Axtria Insights

Axtria Insights

CASE STUDY
Axtria Helped an Online Retailer Quantify and Improve the ROI of Search Engine Marketing (SEM)

Situation

  • Client used multiple marketing channels such as SEO, SEM and EDM campaigns. Cross-channel effects and ROI from SEM was unclear. Specifically, the client spent $2MM/month on over 1,000 keywords, without knowing whether the amount spent is netting a positive ROI or is optimally allocated among keywords.
  • Data available on click through rates and conversion rates by key word, bid prices and cost per click for each keyword was not being effectively harnessed in order to guide ongoing real-time bidding policies.


Approach

Axtria’s team leveraged their “Marketing Measurement and Analysis” module and implemented a three step analytical framework that included:

    • Model sales attribution to keywords

      Sales are attributed to clicks on individual keywords through cross-channel marketing effectiveness measurement analytics. Percent of sales attributed to a click is a function of various factors such as branding spend and effectiveness, incidence and effectiveness of cross channel marketing campaigns, and number of days between click through and conversion.

  • Determine keyword profitability and optimal bid prices

    Models developed quantify the relationship between Bid Price and Click-through rate and determine the profitability for each keyword.

    Quantify And Improve Roi Of Search Engine Marketing Sem

  • Optimal allocation of SEM budget across multiple keyword classes

    About half the keyword-bid combinations being used were unprofitable or leading to zero sales. A continuous optimization paradigm was included along with a seasonal keyword rotation strategy.

    Quantify And Improve Roi Of Search Engine Marketing Sem



Result

  • Our optimization recommended pruning the number of keywords by about 30% and readjusting bids to make some keywords profitable. As a result, spend shifted away from non-profitable and no-sales keywords to profitable keywords.

    Quantify And Improve Roi Of Search Engine Marketing Sem

  • On our recommendation, client rotated keywords based on seasonality and profitability trends to improve traffic by 19% and profitability by 4%.