Datart employed ROIVENUE’s data-driven attribution analysis to measure the true impact of each channel on the overall campaign performance. Following our analysis, which identified over and under-invested channels, Datart reallocated budgets and started capturing incremental growth.
The background
Datart, a leading electronics retailer, has grown to a stage where the legacy analytics solution hit its limits. There was ample anecdotal evidence that buyers' journeys in the electronics vertical are becoming more and more complex. But with campaign evaluation happening on a last-click basis, it was impossible to get a data-based view of actual journeys. Likewise, understanding each channel’s true impact and allocating budgets to maximize the overall performance wasn’t feasible.
A particular case in point was the display channel. While very effective in driving brand awareness, the channel had very few conversions in the last click measurement setup. Consequently, the display ROI was very poor compared to the other channels.
Performance marketing team was faced with a tough decision. Reallocate the display budget to channels that were bringing conversions? Or continue to work off the assumption that all those impressions do contribute to the overall outcome?
Last-click vs. data-driven attribution
At this point Datart decided to transition to a more robust analytics solution. One that would provide insights into multichannel journeys as well as true contribution of channels and campaigns. ROIVENUE was chosen on the grounds of its expertise in data-driven attribution.
The approach
Given the situation with display, this was where we focused our initial optimization efforts. We started by establishing the channel’s real impact on conversions.
Employing Markov 2nd order statistical model, we confirmed that display plays a much bigger role in the overall buyer's journey than last click would credit it for. That was not surprising.
The big surprise was the order of magnitude measured by the channel’s ROI. According to Markov 2nd order, the true ROI of Display was 3,61 instead of 0,54 reported by last click.
Channel's ROI comparison Markov 2nd order vs last-click
Had Datart’s marketing team followed the conclusions from last click attribution, they would have shut down a very profitable channel.
Channel optimization
Once we established that display contributes to the overall performance and is quite profitable, we proceeded with maximizing the channel’s potential. But if we wanted to put more money behind display, we had to take it away from other channels.
This is when Budget Optimizer comes to the picture. It is ROIVENUE’s proprietary algorithm that gives recommendations for budget allocation based on one’s marketing goals.
Because we needed to find resources to grow display, we configured Budget Optimizer to identify channels and campaigns where budget reduction would have no or small impact on the overall revenue. The so-called overinvested channels.
One of the channels that appeared to be overinvested was Google Product Listing Ads (PLA). Budget Optimizer suggested that a decrease in investment of 31,2K CZK would result in a revenue decline of 6,4K CZK. Clearly a very profitable optimization opportunity.
Overinvested channels identified by Budget Optimizer
Marketing team took a closer look at the PLA channel and hypothesized that CPCs in some categories may be unnecessarily high. A test in one product category was conducted to prove or disprove the hypothesis.
CPCs were reduced and two channel performance metrics were closely monitored: Impression share and cost/revenue ratio.
Turns out Budget Optimizer was right. While the CPC was reduced by 30%, impression share held steady. As a result cost/revenue ratio declined, which means the campaign itself became more profitable.
Reducing CPC while maintaining impression share
Maximizing display’s potential
This approach was repeated across other channels that Budget Optimizer identified as overinvested and savings were reallocated to display to maximize its potential.
In fact, the overall investment into display grew by more than 300% Y-o-Ydriving not only brand awareness but contributing to the overall revenue growth as well. Such a dramatic shift would have been impossible to pull off on a gut feel alone. One needs to have robust data and properly test each step in order to get internal buy in.
Optimizing display spend to maximize channel's potential
Conclusion
Through its data-driven attribution model, ROIVENUE provided the necessary insights to understand the true impact of display in the context of multi channel journeys. Instead of reducing investment in the channel, Datart actually discovered an opportunity for incremental growth.
Predictive analytics of Budget Optimizer highlighted overinvested channels and identified budgets that could be used to optimize display. Overall, reallocations of marketing investments among channels led to a higher revenue from campaigns with the same total budget.
“Thanks to Roivenue’s data-driven attribution we know exactly how each channel in our portfolio works. We were finally able to justify display spends for our top management. Based on Budget Optimiser, we shifted budgets quite significantly and beat our own revenue targets”
Tomas Kral
Online Performance Manager, HP Tronic group
Those of you who follow czech ecommerce space know that Datart had a phenomenal 2020. We’re pleased that ROIVENUE had the opportunity to contribute to this success.
Interested in driving incremental growth like Datart did?
Just book a personalized demo with ROIVENUE. We’re eager to show you how to leverage data-driven attribution to make more money from campaigns.
