Victoria’s Secret Swimwear and Lingerie Shop Case Study: ROI Up to 255%

Service: PPC.
Category: Swimwear.

Results: ROMI increased to 255%, income growth went up to 283.1%.

The Client

It was January when we were approached with the non-wintery matter of Victoria's Secret swimwear, lingerie and accessories sale. Before contacting the agency, the client had been independently running context ads and driving sales, but due to incorrect Google Analytics counter settings, the real source of the transactions was undetectable.

The Challenge

We set up the following main goal — reduce the advertising budget by 30% while retaining the existing number of transactions.

The Solution

We properly configured the tracking of the channels which were driving 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 monthly costs of the ads were up to $2,448.5, and the website’s monthly revenue was approximately $21,495.87. After the first month of our campaign, ads expense decreased by 13.5% to $2,117.5, and the website revenue soared 57.5% to $35,510.75.

Still, it is worth keeping in mind that the seasonal factor played a significant role. According to Google Trends, interest in swimwear starts to increase in January. This seasonal fluctuation made our task easier because it increased our chances of getting more transactions. At the same time, it made our work more complicated, since we were also aiming to reduce the costs of the advertising campaign.

The results were obvious! The majority of transactions were related to brand queries. Therefore, we added more variations to «Victoria's Secret» related phrases. We also improved the visibility of the site in special placement with regards to the keywords. The second best result in efficiency was shown by remarketing campaigns and search campaigns with general queries on swimsuits. While remarketing, we used text ads and banners with beautiful models, reaching a CTR of 1.26%.

Last but not least, Google Display Network provided us with interesting findings. We singled out two groups of people:

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

The Results

As a result, the campaign covered 95% of young women and 5% of men. Only women made transactions, and no purchases were made by men. The “outsider” lingerie campaigns were disabled, and their budget was 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 our results and positive predictions to the client, we agreed to step up the budget to $3,125 and run Yandex.Direct with a budget of $625, which was later increased to $1,250.

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).
ROMI increased to 255%.
Income went up to 283.1%.