Smart Shopping with Marionnaud Maximizing Margins

Cliente
Marionnaud
Settore
Health / Pharma / Retail
Soluzioni

Digital Media
Google Marketing Platform
Condividi
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Increase in Low Margin ROAS

130%

To help Marionnaud Czech Republic increase the profitability of their Shopping activity, we decided to restructure the existing Smart Shopping Campaign into a tier-based structure based on margin levels. As a result of the campaign restructure, we saw traffic for High margin items increase by 186% and revenue by 111% vs previous period. Medium and Low Margin brands saw ROAS increase by 19% and 130% respectively reflecting the positive impact on efficiency in these areas.

Informazioni

Luxury perfumeries and cosmetic brand Marionnaud wanted to increase the visibility and sales of their high margin, more profitable brands for the business, whilst becoming more efficient on their lower margin items.

Strategia

We started by asking Marionnaud to share a list categorising all brands sold on site into Low, Medium and High Margin so we could split out the Shopping activity into 3 campaigns.

To ensure we were increasing visibility of High margin items, we allocated a higher budget to the High Margin campaign as well as a lower ROAS target of 50%, to make sure the Google algorithm pushed those brands as much as possible.

We set a 300% ROAS target to the medium margin campaign, and assigned the highest ROAS target (600%) to the Low Margin campaign, to ensure that the spend within that campaign was being allocated towards the highest converting users, thus allowing us to be more efficient on low margin items.