After working with InsureandGo for almost a year, there was a mutual feeling that the account could get more bang for its buck and together we decided to undertake a different approach for 2015, moving the focus from revenue, to improving ROI.
InsureandGo increases revenue and ROI with Bing Ads
InsureandGo’s strategy had previously given them phenomenal success generating high revenue in 2013; however in 2014 revenue declined 8% despite costs increasing by 18%. This was not a sustainable model and we needed to act fast in to bring the account back to a more profitable level.
The predominant issue and cause of the cost increase was the dependency on the one exact match term. Despite optimising the account into a highly granular structure split by keyword theme and pushing areas with lower cost per acquisition, we still found that the majority of traffic was coming from the term [travel insurance]. This term bought in over 60% of non-brand revenue in 2014 - a statistic that could not be ignored! We found that bidding on this term was common practice with other insurers which meant the area was highly competitive with eight domains having an impression share greater than 50%. This made [travel insurance] the source of a bidding war.
It was time to take a step back and innovate whilst still capitalising on the revenue that this core term could generate.
Improve efficiency of the campaign and aim to improve the ROI;
Maintain similar levels of revenue from the previous year.
There were three core pillars that we needed to focus on to achieve our objectives:
1. Ad Position
The first priority was to lower the target ad position as maintaining a consistent position of 1.1 had become extremely expensive. We had undergone a series of testing during the low periods of demand, incrementally decreasing bids and subsequently lowering out ad position to find the optimum position that achieved the most efficient cost per conversion whilst maintaining volume; this was position 1.6.
2. Splitting by Age Demographic
We saw that performance varied significantly for each age range and knew that each had different priorities when it came to choosing insurance policies. With this in mind we created an Exact Match Campaign for each age range (and unknown) using demographics for search. This not only enabled us to tailor our ad position target for each age group but also allowed us to apply bid adjustments at device, gender, location, & time of day level that were specific to the user.
We tailored our ad copy to suit the needs for each age range:
18-24 age range copy:
35-54 age range copy:
65+ age range copy:
3. Continue to test & learn
We were continuously aware that with such a core focus on ROI, there was a risk of losing sight on the total revenue that the account generated. Experience had also taught us that seasonality has a huge impact; what may work in June may not work in November. With that in mind we had always planned to reverse some of our changes in Q4 and bring the focus back to revenue.
We succeeded in sustaining revenue and making an enormous annual saving on click spend for 2015!
We saw a huge improvement across all ranges:
The 18-34 age range saw an 82% increase in transactions from Q1 to Q2.
The 45-54 age range saw transactions increase by 76% and conversion rate by 29%.
We found that the 55-64 and 65+ age ranges had the lowest ROI, which we were able to improve by reducing ad position which increased conversion rate by 20% & 19% respectively from Q1 to Q2.
Q1 was a resounding success as were still able to increase revenue by 9% despite reducing costs by 22%, thanks to a 21% drop in CPC, which for [travel insurance] saw a £1.04 reduction. We knew however that maintaining this success would be a challenge in the peak season; typically we would see a decline in ROI for the summer months as competition would increase. Despite our doubts, we were able to maintain and improve on our results, achieving 131% increase in ROI year on year for Q2 & Q3!
The fantastic results meant that we had reached our objectives and ended the year with a ROI improvement of 108% year on year. We hit similar levels of revenue but saved 30% of the total cost, putting us in the optimum position for 2016 and enabling us to bring the focus back to growth but without losing sight of efficiency.
Quote from the client
“There was a core weakness in our marketing strategy, which had been apparent for a few years, that aggressive bidding in the PPC market was increasingly putting all of our eggs in one massive (and massively expensive) basket. With this in mind we have been increasing our spend on non-PPC media and, in engaging Periscopix as our PPC agency, one of our ambitions had been to improve targeting and focus on performance, while not losing sight of our main goal (which is, quite simply, to increase profitable revenue).
With an understanding of our goals, and their obvious talent in finding better ways to achieve them, we have been able to move away from our aggressive strategy, to one which benefits the business and has improved bottom line results, while not losing sight of the top line. With their approach I feel confident that working alongside Periscopix can enable us to improve further on these results and have a more sustainable business, less vulnerable to our rivals whims and fancies, to ensure healthy progress for us as a business.”