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Case Study: Smart Bidding with weather data

by meteonomiqs
Case Study: Smart Bidding with weather data

Increase reach and performance with weather-based bidding strategies

What influence does external data have on the bidding strategy and how can it be used effectively? For the online store of Liquid Life GmbH, a family-run bicycle retailer, we conducted a successful case in cooperation with the digital marketer diva-e and the MarTech experts from mohrstade.

Challenge: Optimize the participation in auctions

The demand for bicycles is currently huge and the market is highly competitive. Blogs, magazines, manufacturers – all want to get a top ranking on Google. The hurdles: On the one hand, the risk of wastage in search ads is high. On the other hand, users tend to prefer text ads over shopping ads when looking for information. It is therefore all the more important for the click rate that they definitely rediscover the brand name in one of the similar shopping ads in a subsequent search request.

So the question is: How can the bidding strategy be optimized so that participation in auctions is more efficient, targeting is more precise, and, in the end, sales are increased?

Hypothesis: Weather as a contextual conversion parameter

A good optimization option is the additional activation of external data as conversion variables. In this context, we deliberately focused on weather data, since weather is known to have a major influence on users’ buying behavior. To test the hypothesis, two different scenarios were defined in Search Ads 360:

(a) An inventory-based split test of shopping campaigns: For testing in Google Shopping campaigns, we first split the selected products into two equal groups, then set up a new shopping campaign for each and aligned them with the corresponding bidding strategy.

b) A campaign A/B test for a selected search campaign: Here, a campaign A/B test was set up in Google Ads using the “Drafts and Tests” function, in which the existing inventory campaign for the defined product group was mirrored as a draft and then played out against each other in a 50% distribution according to search queries.

 

Technical implementation: Integration of weather data using Floodlight Conversions and the Google Cloud Platform (GCP)

technical integration weather based bidding

 

1: The customer clicks on the ad and gets to the landing page.

2: A client-side Google Tag Manager container is implemented there, via which the customer’s current location information and the Google Click ID (gclid) are sent to a server-side Google Tag Manger.

3: A Cloud Function is triggered in the Google Tag Manager, which causes a query to be made to the METEONOMIQS API.

4-5: The METEONOMIQS API is used to enrich the location information with weather data (temperature, precipitation, humidity, etc.).

6: The conversion data is enriched with weather info and stored in BigQuery.

7-9: From there it is requested by Search Ads 360 every hour using a cloud function.This allows the data to be used for bid strategies.

 

Result: Higher auction participation, better visibility, more sales.

 

Shopping:

The campaign with weather data achieved a 22% higher revenue in the outreach with slightly lower average CPCs and higher CTR. In addition, the target ROAS was achieved with a deviation of only 0.5%, thus exploiting the full auction potential. For the campaign without weather data, the deviation is 17% on average compared to the target value.

Search:

In the Search campaign, the effect of the additional activation of weather data was even more significant. Auction participation increased by a factor of 25. This was particularly pleasing, because it also resulted in a significant increase in interactions and thus in a better revenue result. In addition, we were also able to achieve the desired target ROAS here significantly faster and, above all, more accurately.

 

You can find a summary of the case study here.

Would you like to try out weather-optimized smart bidding for yourself? Then just leave us your contact. We will get back to you shortly.

 

Project partners:

Liquid Life GmbH: Started more than 20 years ago in the stationary bicycle trade, Liquid Life GmbH, based in Brilon, also offers premium bicycles and a wide range of accessories for cycling via the same-named online store.

diva-e: The digital consultancy with several locations in Germany specializes, among other things, in the areas of marketing performance, data & intelligence and cloud services. For many years, diva-e has worked as the digital marketer for Liquid Life GmbH.

Mohr & Stade GmbH: mohrstade is a marketing technology consultancy in Munich and specializes in the areas of data collection, data management, analytics, marketing activation and data visualization. mohrstade offers these services in certified partnerships with marketing software vendors.

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