How to increase ROAS and reduce conversion costs using Microsoft Advertising
- Bluerank i Endo
Thanks to the flexible approach to testing the tools provided by the Microsoft Advertising system and the advertising strategy adopted, we achieved a return on advertising spend (ROAS) 63% higher than that achieved in the advertising platform currently in use with a history of several years.
Challenges
Today's model of consumer digital behaviour means that it is extremely rare that a purchase is made on the user's first contact with an online shop. The customer's purchase path is usually multi-step and can take days or weeks depending on the industry. This is the result of users using different devices, visiting multiple sales platforms, searching for product reviews and simply changing their purchasing decisions frequently. It is therefore crucial to diversify the points of contact with users as part of online activities, in order to reach them at every stage of their purchase journey from the first contact with the brand to the finalisation of the purchase. In this context, trying out the effectiveness of the already heavily developed Microsoft Advertising system seemed obvious.
Strategy and implementation
The objective we set ourselves was to increase brand visibility through additional touchpoint and build presence in a new channel. At the same time, maximising return on advertising spend (ROAS) was key. We also placed great importance on the cost of acquisition, which was a key performance indicator (KPI) of the activities carried out. For this reason, we used automated strategies in the campaign based on target return on investment (ROAS) and target cost per acquisition (CPA). This approach saved time and increased the effectiveness of the campaigns.
The premise of the campaign was to reach audiences at every stage of the sales funnel. The campaign used both text and product ads on the Bing search engine, but also the Microsoft ad network to build brand awareness among new audiences.
For the duration of the campaign, in addition to standard text ads in the Bing search engine, we also tested Multimedia Ads enhanced with attractive images showcasing the latest collection. As a result, we attracted attention with large images and encouraged people to click on our message. Because Multimedia Ads do not replace text ads, they are an excellent complement to the campaign and allowed us to use the space on the right side of the search engine to gain more clicks and consequently improve sales.
Having experience running campaigns in other advertising systems, we knew which audience groups were more likely to make a purchase. We took advantage of the opportunities provided by Microsoft Advertising to precisely target our message - targeting audiences in the market and by age and gender. Complementing the campaign in accordance with the Customer Journey idea was remarketing, where we returned with an advertising message to people who abandoned the shopping cart. We also targeted remarketing campaigns using remarketing lists to existing customers who had purchased from the store previously, but were likely to be interested in buying again. We buy clothes regularly because children simply grow out of them. Thanks to the above measures, the campaign reached the audience at every stage of the sales funnel - building awareness and interest, stimulating purchase and nurturing user retention.
Results
- Thanks to the flexible approach to testing the tools provided by the Microsoft Advertising system and the advertising strategy we adopted, we achieved a return on advertising spend (ROAS) 63% higher than that achieved in the advertising platform we currently use with a history of several years.
- At the same time, the conversion cost in Microsoft Advertising was found to be 27% lower.
- During the 8 months of the campaign, Microsoft Advertising managed to improve ROAS by 140%. At the same time, during this time the cost of acquiring a purchase conversion was reduced by 62%.
About the brand
Endo brand is a manufacturer of clothes with character for children. It has been on the Polish market since the late 1990s. The brand's products are distinguished by original graphics and funny captions based on word play. Endo does not have stationary stores, but the clothes are available online with a fast delivery option.
References
When we decided to operate within Microsoft Ads, we saw specific opportunities for ourselves - diversification of advertising channels and reaching a wider audience. Our premise was primarily to test the capabilities of the advertising system, and the results of the tests prompted us to continue and invest further in Microsoft Advertising.
Paweł Kielak, CEO in Endo