Creating efficient search campaigns
With over 300 stores in 41 countries, furniture retailer IKEA offers more than 35,000 different products, available in stores or online. IKEA’s key metric for digital marketing is return on ad spend (ROAS). To increase ROAS, IKEA’s digital agency, iProspect, turned to Google Search Ads 360 and created efficient search campaigns.
iProspect first grouped the accounts into two categories, desktop and mobile, each with its own allocated budget and bids. The team also segmented IKEA’s audiences by geography to ensure that mobile ads appeared to users within a certain distance from a physical store.
Testing different product groups
Using Channel Intelligence and revenue records from the preceding 30 days, iProspect created custom labels to categorize each product according to ROAS. The agency then used adaptive shopping campaigns to group together products with a similar ROAS. This made it simpler to move budgets to the best performing groups and to test performance for new products. The team also created remarketing lists to encourage previous site visitors to complete a purchase.
Boosting sales and streamlining workflows
With Search Ads 360, IKEA’s cost per click went down by 38%. The company also saw store visits increase by 232%, sales increase by 117%, and ROAS increase by 68%.
But the power of Search Ads 360 wasn’t limited to sales — the tools also helped the team in other, unexpected ways. Since Search Ads 360 supports web queries to allow for rapid integration of information, the company lessened the time needed to understand revenue and store visit figures. The resource requirements for optimizations, reporting, and inventory management decreased, while insights about geolocation, device, and product type improved. It’s now easier than ever for IKEA to help its large volume of products succeed with corresponding campaigns from Google Ads.
