Case Study: Jewelry Retailer
DRIVING PROFITABLE REVENUE GROWTH QUICKLY
78% Revenue Growth in Less than a Year with 25% Lower Cost
Overspending on Customer Acquisition
The largest retailer of loose gemstones in the United States had long relied on paid search as a critical customer acquisition strategy. Eventually, they found that their revenue from paid search activities hit a plateau.
The jewelry retailer began searching for a completely new approach to growing its revenue profitably using paid search. The company partnered with Adlucent, intrigued by its dedicated focus on working with leading retailers and it unique pay-for-performance compensation model.
Dramatic, Rapid Results
Within just three months, Adlucent was able to increase year-over-year revenue from paid search by 53%. And in less than a year, revenue from paid search soared 78%, while margins (A/S ratio) improved 25%.
Adlucent employed two principle strategies to help drive revenue and improve efficiency. The first was to increase the relevancy of ads by significantly expanding and restructuring online advertising accounts. Over 51,000 keywords were added, along with more than nine times as many campaigns and 10,000 more ad groups.
By organizing an expansive array of keywords into tightly-focused ad groups, ad copy became more relevant to online shoppers’ search queries, leading to higher click-through and conversion rates. In addition, this approach allowed negative keywords to be appropriately implemented, reducing wasted ad spend.
The increased relevancy from account restructuring also helped boost by 32% the number of keyword Quality Scores at seven or above. This in turn resulted in higher ad placement ranks at a lower cost per click, further driving revenue and cutting expenses.
Additional Insights and Benefits
By restructuring accounts, the jewelry retailer was able, for the first time, to understand their paid search initiatives at the category level, item level, and the intersection of the two. “Before working with Adlucent, we knew how campaigns for gemstones like sapphires were performing, and we knew how campaigns for jewelry types like rings were performing. But we couldn’t determine how well the intersection of the two—say, sapphire rings—were performing. By working with Adlucent, now we can.”
This granular level of reporting shows the retailer where they can realize the greatest efficiencies on their ad spend. It also enables them to use paid search to better understand consumer demand, evaluate product pricing and demand elasticity, and assess merchandising efforts.
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