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CASE STUDY: SPECIALTY RETAILER

Adapting Paid Search Strategy to COVID Market Conditions Results in 1,130% Average Order Growth

Budget Reallocation Leads Brand to See Revenue and Efficiency Growth

Background

A nationwide specialty retail chain noticed a decrease in in-store foot traffic due to the impacts of COVID-19. Adlucent developed a paid search strategy to improve the client’s local presence and revised messaging to boost revenue while having to cut budget.

The Challenge

With the onset of COVID-19, in-store traffic dropped significantly, even with the retailer deemed as essential. Buy Online Pick-up In-Store (BOPIS) was a vital strategy but didn’t make up for the net loss from store sales.

How Adlucent Helped

Quickly adapting to market conditions was crucial to the client's success. First, Adlucent identified opportunities to cut budgets from segments without impacting revenue growth. Our team then identified the client’s top-performing non-branded segment, which included Shopping and Local campaigns, and funneled ad dollars here.

Our next step was to identify surging product categories and make sure we had solid coverage in these groups through PLA optimizations and keyword buildout. We also updated ad text & site links to promote curbside services as well as added "Curbside Pickup" and "Pickup Later" annotations in LIAs to continue driving in-store traffic.

The Result

The client saw exponential revenue & efficiency growth, even with a reduced budget.

+88% average incremental YoY revenue growth in April, May, and June.

1,130% average order growth in categories that previously produced low volume.

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With increasing online competition and re-opening of stores, growth and efficiency levels will be more challenging to sustain, the Adlucent team will continue to make key adjustments to maintain the client's upward trajectory.

Moving forward, we will optimize product listings in top categories, allocate investments toward the most profitable audiences and locations within each category, and increase awareness with upper-funnel tactics, including Discovery, YouTube, and Showcase ads.

As for the steep competition, the team will combat rising CPCs and focus on improving CTR with ad text testing, site links, image extensions, and in-store or curbside pickup ads, along with expanding RSAs.

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