Smx West 2014 Session #Smx #32B - Power Boosting Sales With PLAs presentation How Sears Uses Product Listing Ads - Plas - To Boost Sales By Ornpaka Vudhikosit @Tong_Orn Of Sears Hometown And Outlet Stores

1. Power Boosting Sale with PLAs
Ornpaka (Tong) Vudhikosit
The following represent the views and opinions
of the presenter, not that of Sears Hometown and
Outlet Stores, Inc., or its affiliates.

2. 2
Agenda
• PLA Profit Maximization Goal
• Profit Maximization Example
• Results
#SMX

3. 3
PLA Profit Goal
ROAS = Online Revenue / Advertising Spend
#SMX

4. 4
PLA Profit Maximization Example
Note: The number above is only for illustration purpose
#SMX

5. 5
Optimal Return
#SMX

6. 6
How to apply the concept of product/ category profit
maximization?
1. Obtain historical data of average CPC, spend, clicks, and
online sale
2. Determine offline impact to from your online sale (if any)
3. Understand related adjustments and expenses
4. Test Target ROAS/CPC at different level of bidding/spend
#SMX

7. 7
Campaign Structure Example
Women
Dress
Price Per
Unit Over
$100
Plus Size
Seasonal
Dress
Others
High Margin
Target ROAS = 2.5
or CPC=$1.0
High Margin,
Low Competition
Target ROAS = 3
or CPC=$0.75
Medium Margin
Target ROAS = 5
or CPC = $0.50
Low Margin,
Target ROAS=10
or CPC=$0.20
More
Aggressive
Bidding
Less
Aggressive
Bidding
Note: The number above is only for illustration purpose
#SMX

8. 8
The Results
Note: The number above is directional not actual.
#SMX