Three Mobile reduces CPAs and Stabilises Budget
Mindshare’s client Three, a major UK mobile telecommunications provider, started utilising IgnitionOne to address its largest paid search challenges — budget fluctuations and varying target CPAs amidst an ever-changing competitive marketplace. These challenges required continual monitoring and daily keyword level optimisations, which drained the team of valuable human resources. IgnitionOne was enlisted by Mindshare to help develop a better overall search program.
The primary objective was to maintain constant CPA targets across various campaigns, whilst driving sales volume on the account — despite budget fluctuations. IgnitionOne and Mindshare decided on KPIs for the advertiser in order to build out relevant portfolio groups that would work towards the designated targets. On some parts of the account the objective was to spend a capped daily budget generating the lowest possible CPA whilst for other parts, the objective was to work with an uncapped daily budget as long as CPA targets remained below a designated threshold. CPA targets varied for different predictive optimisation groups based on the line of business. The solution was found by drawing insight from IgnitionOne’s inter-channel data and by using the efficiencies of the IgnitionOne search management tool, especially the predictive forecasting component.
One month prior to the portfolio optimisation activation date (the automation of bids within the portfolio) the collective group of campaign keywords had an average CPA of 16% of daily budget. The targets and parameters defined in the portfolio optimisation group were simple: an uncapped daily budget with a target CPA of 9% lower than the current CPA. The results for the two months that followed activation of portfolio of optimisation showed an increased average daily budget of 90% and a decrease in CPA of 12%. The keyword ‘contract phones’ accounted for 33% of the total spend of one of the portfolio groups. Portfolio optimisation allowed for a greater number of optimisations per week. Upon implementation of daily automation, the keyword bid history showed that bid changes were made daily with fluctuations in CPC of 500%. The key difference between true portfolio and keyword level bid rules, as illustrated in the above example, is that as there is no ceiling for a specific keyword but rather an aggregated CPA target for the portfolio. The incremental volume is gained from the keywords that obtain a CPA target higher than that of the aggregated target, yet balanced out by the lower CPA in the same portfolio. Even though budget was increased by 90%, portfolio optimisation was still able to reduce the aggregate CPA by 12%.