Patika24

65% increase in revenue
over a year and 8% cheaper clicks

Although they had no previous experience with digital marketing campaigns, it soon became a really important part of their business, as customers from paid advertising accounted for an important part of their revenue.

 

Thanks to our long-standing partnership, they were able to achieve a 65% annual increase in revenue between 2020 and 2021, while paying 8% less for paid advertising.

Our client launched its online pharmaceutical business in Hungary in 2017. They started the project without deep industry knowledge, but with a strong industry knowledge and network of contacts, and with ten years of experience in pharmaceutical retailing. They already had competitors with an established online presence and online store in the market. Their products included OTC medicines and dermocosmetics – they have since expanded their product range to include veterinary products.

In addition to realising deep discounts, they also wanted to make shopping easy. Especially for people whose health makes it harder for them to get to a pharmacy.

+49% - Return on advertising costs

2017. September and 2019. between July and July their ads performed 49% better

-81% - Get one purchase

In a year and a half, the amount spent on advertising to get a purchase has fallen by 81%.

+65% - Turnover

Between 2020 and 2021, turnover increased by 65%.

65% increase in revenue
and 8% cheaper clicks

 

Challenge

The company had never run digital marketing campaigns before, but they wanted to give them a try. Especially with Facebook and Google ads to see what results can be achieved in a highly saturated market.

They had to keep ROAS (Return on Ad Spend) below a certain level to keep their business profitable.

 

R

Solution

At the beginning of the project, we put a lot of emphasis on Google Search presence. Initially, we didn’t know which brands, product categories or products would perform best, so we did a thorough keyword analysis. We used this to identify which keywords perform best in the given season (autumn-winter), and based on this we built a complex campaign structure containing thousands of ad groups, and then targeted the entire target market – Hungary.

Based on the success of the campaigns, we were able to identify the best performing products and brands – the top 20%, which accounted for 80% of revenue. For this, we used Enhanced Ecommerce in Google Analytics.

Measurement was also a key point in the project. We helped to set up the measurement system from the very beginning, as it was important for us to understand what and how visitors would buy and interact with the site. And with a very high percentage of revenue coming from paid advertising, this remains an important metric.

In terms of Facebook campaigns, we started with dynamic product ads targeting users at the bottom of the purchase funnel (e.g. those who had already visited the page), thus gaining valuable customers for our client. Then, step by step, we broadened the number of products and the targeting of ads, slowly moving up the funnel. Remarketing target groups and “look-a-like” target groups (based on remarketing target groups) have also produced valuable results.

We were one of the first in the country to start using Google Shopping – and it has become a key part of customer acquisition. We also launched Criteo campaigns for remarketing purposes.

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