Published June 2017
With over 300 stores in 41 countries, furniture retailer IKEA offers more than 35,000 different products, available to buy in stores or online. IKEA’s key metric for digital marketing is return on ad spend (ROAS). To increase ROAS, IKEA’s digital agency, iProspect, implemented efficient search campaigns using DoubleClick Search.
iProspect first split the accounts into two categories, desktop and mobile, each with its own allocated budget and bids. The team also implemented geo-targeting to ensure IKEA mobile ads appeared to users within a set distance from one of IKEA's physical stores.
DoubleClick Search provides many opportunities to automate daily operations, for example return-on-ad-spend optimization with bid strategies, budget management and web query for reporting. Integration of DoubleClick Search, Channel Intelligence and AdWords has been key in driving both online revenue and offline footfall.
Using Channel Intelligence and revenue data from the preceding 30 days, iProspect created custom labels to categorize each product according to ROAS, ranking from high to low. The agency then used adaptive shopping campaigns to group products with similar ROAS. This made it simpler to move budgets to the best performing groups and to test performance for new products. They also created remarketing lists to encourage previous site visitors to complete a purchase.
iProspect’s innovative use of DoubleClick’s most powerful features allows us to test out our products and focus on the geographical areas that best serve our stores. The approach has been so successful that we've evolved it into a fully fledged campaign. It now serves as a vital part of our digital marketing efforts.
DoubleClick Search helped decrease IKEA’s cost-per-click by 38%. Store visits increased by 232%, sales increased by 117% and ROAS increased 68%.
Beyond these metrics, IKEA and iProspect report that DoubleClick tools helped the teams in a variety of ways. For example, DoubleClick Search supported the use of web queries to allow for the rapid integration of data, minimizing the amount of time needed to incorporate revenue and store visit figures. Resource requirements for optimizations, reporting and inventory management decreased, while insights into results by geolocation, device and product types have improved. As a result, it’s now easier to drive success for IKEA’s large volume of products and more than 300 AdWords campaigns.