We helped Caredemy, an e-commerce business specialising in online courses, achieve substantial improvements in its return on ad spend (ROAS) and overall profitability despite operating in a highly competitive market.
Balancing Cost Efficiency and Revenue Generation
Operating in the highly competitive sector of online care courses with increasing cost-per-click (CPC) rates, Caredemy faced challenges in generating meaningful returns on its ad spend.
Maximising Ad Spend and ROAS
With relatively low order values, meeting an ambitious ROAS target of 300% was proving difficult. To achieve this target, Caredemy needed to maximise its advertising budget, achieving a sustainable ROAS while maintaining growth.
How We Achieved a 4,224.4% Profit Growth
We transitioned Caredemy’s advertising strategy from search-based campaigns to Performance Max AI-driven campaigns, leveraging the platform’s cost-efficiency and ability to generate high impressions and clicks at lower CPCs.
Here’s how we approached it:
Prioritising High-Performing Courses
We identified the top-selling courses and developed dedicated campaigns for these products. Tailored ads and creative assets were used to engage users and ensure relevance.
Fine-Tuning Campaign Control
While AI tools provided automation, we retained control over certain aspects, such as excluding non-relevant search terms, refining placement options, and experimenting with URL automation. This helped ensure precise targeting and better outcomes.
Continuous Optimisation
By continuously monitoring and iterating the campaigns, we identified the optimal balance between cost efficiency and ROAS. We used scripts to track the most effective conversion channels and made necessary adjustments for ongoing improvement.
Combining AI-driven automation with manual refinements allowed our optimisations to achieve both cost efficiency and revenue growth. Deciding what an automated campaign is allowed to bid on is the judgement our paid search team applies to every account.
The Results
The AI-driven strategy and campaign optimisations delivered outstanding results, including:
CPC Reduction
Lower cost-per-click (CPC) through efficient AI-driven campaigns
Revenue Optimisation
Significantly improved cost efficiency and campaign relevance
Our strategic shift and tailored approach led to remarkable performance outcomes that exceeded expectations.
