ecoATM is a technology buyback service that specializes in automated kiosks that collect unwanted or used cell phones, tablets and MP3 players in exchange for cash. As a growing business, ecoATM was looking for ways to improve their physical location conversions via their online campaigns.
When ecoATM approached Katana, they already had a solid digital marketing program in place. They had been running campaigns focused on paid search and retargeting, so they now had to determine whether their online campaigns were actually influencing offline conversions. As a physical location solution, the company wanted to use location searches as the main conversion event, and optimize all campaigns around this. For ecoATM, a location search was a user searching for the nearest site of one of their kiosks. Historically, the average cost per conversion for paid search was $3.00— over 92% of their search engine marketing budget was being used for brand-specific keywords and the other 8% focused on “sell phone”-related keywords.
EcoATM needed to improve the number of kiosk users in key target locations via a digital media campaign and came to Katana looking to leverage our advanced targeting strategy. Ultimately, our solution would serve as a blueprint that could be used for a nationwide strategic rollout— all while lowering their existing conversion costs.
Katana began the optimization process by getting to know ecoATM’s users. First, we ran a demographical profile analysis of the past ecoATM kiosk users, from while we built a detailed understanding of their life events, age, web behaviors, and so forth. With this data as our driver, we were able to identify the users with the highest potential to convert. This allowed us to not only better target ecoATM users, but also move the client’s strategy beyond immediate action, direct-response tactics, toward more long-term-oriented results.
Next, we analyzed the client’s existing campaigns and identified additional optimization opportunities (such as using Time-of-Day data and overlaying that with device type). Not only did this enhance the effectiveness of these campaigns, but it actually freed up additional budget— so, we allocated that extra money toward building new and better campaign testing. We learned that we could better optimize campaigns if we changed the bid factors to correspond to dayparting patterns (aggressive bidding based on ad performance at different times of day). For example, we would increase our bids to show more ads at 3:00 pm on a Wednesday because of the results, but not bid as high at 7:00 am on a Saturday when ad performance was lower.
With these elements established, we built a campaign expansion that moved the budgets and tactics towards consideration-oriented initiatives. In layman’s terms, consideration tactics focus on users who may not be actively seeking the products or services you’re selling, but they display behavior that indicates that they might be interested in buying, making them a better target for advertising. We opted for this over direct-response tactics, which focus on people who are in-market and looking to buy. While the latter is certainly effective, it’s used more to produce short-term results. It was our job to create a solution for ecoATM that could be rolled out over a longer-term series of nationwide campaigns, so we opted for consideration tactics. Our consideration factors for this campaign included:
- Keywords expansions in higher-volume, broader terms
- Expansion into a secondary search engine, Bing
- The use of demographic profile data overlay to show ads in the highest-volume keywords to look-alike audiences
- Introduction of a diverse set of mobile and banner ad impressions with diverse ways of targeting, including contextual, look-alike and broad-based audiences
Long story short, Katana improved the retail locations’ success costs by shifting budgets over 40% towards non-direct, response-oriented initiatives. Our winning combination of consideration tactics geared toward location search conversions had a tremendous impact within 60 days, including increasing the ad exposure and reach amount by over 3.5x while only increasing budgets by 18%.
As predicted, cost per click fell across the entire campaign, and we were able to increase conversion rates by over 120% for conversion-related campaigns. This increase in conversions told us that we were correctly targeting the right audiences— proving that those who did not show direct interest still had a high likelihood of converting if targeted properly.
We also augmented their retargeting cookie pool, which allowed us to push non-converting users back to the site for a conversion, while simultaneously leveraging our intelligence analysis and finite targeted audiences, publishers and campaign variables, such as frequency controls. The outcome was earth-shattering: The CPA decreased to $1.38 from the $3.00 CPA goal, and volume increased by over 20% while only increasing the budget by 18%. We attracted new audiences and created a plan for launching the campaign at scale.