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Databazaar Case Study
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   Company   
   Industry    Retail/Wholesale (B2C, B2B, and export) – Printer supplies
   Key Impact    Cost per lead down by over 25% despite increasing costs    per click
   Customer Testimonial    "In our business the margins are low and it helps to have a    partner like NetElixir that is able to drive sales profitably.    We know that we can depend on this Company. "

   Oney Seal, CEO - Databazaar.com

Turns PPC Advertising into Highly Profitable, Dependable Source of Sales
The Situation
Databazaar.com is the fastest growing imaging and information supplies company in the country and is the fifth largest online office supplies retailer. Their unique business model supplies computer and printer accessories to the consumer, business and wholesale/export market segments.

PPC and organic search advertising are vital advertising channels for Databazaar, accounting for over 80% of their new customers. As such, their search advertising was being managed by a leading SEM company. However, Databazaar found that organic search results were highly unpredictable while PPC advertising costs were quickly getting too high to profitably support their business.

The Challenge
Databazaar’s high volume, low margin online business depends on a steady stream of new customers. With the unpredictability of organic search, Databazaar realized that a well-managed PPC campaign could be critical to business success; however they were unsure about the economic viability of PPC due to its already high and rapidly rising costs. Their current PPC campaigns were bringing in new customers, but the costs per lead were too high given their razor-thin operating margins. Thus, Databazaar needed to find a way decrease costs per lead and achieve predictable, consistent PPC results in order to support their business.

The Approach
After a thorough analysis of Databazaar’s business, competition, and current campaign, NetElixir structured a strategy with three major areas of focus:

• First, NetElixir found that Databazaar’s existing campaigns had very unstructured and inefficient keyword groupings. Thus, the first step consisted of reorganizing their PPC accounts and keywords in order to lower bidding costs.

• Second, NetElixir’s bidding algorithms took advantage of day-parting and other sophisticated techniques to maximize visibility in front of the right audience—increasing conversions and lowering costs.

• Finally, NetElixir worked to design efficient, tailored landing pages for Databazaar.com, streamlining the user experience and further increasing conversion rates.

The Results
Within just two months of taking over the campaign from the previous SEM firm, NetElixir reduced Databazaar’s cost per conversion by over 25%, enabling Databazaar to enjoy consistently positive ROI on their PPC marketing efforts. Despite the fact that PPC costs per click increased significantly during this same time period, the more efficient account organization, systematic optimized bidding, and increased conversion rates for Databazaar’s campaign ensured a significant and enduring decrease in customer acquisition costs, allowing the company to maintain their leadership position in an extremely competitive market. Although previously wary of PPC, after seeing the great success and substantial cost savings they were able to achieve, Databazaar decided to further leverage the power of PPC advertising—initiating campaigns with another major search engine.

 
 
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