Halebop is a Swedish mobile telecom operator that wanted to gain competitive advantage. It used paid search advertising through Google AdWords as well as display ads on the Google Display Network to ensure its messaging appeared in front of the right consumers. Halebop then executed an econometrics analysis to understand the impact of its online advertising on sales.
The Swedish mobile telecom industry is in a mature state. It currently consists of five big players, all of which have a significant media budget. Halebop is a smaller operator that looks to gain competitive advantage in this space. In order to succeed, Halebop understood that it needed to make communication investments that were both effective and efficient.
Halebop knows that offline ads can provide high-impact bursts, but they are expensive. On the other hand, it’s possible for a brand to have continuous low-cost presence with online ads. Online also lacks the lag effect of traditional advertising, whereby consumers recall an ad some period of time after viewing it. For this reason, online ads tend to be better at driving immediate purchases.
With this in mind, Halebop opted to use paid search advertising through Google AdWords. The aim was to ensure Halebop ads appeared in front of the right users, based on what they were searching for and watching. Alongside this search activity, Halebop also invested in display ads through the Google Display Network.
Halebop completed an analysis to understand the impact of its online advertising on sales. The study used econometrics, the art of measuring marketing activities using mathematics, statistical models and economic theory. The study included factors that could be controlled (such as media campaigns) as well as factors that were uncontrollable (such as competitor activity).
The research revealed that paid search is Halebop’s star performer. This channel delivered 41% of Halebop’s orders based on 14% of its media spend. In contrast, TV delivered less (35% of orders) while costing three times more (49% of spend). Meanwhile, Halebop found a correlation of 60% between online sales and Google display ads.
Finally, Halebop discovered that understanding AdWords synergies could make its search activity even more effective. The company saw an 11% increase in traffic from its own campaign, but by maximizing AdWords synergies it managed to increase its own web traffic by 13% during competitor campaigns.
With this savvy combination of an always-on strategy for paid search, the use of Google display ads near the moment of purchase and effective AdWords synergies to capitalize on competitor campaigns, Halebop proved that spending smart is often better than spending big.