November 22, 2004, 12:00 AM

Analytics help cut marketing spending by 25% and boost ROI at Ace Mart

Using analytics to compare the performance of online ad campaigns, Ace Mart cut 50% of its paid keywords and reduced paid inclusion spending to focus on better performers.

Kurt Peters

Executive Editor

Ace Mart Restaurant Supply cut its online marketing spending by 25% and increased its ROI from online marketing efforts when it adjusted spending based on data generated by web analytics from Coremetrics Inc., the company reports. The restaurant supplier was able to view results across several types of online campaigns in one interface, which revealed how the campaigns were performing against each other in terms of sales and not just click-through and traffic.

Analytics showed which campaigns were delivering ROI, allowing Ace Mart to reduce or end spending on campaigns based on their sales performance. Among the changes Ace Mart made to its online marketing program after reviewing the analytics data, it eliminated 50% of paid keywords as low performers when it saw that they drove traffic but not sales. In addition, it cut paid inclusion marketing spending by 75% after seeing that spending on this form of marketing wasn’t delivering enough ROI to support existing spending levels.

Finally, it eliminated a text banner advertising program altogether when analytics revealed that it was producing only a .32% conversion rate; essentially, delivering no revenue. “Because of Coremetrics we are saving 25% of our budget per month and we understand which campaigns drive sales,” says Ryan Rodkey, Ace Mart’s webmaster. “Out team can now re-direct those savings to our top performers and increase our revenue.”

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