Leveraging Value-based Bidding for M&S Improving the Efficiency of Paid Search

Cliente
Marks and Spencer
Sector
Retail
Soluciones

Media Services
Compartir
Hello Copy link Copied

Increase in Profit ROAS

Reduction in CPCs

The implementation of value-based bidding using profit data yielded substantial efficiency gains in terms of profit metrics. The Profit-arm of the test demonstrated the ability to generate an equitable portion of profit compared to the Revenue-arm. Moreover, it achieved this at a reduced cost and lower CPCs, resulting in an elevated return on advertising spend (ROAS).

This outcome is a significant milestone in M&S’s digital marketing journey, as they successfully harnessed the power of profit-based bidding to unlock superior performance metrics.

“Exploring innovative bidding strategies presents a golden opportunity for Paid Search to contribute significantly to M&S's overarching growth transformation strategy. Incubeta has been an invaluable partner, providing expert guidance and helping us achieve our desired results.”

Karen Luff

M&S Paid Media Manager

Insights

M&S is a leading British retailer bringing quality, great value food, clothing and homeware to millions of customers around the world.

In an increasingly competitive environment, M&S set their sights on gaining a distinct competitive advantage by transforming their bidding approach from traditional online revenue strategies to a profit-based model.

Their objective was to leverage their own first-party profit data and evolve their bidding practices accordingly.

We joined forces on a mission to making it all happen!

Estrategia

Through extensive consultation with the client, we embarked on the meticulous curation of a customised automated solution, harnessing the power of Incubeta’s proprietary data-pipeline. This solution offered the following capabilities:

Seamless export of raw GMP transaction data into BigQuery,
Integration of M&S’ first-party profit data with transaction-level details to calculate precise profit values.
Automated re-import of enriched data back into the GMP for enhanced bidding activations.

Once created, we then ran A/A & A/B split-tests across a number of business categories, pitting profit-based bidding directly against revenue-based bidding.

Building upon our robust partnership as a full-service agency and GMP Sales Partner, Incubeta had been diligently collaborating with Marks and Spencer since 2019.