Smarter keyword buys drive 25% order lift with same keyword budget at Petco
Petco increased its online order volume by 25% without increasing marketing spending by using analytics from Coremetrics Inc. to track paid keyword performance more tightly, according to Coremetrics. Using the analytics provider’s Marketing Management Center, Petco tracked some 4,500 keywords across multiple search engines to identify lower-performing terms, which let Petco shift spending to better-producing terms, also identified by the analytics tool. Petco released the results of its keyword campaign at the eTail 2003 East conference in Boston today.
Petco began refining its keywords at the largest of several search engines on which it buys listings, initially identifying the 50 most poorly-performing terms, defined as those that had the lowest click-through to purchase ratio. After it then determined the 90 best-producing keywords, PETCO shifted its keyword spending to the better-producing terms. At one major pay-per-click search engine, this exercise increased keyword-driven orders by 25% and boosted revenues by 16%. Gross margin contribution from keyword positioning on the engine rose by 11% and conversion increased by 6%.
The analytics tool, says Petco director of business development and e-commerce Heather Blank, “guided us through a rapid process of cutting out poorly performing keyword buys and re-investing in top keywords.” Blank says the same process will be applied to future online campaigns.
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