Stunning PMax revenue growth:

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:

1. A lack of granular item-level control, leading to inefficient budget use, as well as –
2. 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:

1. Their strategically important brands and products.
2. Customized campaigns that match the unique characteristics of the LOOKFANTASTIC store.
3. 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 data-driven software solution, 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 software helped THG to strategically segment their extensive product catalog based on their most critical business KPIs. This allowed them to give 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.