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SEM Case Study

  

Industry: Officially licensed entertainment industry products

 

Sector:  B2C

In October 2007, GDMI was approached by the World’s largest online distributor of officially licensed entertainment industry products (examples of which are pop culture and major motion picture merchandise and clothing) with the purpose of outsourcing the management of the largest paid search campaign in its industry.

While the campaign was extremely successful, the management of this campaign was taking a considerable amount of time and effort due to the competitive nature of the industry and the slim margins.

GDMI was contracted to manage the paid search campaign with the twin goals of increasing the volume of qualified traffic to the website while driving down the cost per conversion.

The nature of the campaign was complicated by a number of issues:
  • The average sale value was low, under $30, thereby leaving little room for maneuver.
  • With low barriers to entry, this is among the most competitive industries online.
  • A significant portion of the industry is event driven and dynamic, responding to major events in popular culture (movies, TV events, etc) and celebrity endorsements.

The approach to the challenges that GDMI undertook was a multifaceted one.

First, to overcome the issue of the low average sale value, a variety of incentives were put in place to increase the average sale value (by increasing the number of items purchased in each individual sale). Over a 5-month period, this led to an increase in sale value from under $30 to over $50, a 70% increase in revenue per sale.

Continuous monitoring and adjustment of the campaign led to a reduction in the cost per conversion of 30% over the same period.

Further, the budget was increased over this period to double the original monthly budget with no adverse effects. This campaign has proven so successful that GDMI has expanded the campaign beyond the US borders to Canada, Europe and the Far East. The results from the overseas campaign have kept pace with the improvements in the US campaign, allowing the client to become a truly global business.

Contact us today to learn how GDMI can partner with you.