Revolutionizing Apparel Paid Media Strategies: 798% ROI & 181% Revenue Growth Using The HVG Algorithm in Google Cloud
Revolutionizing Retail: How Our Custom Google Cloud Algorithm Boosted Apparel Client's Revenue by 181% and Achieved 798% ROI in 2 months
In the competitive world of digital marketing, especially for apparel and retail brands, where efficiency and strategy reign supreme, you have to be able to solve real-life challenges and set new standards for success. We recently partnered with a rapidly growing apparel retailer, operating across four markets, who faced hurdles in optimizing their paid media buying strategy according to their growth rates, growing pains are a real thing.
By leveraging our expertise in data-driven marketing, we crafted a solution that not only transformed their operations but also delivered exceptional results.
Identifying the Challenge
The apparel retailer was on a growth trajectory, expanding its presence in multiple markets and across more SKUs. However, the absence of a strategic foundation for media buying structure presented slower than desired efficiency.
The core issue was not in the digital side. It was in the warehouse, of all places.
But not in an obvious way, you see the client was selling, but they had a hard time controlling what SKUs they were selling more and less of.
So we connected the warehouse, with the digital marketing platforms, and informed Google Ads on key details such as stock levels on SKU sizes, stock duration, and sales velocity, the lack of that information to Google Ads was generating inefficiencies and missed opportunities.
The client relied on a "best practices" directly from Google's HQ, to have a consolidated Google Ads campaign for each market. We knew, that this was not the right approach in this particular instance, there was no meaningful segmentation. This structure hindered their ability to scale sales while maintaining their ROAS and Conversion Rates, it made it harder to manage slow-moving stock, and reallocate spending from high-demand SKUs to slower-moving items.
At that pace, the revenue targets they had set would be an uphill battle, not impossible, but much more expensive to achieve.
Crafting a Strategic Solution
To address these challenges, we developed a comprehensive strategy powered by our cutting edge marketing technology. Our solution integrated live data connectors into their business intelligence systems, seamlessly linking warehouse data and Google Ads through Google Cloud. This innovative solution provided real-time insights into sales velocity, stock duration, bestselling items, and predicted sell-out dates.
Our campaigns could now take informed decisions not just based on revenue targets, but on supply & demand from the market in real time.
By utilizing this data, we established a dynamic campaign structure that allowed for precise segmentation based on the client's unique needs. Our algorithm, combined with Google's native tROAS bidding solution, ensured our client's marketing efficiency and allocation of resources was beyond great.
One key breakthrough was our ability to update data within 24 hours, enabling swift adjustments to marketing strategies. By reallocating ad spend from high-performing SKUs to those with slower movement, we maximized profitability and unlocked new growth opportunities.
Remarkable Results and Lasting Impact
The results of our strategy, are pretty insane, keep reading.
These are all YoY (year over year) numbers:
Before we came in, they were growing revenue by 76.8% BUT with an ad spend growing at a rate of 156%, and a ROAS that was declining by 31%.
Again, all of these numbers are YoY:
After we came in, the client's revenue grew by 88%, BUT only at a 57% (compared to 156%) growth in ad spend. Conversion rates skyrocketed by 112%, and their Return on Ad Spend (ROAS) improved by 54.7%, climbing reaching a healthy 8.2 (from 5.3), we quickly got limited by budgets, we were performing better than they had budgeted for.
In their primary market, the impact was even more substantial.
Revenue grew by 180.7% year-over-year, with ad spend rising by just 108%.
And the ROAS saw an astonishing 56.5% increase, climbing reaching 9.7 (from 6.2).
The financial impact of our solution was equally impressive. The project resulted in a staggering ROI of 798% counting our fees, and the increase in Ad Spend.
Beyond the numbers, our collaboration has paved the way for future innovation. The retailer is now exploring how this strategy can extend into other paid channels and influence purchasing and pricing decisions. Their newfound efficiency has also led to the hiring of a dedicated full-time employee to manage their Google Ads strategy.
A Story of Success and Innovation
Our collaboration with this dynamic apparel retailer shows the power of actual data-driven marketing. By building a custom Google Cloud algorithm, we not only exceeded revenue and ROAS targets but also fostered a culture of innovation and efficiency.
As the client noted, "Their swift guidance and budget allocation secured a very strong result."
Looking forward, we envision expanding this success story to other e-commerce businesses with diverse SKUs, demonstrating that strategic, data-driven solutions can unlock unprecedented growth and sustainability.
In conclusion, our partnership with the apparel retailer showcases the immense potential of leveraging technology and data to revolutionize digital marketing, achieve remarkable ROI, and create a foundation for sustainable business growth.
This is the future of Google Ads. Input optimization.
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