Åhléns: Profit jumps with Alvie’s Bidding Signals
Our approach
Åhléns needed a way to incorporate additional data points, such as gross margins, return rates, and supplier subsidies, into their bidding decisions. Traditional advertising algorithms often rely on basic signals such as click-through rates, conversions, and impressions. While these metrics are important, they didn’t allow Åhléns to get a complete picture of its profitability.
What we did
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.
+20.5%
By accounting for true profitability in bidding decisions, Åhléns saw a marked increase in absolute profit in GP3 YoY.
+3.6%
With a focus on margin and long-term value, Åhléns was able to reduce wasted spend and allocate resources more effectively to high-value products and customers, improving Profit on Ad Spend (POAS) YoY.
+12.2%
The platform’s use of comprehensive data allowed Åhlens to target high-value customers more precisely, leading to increased sales and improved conversion rates YoY.
-
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.
