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Search Engine Marketing (SEM) Case Study
Major Electronics Retailer Reduces Online Cost per Order by more than 40% in two successive years via Search Engine Marketing
Situation
The client, a major electronics retailer was experiencing an unprofitable cost per order in its ecommerce channel and internal SEM efforts were ineffective. The prohibitively high cost of acquisition was threatening the viability of an ecommerce channel and the retailer needed to engage professional SEM services.
Solution
The client approached dthree in late 2006 with an immediate need to achieve improved results during the imminent holiday season. dthree took over the existing campaign that the client was running and made some fundamental changes:
- Tripled the number of negative keywords reducing costs on non-producing results listings
- Eliminated the content network
- Skewed the budget towards the days and time when most of the online sales occur
- Greatly expanded the keyword list
- Ensured that relevant landing pages were tied to the entire set of keywords
Results
- Online cost per order was reduced by 74% in holiday season 2006
- Online cost per order was reduced by a further 42% in the 2007 holiday season 2007
- In both years, the lower Cost per Order was achieved on a larger spend, successfully overcoming the challenge of keyword inflation
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