The e-retailer reports a $126 million net loss, stemming from a $640 million year-over-year increase in spending in the quarter on technology and content ...
Allegro Medical uses advertising analytics data to increase its Yahoo and Google paid search returns by an average of nearly 100%.
Allegro Medical Supplies Inc., an online retailer of home medical and health products, boosted its return on Yahoo paid search ads by 85% and doubled its return on Google ads within six months by using new advertising analytics data.
The data, delivered in a hosted model from vendor ClearSaleing Inc., allowed Allegro Medical to see its return on investment, including profit or loss on all of its PPC campaigns and individual keywords. The analysis revealed that, overall, the retailer’s existing paid search campaigns on Google and Yahoo were losing money. For example, the analytic data showed that Allegro was spending too much on some very general , low-converting keywords, according to ClearSaleing co-founder and president Randy Smith.
With the vendor’s help, Allegro Medical implemented a more targeted, cost-effective bidding strategy, using more exact match phrases and keywords that focused more closely on Allegro Medical’s product lines. The retailer worked with ClearSaleing to identify and eliminate campaigns and specific search ads that were yielding losses. They also indentified top-performing categories, manufacturers, and products and increased paid search ad spending on them.
In the six months after it shifted its online ad spend, average order value at Allegro Medical across pay-per-click campaigns on Google increased 12%, conversions increased by 2% and average cost per customer acquisition dropped by 160%. On its Yahoo campaigns, the conversion rate more than doubled and its cost per customer acquisition dropped by 218%, the retailer says.
“We realized we had been flying blind in terms of our ability to justify our as spend for each of our online advertising sources,” says Greg Clark, the retailer’s vice president of operations.