Anyone looking for innovative consumer electronics, contemporary brand products for the home office and smart home, or even environmentally friendly household appliances will find the right product in the wide range of MEDIMAX stores.
Until now, Medimax has mainly used Google Ads to measure the performance of its online advertising, e.g. B. the return on advertising spend (ROAS). However, the marketing team felt that sticking to a high ROAS could result in lower overall revenue growth, so they wanted to correct possible inconsistencies between the planned internal cross-channel approaches and the online KPIs. In addition, the company worked with fixed monthly budgets.
This approach should also be reassessed in order to be able to record all relevant inquiries every month. The traditional budget setting is no longer suitable in view of the change in the digital world, in which users are constantly online. The company also wanted to use online marketing to increase the number of visits to the store.
With Google Store Visits, advertisers can record exactly how many visits to the store occur after clicking on the corresponding digital search ads. With this new measurement method, Medimax found that over 14% of all clicks resulted in a visit to one of the company’s branches.
Using the new measured values, Medimax was able to calculate the ROAS across all channels, i.e. online and offline, and thus precisely determine the impact of the investments in online search on business operations. These data formed the basis for new strategies. Initially, the company defined a unified goal to measure the impact of advertising on the search network on online and offline activity. The offering for mobile devices has also been revised as they play an increasingly important role in increasing online sales and in-store visits. Instead of the fixed monthly budget, the amount of the budget should be defined taking into account the search queries carried out.
In other words: profits should no longer be determined by budgets, but vice versa. Finally, the company made a distinction between campaigns for products that users are more likely to buy online and those that are more likely to be purchased in-store. Separate bids were set for each type of campaign and their own optimization strategies were assigned.
The new approaches immediately had an enormous effect. Almost 60% of all store visits are now made after clicking on a mobile ad. More than 20% of users who click on an ad within a 5 km radius of a market then visit it. The estimated sales generated by visits to the store are now twice as high as online sales. The cross-channel ROAS is three times as high as the e-commerce ROAS.
This new approach from Medimax not only led to more visits to the store, but also to a significant increase in sales for all channels. Medimax no longer treats e-commerce and in-store sales as separate issues. The company now advertises on all channels and uses cross-channel KPIs.