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Case Study on Contextual Advertising for Victoria’s Secret Swimwear and Lingerie Website: ROI up to 255%

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Service: contextual advertising.
Category: swimwear sale.
Region: Ukraine.
Campaign duration: 5 months.
Budget for 5 months: $14,084.12 (including agency service fee).
Gross margin ROI/GMROI: 255%.

It was January 2014 when we were approached with a non-wintery matter: Victoria's Secret swimwear, lingerie and accessories sale. Before contacting the agency client had been independently running context ads and driving sales, but due to incorrect settings of Google Analytics counter, the real source of the transactions was undetectable. So, we set up the following main goal: to retain the existing number of transactions while cutting the advertising budget by 30%. We properly configured the tracking of the channels which drive traffic to the site. We also worked on optimization of semantics’ selection, negative keywords, account and ad structure optimization, and examined the optimal placement strategies. At the time, the AdWords monthly costs reached $2,448.5, and website’s monthly revenue – to $21,495.87. After the first month of the campaign’s duration, AdWords spending decreased by 13.5% to $2,117.5, and the website revenue soared 57.5% to $35,510.75. The website revenue soared 57.5% to $35,510.75 Still, it is worth mentioning that the seasonal factor did play a significant role. According to Google Trends, the interest in swimwear started to increase in January. On one hand – our task got easier because we got higher chances to get more transactions, on the other hand – it turned to be more complicated, since it was necessary to cut the costs for the advertising campaign. The largest number of transactions was received by brand quires The result is obvious! The largest number of transactions was received by brand quires. Thereby, we added more variations to «Victoria's Secret» related phrases. As well we improved the visibility of the site in special placement with regard to the keywords. Second best result in efficiency was shown by remarketing campaigns and search campaigns with general queries on swimsuits. In remarketing, we used text ads and banners with beautiful girls, making up as much as 1.26% of CTR. In remarketing, we used text ads and banners with beautiful girls, making up as much as 1.26% of CTR The last but not the least good result was delivered by Google Display Network. We singled out two types of people:

  • young women interested in recreation, beauty and fashion;
  • wealthy men interested in gifts for women.

As a result, the campaign covered 95% of young women and 5% of men. Only women made transactions, no purchases were made by men. The “outsider” lingerie campaigns are now disabled, and their budget is forwarded to the dynamic ad campaigns on swimwear. The large list of more than 200 negative keywords significantly contributed to the cost efficiency. Our campaign’s second goal was to boost sales. After demonstrating all results and positive forecasts to our client we agreed to increase the budget to $3,125 and run Yandex.Direct with a budget of $625, which was later increased to $1,250. Here’s a screenshot of the Client Dashboard to clarify: Netpeak Client Dashboard When setting up Yandex.Direct account we applied our existing experience in Google AdWords which eventually helped obtain great results.

Transactions: 1007. Average transaction price: $14. Conversion rate: 0.74%. Ecommerce revenue: $99,959.87 Margin: 50%. Advertising costs: $14,084.12 (including agency service fee). Gross margin = $99,959.87* 0.5=$ 49,979.93 Gross margin ROI (ROMI) = ($99,959.87 - $14,084.12) / $14,084.12 * 100% = 255%

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