Performics Increases Average Order Size with Advanced Bid Strategies


Challenge

A multi-channel retailer sought to gain paid search efficiency and increase average order size through advanced bid strategy techniques

Solutions

Performics implemented Average Order Value (AOV) bidding:

  • We determined which keywords historically  received the highest sales margins
  • We then implemented a bid strategy in which large AOV keywords were given a higher ERS threshold, regardless of conversion frequency
  • For example, typically, keywords with an AOV of $35 would follow the same bid strategy and ERS goal as keywords with an AOV greater than $75.  But with an AOV-focused bid strategy, keywords with larger AOV would run in higher positions for longer amounts of time, giving them more time to convert.

Results

  • Over time, high-margin sales overcame short-term inefficiencies to create profits
  • Giving large AOV keywords more time to convert in higher positions resulted in an overall sales lift for the majority of the keywords
  • Order size increased for the client, which translated to a lower ERS
  • Increased efficiency freed up $1,000–$2,000 per week to spend on other keywords for the client

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