Case Study: Agora Discount: How to reduce the conversion cost of electronics threefold and increase ROAS to 3390% in 15 months
The home appliance and electronics market is one of the most saturated and highly competitive sectors in e-commerce. Fierce competition for search engine rankings constantly drives up customer acquisition costs, directly impacting business profitability. To scale sales in such an environment, online stores must move beyond standard promotion methods and implement advanced automated strategies. The Agora Discount brand faced this challenge: at the start of our collaboration, the return on marketing investment was 264%, and each transaction cost the company 188 ₴. The client's primary goal for the agency was to significantly optimize current expenses, improve ad profitability, and subsequently boost sales. Strategically planned Google contextual advertising helped completely overhaul the advertising funnel and establish the project as a category leader.
To achieve ambitious business goals, our specialists focused on implementing smart algorithms and deep data segmentation.
Over 15 months of managing the advertising accounts, the team systematically implemented a range of tasks:
- Audit and feed preparation – a detailed analysis of the product range on agora-discount.com and enrichment of the product feed with additional attributes for more precise ranking.
- Launching Performance Max – deploying advanced smart campaigns with dynamic data feed integration to reach the maximum number of target platforms.
- Audience segmentation – dividing users into detailed segments (by interests, on-site behavior, and Lookalike audiences) for personalized engagement.
- Creative development – creating engaging text, graphic, and video materials that highlight the store's benefits and unique selling propositions (USPs).
- Profitability optimization – shifting bidding strategies to intelligent management with a strong focus on maximizing conversion value and profitability.
A comprehensive approach and continuous algorithm training significantly increased the company's net profit without attracting additional advertising budget.
What returns did the comprehensive approach, under which contextual advertising was set up, bring to the business?
A focus on smart optimization algorithms and precise data structure management delivered record-breaking results for the electronics online store:
- Return on Ad Spend (ROAS) – the indicator of advertising investment profitability showed a phenomenal jump, increasing from 264% to 3390%.
- Cost Per Acquisition (CPA) – the cost of acquiring one purchase on the website was reduced by more than three times – from ₴188 to ₴58.86.
- Revenue – the brand's total net profit from paid traffic increased by 58% during the campaign period.
Systematic management of the ad account proved its effectiveness, allowing the online store to consistently maintain top positions in search results and generate a steady stream of orders at minimal cost.
Results of agora-discount.com promotion and the value of Performance Max for the electronics niche
The Agora Discount project case study clearly demonstrates that the correct use of Performance Max campaigns in conjunction with a dynamic data feed can completely transform the economics of an e-commerce project. Reduced transaction costs combined with explosive ROAS growth help businesses confidently scale and maximize profits with unchanged marketing expenses.
Is your online store for electronics, gadgets, or tech aiming to increase revenue, but current budgets are being spent inefficiently? Our team of specialists will conduct a thorough technical audit, restructure accounts, and set up targeted acquisition of high-intent customers. Professional Google contextual advertising from Locomotive Digital experts will help your brand optimize lead acquisition costs, outperform competitors, and elevate business profitability to a fundamentally new level.
