The brief

Kreg Tool is a leading retailer in the hobbyist market, specializing in pocket-hole technology.  They have distribution outlets throughout the United States, Canada, United Kingdom and Australia.

They needed help with their paid social, display and video in new global markets  They came to Search Laboratory for our international expertise, as they specifically wanted to build their brand in Germany where they were relatively unknown. Their main goals were to raise awareness and drive traffic. Kreg Tool does not have its own ecommerce website in Germany, so relied on third-party resellers to promote their products. We had to direct all traffic to a third-party seller’s Amazon page. This meant reporting on performance using the data passed on from Amazon, to then optimize accordingly.

447%

uplift in return on advertising spend

8,000+%

increase in click through rate

560%

revenue increase

150%

improvement in conversion rate

215%

Improvement in traffic to Amazon reseller page

The solution

Ads were created across YouTube, Facebook and display to be pointed at the Amazon page. A video that had performed well in other markets’ advertising channels was localized by our in-house international team by recording voice-overs, which meant that they could perform more effectively.

Budget optimization strategy

We set out our audiences to be as granular as possible so we could have full control over who we show ads to and how much we spend on each audience. The optimization strategy is to look at all the audiences and look at specific KPIs that we want to optimize towards (in this case CTR and clicks) and assign a weighting to each targeting type. The weighting is a percentage and is how much of the monthly budget we wanted to allocate to the specific targeting.

Below is an example of the process – this is a simple version where we optimized towards clicks.  For Kreg Tools, we optimized towards clicks and CPCs, while for other clients we might optimize towards three different variables (which makes the process more complicated).

 

Targeting Clicks Weighting New Budget
1 10000 50% $495.05
2 5000 25% $247.52
3 3000 15% $148.51
4 2200 11% $108.91
Total 20200 100% $1,000.00

 

Audience optimization

The team soon realized that some age demographics were not returning a healthy return on investment. Due to this, the 18-24-year-old age range was excluded from targeting, which meant the budget was not wasted and could be spent more effectively.

Ad format testing

We used about three to four different ads which are repeated in a sequence to keep the messaging fresh and reduce banner blindness to the user. This meant the brand stayed front of mind to key audience targets.

Results

  • 447% uplift in return on advertising spend
  • 8,000+% increase in click-through rate
  • 560% revenue increase
  • 150% improvement in conversion rate
  • 215% improvement in traffic to Amazon reseller page
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