Search is a key marketing channel for Screwfix Direct and, with impressive results from the past, is becoming more and more important. For example, in 2006/7, search accounted for 48 per cent of Screwfix Direct’s total online budget.
The effectiveness of Google
Within its Internet marketing activities, Screwfix Direct has consistently found Google to be the largest traffic driver, accounting for 70 per cent of the total volume of website visitors received from search. Screwfix Direct is convinced that there are two key drivers to the effectiveness of Google versus other search engines: firstly, the large size and high quality of the Google Network, and secondly, the level of detailed information it gets from Google’s interactive campaign management interface. This opens the door to highly valuable measurement, allowing Screwfix Direct to carefully hone its AdWords campaigns and ensure they are always at their most effective. Every day the company carries out an analysis of every ad it runs to see which ones are working and which ones are not.
Knowledge is power
With a wealth of data at their fingertips, the members of the Screwfix Direct marketing team have become masters in the art of developing highly effective campaigns. With a portfolio of more than 25,000 keywords, campaigns are complex and require careful management, which in turn requires excellent knowledge on how each one is performing. The company’s head of marketing Simon O’Mahony continues, “The information we get from Google’s reporting interface, when used in the right way, gives us a real competitive edge. It gives us an in-depth understanding of how our customers interact with our ads and armed with this knowledge we can create campaigns that deliver maximum sales time after time. When we get it right, this ensures maximum return on investment – and we see the proof in the numbers. The more time and knowledge we invest in analysing our campaigns, and the more tools and features that Google introduces, the higher our ROI on search becomes.”
With methodological testing such as copy testing and time analysis, Screwfix Direct currently has some of the most effective search campaigns running:
- Copy testing: By testing a variety of different ad executions, Screwfix Direct can determine which of its key messages resonate most with its target audience and therefore deliver the best click through rate (CTR). The ads are initially posted in test mode before the system automatically lists the best performing ones. With, at times, a 25 per cent difference in CTR between the best and worst performing messages, it is clear how important this exercise is in determining which ads will deliver the most leads.
- Time analysis: By collecting data on the time of day that a click-through converts to a sale, Screwfix Direct can determine when customers are browsing rather than buying. This analysis is used to plan when bids should be adjusted in order to achieve greater exposure during the best ‘converting hours’ and less exposure during the ‘browsing hours’.
Quick turnaround gets results
The ability to change campaigns in an instant ensures that the knowledge Screwfix Direct gathers from its analysis does not go to waste for one second. O’Mahony points out, “We change our budgets on Google daily thanks to the ease of the interface and the amount of information we are able to collect. Using analysis of the previous day’s budget, costs and clicks, as well as our own onsite conversion data broken down by campaign, we know exactly what to adjust and when. When we up the budget on a campaign that has great conversion rates we see a direct impact immediately; a dramatic uplift in sales.
“At the same time, when we can see that a campaign is not performing, we can suspend it and make sure we’re not wasting our money. Instead, we reinvest the money where we know it is working,” he says.
During the past year, Screwfix Direct has invested in constant analysis and development and has seen the returns heavily reflected in the sales figures. Thanks to this work, the return on Google ad spend has increased by 147 per cent over one year. With Google’s tools continuing to improve, and Screwfix Direct’s own knowledge and expertise developing, the Screwfix Direct team is confident that it will continue to see higher returns over the coming year.