Adidas E-commerce Google Ads Case | 13% revenue growth

We chose a test approach: a clear A/B split between manual campaigns and feed-driven Google Text Ads. For this, we used DataFeedWatch to dynamically generate ads based on the live product feed. What made this approach unique was the use of regression analysis via SA360 to genuinely isolate the effect on ROAS and revenue.

1. we randomly assign each region to a test and control group
2. Google Ads is used to implement bidding tool A in test regions and bidding tool B in control regions.
3. We can measure the difference in behaviour between the test and control group:

• The effect of the campaigns on the KPIs that matter
• The efficiency of the campaigns in terms of, for example, incremental CPC, CPA or ROAS

Methodology:

• We divided Germany into 66 sub-regions, also known as GMAs
• GMAs are drawn so that their borders run through the most sparsely populated areas possible and not through known commuter areas.
• This minimises contamination, where a user could travel from a control GMA to a test GMA and be exposed to advertising.

• The top panel shows the actual revenue of the test group and the estimated counterfactual revenue
• The middle panel shows the daily difference between the actual revenue of the test group and the counterfactual revenue. In other words, the estimated daily increase/decrease in revenue as a result of the treatment.
• The bottom panel shows the sum of these differences. In other words, the estimated total increase in revenue as a result of the treatment
• The shaded area around the estimated counterfactual revenue in each panel represents the counterfactual 95% confidence interval.

We connected the product feed directly to the Google Ads account with smart rules for ad copy and targeting. Thanks to this automation, we were able to:

• generate ad copy dynamically
• launch campaigns faster when stock changed
• scale far more efficiently across multiple markets

We also carried out statistical analyses (95% confidence) to measure exactly what the new campaigns contributed.