Case Study: Valuing Overnight Traffic Increases Profit by 87%
Mark | 25 January, 2012
Company: Online Shopping Portal
Overview: Our client’s success is built upon appealing to a wide audience with exclusive deals and a curated selection of listings suited to shoppers seeking everything from high-fashion prêt-a-porter to power tools. In an increasingly expensive and competitive market, their goal was to determine the value of their online marketing, grow conversion volume, and increase profit while overcoming restrictive CPA requirements, high click costs, and a shifting set of merchant listings.
Working Planet implemented a performance tracking and SEM strategy that targeted conversion volume growth, profitable account performance, and growth of their user base. Dayparting analysis revealed that nighttime site visitors converted at a rate 181% higher than daytime visitors.
To take advantage of nighttime value and volume opportunities, we changed bidding strategy to increase ad exposure during the highest-converting times of night. We found initial success with high-level bid adjustments and saw that a more diverse mix of search terms was producing traffic with bid adjustments in place. We quickly realized that performance differences were becoming so significant between day and night hours that new optimization rules needed to be established for daytime and nighttime account management. Creating full campaign clones to run exclusively during night hours allowed us to optimize day and night search term-level performance separately. Doing so also allowed us to take advantage of divergent campaign settings during daytime and nighttime hours.
Result: Independent optimization during nighttime hours yielded a 26% increase in conversion volume during the first 30 days of the tactic’s employment, and a 4% decrease in cost-per-click. Working Planet’s full suite of best practices, including implementation of time-based optimization tactics, resulted in an 87% increase in profit generated by our client’s pay-per-click campaigns over a six-month period.
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