STYLEPIT is an online retailer of fashion clothing based in Copenhagen. Guided by a performance marketing mindset, the company allocates the majority of its advertising budget to online channels that best deliver on two key performance indicators, return on ad spend and cost per acquisition.

The company began testing TrueView advertising on YouTube in the summer of 2014. “Initially, we saw YouTube mainly as a good channel for branding,” explains Head of Digital Marketing Bjørn Brok. “Due to the fact that we were in the middle of re-launching our brand it made perfect sense to add it to our marketing mix.”

Still from STYLEPIT campaign

The team soon realised YouTube’s potential for performance marketing, however, and decided to make full use of remarketing, placements, interest categories and topics on the platform. “Our remarketing setup on YouTube is built up around numerous campaigns that target users based on recency and position in the purchase funnel,” Bjørn says.

"We then ensure that the audience we value most gets the highest bids, budget and frequency. Basically we applied the same kind of logic that works well for us when remarketing on other channels. As with any remarketing program, the key is to ensure that those users who very recently abandoned your site with products in their cart are exposed to your marketing messages reminding them of their need and how your offerings will satisfy that need.”

Still from STYLEPIT campaign

Strategic marketing and optimisation

Systematic optimisations were central to the STYLEPIT approach. For example, placements that worked well were added to a whitelist, while those that didn’t work at all were added to a blacklist. Having segmented audiences to drive intelligent bidding, STYLEPIT also used customised companion banners for each different remarketing audience based on the pages they had visited.

Still from STYLEPIT campaign

These tactics helped STYLEPIT achieve more than 13,000 conversions. Bjørn believes the success of the activity extends even beyond the metrics, though. “We saw an uplift in volume of searches for our brand name in the period when we were making a significant burst on YouTube. This led to sales that might not have happened if YouTube had not been a part of the customer journey.”

Transition from TV to online advertising

Driven by these outcomes, STYLEPIT has moved a significant proportion of budget from TV advertising to YouTube. “We aim to be present with our marketing messages wherever our target segments spend their time. YouTube enables us to do this at a very low cost,”Bjørn observes.

“It’s has helped us reach our core audiences with rich media and thereby has given us the opportunity to differentiate our messages in a way that stands out a bit more compared to dynamic display advertising, which is usually very product driven. The next step for us is to start tailoring our video ads to the audience even more than we have done in the past. Through data mining in Google Analytics, we know a lot about the people who come to our site, and this should be reflected in the video ads they are exposed to so the ads are even more relevant.”