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Minimum input and 1051% ROI: Test-driving dynamic ads for ecommerce

M.Video, the chain of electronics and home appliances stores tested Dynamic ads on Yandex search to expand their coverage of keywords relevant to their large product range and increase sales. Dynamic ads can significantly save time since they are generated automatically by Yandex.Direct. The cost of attracting an order via Dynamic ads was 37% lower than the average for Yandex.Direct, and the average ROI came to 1051%.
Client
Retail chain of electronics and household appliance stores M.Video, mvideo.ru
Facts & figures
382 stores, 162 cities, 1993 founded
Representative
Yekaterina Kurochkina Internet marketing manager

Objectives

  1. Expand semantic reach for a wide product range.
  2. Increase sales.

Tools used:

  • Yandex.Direct (Dynamic ads)

Period: September 2015 — now

Why is this important?

Large retail stores with wide product ranges often use keywords with low traffic volume (category and model names) to create a large number of similar ads, and then maintain the list’s relevance. This process is both resource-intensive and prone to errors.

Yandex.Direct, on the other hand, can automatically generate ads for each product: the bot crawls the site and creates all necessary ads, freeing up advertisers to do other important tasks.

Step 1. Develop structure of account and ad groups in campaign

M.Video created separate campaigns for each product category, allowing them to monitor the results more specifically. This structure is easy to scale as necessary. Moscow was chosen as the test region, and 8 campaigns were created for each product category.

Step 2. Testing in 3 product categories for the Moscow area

In September dynamic ad testing began for the “Audio-video,” and “Computer hardware,” and “Entertainment and games” in Moscow.

Three dynamic ad campaigns were created for these categories.

Creating dynamic ads

It’s as simple as entering the site URL, writing a text to appear in all ads, and adding sitelinks.

The ad title, landing page URL, display link, and keywords will generate automatically.

M.Video wanted to generate all ads in specific categories and avoid generating ads for out-of-stock items. The following settings made this possible:

  • URL of a list of product offerings entered — a link to a category, for example, “TV 4K UHD”
  • 3 conditions set: the content page does not contain the phrase “Product temporarily out of stock,” “Product sold out,” or “Product can only be purchased in retail stores.”

How dynamics appear in search results


Ads appear with titles and links that are relevant for each individual user.

Step 3. Expand reach to entire range in all regions

Initial results for the test campaigns in Moscow showed an ROI of 1200% and improved reach through keywords with low search volume.

Based on the test results, M.Video expanded dynamic ads to 8 categories in 20 regions.

Results

Results: CPO

In comparison with the average Yandex.Direct CPO (not counting “branded” queries entered with the wrong keyboard settings or spelling errors), the average CPO of dynamic ads was 36.9% lower.

CR by city and category

CR by city
Average CR for the channel was 1.1%. The maximum CR was in Moscow at 1.4%, and the minimum in Orenburg — 0.2%.
CR by category
The maximum CR of 2.4% was found in the “Entertainment” category, and the minimum CR, 0.6% in “Smartphones.”

Expenditures/Revenue by city*

Orders came in for all the cities that participated in the experiment.

Nizhnevartovsk showed the lowest ROI — 68%, whereas Rostov-on-Don even beat Moscow, with an ROI of 1848%.

Returns in Nizhny Novgorod and Yekaterinburg were also quite high.

* 70% of orders took place in Moscow and Saint Petersburg and are not displayed in this graph.

Expenditures/Revenue

In the 4 months of using dynamic campaigns aligned with M.Video’s strategy, this new channel has provided total revenue exceeding the dynamic ads budget by 11.5 times.

Average ROI amounted to 1051%.

The dynamic ads paid for themselves more than ten times over.

Yekaterina Kurochkina
Internet marketing manager
Dynamic ads have proven themselves — they require little work and minimize the risk of missing relevant keywords. The main advantage of dynamic ads is the reach provided by less common keywords not found in the main campaigns by model and category.
Minimum input and 1051% ROI: Test-driving dynamic ads for ecommerce
Minimum input and 1051% ROI: Test-driving dynamic ads for ecommerce
Presentation
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Case prepared in collaboration with the iProspect agency

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