Founded in 2005 in Berlin, Chal-Tec is a globally active ecommerce company. A team of more than 500 professionals combines ecommerce know-how, innovation power, and a passion for product development. This is the basis for Chal-Tec’s leading position as a brand incubator. Chal-Tec develops and distributes a wide range of product categories: their assortment includes everything from kitchen appliances and internet radios to air conditioners and treadmills. Each shop and brand has something special to offer for its specific target group.
But it’s not only the product portfolio that is diverse: the company is complex and flexible, using different sales channels, shops, and marketplaces to stretch across Europe. The largest and most famous platform is Electronic-Star.com, offering more than 7,500 products. Other top shops include Klarstein, auna, Numan and Capital Sports, which together reach customers across 21 countries. Advertising the products via AdWords has become crucial for Chal-Tec, and that’s where Whoop! comes into play: Whoop! helps the Chal-Tec team generate Google Shopping campaigns for new target markets and optimize product CPCs internationally.
Google Shopping Optimization
Google Shopping is a rapidly growing ad format favored for its exceptionally high ad relevance. Adjusting campaigns and CPC bids accurately, however, is a huge challenge. That’s why the Smarter Ecommerce team developed a machine learning algorithm capable of predicting the performance of single SKUs and adjusting product CPCs automatically. The algorithm relies on historical data in the Chal-Tec AdWords account to detect correlations between product attributes and the conversion rate potential. Performance predictions and bids are thus custom-fitted to any given account. Additionally, new, highly-granular campaigns are generated which allow for product-specific bid adjustments.
“When comparing bid management systems for AdWords, we noticed a big gap in controlling the bids of Google Shopping. Most providers are specialized in Google search and are having a hard time with the Google Shopping channel. With Whoop! we have found a provider that specializes exclusively in this channel and is therefore innovative and not biased by outdated ways of thinking.”
— Philipp Ballstaedt, SEM Manager, Chal-Tec GmbH
Apart from bid management automation, cooperation and mutual trust are key elements for success. That’s why our customer success managers support Chal-Tec SEA managers with workshops and recap calls. We use these exchanges to recommend bid and campaign settings for long-term success. Thanks to 10 years of AdWords experience, our clients see us as an equal, strategic partner.
Being an ecommerce pure player, it is of great strategic importance for Chal-Tec to optimize all online marketing channels. That’s why search marketing has become a central element of the corporate strategy. Apart from Google Shopping and Google search, remarketing, social media, price comparison platforms and affiliates are all must-haves for Chal-Tec. Over the years, the importance of Google Shopping has increased for the business — today it is one of the most central advertising channels for Chal-Tec. Adjusting bids for all products and target countries, however, proved to be a complex and time-consuming undertaking. That’s where Whoop! stepped in.
Since we began collaborating with Chal-Tec in March 2016, the campaign performance improved significantly, the number of supported web shops increased, new target markets were entered, and their efficiency multiplied. The outstanding cooperation and communication paid off quickly. ‘Klarstein’, for example, saw very successful scaling in a key target market: the shop gained 144% more clicks with the same cost ratios within the first 30 days using Whoop!. Similar results could also be observed across other markets and shops.
“For one thing, there is less time required from individual PPC managers, who can now focus on more creative tasks and strategic measures. On the other hand, the relief lies in the optimization itself. Whoop! reacts rapidly and considers numerous factors when adjusting bids.”
— Philipp Ballstaedt, SEM Manager, Chal-Tec GmbH
This performance improvement could be achieved through an ideal combination of our machine learning algorithm and clever bid strategy settings by Chal-Tec. Whoop! updates campaigns and adjusts up to 98,000 bids on a daily basis. In practice, this saves a tremendous amount of time for the Chal-Tec team, which can be used for strategic issues instead. This in turn has a positive impact on performance. Without trust and good collaboration, this success would not have been possible.
What will the future bring? Besides strengthening their market position in Europe and increasing the popularity of their bands, the Chal-Tec team has a special goal for the future: optimizing AdWords text ads with our AdEngine.
As a Google Premier Partner, Whoop! has met Google’s highest standards for client revenue growth and client retention. That’s why Google was glad to team up with Whoop! and Chal-Tec to make a video showing the high potential for success when AdWords efforts are supported by a strong partnership. Visit our website to learn more about Whoop! and AdEngine.