Challenge Arts and crafts giant, Hobbycraft, wanted to increase their visibility for top revenue and profit-driving products, and the frequency at which their most valuable customers bought from them. Specifically, they challenged us to increase revenue through paid channels by 18% YoY, with a 11% decrease YoY on media spend.
PPC was previously seen as a way to ‘top up’ organic channels. We therefore needed to demonstrate the channel’s ability to drive incremental, commercially-viable revenue in its own right, to secure continued investment and grow it.
- We rolled-out our award-winning personalisation framework. This involved increasing our bids on the audience segments with the highest return on ad spend (ROAS) and making use of additional data to influence our bids.
- We adapted budget phasing to focus on the key ‘buy-to-sell’ customer segment, who purchase ahead of the traditional pre-Christmas peak.
- We focused on increasing visibility where it would generate the strongest return on investment. Our analysis revealed that for Hobbycraft, this was Google Shopping. The format had the lowest CPC, yet the highest conversion rate.
- We implemented AdWords scripts to maximise PPC traffic from 3rd party brand keywords, and increased efficiency using custom labels and negative keywords.
- We started basing our initial bids on product profit margins, rather than sales values.
Our market penetration strategy significantly exceeded Hobbycraft’s targets for PPC. We increased revenue by a huge 64% YoY while reducing media spend by 27%. We also brought CPCs down by 31% YoY while increasing ROAS by a staggering 95%.