How SEARS Uses Product Listing Ads - PLAs - To Boost Sales

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Smx West 2014 Session #Smx #32B - Power Boosting Sales With PLAs presentation How Sears Uses Product Listing Ads - Plas - To Boost Sales By Ornpaka Vudhikosit @Tong_Orn Of Sears Hometown And Outlet …

Smx West 2014 Session #Smx #32B - Power Boosting Sales With PLAs presentation How Sears Uses Product Listing Ads - Plas - To Boost Sales By Ornpaka Vudhikosit @Tong_Orn Of Sears Hometown And Outlet Stores

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  • 1. Power Boosting Sale with PLAs Ornpaka (Tong) Vudhikosit The following represent the views and opinions of the presenter, not that of Sears Hometown and Outlet Stores, Inc., or its affiliates.
  • 2. 2 Agenda • PLA Profit Maximization Goal • Profit Maximization Example • Results #SMX
  • 3. 3 PLA Profit Goal ROAS = Online Revenue / Advertising Spend #SMX
  • 4. 4 PLA Profit Maximization Example Note: The number above is only for illustration purpose #SMX
  • 5. 5 Optimal Return #SMX
  • 6. 6 How to apply the concept of product/ category profit maximization? 1. Obtain historical data of average CPC, spend, clicks, and online sale 2. Determine offline impact to from your online sale (if any) 3. Understand related adjustments and expenses 4. Test Target ROAS/CPC at different level of bidding/spend #SMX
  • 7. 7 Campaign Structure Example Women Dress Price Per Unit Over $100 Plus Size Seasonal Dress Others High Margin Target ROAS = 2.5 or CPC=$1.0 High Margin, Low Competition Target ROAS = 3 or CPC=$0.75 Medium Margin Target ROAS = 5 or CPC = $0.50 Low Margin, Target ROAS=10 or CPC=$0.20 More Aggressive Bidding Less Aggressive Bidding Note: The number above is only for illustration purpose #SMX
  • 8. 8 The Results Note: The number above is directional not actual. #SMX