The Brazilian digital marketing giant doubles CTRs and cuts costs per click in half using MatchCraft’s AdVantage platform
For Locaweb, Brazil’s largest provider of web hosting and digital marketing services, helping Brazilian small businesses incorporate search advertising into their marketing plans has been a natural extension of the company’s other solutions.
Internet use is booming in Brazil: More than three-quarters of Brazilians own mobile phones, the country ranks 10th globally for retail ecommerce sales, and Brazil is among the top 5 international users of all Google services, from search to maps to YouTube. However, “Brazil’s small businesses are a few years behind the U.S. when it comes to online marketing,” says Luiz Barboza, Business Development Director at MatchCraft. “Locaweb has done a wonderful job educating local business owners in Brazil about the potential of search advertising for finding new customers.”
Growing Business, Growing Pains
Locaweb started managing search advertising campaigns for local Brazilian businesses in 2012. As Locaweb’s search marketing client list grew, so did the resources required to fulfill those services. By August 2014, Locaweb had three campaign analysts on staff handling search campaigns for several hundred Brazilian merchants, with monthly budgets ranging from $150 to $3,000. Client industries included everything from agricultural equipment, car dealers and real estate agencies to Brazil’s iconic bikini and flip-flop shops.
Locaweb’s campaign managers created and optimized all merchant campaigns directly in the AdWords platform. They liked Ad- Words’ feature-rich options but struggled with making the team more efficient as the business expanded. “We knew we needed technology that would help our campaign managers handle more campaigns per person,” says Euvaldo Júnior, Ecommerce Manager at Locaweb. In addition to keeping overhead costs down, Júnior also suspected that a third-party search marketing platform could help improve merchants’ campaign results – and better results, he knew, would lead to bigger campaign budgets, lower customer turnover, and increased profits for Locaweb.
An Immediate And Dramatic Improvement
In August 2014, Locaweb transferred 12 client campaigns to MatchCraft’s AdVantage platform for a three-month test. One concern: making sure MatchCraft’s bidding engine wouldn’t overspend clients’ monthly budgets (it didn’t). But the primary reason for the test period was to confirm the anticipated efficiencies and make sure Locaweb’s campaign managers were comfortable with the platform. With a custom-built taxonomy mirroring the structure of Brazil’s businesses and a fully translated interface, AdVantage provided a seamless transition for Locaweb’s team.
Locaweb quickly saw improvements in both the campaign management’s day-to-day efficiency and in campaign results. Take campaign creation: The time required to set up a new campaign on AdVantage was half of what it was taking Locaweb’s team in AdWords.
And the Locaweb team noticed dramatic improvements in their merchants’ campaigns, too. One example: a motorcycle dealer in Sāo Paulo. In August 2014, before moving the campaign to MatchCraft, the motorcycle dealer spent $2,000 to get 6,000 clicks, with an average CPC of $0.45. Now, on MatchCraft’s AdVantage platform, they’re spending the same but getting 7,300 clicks per month at an average CPC of $0.20. The dealer’s click-through rate also jumped from 4.74 in August 2014 to 10.76 in January 2015. Locaweb reports that the client is so happy they’re considering increasing their monthly budget – a win for everyone.
By Thanksgiving 2014, Locaweb had migrated all its merchant search campaigns to AdVantage. “Once we saw how well AdVantage was working for us, we didn’t need to wait any longer,” says Júnior.
Training: The Key To Quick Results
Locaweb has learned some important lessons in the months it’s been working with MatchCraft. First, the company has created a set schedule for optimizing campaigns: New campaigns get reviewed in the first 30 days, existing campaigns quarterly.
And second, Locaweb understands that educating merchants about how search marketing works leads to better campaign results. “We get a lot of requests to pause campaigns over Christmas or for Carnival,” says Dias. But stopping and starting campaigns causes quality score issues and can have a marked negative impact on ROI. “Our merchants really appreciate it when we share our knowledge about digital marketing with them,” Dias says. “They know that our priority is getting them the best results for their advertising dollars.”
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