This major electronics retailer, a new arrival into the New Zealand market, was looking for a way to increase the effectiveness of its ‘always on’ tactical campaign. The retailer was conscious about staying under the target CPA.
MEDIATA was approached by the retailer’s media agency to suggest a solution which would quickly bring acquisition costs (CPA) down but not impact on total sales volume.
MEDIATA opted for a blend of Packaged Audiences, Lookalike Audiences and Retargeting to achieve this. These audiences would be reached through MEDIATA’s bespoke DSP platform.
The platform is designed to, through a blend of machine learning and ‘hands on’ optimisation, ensure that out of the thousands of variables that affect campaign performance, only the most relevant are targeted.
Results & Analysis
The campaign performed very well. The strong fit between the ‘Gadget Lovers’ Packaged Audience and the retailer’s customers meant the campaign started near the desired CPA goal.
Over the next few weeks data for the Lookalike and Retargeting Audiences grew and these products were deployed. This partly accounts for the rapid increase in leads week on week.
Graph 1 demonstrates how the Gadget Lovers Packaged Audience drove the CPA down with more than double the lead volume of the second best performing Packaged Audience.
Graph 1: Conversion Volume by Packaged Audience
Interestingly, the last few years have seen a slow shift away from CPC and clicks as a reliable performance metric.
Graph 2 clearly shows that in this campaign the relationship between the two metrics, CPA and CPC, is inversely proportional. As this was a CPA metric campaign, our system was set to optimise towards user profiles that were driving the most conversions. Incidentally this resulted in optimisation away from the higher clicking profiles.
Graph 2: Inverse Relationship between CPA and CPC
In other words, users that clicked were not the same people that were purchasing. Another key factor in the steep increase in performance seen in Graph 3 was the combination of sophisticated machine learningand human optimisation employed by MEDIATA on all campaigns.
Graph 3: Conversion Volume over Time
Over the life of the campaign the CPA dropped by over 50%, performing considerably above expectations.
MEDIATA finished as a top-tier partner on this plan.