Published on 23-Sep-2011
"What our team finds interesting is the things that work well in most PPC advertising models differ from what works in other areas of Internet advertising. The MMC lets us see and address this issue in record speed." - Webmaster, Ace Mart
Cloud Computing, EMM - Digital Marketing Optimization, SaaS, Smarter Commerce, Smarter Marketing
Ace Mart is a leading restaurant supply retailer with annual sales exceeding fifty million dollars. The Company is committed to building and maintaining one of the best online stores in the industry and currently offers more than 4,000 in-stock products online.
·Wanted to benchmark marketing ROI across multiple campaigns · Required a common way to track revenues
·Leveraged IBM Digital Analytics to track paid search, paid inclusion, and banner ad ROI within a single interface · Eliminated marketing spend which was driving click through but not sales including · 50 percent of all paid keywords · 75 percent of paid inclusion spend · All text banner advertisements
·Reduced marketing spend by 25 percent per month while realizing an increase in marketing ROI
Ace Mart allocates a monthly budget to online marketing campaigns—including paid search, paid inclusion, affiliate and online text banners—to drive website traffic and increase online sales. This specialty retailer wanted to maximize the ROI from their online marketing spend, but the conflicting metrics and tools available in the industry gave them absolutely no idea how their campaigns were performing relative to each other. Further, the analysis they received from their marketing partners showed click through rates but not the resulting sales.
Ace Mart implemented IBM® Coremetrics® Marketing Management Center (MMC), a feature of IBM® Digital Analytics, to track and analyze the ROI from every online marketing campaign in a single interface. At a glance, they were able to identify under-performing campaigns based on actual revenue numbers. Today, Ace Mart has successfully reduced their monthly marketing expenditures by 25 percent and increased ROI by eliminating keyword buys, cutting paid inclusion marketing spend and canceling online text banner advertising. “We were running several online marketing campaigns and all of them were driving traffic to our website. However, website traffic is not the right metric to gauge whether or not a marketing campaign is effective—you must look at the resulting sales. With IBM Coremetrics, our team can analyze the ROI of all our campaigns in a single interface. We were able to rapidly identify our under-performing campaigns and eliminate them from our budget. Because of IBM Coremetrics, we are saving 25% of our budget per month and we finally understand which campaigns drive sales. Our team can now re-direct those savings into our top performers and increase our revenue,” states Ace Mart’s Webmaster.
Eliminate 50 percent of paid keywords
The first change Ace Mart made was to eliminate low-performing keywords from their paid search campaigns. Out of 800 leading PPC provider keywords, they identified that over 50 percent of them were driving traffic to the website but not resulting in any actual sales. By eliminating over 50 percent of their keyword buys, they were able to reduce marketing keyword spend while attaining an increased ROI.
Cut paid inclusion marketing by 75 percent
The second change was to reduce their paid inclusion marketing spend by 75 percent. IBM Coremetrics quickly revealed that a paid inclusion marketing program through a leading provider was not delivering enough ROI to validate their current spend on particular inclusion advertisements. Ace Mart analyzed the ROI of each inclusion term via the IBM Coremetrics MMC.
Cancel all online text banner advertising
The third and final change was to eliminate their entire online banner advertising campaigns. Ace Mart was delivering an XML feed of their products to a marketing partner, who was building text banner advertisements based on those feeds for inclusion in major search provider results. However, Ace Mart soon realized that only .32 percent of the visitors from those advertisements were converting to a sale, so they eliminated the program altogether.
For more information To learn more about IBM Coremetrics please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/software/marketing-solutions
Products and services used
IBM products and services that were used in this case study.
IBM Digital Analytics
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