| 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. |