- Identify Bing as an under-leveraged channel
- Identify campaigns whose reported return on ad spend (through conversion tracking) was disconnected from their true impact on sales
- Identify, unbiasedly, the incremental effect of ad spend
Village Hat Shop was founded in 1980 as a retail store in San Diego, California. In 1997, they launched their website, VillageHatShop.com, and have been thrilling hat lovers ever since. Village Hat Shop aims to have the greatest selection of hats and headwear online, while offering customers the best possible prices and service. As a family owned business Village Hat Shop’s hallmark has always been service. Customers have given them a rating of 4.71 out of 5 stars across the many reviews of hats located throughout the site.
Problems with Ad Spend Allocation
Zachary Belinsky, Vice President for VillageHatShop.com, wanted to know which marketing channels were driving his revenues. He currently monitors the return on ad spend through Google and Bing but wanted to look beyond last click attribution. He brought in Infernotions to answer the following questions
- What is each marketing channel delivering in sales to the company?
- How should he change his spend allocation?
- Which campaigns have been most effective?
Infernotions’ Revenue Attribution Solution in Action
Village Hat Shop engaged Infernotions’ revenue attribution solution and quickly realized that
- Email has been a consistent performer over the last twelve months
- Bing was up to two times more effective in driving revenues compared to Google
Infernotions hypothesizes Google ads face higher competitive bidding, thereby diluting (relatively) the return on ad spend. Google is also a more mature channel and has reached the phase of flat returns. Increasing spend on current campaigns would not yield proportionately higher sales. Bing ads, on the other hand, were still on the steep growth slope and there was upside potential. Every incremental $50 transferred from Google to Bing would yield an incremental $170 in sales.
First Click, Last Click, Linear Click, Time Delay Click, Position Based Click–it’s all bollocks. Infernotions stripped away all the noise and showed me the true value of my marketing spend.” – Zachary Belinsky, Vice President, VillageHatShop.com
Lastly, Infernotions’ revenue attribution solution also profiled campaigns on their impact to online sales. The analysis overlaid the campaigns’ conversion performance, as reported by Bing and Google, relative to the results discovered by the analytical engine from Infernotions’ revenue attribution solution.
- Four Bing campaigns and one Google campaign were identified for increasing spend allocation, and
- Two Google campaigns were identified for cutting spend.