a trend that Adorama has seen since they launched their program in June 2011. PLA CPC costs have trended only slightly up over the past year (average of 3% per month), while CTR has increased an average of 12.5% per month and CVR has increased an average of 5% per month.

In terms of order revenue (using last click to purchase), Adorama saw PLA revenue contribution spike dramatically in Q2; 63% over Q1. Additionally, using Adlucent’s click funnel analysis by channel, Adorama found that PLA clicks impacted almost half of their non-brand revenue
in July 2012.

Keeping Pace with Effects of PLA Adoption

As the popularity of the PLA media type grows, so will their cost. It will be key for Adorama to ensure their PLAs are exceptionally targeted and relevant to maintain growth of clickthrough and conversion rates ahead of CPC increases. Having the power to quickly scrutinize and optimize performance of each product at a micro-segmented level will give them the granular control they need to stay competitive, yet cost-effective.

 

About Adorama

Adorama is one of the nation’s largest photo retail
and mail order suppliers. For over 35 years they have been serving professionals as well as amateurs in the photographic, video, digital imaging and telescope fields. The multi-channel retailer started as a brick-and-mortar store in 1979 in New York City and has been voted to Forbes.com “Best of the Web”. Adorama began investing substantially in pay per click advertising in 2003 and added Product Listing Ads (PLAs) to their paid search program in mid-2011.

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Michael Griffin

Founder & CEO

As the founder of Adlucent, Michael brings over 12 years of experience in strategic search engine marketing (SEM), bid optimization, consumer demand intelligence and retail analytics.

Michael is a leading thinker and innovator in retail SEM and drives the technology and overall business strategies for Adlucent.

His first venture into the online retail space was in managing paid search for Amazon.com where he helped grow revenue by 300% year-after-year eventually becoming Amazon's largest worldwide partner in search.

Michael built Adlucent as a bootstrapped company and has grown it into a profitable business accustomed to achieving 75-100% year over year growth. Adlucent's growth has been highlighted in the Inc. 500 and the Austin Business Journal's Fast50 listings, and the company's culture has been honored as an AdAge Best Place to Work and an Austin American-Statesman Top Workplace.

Michael is frequently tapped as an expert on the strategies that foster high converting online traffic to drive successful e-commerce. An active member of the Shop.org Research Committee, Michael participates in driving industry research and sharing results with retailers. Michael's work and perspective have been featured in major media outlets, including The New York Times, Inc. Magazine, the Search Insider and TechCrunch.

Prior to founding Adlucent, Michael attended the University of Texas at Austin pursuing a PhD in analytical chemistry where his thesis focused on advanced analytics for medical diagnostics. Michael is the recipient of the prestigious Watson Fellowship and received his BS degree from Davidson College.

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Ashwani Dhar

Chief Client Officer

Ashwani Dhar is an experienced executive, entrepreneur and venture capitalist bringing sales, marketing, business development, and funding experience to Adlucent.

At Adlucent, Dhar is responsible for customer acquisition and overall client success.

During his tenure, he has expanded the company's customer base five-fold while achieving an industry-leading client retention rate. Ashwani has been also responsible for Adlucent's positioning and go-to-market strategy. He pioneered an innovative performance-based model that aligns Adlucent's compensation with its clients' success.

Prior to Adlucent, Dhar was responsible for revenue generation, market positioning and the ultimate business success for successful startup companies like Iconixx, Agea and Trilogy. Ashwani also founded and managed DC International, an international consulting company that focused on the emerging markets of Latin America.

Dhar began his career in strategic consulting for healthcare clients with APM and technology & operations consulting with Andersen Consulting (now Accenture). Dhar also served on the Board of Directors for Bigfoot Networks, Robot Genius and Perception Software through investments from his venture capital firm Venio Capital Partners.

Graduating from the Jerome Fisher Program for Management & Technology at the University of Pennsylvania, Ashwani earned a BS in Economics from the Wharton School and a BSE in Electrical Engineering from the Moore School. He also holds an MBA from Harvard University.

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Tim Ozor

Vice President of Engineering

Tim has over 25 years experience designing and developing high performance software machinery. Tim leads all technology development and operations in the role of VP of Engineering.

Tim's responsibilities also include all data integration, tracking, reporting and analytics utilized by Adlucent.

Since joining Adlucent, Ozor has driven the development of Adlucent's leading edge BuyerPath™ application and analytics platform, which is being utilized to effectively and efficiently manage millions of keyword and product ads for some of the largest online retailers in the world.

Tim's body of work includes Unix operating system development, object oriented middleware design and large scale Web application architecture. Ozor was instrumental in the development of Austin-based Vignette's ground-breaking content management system which served as the core product for Vignette through its IPO and eventual sale to Open Text. Tim was one of the first developers on board at Vignette and was employee 15 at what came to be one of the most successful IPOs in the Austin high-tech industry. Prior to Adlucent, Ozor led the design and development of the highly acclaimed National Transcript Center, which provides a secure electronic trading system for the exchange of student transcripts.

Tim received his BS degree in Computer Science from Clemson University in 1986, and has been committed to achieving higher and higher levels of software mastery ever since. When he is not building industrial strength software, Tim enjoys windsurfing, rock music, and maintaining the lowest carbon footprint and body fat levels possible.

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Brian Vogel

Head Coach - People & Culture

As Head Coach, Brian’s charge is to guide managers and Adlucites to their full potential. With 20+ years of experience as a HR executive and NCAA Division I Athlete and Coach, he instinctively relies on his vast experience in leadership development in business and athletics to bring forth leadership and business enablers.

Prior to joining Adlucent, Brian held various HR executive leadership positions at Verizon and USAA. More recently he led the HR functions at Austin-based FirstCare Health Plans and Campus Advantage. He played a pivotal role in the merger of Bell Atlantic and GTE to form Verizon, one of the five largest mergers in the 1990s. During the merger he directed team of 10 employees who orchestrated placement and /or displacement of 6,000+ staff. In subsequent roles key accomplishments included implementing a third party HR administrative solution valued at approximately $750K annually at Campus Advantage and instituting scientifically based recruiting processes resulting in a 33% improvement in average time to fill for key positions as well as a 20% reduction in turnover. He has also served as a Senior HR Consultant for vcfo and currently maintains his own business performance coaching practice ~ Sundog Coaching Group.

He holds a bachelor's degrees in business administration from University of Notre Dame where he concentrated in Marketing and was co-captain of Men’s Swimming and Diving team. He also has a master's degree in business administration from the University of Illinois where he concentrated in Human Resources at the nationally renowned School of Labor & Employment Relations.

When not coaching, Brian spreads his free time between trying to stay fit doing CrossFit and mountain biking, enjoying quality time with his two daughters Gracie and Elle, and serving as a business consultant to Little Helping Hands, the renowned Austin non-profit he helped found with his wife, Marissa.

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