Kids-World DK achieves COS target with Adaptive Revenue Optimization.

10%

Average cart (6 months before ARO vs 6 months after)

+3%

Revenue (H1 2018 vs H1 2017)

+4%

Over COS target (6 months after launching ARO, the average COS for the period had decreased to just 4% over target)

Challenge

Kids-world DK is an award-winning website and one of Denmark’s largest online stores, with children’s clothing and home furnishings from more than 220 brands. The website was founded in 2006 and every day since then, the main focus has been on customer sales and marketing.

For a rapidly growing website with a complex channel mix, devoting time to manually adjust CPCs to reach a COS target is not always a top priority. This leads to missed opportunities when there are new releases and special offers on the site, or to bidding too high during slower periods. This resulted in an ad spend that wasn’t fully optimized.

Kids-World DK’s challenge for Criteo was to create a stable, profitable campaign that accounted for seasonal and temporary trends in the business, while at the same time saving resources.

Solution

Criteo’s team worked closely with Kids-World DK to understand their business trends and cost of sales target. Kids-World DK then added Adaptive Revenue Optimization (ARO) to their campaign. ARO is an intelligent bid optimization model that allows the Criteo Engine to define CPC bidding according to the ROI goal.

Before launching ARO, the campaign was 27% over the COS target. Within a year, the campaign was 100% on target.

How it works:

Adaptive Revenue Optimization defines CPC bids according to the ROI goal to maximize performance and reach COS targets.
Highly personalized ads show products that a shopper is most likely to be interested in, when they are most likely to buy.
Ads are focused on those who are most likely to convert by accurately predicting purchase intent, using an anonymous cross-device understanding of each shopper’s behavior across all devices, browsers and apps.
Ads seamlessly connect with every shopper across devices, apps, and the web through insights from our pooled data and the 1.4 billion shoppers we see each month.
The Criteo Engine’s machine-learning technology works continuously to improve the campaign’s performance.

Outcome

10% average cart (6 months before ARO vs 6 months after)
+3% revenue (H1 2018 vs H1 2017)
+4% over COS target (6 months after launching ARO, the average COS for the period had decreased to just 4% over target)
100% on COS target (6 months into the current year the COS is 100% on target with very little fluctuation month on month)

“We are very pleased with the decrease in COS after only 6 months and seeing how the optimization also resulted in an increase in Average Cart.”

–Jesper, Co-founder, Head of Marketing
–Casper, Head of SEM/PPC

Apparel and Fashion

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