Media Markt opened its doors in Munich in 1979, selling every kind of home electronics product under one roof. The brand subsequently expanded to serve tech fans across 14 European countries. Media Markt entered the Turkish market in 2007 and now operates 39 stores across the country.
Approach
Launched campaigns in AdWords and on the Google Display Network
Created campaigns using Shopping ads, Dynamic Search Ads, and Dynamic Remarketing
Ran YouTube campaigns alongside traditional TV advertising
Created special online campaigns to drive profitability after hours and on products with limited stock
Goals
Drive return on investment and brand awareness
Results
Search and display campaigns drove tenfold improvement in profitability with no increase in costs
YouTube activity increased profitability by 60% and visitors by 40%
Decreased conversion cost by 85%
Increased conversion rate threefold across all accounts
Across all accounts, revenue volume is up by 510% and profitability by 550%
Savvy approach to search and display
While Media Markt focused on offline retailing in the past _ using standard online tools only for brand awareness and traffic measurement _ the strategy now is to offer multiple customer touchpoints across all channels at all times. On the basis of advice from performance marketing solutions partner Clixous, Media Markt started a comprehensive restructuring effort within Google AdWords. The goals were to drive return on investment and brand awareness.
By using Google media concurrently, we reach the right audience with the right communication and therefore increase brand awareness and achieve our sales and profitability targets.
Ñmer Kurukaya, Digital Marketing Manager, Media Markt Turkey
Using AdWords' advanced targeting and optimisation features, Media Markt initiated search and display ads as part of its retailing strategy. "We started placing advertisements on Google search results for both generic and brand queries on our products," says Digital Marketing Manager Ñmer Kurukaya. "We used the Google Display Network for targeted content campaigns that would strengthen our brand perception and enable us to communicate with our target audience." This also enabled Media Markt to develop and expand its remarketing lists.
Intelligent analysis of user habits helped to refine the campaigns. "Generic search (such as "LED TV') and brand specific search (for example "Sony LED TV') provided us a lot of consumer traffic and revenue volume. However, since our primary goal was to maximise profitability, we scrutinised the search queries in addition to the keywords in our ad groups." As a result, Media Markt determined that the most profitable revenue stream originated from queries for brand/model, such as "LG 42LB620V'.
With these insights, Media Markt took its activity a step further. "We developed a specific strategy and campaign setup for brand/model searches that were closest to the end of the purchasing cycle. Moreover, we supported these with Shopping ads, Dynamic Search Ads and Dynamic Remarketing campaigns. As a consequence, our profitability increased tenfold while our costs remained the same."
Bringing the brand story to life on YouTube
Media Markt created masthead and TrueView ads for YouTube, and ran these campaigns to coincide with commercials running on traditional TV. The television ad, Google Search Ads and Media Markt's YouTube channel drove users to a landing page on the brand's website.
"We then created custom AdWords remarketing lists and targeted consumers again," Ñmer explains. "Additionally, we placed our ads on the Google Display Network, using interests and placements as targeting options. By using these AdWords targeting options, we increased our profitability by 60%. Our visitor numbers also increased by 40%. One of the main secrets of our success was using a range of media concurrently, supporting each other."
Reinventing
Media Markt also runs special online advertising, the Night Owl and Internet campaigns, to offer discounts to consumers. "Night Owl is a campaign that we run overnight for customers who want to shop for discounted products via our website after Media Markt retail stores are closed for the day," Ñmer says. "It is designed with the objectives of attracting customers to the ecommerce site after hours and turning these hours of low revenue and traffic into an advantage." The Night Owl campaign operates nightly from 10pm to 5am on search, the Google Display Network and Gmail Sponsored Promotions ads simultaneously to produce a cumulative branding effect. In a typical two-day period, these campaigns constitute 30% of Media Markt's visitors and 36% of average revenue.
The account is structured to be ROI-friendly by taking into consideration parameters such as category tree, products, users' search trends and habits, deals, competition and seasonality.
- Mehmet Şahinoğlu, Managing Director, Clixous
The Internet campaign meanwhile offers products with limited stock levels at discounts on the website. "Similar to Night Owl, we use all Google media concurrently to support each other. We target specific users by customising the Internet campaign with mobile-only offers and search remarketing. The Internet campaign constitutes 10% of our visitors and 15% of the average revenue."
The results
According to Ñmer, these smart tactics have produced outstanding gains. "By using Google media concurrently, we reach the right audience with the right communication and therefore increase brand awareness and achieve our sales and profitability targets. Since we began working more efficiently with Google products through Clixous in 2013, our revenue volume increased by 510% and our profitability grew by 550% across all accounts. We decreased our conversion cost by 85% and increased conversion rate threefold across all accounts."
