Fressnapf: 12% higher margin thanks to value-based bidding
Intro
For Fressnapf, the market leader in pet supplies, we were able to optimize campaign performance and profitability with a sophisticated, data-driven bidding strategy.
Challenge
Fressnapf’s business objective is to maintain its growth rate and profit margin. One of Fressnapf’s biggest challenges in customer retention is finding high-value users with strong potential in order to improve marketing efficiency. Since Google Ads is an important acquisition channel, Fressnapf identified the opportunity to test profit bidding and an additional conversion value assessment to optimize results toward its goals.
The results of our first value-based bidding test exceeded our expectations. The increase in our margin was impressive, and cost per click even decreased compared to the control campaign.
Jacques Penasse, SEA Expert, Fressnapf
Measures
Fressnapf decided to take its Google Ads campaign setup to the next level using value-based bidding (VBB, value based bidding). To do so, the company used the Google Ads API’s offline conversion adjustment feature to adjust conversion values with margin information. Fressnapf used margin data to optimize its Google Ads campaigns. An A/B test was then conducted, comparing the implemented value-based bidding strategy with the standard Shopping campaign setup.
Results
The positive results for Fressnapf demonstrate the success of the VBB strategy. The company generated a 12% higher margin and 9% more visits to the website.
- % higher margin
- % more website visits
