Carpetright’s Dynamic Search Ads improve revenue while halving ad spend

Operating in a competitive area of retail, Carpetright wanted to improve advertising efficiency, reduce cost per click, and take advantage of opportunities to personalise the brand’s marketing messaging. Carpetright’s agency, Zenith and Performics, recommended implementing a Dynamic Search Ads campaign starting with one product category: laminate flooring. After just one month the campaign drove significant results.

About Carpetright

Retailer of beds, mattresses, carpets, laminate flooring, vinyl flooring, and rugs

Headquarters in Purfleet, Essex, UK

Founded in 1988

Goals

Improve advertising efficiency

Reduce cost per click

Personalise marketing messaging

Approach

Implemented Dynamic Search Ads

Results

11% increase in revenue at 48% lower spend in just two weeks

63% lower cost per online sale and 166% additional revenue after one month

Carpetright and Zenith elected to try Dynamic Search Ads since these campaigns use an advertiser’s own website to target ads and help fill in the gaps in keywords-based campaigns. This means that when a person searches on Google with terms closely related to titles and phrases appearing on Carpetright’s website, Google Ads uses those titles and phrases to select a landing page and generate a clear, relevant headline for each ad.

By activating Dynamic Search Ads, Zenith significantly increased the variations of messaging served in Carpetright’s ad copy, generating a broad range of headlines and calling out product information that would otherwise require significant manual resource.

At the same time, the new campaign generated incremental reach, effectively capturing more relevant queries than had been possible through the existing keyword list.

In the month after launching the Dynamic Search Ads campaign, Carpetright and Zenith watched the cost per click fall steadily day by day. Once it stabilised, the cost per click was approximately 48% cheaper than equivalent generic campaigns for relatively similar positions.

“Dynamic Search Ads’ ability to use the URL as a source of capturing traffic is very effective, and has driven just over double the number of clicks to the site in just one month compared to what the generic campaign had generated in seven months.”

– Jane Cronin, Performance Media Account Director,  Zenith

Beyond these gains in cost efficiency, the new approach also delivered impressive improvements in revenue and return on investment. Compared against the year-to-date performance of generic campaigns for laminate flooring, Dynamic Search Ads drove 11% more revenue in just two weeks.

After a month, the cost per online sale for Dynamic Search Ads came in at 63% lower than the overall generic campaigns for laminate flooring and generated 166% additional revenue, and after three months, it generated 9,329% additional revenue and 58% higher ROI.

“As well as improved return on ad spend and cheaper cost per click than the equivalent standard generic campaigns drive, we were particularly impressed with the significant increase in reach and thereby traffic to site, all at efficient cost.”

– Jane Cronin, Performance Media Account Director,  Zenith

Following these successes, the team expanded Dynamic Search Ads to three more product categories. Today, 40% of total search spend on product campaigns goes to Dynamic Search Ads.

This approach has been particularly useful in promoting products that previously struggled for volume, such as engineered wood flooring. In less than two months, Carpetright’s Dynamic Search Ads for engineered wood more than quadrupled the combined year-to-date impressions of equivalent brand and generic ads.

With the ultimate goal of driving performance efficiencies and increasing the return on investment, the initial implementation of Dynamic Search Ads has surpassed expectations. Looking ahead, the outstanding results are informing Carpetright’s future marketing strategy, and with data-driven attribution showing 17% better return on investment than last-click attribution, the team plans to invest more towards Dynamic Search Ads.

Upcoming plans include extending the approach to more product categories across Carpetright’s inventory, making Dynamic Search Ads part of their always-on Search strategy, and serving Dynamic Search Ads to key audiences such as returning visitors and visitors to specific product pages.

Kelkoo Group dramatically increases their clients’ traffic with Shopping Ads