Challenged to improve on YoY returns with a smaller budget, Delegator developed a strategy to drive higher value conversions.
B2C Online Ecommerce
Smartfurniture.com is an industry leader in ecommerce office, home office, and residential furniture sales. With over two decades of experience, Smart Furniture offers everything from modern chairs and tables to desks, and more in contemporary designs for homes and offices.
Challenged by Smart Furniture to improve year-over-year results heading into Cyber 5 (Thanksgiving day through Cyber Monday) in 2022, we were up against strong ecommerce sales from the past two years and inconsistent results caused by internal and external factors.
Internally, making a recent switch from Google’s Smart Shopping to Performance Max products was creating fluctuations in performance that were still being mitigated. Dynamic Search Ad campaigns took an initial hit to performance as Performance Max launched, giving us inconsistent data to draw conclusions from. Externally, volatility in the direct to consumer market made planning for a big holiday push difficult. The possibility of a recession combined with world events causing disruptions to the supply chain, in addition to more consumers returning to work in their offices, meaning they no longer needed to furnish home offices, caused sales to bring revenue back in line with more “normal” years like 2019 versus the large increases caused by a push to work from home in 2020 and 2021.
With similar promotions as previous years and a conservative spend budget, we were tasked with hitting the return on ad spend target of 4 and making sure the Google and Bing campaigns didn’t overspend their allotted budgets for that time period. Since Google is able to spend double the daily budget as it sees fit to reach the goal outlined by bid type and target so monitoring the spend/budgets as well as the results daily was key to success.
As a result, during our key sales period over the holiday weekend and Cyber Monday, an increase of 75% was recorded in revenue on spend.
Starting in August, we began filtering low spend items from the shopping campaigns to make sure that spend was allocated to revenue driving items on a bi-weekly basis. Next, we monitored the shopping feeds to make sure all discount pricing was feeding properly into the shopping ads, ensuring ads were competitive against others in the same category. Finally, adding in three- and seven-day remarketing audiences within the Display Ad campaign ensured that our warmest audiences were served the most relevant content, encouraging them to complete their purchases.
As a result, during our key sales period over the holiday weekend and Cyber Monday, an increase of 75% was recorded in revenue on spend -38% to the previous year. By optimizing the campaigns in October through the beginning of November the campaigns were more effective on less spend. While overall conversions were down 25% from the previous year, the increase in revenue validated our hypothesis that by removing lower priced items from our campaigns, we were also able to spend more efficiently.
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