Lowe’s is a global leader in home improvement and hardware with over 2.3K stores across the US, Canada and Mexico. They manage an impressive e-commerce site that was ranked no. 27 in the Internet Retailer 500, and needed a partner to scale their e-commerce business with Facebook advertising.
Lowe’s and their digital marketing agency, Resolution Media, sought to utilize Facebook’s Dynamic Ads to connect their large product catalog to each unique online shopper with relevant and timely product ads. Resolution Media started with a small test budget and saw immediate success!
The team then set a goal to scale their Facebook Dynamic Ads program spend by five times the initial investment. However, without additional resources on the team, this goal could prove to be a challenge.
Resolution Media decided to leverage Kenshoo’s Portfolio Optimization (KPO), which uses sophisticated algorithms built on top of Facebook’s technology to automate bid and budget optimizations on an hourly basis. The ability to efficiently scale the campaigns allowed Resolution Media to spend more time strategizing, and better personalize the shopper journey.
Additionally, the team leveraged Kenshoo’s custom metrics to calculate the true return on investment (ROI) goal for their campaigns. For Lowe’s, ROI is a blend of 100% click-through-revenue and 50% view-through-revenue, over cost. By using this calculation, they are considering the value of impressions over basic conversions without stealing value from click-through-conversions. The team relied on the Facebook Pixel to track conversions (completed purchased) and revenue (cart total).
As a result, Resolution Media was able to add 6X more campaigns with zero additional time spent and grew daily budget 5X. Using Kenshoo features, Resolution Media drove $6M in revenue for Lowe’s, and an 11% increase in retargeting reach during a 6-week heavy up test! Quarterly revenue grow by 31% on average in 2016, and the Dynamic Ads Program in Kenshoo drove $7.1M in revenue during Cyber Monday weekend alone.
Most recently, Lowe’s had set a goal to significantly increase site traffic. Since then Resolution Media has boosted clicks by 8.7% QoQ, while decreasing CPC by 2.8%. As agile marketers, Lowe’s and Resolution Media are constantly evolving and improving their digital marketing strategy.