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.
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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