The challenge
THG encountered significant challenges when leveraging Google’s Performance Max (PMax) campaigns for their flagship LOOKFANTASTIC store. The company struggled with efficiently managing their vast, high-quality product offering within Google’s highly automated ‘Black Box’. The main issues were:
- A lack of granular item-level control, leading to inefficient budget use, as well as –
- excessive manual work to optimize PMax, which consumed critical time better spent on strategic planning.
THG needed a strategy to steer PMax’s algorithm towards:
- Their strategically important brands and products.
- Customized campaigns that match the unique characteristics of the LOOKFANTASTIC store.
- The most cost-efficient warehouse locations to ship their products from. *
*Curious how LOOKFANTASTIC streamlined their warehouse logistics through PMax? Read the full case study!
The solution
By leveraging smec’s Campaign Orchestrator, THG transformed their PMax campaigns, achieving sustainable revenue growth – from LOOKFANTASTIC across all their ‘Beauty’-Shops – and a scalable campaign structure that’s perfectly aligned with their business goals.
- Our Campaign Orchestrator helped THG to strategically segment their extensive product catalog by utilizing Dynamic Segments based on multi-dimensional data points. This allowed them to give their strategically important brands and products the time to shine.
- Highly optimized and targeted ad placements maximized conversions and prevented overlapping ads and brand cannibalization across different THG stores.
- The integration of warehouse logistics streamlined ad placements based on cost-efficient shipping locations from specific regions, enhancing overall profitability.
The results
Our collaboration led to a stunning growth for LOOKFANTASTIC, with an astonishing +39% revenue increase in the key German market.
THG and LOOKFANTASTIC were able to:
- Regain control over their PMax campaigns and achieve their business objectives across all their ‘Beauty’-Segments.
- Efficiently push the products and brands key to their business identity to the forefront.
- Optimize product promotions based on cost-efficient warehouse logistics, improving their campaign efficiency and increasing overall profitability.
Better yet: Our partnership freed THG’s in-house team from time-consuming, error-prone manual tasks, allowing them to focus on their primary, strategic business goal: elevating LOOKFANTASTIC’s key brands and boosting the store’s market leadership.