Implementing the Right Changes for SuccessThe company partnered with BuyerPath in July of 2013, just ahead of their seasonal peak, the back-to-school shopping season. At the time of onboarding, they were operating on a CPA model, which they felt was limiting their flexibility and compromising their margins. CPA bidding strategies are used to maximize conversions, where Google automatically sets bids on a target or maximum cost per acquisition (CPA) amount, or a cost per acquisition value amount (CPA%). While this approach does save time managing campaigns, its limitations can ultimately leave revenue on the table.

Enabling Strategy with the Right Technology

A leading ecommerce handbags and accessories retailer recognized an opportunity to invest in Google’s new ad solution, product listing ads earlier than most. They had reallocated 30-40% of their search spend to product ads in 2012 and saw a great improvement in performance when running them in addition to text ads. While employing a cost per acquisition (CPA%) approach, they saw year over year click growth begin to plateau. In order to gain more clicks, their only options were to increase their CPA% or move to a cost per click (CPC) model and inherit risk.

However, they soon realized they needed an experienced technology partner to help them grow revenue profitably and utilize time efficiently. As a result, they turned to BuyerPath® for expertise on expanding their product ads program. BuyerPath was selected because of their 13+ years of experience in retail digital advertising, extensive search marketing expertise, and integrated applied shopping analytics platform, BuyerPath.

C A S E S T U D Y

How moving from a CPA to CPC model helped one retailer maximize returns

OVERCOMING PLATEAUSWITH THE RIGHT STRATEGY

Contact UsTo 1.800.788.9152 or visit www..com/buyerpath

“It was important for us to find a self-managed solution

that would be robust enough to effectively handle CPC bid

management goals as well as improve time-management

efficacy of the overall PLA program. BuyerPath helped us to

quickly hit set revenue and return goals.”

- Director of Digital Marketing

®

Let’s Chat:Visit www.buyerpath.comor email us at solutions@buyerpath.com

BuyerPath is an advanced shopping analytics platform leveraging shopper data to help retailers maximize valuable ad moments for optimal return.

Step 2: Feed & Product OptimizationOnce the transition from CPA to CPC was complete, BuyerPath was able to optimize their product ads program and implement best practices. With back-to-school season approaching quickly, the team focused on ensuring that the highest performing products were showing for the best search terms. By expanding the relevant query population, BuyerPath was able to show the right products for the right queries, directly resulting in a year-over-year lift of 24% in conversion rate.

The BuyerPath platform consolidates data in a unique way to optimize feeds for greater visibility. Consumer intent focused data insights were used to understand buyer triggers to optimize product titles and descriptions for increased conversion.

Effective bid management, keyword negations and title improvements significantly improved the quality of traffic, directly impacting revenue and improving ROAS. The retailer saw a year-over-year increase in revenue of 29% and 102% when looking at pre-back-to-school and peak back-to-school date comparisons.

After the back-to-school shopping season the company continued to maximize and leverage the BuyerPath platform. They have successfully and strategically managed their product ads program, effectively increasing revenue while maintaining ROAS targets.

Step 1: CPA » CPC

To improve efficiency and results, BuyerPath recommended moving from a CPA to a CPC model. The retailer had attempted this transition before but they suffered when their traffic volume decreased and their desired return on ad spend (ROAS) was not met.

A CPC model allows retailers to set a maximum bid for someone clicking text or product listing ads, which can be set at the product target, ad group, or campaign level. The key benefits of adopting a CPC model include the ability to precisely allocate spend and the power to quickly adjust traffic volume to anticipate or react to sudden performance changes.

BuyerPath’s approach to the CPC model is to meet in the middle to effectively maximize conversions and clicks. By doing so, they can optimize CPC bidding strategies to achieve a CPA goal. Based on BuyerPath’s extensive online retail experience, they knew that moving from CPA to CPC was something that needed to be done slowly and strategically to keep the volume of traffic during the transition from being affected. Planning on a two-week to one-month transition time allows for a gradual shift from the CPA bidding strategy to CPC, preventing impressions from crashing.

Since the online retailer onboarded BuyerPath right before their big back-to-school shopping season was to begin, the transition had to be completed faster than normal. Not only was BuyerPath able to transition the retailer over to a CPC model rapidly and successfully, the shift in total impressions increased drastically as well.

Let’s Chat:Visit www.buyerpath.comor email us at solutions@buyerpath.com

BuyerPath is an advanced shopping analytics platform leveraging shopper data to help retailers maximize valuable ad moments for optimal return.

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YoY Increase in Revenue (2012 vs 2013)

Before and After Increase in Impressions

CPA Impressions CPC Impressions Total Impressions

Pre Back-2-School Dates Peak Back-2-School Dates

Pre-BuyerPath Post BuyerPath

29%

102%