20.50%
Increased profitability
20.50%
Increased profitability
3.60%
More efficient ad spend
3.60%
More efficient ad spend
12.20%
Higher conversion efficiency
12.20%
Higher conversion efficiency
Åhléns, a leading Swedish retailer, achieved a 20% increase in gross profit (GP3) by leveraging Alvie Bidding Signals to integrate business-specific data into their bidding strategy. By connecting data points on customer value and product profitability with Google, Åhléns ensured every bid was optimised based on what really matters to their business.
By implementing Bidding Signals, Åhléns was able to shift from focusing solely on top-line sales to making smarter decisions that accounted for long-term profitability. Bidding Signals enabled Åhléns to integrate critical business metrics directly into Google’s algorithms.
The solution enabled real-time bidding adjustments based on:
- Gross margins: Allowing Åhléns to prioritise high-margin products in their bidding strategy.
- Return rates: Ensuring that bids reflected the true profitability of products, taking returns into account.
- Supplier subsidies: Adjusting for external cost factors that influence pricing and profitability.
Understanding the true value
With the help of data-driven attribution, Åhléns was able to understand the true value of generic searches, and scaled their investments. Precis’ proprietary data-driven attribution model has throughout the year attributed digital performance tied to Åhléns’ customers’ interactions with search, which has been a crucial insight for Åhléns to understand what efforts are contributing to their bottom line more accurately.
Proprietary technology as a foundation
Precis’ own technology platform has been utilised since the beginning, automating critical factors of the performance such as bidding optimization, attribution modeling, and keyword expansion. Frequent additions of new features and ongoing development of existing ones has been a key driver to the continued improvements in results year by year.
Transparent communication
Keeping a close and transparent dialogue between Åhléns and Precis has been key to identify areas of improvement and pushing high-impact initiatives forward.
The results speak for themselves: we’ve seen a significant increase in both the efficiency of our ad spend and the overall profitability of our campaigns. With Alvie’s platform, we’re optimising for value, not just volume. Looking ahead, we’re excited to incorporate customer lifetime value and omnichannel data to further enhance our digital marketing efforts.
Thomas Engelhart
Chief Marketing Officer
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