The most commonly used method is cold daubing, which allows pressure to securely bond the tread layer to the tire.
The popularity of this method is justified by the high prices for new sets of rubber and the ability to save up to 30-40% of their cost. However, this method of restoring tires is used most often for trucks. The slow wear and toughness of the cord allows it to be welded 2-3 times without affecting performance. And also a one-year warranty is given for such products.
Promotion using contextual advertising for a niche product should be carried out on all available sites. Especially those visited by motorists and private carriers.
In this case we'll show the difference between running campaigns on your own and having a well-functioning specialist. We'll tell you about how we managed to reduce the cost of conversion by 50% while maintaining an advertising account.
1. About the Client
Marangoni — one of the world's leading retread tire brands from Italy.
The history of the business, founded by the Marangoni brothers, began in 1945 in the Rovereto workshop. The company has been introducing innovations in tire retread by cold welding for over 70 years.
The company entered the Ukrainian market back in 2013 and opened 2 plants: in Kharkiv and Donetsk. Now there are already 3 plants on the territory of Ukraine. They are equipped with branded equipment that Marangoni uses in their work.
Focus on quality and the constant pursuit of development - this is what made the Italian company such a strong player on the world stage.
Production is at a consistently high level in Ukraine, because raw materials are supplied from Germany, Italy and Holland.
Our Client's benefits:
- one year warranty;
- frame from Europe;
- raw materials from Italy, Holland, Germany;
- the largest producers of R22.5 welding in Ukraine;
- work with popular standard sizes of tires for trucks - 315/70, 385/65/55.
There were no stable dynamics of growth in the number of conversions before the start of cooperation in the Client's ToR. Read more to find out what methods were used to achieve a 15-fold reduction in the cost of the application in the first month of work!
Fig. 1 — Statistics of display advertising campaigns before the start of work
2. Setting up ads
When the Client started working with us, advertising has been set up in his account for 2 different tire sales websites. So, we have worked with 2 websites for the first months. Then one of the websites was closed, respectively, the number of conversions in the account decreased, and the cost of conversion increased (we will return to this later).
2.1 Promotion strategy
Contextual advertising is one of the types of promotion, in which ads are shown to users based on their requests and interests. The more relevant an ad is to a search query, the more likely the ad will be shown to a user looking for a matching/similar product.
Welding of tires with a diameter of R22.5 is used for retreading tires of trucks. This is a niche product that is worth promoting in Search first.
Unfortunately, the Client categorically does not want to set up search advertising (as he says, he has already set up it before, and there was a high cost per conversion). Therefore, we only worked with PPC ads. After analyzing the possibilities, we suggested:
- set up Smart GDN. Smart Display Network campaigns allow you to automate bidding, targeting, and ad creation. Headings, descriptions, pictures, videos, logos are manually entered into the ad. The system itself mixes the elements and displays them to the user, so you need to make sure that all titles match the descriptions and vice versa. The platforms for smart campaigns are selected by the system automatically. The first couple of weeks will collect data, and the system will optimize the campaign to improve its effectiveness due to them.
- set up Remarketing to remind of yourself to users who have already visited the website, but didn't become customers (didn't leave a request / didn't contact Viber chat);
- set up a GDN campaign in Viber (it is in this messenger that the Client communicates with his customers). The ad campaign works with a remarketing list (those who have previously interacted with the website);
- select and test websites similar to Lardi Trans (information portal for finding carriers: it was from this website that the customer received the largest number of conversions). We have tested websites such as Auto Ria, OLX, Della, etc.;
- select and test audiences of motorists, etc.;
- test YouTube channels of car enthusiasts;
- work with automated bidding strategies (tested strategies Maximum Conversions/Target CPC). In the long term, automated strategies perform better than manual strategies due to the use of Google machine learning algorithms.
We managed to increase the number of conversions almost 16 times by fulfilling the stated work plan! For April 2020 we received applications at a lower cost.
Fig. 2 — The cost of conversion fell 16 times for the first month of work!
The situation on applications began to deteriorate since June. We’ve started getting 4.5 times fewer conversions, and the cost per conversion increased 5.7 times.
The Client said that we can no longer use one of the websites in working with advertising (Client's decision), this influenced the decrease in the number of conversions and increase the cost of conversion.
Fig. 3 — Increase in the cost of conversion after one of the websites stops working
2.2 Setting up ads
Customizing your ads should be tailored to your business needs. Google recommends adding concise product information to titles and descriptions and using high-quality images.
Google's algorithms are based on machine learning. They themselves determine the optimal number of elements, place and time for display. Automatically generated responsive display ads look like this:
Fig. 4 — Examples of ads
You can interest the customer by describing the benefits and cost of the product.
Our Client has:
- high quality raw materials;
- guarantee for the product quality;
- the diameter of the rim is indicated;
- marked the maximum power reserve after recovery, etc.
This information is required: it fully makes it clear the benefits of the offer in a summary form.
The use of the logo and brand can multiply the interest in the company's products since Marangoni is a world famous brand. For some users, brand presence plays a decisive role in purchasing decisions.
3. Optimizing ads and extending
One of the key aspects of working with our agency is the timely optimization of advertising campaigns. It is carried out if necessary and depends on the results already available. Adjustments to the workflow can be made once a month or more often.
The specialist independently decides what changes to make if this is not spelled out in the work plan for the current month. However, the specialist makes an adjustment only after alignment with the Client all the issues.
Further, we decided to hold such activities in the account by agreement with the Client:
- Disabled all underperforming campaigns and ad groups. Namely: advertising on certain YouTube channels for car enthusiasts wasn't effective, websites that brought conversions at a high cost were turned off. Also, the audience campaign brought expensive conversions, we also disabled it.
- Tested the Discovery Campaign (with an audience of car enthusiasts). You can significantly expand the range of platforms for displaying ads with its help. Discovery ads, just like GDN, are displayed on Youtube and Gmail pages, as well as in Google Discover Feed.
In addition to standard responsive ad formats, you can create a carousel with 2-10 changing images.
- Adjust bids by time, device, gender for standard display campaigns (no adjustments can be made in smart display network).
- Apply the Target CPA strategy with pay per conversion (fortunately, the number of conversions in the account allowed us to do this - at least 100 in the last 30 days, provided that 90% of conversions must occur within a week after clicking on the ad). It is a smart bidding strategy for each auction. The process is automatic and is based on the analysis of conversion statistics over the past few weeks. The more data is available for analysis, the better the strategy performs within the campaign.
By testing different campaigns, placements and using the Target CPA with Pay-Per-Conversion strategy, for July - December 2020, we managed to get such results:
Fig. 5 — Advertising results for 5 months
Fig. 6 — Comparison of advertising periods (March-July 2020 and August-December 2020)
The cost per conversion is now stable within the range of 70-80 UAH (thanks to the strategy that we have applied - “Target cost per action with pay per conversion”).
Also, running the campaign, it was possible to achieve an increase in conversions by 3.5 times, and the cost of conversion was reduced by 2 times.
4. We continue to work with the Client
Our main goal is to reduce the cost of conversion and at the same time not lose their number.
Our plans:
- collecting an audience for similar users who left an application;
- testing this audience;
- rendering new creatives for display advertising.
Analyzing the possibility of extending, we offered the Client to test video ads, since we found many interesting videos from competitors.
Conclusions
Promotion using contextual advertising can be done in different directions. Commonly, you can't do it without help. For this reason, business owners contact our agency and entrust us with setting up and optimizing advertising. We develop new approaches and bring ideas that allow the business to scale and grow. This allowed our client to increase the number of applications by 3.5 times.
Visible results are not achieved immediately, but appear after a certain period of time, as can be seen in the case of Marangoni.
Due to well-coordinated work and communication between specialists and the Client, proposals/questions are promptly resolved, and the final result speaks for itself.
