Case Study: Large Independent Electronics Retailer
STRONG PLA AND SEARCH REVENUE GROWTH
USING A STRATEGIC APPROACH
Changes to search strategy leads to 60% sales growth in first six months
Our client is a large independent electronics retailer in the US. They faced several challenges when managing Product Listing Ads (PLAs) and Pay-Per-Click search (PPC). With campaigns focused further down the purchase funnel, they were losing traffic to competitors. The electronics retailer also needed a solid strategy around bid management, as the company was wasting precious ad spend and struggling with low margins.
Adlucent prevailed from a six agency evaluation based on both PLA and PPC capabilities.
Restructuring to Drive Results
In order to uncover important insights and drive needed performance gains, Adlucent restructured their PLA and search accounts to make each more granular.
To improve search results and ensure that the electronics retailer wasn’t losing valuable traffic to competitors, Adlucent focused on previously underutilized top of funnel search terms, and aggressively leveraged top products and categories. Campaigns were also adjusted to focus on product types and brands, rather than individual SKUs, which was limiting traffic. Adlucent also improved the retailer's overall search strategy by increasing bid frequency, which had been handled sporadically in the past, and by investing more in high margin products, enabling them to grow the non-brand mix by over 10% YoY.
In an effort to improve PLA campaigns, Adlucent expanded the feed of eligible products, tapping into categories that had previously been ignored. Geo-targeted campaigns were created for products which could only be sold within a specified geographic radius of their retail store. In order to reduce wasted spend and increase conversions, SKUs with high click volume but low conversion rates were isolated and given high priority ID targets with low CPCs. Finally, after finding that higher AOV items were more frequently purchased on desktop, but that bids were being penalized due to the total performance of desktop and mobile traffic, Adlucent created new campaigns to manage mobile traffic separately from desktop bids.
Because search and PLA work best in tandem, both the Adlucent and client teams worked closely to ensure there were no gaps between these two programs. Adlucent utilized performance and product reports to fill in the missing pieces and perform regular cross-channel analysis. This attention to detail drove continuous improvements to the program.
Revenue Increases by 60% within first few months
Within the first few months of implementation, results exceeded our client’s initial expectations. Adlucent’s new strategy and optimizations led to a 60% increase in revenue YoY including phone sales data, which also increased significantly once investments were made in top of funnel terms.
By restructuring the search account to capture more top of funnel search queries, Adlucent was able to increase non-brand search traffic by 43%, CTR by 68%, revenue by 139% and AOV by 49%. This was accomplished while also decreasing CPCs by 29% with a very minimal increase to cost.
Restructuring the PLA account based on product types and brands opened up new opportunities to grow traffic, resulting in a traffic increase of 63%, and revenue increase of 48%. This was accomplished with a very minimal increase in CPCs, but resulted in a 49% increase in converted clicks.
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