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Testing with different campaign goals in DV360 resulted in conversion uplift and lower CPA for Cadac Group

Running multiple experiments in DV360 to test which campaign goal would provide the best results proved that the custom goal, where conversions were given different priorities, yielded results that were so good that Cadac Group implemented it globally on all campaigns. The case is nominated for a Dutch Search Award 2022. 

Challenge

Cadac Group, the CAD (computer-aided-design) -software market leader in the Benelux is also one of the world’s most respected resellers of Autodesk products. Running cross-channel campaigns on display, their goal is to get purchases at the lowest possible Cost Per Action (CPA).  

That takes constant optimization, and ending up with fewer conversions at a high CPA, Cadac Group turned to a Cost Per Click (CPC) bidding strategy instead, which increased the number of clicks but decreased their level of quality. The result was fewer conversions and a growing CPA. So we wanted to find a better solution.   

Approach

Targeting audiences from website visitors to abandoned basket users, we developed two custom bidding strategies and tested them against CPC. A key pillar of success for Cadac is revenue, so in a baseline experiment we build an algorithm that optimizes towards the highest possible revenue. This bidding strategy was tested against an algorithm that steers toward CPC. We expected the results to be no better than the results of the conversion bidding strategy, because the algorithm would have too little data available.  

For a second experiment – set up specifically for the Dutch market, but built to scale – we developed a custom bidding goal and gave conversions different priorities. The expectation was that this advanced bidding strategy would increase the number of transactions and sales.  

Results

The results showed that our first hypothesis was on point. The CPC target achieved 65 % more conversions, the conversion rate (CVR) was 32.34 % higher, and the CPA was 56.72 % lower than the custom revenue target. The hypothesis of the second experiment was that the custom goal, in which all conversions were prioritized, would outperform the CPC goal. Tremendous results proved that this was indeed the case: an uplift of 333.33 % in the number of conversions, an increase in CVR of 58.71 %, not to mention a decrease of 76.91 % in the CPA compared to the CPC goal.  
 
As a result, the custom conversion goal has now been implemented globally for all retargeting campaigns in DV360. And the results are in: the number of transactions have increased by 180 %, revenue increased by 260 % and CPA decreased by 33 %. Secondary metrics such as CPC (down 77 %) and CPM (down 77 %) have also decreased globally. From the CRM system it appears that more conversions have come in by display marketing activities, and we’ve seen an uplift in website traffic.