Case StudiesIncrease In Profit Margins With PPC

Increase In Profit Margins With PPC

Executive Summary

Safe.co.uk, the UK’s leading online security retailer founded in 2003, partnered with us in January 2020 to improve the performance of their long-standing Google Ads account. At the time, the business was facing significant disruption due to the COVID-19 pandemic, which reduced demand for key product categories, particularly safes and created a challenging environment for growth.

The account had also become highly complex and inefficient after more than a decade of management by multiple agencies, leaving it in need of a complete overhaul. Our primary objective was to increase actual profit (margin minus ad spend) while adapting the strategy to a reduced level of demand across the business.

To achieve this, we pivoted the strategy to focus on profitability rather than traditional gross revenue metrics, assessing campaign performance based on net profit to better protect the company’s bottom line. We reduced wasted spend on unprofitable products, prioritised audiences with strong purchase intent, and shifted product visibility towards higher-margin items.

The account was fully restructured to make it more agile and capable of responding to a rapidly changing market environment. By combining this strategic approach with technology from PPC Samurai to optimise performance at scale, the account successfully improved efficiency and profitability, ultimately delivering results 5% above the target POAS.

5%

Over target POAS

Transparent

Reporting for Safe.co.uk

Safe.co.uk is a UK-based online retailer specialising in security products for homes and businesses. Founded in 2003 and headquartered in Preston, Lancashire, the company offers a wide range of solutions including safes, locks, alarms, CCTV systems, lockers and key cabinets from leading brands such as Yale, Chubbsafes and Phoenix. Safe.co.uk serves private customers, businesses and public organisations, providing expert advice to help customers choose the right security products for their needs.

Known for their competitive pricing, extensive product selection and free delivery across mainland UK, the company has become one of the country’s leading online security retailers, processing thousands of orders each month.

This client came on board with us in January 2020, right as the COVID pandemic was kicking off. Safe.co.uk saw a significant negative impact from COVID with limited demand for their products/services. This was a challenging situation, given this was a new client during an unprecedented time.

They wanted us to improve their account in virtually all aspects. They had a 10+ year old account that had been worked on by several different people and agencies leaving it in dire need of an overhaul.

  1. Increase actual profit (Margin – Ad Spend).

  1. Adapt to a lower level of business sales (sales of safes were negatively impacted by the pandemic). We did this by:

The strategy pivot that we devised was to focus on the profitability of the current spend, to ensure that the budget going toward advertising was profitable for the business and that they could weather the implications of COVID with a viable business (and digital marketing) model.

Our strategy to achieve their objectives is:

  • Reduce wasted spend for unprofitable products and focus spend on

Audiences in purchase mode (with intent)

  • Pivot product focus to generate more visibility and sales for profitable products

  • Protect the bottom line by assessing Google Ads performance based on net profit instead of the standard gross profit metric (currently used as the standard reporting metric for businesses)

The account was inherently complex that required significant restructuring to make it agile enough to cope with a rapidly changing environment.  To ensure successful execution, we teamed up with PPC Samurai (PPCS), leveraging cutting-edge technology to execute and optimise at scale.

  • Doubled their previous ROAS
  • Exceeded target POAS by 5%

Anthony Neary, Managing Director

We were going through a staff reshuffle and a new paid search agency was a priority. While attending various ecommerce events I was able to watch two illuminating seminars given by Richard from eComOne. I was pretty much convinced they were the right agency for us, but after a meeting to discuss our specific needs I was in no doubt They have been fantastic to work with providing excellent communication and constant ideas and planning for the future of the account. I feel safe in the knowledge that they are doing their absolute utmost to ensure our account is as efficient and profitable as possible.

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