RAC
- Quote
- “This prolonged test secured our confidence in the automation available within SA360 and is proof that its machine learning algorithms are capable of working with and enhancing a robust promotional strategy.”
-
27%
Revenue increase -
30%
Conversion rate increase -
4%
ARPU increase -
14%
ROAS increase
Overview & key takeaways
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Viverra aliquet eget sit amet. Donec pretium vulputate sapien nec. Ornare lectus sit amet est. Viverra ipsum nunc aliquet bibendum enim facilisis gravida neque convallis. Nunc faucibus a pellentesque sit. Eget mauris pharetra et ultrices neque ornare aenean euismod. Ac turpis egestas sed tempus urna. Sed lectus vestibulum mattis ullamcorper velit sed ullamcorper morbi tincidunt.
Services
Experience & Commerce
Industry
Automotive
Market
Europe
Tech Partners
Adobe
The challenge
Historically, RAC had relied on intraday bidding combined with manual cost-per-click (CPC) to drive online sales revenue, a strategy validated by internal tests in ’21 and ’22 that outperformed auction-time bidding (ATB). While concerns about past underperformance led to hesitancy in adopting ATB, particularly during key sales periods, RAC decided to leverage advancements in Google’s real-time bidding and run a structured, low-risk test to reevaluate its potential.
The approach
RAC tested to see if combining ATB with value-based bidding (VBB) would drive stronger performance and efficiency than its existing paid search strategy. It primarily measured success through improvements in average revenue per user (ARPU) and return on ad spend (ROAS), with secondary goals of increasing conversion rate and high-intent traffic volume. It deployed multiple 50/50 tests across high-volume campaigns, comparing the ATB+VBB model to the baseline. Performance analysis focused on cost-per-acquisition (CPA), revenue, and bid efficiency.
Merkle supported end-to-end test design and execution, selecting the right campaigns, configuring SA360 split tests, and aligning Floodlight conversion values with business goals.
The outcome
The results were decisive. Campaigns using tROAS with ATB and Floodlights performed better than those using tROAS with intraday bidding or manual bidding with intraday. This held true during critical sales events and regular business periods. The company saw a 27% increase in revenue, a 30% increase in conversion rate, a 4% increase in ARPU, and a 14% increase in ROAS. As a result, RAC decided to implement ATB-powered value-based bidding as its default strategy for performance-focused paid search campaigns.
- Jake Quote
