FRU.PL boosts conversions while lowering CPA with smart bidding strategy

FRU.PL was looking to increase its traffic and boost conversions with the aim of sustaining its rapid growth. The online travel agency wanted to achieve this while maintaining a low CPA so opted to test Smart Bidding to see if this would generate improved results.

About FRU.PL
Founded in 2007
Online travel agency
Headquarters in Warsaw, Poland
Goals
Capture traffic using long tail search-terms
Maintain a low cost-per-acquisition
Approach
Implemented Smart Bidding to optimise low performing DSA campaign
Worked to a competitive CPA target based on conversion history
Continuously optimised Target CPA (tCPA)
Results
554% more conversions compared to the previous period’s DSA campaign
90% increased conversion rate
33% lower cost per conversion

As one of the leading online travel agencies in Poland, FRU.PL makes it easy for customers to book airline tickets, make hotel reservations and rent cars. Recognised as one of the country’s fastest growing online travel agencies, the Warsaw based business has won multiple awards.

With a strategy heavily focused on Search and looking for ways to increase traffic, the company began targeting long tail search-terms using Dynamic Search Ads. It launched a campaign designed with conversion volume and CPA — its two most important KPIs — as central aspects.

For the first two months of the campaign FRU.PL was using Enhanced cost-per-click (ECPC) in an attempt to keep CPA as low as possible. However, over the course of this period it became clear that the performance was not meeting expectations. After being introduced to tCPA bidding as an alternative option, the team decided to test out this new bidding strategy to see if it could help improve campaign results.

tCPA is a Google Ads Smart Bidding strategy that automatically sets bids designed to achieve as many conversions as possible. The advertiser assigns a target cost per acquisition and Google Ads works to keep the average cost per conversion at this level. Using advanced machine learning, bids are optimised based on historical information about the campaign as well as real-time contextual signals detected at auction-time. The optimal bid is then offered for each ad, every time it’s eligible to appear.

“Dynamic Search Ads helped us to fill the gaps in our campaigns. We increased campaigns' coverage by using long-tail search terms and as a result it has brought us additional 15% of traffic and 18% of conversions monthly,” says Veranika Radecka, SEM & Performance Marketing Manager of FRU.PL.

FRU.PL calculated a competitive tCPA based on its account’s historical conversion data. With such an emphasis placed on maintaining a low CPA, the team kept a close eye on this figure, regularly optimising it throughout the campaign to ensure the best possible results.

The shift from ECPC to tCPA instantly paid off for FRU.PL, generating a 90% increase in conversion rate while conversion volume skyrocketed by a massive 554% compared to the previous period’s DSA campaign. In addition to this, the CPA actually decreased giving the business a 33% lower cost per conversion, with this boost in performance helping to reinvigorate the company’s campaigns.

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