The Challenge
To successfully gain a full view of the client’s profitability, we would have to tackle the following challenges:
- Each of the client’s products (10,000+ SKUs) had a different margin depending on the date the product was bought (differing cost prices from suppliers).
- We would need to factor in rebates and discounts from individual brands/suppliers.
- Five separate data sources would need to be combined.
We would also have to explore how to use this data to inform Google Smart Bidding strategies and budgets within the campaigns to maximise profit.
Our Solution
We developed a solution that could handle the sheer amount of data being imported and manipulated. BigQuery enabled us to import:
- Daily cost data from our client’s Google Shopping Feed (using Google Scripts).
- Google Analytics SKU-level sales data.
- Brand rebate data.
Data was then stitched together using Structured Query Language (SQL) and profitability calculated on the fly within BigQuery.
Once we had profit data by campaign/ad-group/keyword, we adjusted smart bidding targets based on the correlation between profit and Target Cost Per Acquisition (tCPA) or Target Return On Ad Spend (tROAS), moving budgets between campaigns to maximise profit.
The Results
+488%
increase in avg. weekly profit
+28%
increase in CTR
+5%
increase in orders
Our bespoke solution has helped our client to achieve:
- A turnaround in profitability; data shows that the account was unprofitable before our solution was introduced.
- A consistent increase in profit – after just the first week of data, average weekly profit was up a staggering 488%.
Moving forward, such unprecedented visibility is helping our client to gain unique insight into which products are working for them well as a business.
Our Client Says
While we’ve only been working with Katté for a few months, we’ve already been astonished by the results. They’ve helped us to gain a completely new level of visibility regarding our profitability that has proven invaluable, as we use such data to make more strategic, rewarding business decisions. They’ve already helped us to achieve a staggering profit increase of around 500% – we can’t wait to see what further benefits this partnership will bring.
Roscoe Atkins, Managing Director