bonprix

Based in Hamburg, Germany, bonprix is a leading brand in fashion retail. Consumers turn to bonprix to find outstanding value for clothing, accessories, and home goods.

About

  • bonprix is a leading fashion brand in Europe, offering outstanding value to over 35 million customers across 30 countries.
  • Headquarters: Hamburg, Germany
  • www.bonprix.com

Goals

  • Drive sales while getting the highest potential return on ad spend (ROAS) for Switzerland-targeted Shopping campaigns.
  • Save time on manual and daily bid optimisations.

Approach

  • Separate campaigns based on return on ad spend (ROAS) targets, followed by category.
  • Separate campaigns for seasonal sales.
  • Apply target return on ad spend (ROAS) Smart Bidding strategy across all products.

Results

  • Gained 25% more revenue at same ROAS compared to previous time period.
  • Drove more than 50% of incremental revenue on mobile.
  • Time and resources saved for marketing team.

Building a recognised fashion brand

Last year, bonprix Handelsgesellschaft mbH saw 1.5 billion euros in sales, with 80% coming from ecommerce, making them one of the best-performing businesses under their parent, Otto Group. The company has more than 3,000 employees and reaches more than 35 million customers across 30 countries.

Saving time and resources through automation

bonprix has always been a pioneer in the digital retail space. As an early adopter, they launched their first Shopping campaign back in 2012 to support their Swiss expansion. Since then, they’ve always looked for ways to continue innovating and growing, so they were keen to try Google’s new machine learning capabilities to automate their bidding.

Until recently, they made daily bid optimisations for individual products to maximise their return on ad spend (ROAS). bonprix decided to test the Target ROAS Smart Bidding strategy to help achieve their ambitious targets and save time from manual optimisations. Using their own imported conversion data, the Target ROAS bid strategy would automatically make query-level bid adjustments to maximise ROAS based on user signals, such as location, time of day, device type, and search query.

Alongside this bid strategy, bonprix also moved away from a granular item ID campaign structure. Instead, they created a new structure based on ROAS targets using their own historical data, then segmented by product category for reporting. The campaign with a lower ROAS target would allow the bid strategy to have more flexibility in bidding higher to remain competitive for high-profile products, while a higher ROAS target would help generate revenue efficiently on their core products.

Through target ROAS, we are able to manage more markets efficiently with our in-house team.”

Sönke Harms, Head of Shopping ads, bonprix

Driving more revenue without losing efficiency

After a two-week learning phase, bonprix began seeing consistent ROAS across all their products. The learning phase allowed the Target ROAS bid strategy to determine the best intent signals for optimising bids. Since then, they’ve seen 25% more revenue at the same Target ROAS compared to the previous time period. bonprix was pleasantly surprised by the additional volume they also received, particularly on mobile. They believed that they had capped out their mobile opportunity because their mobile assets were already optimised for the most success. Now, this new traffic contributes to over 55% of their Shopping ads revenue driven by mobile.

We were surprised by how quickly target ROAS hit its target consistently, which revealed the potential scale there still was in Switzerland despite our ambitious targets.”

Sabrina Pesoldt, Online Marketing Manager, bonprix

In addition, bonprix also saw reporting benefits from restructuring their campaigns based on product categories. They could easily see which groups were performing well and which were growing in demand.

Sharing their learnings and scaling the business

With Target ROAS running day-to-day bid adjustments, optimisations now involve moving products between campaigns as reporting unveils new potential for products to achieve higher return and as trends change. bonprix also continues to use multiple campaigns with separate ROAS targets to manage their portfolio. For instance, an additional campaign was created for seasonal products with a separate budget and ROAS target to keep an eye on their return.

With Target ROAS making bid optimisations automatically, our team can spend more time delivering key analyses, identifying strategic opportunities, and driving important initiatives.”

Sönke Harms, Head of Shopping ads, bonprix

Smart Bidding has empowered bonprix to scale and manage more countries with the same amount of resources. They’re using Target ROAS in other markets, like Brazil and France, as well as other marketing teams, like Display and Text.

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