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Minimum input and1051% ROI: Test-driving dynamic ads forecommerce

M.Video

cities162

stores382Retail chain of electronics and household appliance stores

www.mvideo.ru

Yekaterina KurochkinaInternet marketing manager

founded1993

Period:

Tools used:

September 2015 — now

Expand semantic reach for a wide product range

› Yandex.Direct (Dynamic ads)

Increase sales

Objectives

Why is this important?

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Large retail stores with wide product ranges often use keywords with low traffic volume (category and model names) to create a large number of similar ads, and then maintain the list’s relevance. This process is both resource-intensive and prone to errors.

Yandex.Direct, on the other hand, can automatically generate ads for each product: the bot crawls the site and creates all necessary ads, freeing up advertisers to do other important tasks.

Solution

Step 1 Step 2 Step 3

Expand reach to entire range in all regions

Testing in 3 product categories for the Moscow area

Develop structure of account and ad groups in campaign

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Step 1

Structure account and ad groups in campaign

M.Video created separate campaigns for each product category, allowing them to monitor the results more specifically. This structure is easy to scale as necessary. Moscow was chosen as the test region, and 8 campaigns were created for each product category.

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05Large household appliances

01Accessories

02Audio-video

06Small household appliances

03Computer hardware

07Smartphones

04Entertainment and games

08Photo-video-auto

Step 2

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In September dynamic ad testing began for the “Audio-video,” and “Computer hardware,” and “Entertainment and games” in Moscow.

Three dynamic ad campaigns were created for these categories.

direct.yandex.ru

Testing in 3 product categories for the Moscow area

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It’s as simple as entering the site URL, writing a text to appear in all ads, and addingsitelinks.

The ad title, landing page URL, display link, and keywords will generate automatically.

direct.yandex.ru

Creating dynamic ads

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M.Video wanted to generate all ads in specific categories and avoid generating ads for out-of-stock items. The following settings made this possible:

› URL of a list of product offerings entered — a link to a category, for example,“TV 4K UHD”

› 3 conditions set: the content page does not contain the phrase“Product temporarily out of stock,” “Product sold out,” or “Product can only be purchased in retail stores.”

Creating dynamic ads

direct.yandex.ru

How dynamics appear in search results

Desktop Mobile

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Ads appear with titles and links that are relevant for each individual user.

Step 3

Expanding reach to entire range in all regions

Initial results for the test campaigns in Moscow showed an ROI of 1200% and improved reach through keywords with low search volume.

Based on the test results, M.Video expanded dynamic ads to 8 categories in 20 regions.

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Results

Results: CPO

In comparison with the average Yandex.Direct CPO(not counting “branded” queries entered with the wrong keyboard settings or spelling errors), the average CPO of dynamic ads was 36.9% lower.

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Average CPO CPO of dynamic ads

–36.9%

Rostov-on-DonNovorossiysk

Samara

Moscow

Astrakhan

Nizhny Novgorod

Voronezh

Saint Petersburg

Surgut

YekaterinburgVolgograd

Sochi

Stavropol

Novosibirsk

Chelyabinsk

Novokuznetsk

Orenburg

Tambov

Kazan

Nizhnevartovsk

CR by city and category

CR by city CR by category

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Average CR for the channel was 1.1%. The maximum CR was in Moscow at1.4%, and the minimum in Orenburg — 0.2%.

The maximum CR of 2.4% was found in the “Entertainment” category, and the minimum CR, 0.6% in “Smartphones.”

Accessories

Audio-video

Computer hardware

Entertainment

Large household appliances

Photo-video-auto

Smartphones

Small household appliances

0

0.2

0.4

0.6

0.8

1

1.2

1.4%

0

0.5

1

1.5

2

2.5%

Expenditures/Revenue by city*

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Orders came in for all the cities that participated in the experiment.

Nizhnevartovsk showed the lowest ROI — 68%, whereas Rostov-on-Don even beat Moscow, with an ROI of 1848%.

Returns in Nizhny Novgorod and Yekaterinburg were also quite high. *70% of orders took place in Moscow and Saint Petersburg and are not displayed in this graph.

Расход ВыручкаExpenditures Revenue

Accessories

Audio-video

Computer hardware

Entertainment

Large household appliances

Photo-video-auto

Small household appliances

Smartphone

Revenue Expenditures

Expenditures/Revenue

In the 4 months of using dynamic campaigns aligned with M.Video’sstrategy, this new channel has provided total revenue exceeding the dynamic ads budget by 11.5 times.

Average ROI amounted to 1051%.

The dynamic ads paid for themselves more than ten times over.

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Dynamic ads have proven themselves — they require little work and minimize the risk of missing relevant keywords. The main advantage of dynamic ads is the reach provided by less common keywords not found in the main campaigns by model and category.

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Yekaterina KurochkinaInternet marketing manager

Case prepared in cooperationwith

www.iprospect.com

iProspect