Engagement/Challenge
In April of 2008, Signature Styles Inc, a leading fashion retailer, commissioned Rise Interactive to manage their online banner advertising campaigns for their Spiegel and Newport brands. Prior to the engagement, Signature Styles managed all display advertising campaigns internally. They contracted Rise Interactive to help lower campaign costs and reach their return on ad spend requirement.
The Solution
In an effort to reduce Signature Styles’ media costs, Rise Interactive’s first priority was to re-negotiate their previously purchased media buys. By leveraging our existing relationships with the various ad networks, Rise was able to reduce Signature Styles’ cost-per-acquisition (CPA) across all platforms, thereby increasing the opportunity to improve campaign ROI.
Results
When Rise first began managing the online programs, Signature Styles was paying for 75% of all post-view conversions that took place. The agreement to pay less than 100% of post-view conversions was based on the fact that both Signature Styles and the ad networks agreed that duplicate conversions existed and it would not be fair for Signature to double pay when only one sale actually took place. Upon building enough historical data and conducting a thorough analysis of the duplication rate, Rise realized that in fact only 25% of the post-view conversions were non-duplicates. With this information in hand Rise was able to negotiate that Signature Styles only pay the ad networks for the value they were truly providing, which meant reducing the post-view conversion payment rate from 75 to 25 percent. This cut Signature Styles media cost substantially leading to a significant increase in return on advertising spend.
Additionally, by re-negotiating Signature Styles’ media buys and expanding their reach, Rise has lowered each brands CPA. Spiegel has seen a 33% decrease in overall media cost and Newport reports a 30% decrease.
The successful execution of the above has resulted in an increased profit margin and return on ad spend each month for every campaign Rise manages on behalf of Signature Styles.
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