Kids-World DK achieves COS target with Adaptive Revenue Optimization.
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.
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:
“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
Average cart (6 months before ARO vs 6 months after)
Revenue (H1 2018 vs H1 2017)
Over COS target (6 months after launching ARO, the average COS for the period had decreased to just 4% over target)
On COS target (6 months into the current year the COS is 100% on target with very little fluctuation month on month)