Shopping Campaign Segmentation for Higher AOV

Optimizing Tradesy's Shopping Campaigns for Maximum Efficiency

The Challenge

Shopping campaigns were previously structured in a way that grouped all products together, which made it difficult to allocate budget effectively. Higher-value luxury items, like Chanel and Louis Vuitton bags, were competing against lower-AOV products within the same campaigns, leading to inefficiencies in ad spend and overall performance.

The Solution

Tradesy overhauled its shopping campaign structure by segmenting products based on AOV. High-ticket items received increased budget allocations to maximize revenue, while lower-AOV products were optimized for customer acquisition.

Nine new shopping campaigns were launched specifically for different types of designer bags, allowing for better targeting and bidding control. Google Smart Shopping automation was also leveraged to dynamically adjust bids based on real-time performance data.

The Results

AOV-based segmentation allows for a more effective allocation of budget while ensuring profitability across different product categories. By focusing on high-value products and using Smart Shopping automation, Tradesy was able to improve efficiency and maximize revenue potential.

• Shopping GMV increased by 137% YoY

• AOV increased by 20% (+$160)

• Overall channel GMV grew by 74%.