Selling perfume, makeup, skincare, and haircare, Nordicfeel is one of the largest online beauty stores in the Nordics. With the popularity of Black Friday shopping on the rise in Sweden, Nordicfeel and their agency AdRelevance wanted to develop a strategy to win valuable customers in this vital pre-Christmas period.
When Nordicfeel set out to maximise sales during Black Friday, they specifically aimed to gain new customers with the long-term goal of turning these users into returning, loyal customers with a high lifetime value.
First, the team split their Google Ads campaigns to separately target new and current customer segments. By then activating the Smart Bidding strategy tROAS (target ROAS), Nordicfeel’s bids were automatically tailored for each and every auction to produce more revenue at the target set by the team.
“Smart Bidding and machine learning work really well, especially if strategic human intelligence is added on top.”
– Karl Lindberg, Client Lead/Partner, AdRelevance
Not only did the tROAS campaigns deliver a 92% higher return on ad spend than manually optimised campaigns, Nordicfeel saw revenues grow by 22% during Black Friday week compared to the preceding days in November. This played a major factor in Nordicfeel’s total Black Friday week revenue growth of more than 50% year over year.
Gaining superior return on ad spend without giving up revenue left resources free to target new customers. Nordicfeel managed to attract a record number during Black Friday week, with 49% of all transactions generated via Google Ads coming from customers who hadn’t shopped before at Nordicfeel.
Assured that tROAS works well even during peak shopping periods with sudden rises in demand, Nordicfeel and AdRelevance plan to use Smart Bidding on an ongoing basis not only in Sweden but also across other markets where the brand operates.