“Before we looked into Target ROAS, there were a lot of manual optimization steps that were necessary to make our campaigns efficient,” said Hanna Maria Brauer, Lead SEA & PSM Tchibo GmbH. To achieve the ROAS targets, the Tchibo digital marketing team was investing a lot of time in campaign management for limited scalability. It meant that there was no time for a more focused development and expansion of the existing campaigns and account.
Tchibo quickly realized the use of Target ROAS could drastically reduce the time spent on campaign optimization. In cooperation with Microsoft Advertising, Target ROAS was subsequently implemented as an automated bidding strategy. After an initial learning phase, the use of Target ROAS significantly increased the efficiency of the campaigns. Consequently, this functionality was rolled out in every campaign in the shopping area. In addition, this feature began to be used in high-conversion search campaigns as well.
The results of the automated bidding strategies really paid off for Tchibo. Between July and October 2020, Tchibo saw a 7X increase in the return on advertising spend. Conversion rates were also four times higher and through the use of Target ROAS, the time required for campaign optimization was reduced by 30%.
“We are really happy with the results of Target ROAS both for our campaign performance and the reduction in time spent for campaign optimization,” commented Natalia Ryvkin, Junior Online Marketing Manager, Tchibo GmbH.