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Interlight

An example of how we used paid search campaigns to drive marketing e-commerce performance for a B2B specialized commercial business.

SERVICES

Paid Search

Industry

Energy & Electrical Equipment (B2B & B2C)

CLIENT WEBSITE

interlightus.com

Interlight

An example of how we used paid search campaigns to drive marketing e-commerce performance for a B2B specialized commercial business.

SERVICES

Paid Search

Industry

Energy & Electrical Equipment (B2B & B2C)

CLIENT WEBSITE

www.interlightus.com
4 %
Increase in Conversions
0 %
Increase in Revenue
Up to
190 x
Increase in ROAS on different products
60 %
Overall Increase in Revenue

Brief

Faced with stagnant sales, Interlight, a major online retailer for specialty bulbs and batteries, partnered with us to refine their ad strategy. We developed a profit margin based SKU categorization process with custom labels for each of their 1M+ products. Products were divided into 25 Google Ads Performance Max campaigns that strategically filter by profit margin to ensure sufficient ad spend on high-profit items while minimizing inefficient spend. This targeted approach improved profitability while simultaneously boosting revenue by 18% and increasing conversions by 14% within a month. Using conversion value bid strategies, we fine-tuned each campaign to meet specific ROAS targets, effectively reducing wasteful spending on low-margin products.

Strategy

01

Identify & Exclude Underperforming SKUs

In some cases just a few products can bring down overall campaign performance by accruing significant spend without generating conversions.

02

Trim Wasted Spend with Feed-Only PMax Campaigns

Performance on the shopping network was outperforming other networks for Performance Max campaigns, so we A/B tested Feed Only campaigns against regular to determine the value of this campaign type.

01

Identify and Exclude Underperforming SKUs

To optimize ad spend and improve the performance of Interlight’s campaigns, we focused on identifying and excluding products that were contributing to high costs without yielding conversions. This approach aimed to enhance overall campaign efficiency by removing low-performing items from the advertising mix.

Challenge

Some of Interlight’s advertising campaigns were plagued by underperformance due to the inclusion of products that, despite substantial ad spend, did not generate significant sales or conversions. This inefficiency in resource allocation resulted in poor returns on investment, with certain products consuming a large share of the budget without delivering commensurate returns.

Method

We undertook a meticulous analysis to pinpoint the worst-performing products, specifically targeting those that had accumulated over $45 in advertising spend but had a ROAS of less than 1. These underperforming items were excluded from the paid advertising campaigns by updating the product feed to ensure they only appeared in organic search results. This exclusion helped in reallocating the budget more efficiently, directing resources towards products that had better potential for generating profit.

Outcome

The exclusion strategy yielded substantial improvements in campaign performance.
This outcome demonstrated the effectiveness of focusing ad spend on more profitable products and eliminating inefficient expenditure on low-performing items.

Out of the seven campaigns where this method was applied, six saw revenue increases ranging from 15% to 200%. Additionally, there was a notable improvement in ROAS, which rose between 7% and 220% within four weeks of implementing the changes, compared to the previous period. 

Deploying email as a new revenue driving channel was new to us. Noetic's team did not disappoint and kept us engaged in the process without letting it become deadweight or compromise results.
Bill Gray
Bill GrayProject Manager @Interlight

02

Trim Wasted Spend With Feed-Only PMax Campaigns:

To address the inefficiencies observed in the multi-network Performance Max campaigns, we conducted an A/B test to isolate and focus ad spend on the Shopping network, which historically outperformed other channels. This initiative aimed to optimize campaign performance by eliminating less effective advertising channels.

Challenge

Interlight’s Performance Max campaigns, which utilize a broad network of advertising channels including Display and Video/YouTube, were underperforming when compared to the Shopping network alone. Despite the broader reach of PMax, the Shopping network consistently delivered better results, indicating that ad spend on non-shopping networks was inefficient and not yielding desirable outcomes. The challenge was to refine the campaign strategy to focus solely on the more effective Shopping network, thereby maximizing return on investment.

Method

We developed and launched Feed-Only PMax campaigns that were designed to mimic the structure of successful Smart Shopping campaigns. These new campaigns were stripped of all image, video, and text assets, ensuring that the ads only ran on the Shopping network. By doing so, we aimed to cut out inefficient ad spend on the Display and Video networks and concentrate the budget on the Shopping network, where performance had been stronger.

Outcome

After implementing the Feed-Only PMax campaigns, initial results showed encouraging signs of improvement. Despite a typical learning phase for the new campaign structure, revenue and ROAS both exhibited positive trends within the first month when compared to previous benchmarks.

11% increase in ROAS compared to previous period

Project Summary

By removing products with poor ROAS from paid campaigns, we achieved up to a 200% revenue increase and a 220% improvement in ROAS across six campaigns in four weeks.

Implementing Feed-Only PMax campaigns focused ad spend on the Shopping network, leading to early signs of increased revenue and ROAS within the first month.

Combined strategies led to up to 27% year-over-year revenue growth and improved ROAS from 2.65 to 3.71 by April 2024.

Martech Stack Used

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