Overview

art’gerecht is a premium brand known for its high-quality products in the dietary supplement industry. As the market becomes increasingly competitive, particularly against cheaper alternatives, art’gerecht faced significant challenges with its pay-per-click advertising strategy (PPC) in Google Ads. The primary goal was to maintain a positive ROAS (Return on Ad Spend) while navigating the complexities of selling premium products.

The Challenge

Exclusion of Brand Searches: In a strategic move to focus on acquiring new customers, art’gerecht decided to exclude brand searches from all campaigns, including Performance Max (PMax). This left a gap in search visibility, especially for users already familiar with the brand.

Competitive Pricing Landscape: art’gerecht’s products, offered at a premium price, faced strong competition from cheaper alternatives. Customers needed to be convinced of the added value of a more expensive product, especially when they had no strong affinity for the brand.

Low Sales Affecting Algorithm Efficiency: Due to unclear brand messaging and limited interactions, sales remained low, making it difficult for the Google Ads algorithm to optimize effectively. The inability to generate enough traction led to a decline in ROAS, which often fell short of the desired benchmark of 2.

Segmented Product Categories: While products were categorized for better control of marketing efforts, the lack of established brand affinity made it challenging to effectively attract new customers.

Strategy and Implementation

To tackle these challenges, Ad-Dicted implemented a targeted approach to PPC marketing:

Data Analysis and Reflection: Analyzing the performance of previous campaigns helped identify the gaps created by the exclusion of brand searches. A new strategy was then developed, aiming not only to reach new customers but also to re-engage former visitors who had shown interest in premium products.

Creating a Compelling Brand Story: art’gerecht was encouraged to develop a clear and engaging brand narrative. Building trust and familiarity with potential customers was crucial to influencing their purchasing decisions, especially concerning premium prices.

Enhanced Targeting: To maximize effectiveness, campaigns emphasized audience targeting based on behaviors and interests reflecting high-quality pet care. This included utilizing Google Ads’ search targeting features to reach users likely to value premium products.

Multi-Channel Marketing Approach: In addition to PPC efforts, art’gerecht was advised to pursue a multi-channel marketing strategy. This included content marketing, social media engagement, and email campaigns to establish consistent brand touchpoints that fostered customer loyalty.

Regular Optimization: Continuous monitoring and optimization of campaigns were essential. By analyzing data and adjusting bids accordingly, art’gerecht aimed to gradually improve campaign performance and adapt to market feedback.

Results

Despite the challenges faced, the implementation of these strategic initiatives led to several positive outcomes:

Increased Brand Awareness: The increase in touchpoints through multi-channel marketing contributed to heightened brand awareness, making it easier for potential customers to recognize and engage with art’gerecht’s offerings.

Gradual Improvement in ROAS: While achieving a ROAS of over 2 continued to be challenging, gradual performance improvements in the PPC campaign were noted. Adjustments in audience targeting and messaging led to better results over time.

Enhanced Customer Engagement: By focusing on brand storytelling and quality benefits, art’gerecht was able to address potential customers more effectively, leading to a better understanding of the product’s value.

Conclusion

The case study of art’gerecht highlights the difficulties premium brands face in a price-sensitive market, particularly when establishing a market presence through PPC advertising. The decision to exclude brand searches underscored the importance of brand awareness and customer familiarity in driving sales—especially for higher-priced products. A clear takeaway is that for premium brands, ensuring compelling brand storytelling and providing multiple touchpoints before the purchase decision is crucial to overcoming initial resistance. Integrating a comprehensive marketing strategy that combines PPC with engagement across various channels is essential for fostering brand loyalty.