Case Studies
Westerware
is a small affiliate marketing business based
in Stockholm, Sweden. At www.webshoplinks.com,
the company markets products like Oreck vacuum
cleaners and FranklinCovey day planners, for
a commission.
Objective
Westerware spends around $3,500 a month
on search engine advertising. They have
approximately 35,000 keywords that require
a lot of administration. The company wants
to grow its business, and spend as little
time as possible on everyday management
of existing advertising efforts
Solution
Westerware has chosen Dynamic
Bid Maximizer™, automated
Pay-Per-Click (PPC) bid management tool
in order to manage their online campaigns
in the most cost-effective way.
"Both Google and Overture automatically
adjust your bid down to just one cent above
your nearest competitor. However, some of
the major search engines like Enhance may
leave a bid at $0.15 or higher, even when
there is no other bidder. With Bid Maximizer,
we never bid more than absolutely necessary,
which saves a lot of money over a month.
Also, Bid Maximizer allows us to target
other positions than just to be the top
bidder. Going for number 2 or 3 can be very
profitable, and still give you a lot of
clicks", says Magnus Wester, the Managing
Director of Westerware.
|
|
|
Results
Dynamic
Bid Maximizer helped the company to save
its advertising money and hours of time they would
have wasted without using the software.
"With Bid Maximizer, the average cost-per-click
in Overture was reduced from 0.22 to 0.14 (30%).
Over the same period, the gross margin (sales
commissions minus advertising costs) for Overture
improved from 53% to 67%," says Magnus.
"Since Bid Maximizer is a Windows tool,
it's very fast and easy to use. You can find a
specific keyword and change its bidding rules
in one tenth of the time compared to doing the
same thing directly on the search engine's web
site. Just for the ordinary maintenance of keywords
and bids I believe we save at least twenty hours
a month," says Magnus. "If you look
at all the 24 by 7 constant monitoring and automatic
bid adjustment provided by Bid Maximizer, well,
we'd never be able to afford to do that manually.
It's so amazing that you just set the rules for
it and it goes to work, relentlessly and persistently."
Making the right choice
"Some of the competitors are web-based,
which must be a real drawback in terms of speed-of-use.
Furthermore, Bid Maximizer support is formidable
and we feel we have even been able to influence
development of the product by describing our business
needs to the developers," says Magnus.
|
