Vodafone Italy were looking to drive both sales and profitability in a highly competitive market by harnessing the power of predictive value-based bidding.
As profit margins in the Italian market continued to tighten, Vodafone Italy needed to boost both sales volume and profitability. To tackle this, Vodafone Italy partnered with Jellyfish Cloud and Google to develop an advanced value-based bidding strategy. By leveraging Google's direct channel, they aimed to optimize bids, prioritize high-value conversions, and maximize campaign ROI. However, the central challenge remained: how to implement this strategy effectively for measurable impact.
Using CRM data and paid search insights, we developed a predictive model in BigQuery to estimate Customer Lifetime Value (CLTV) and assign predictive values to potential conversions. A new Conversion Action incorporating these predicted values was then created to better inform the bidding AI algorithm.
Jellyfish Cloud's proprietary Mix-Match-Integrate (MMI) Program™ was implemented to supercharge Vodafone Italy’s bid optimization towards a target return on ad spend (tROAS) strategy, delivering impressive results.
Mix of the right inputs
Jellyfish Cloud collected CRM and granular data from Google Ads to train AI models across Fixed, Mobile, and Bundle offers, and assign a prediction value to each potential conversion.
Match to business outcomes
Vodafone Italy faced the challenge of increasing sales and profitability, amid diminishing profit margins within the sector, so we needed to measure our solution's value against clear KPIs and quantify its impact.
Integrate into the stack
The value was then passed back to Google Ads as an additional conversion action, using its API, and the campaign was set to optimize towards a tROAS strategy, rather than tCPA bidding.
Google and Jellyfish collaborated with our Digital team to design, develop, and implement a 1st-party data activation strategy centered around customer value data. This initiative yielded remarkable business results enabling our campaign to expand beyond volume, boosting RoAS while reducing CPA. These positive outcomes pave the way for promising possibilities in the near future: prioritizing conversion value will indeed be a core pillar of our search strategy.
Emiliano Bozzi, Head of Digital Marketing & Data Strategy | Vodafone Italy
By adopting a tROAS bidding strategy, Vodafone Italy was able to optimize campaigns based on the enriched conversion data. A two-month A/B test within the Google Ads account was conducted to establish a robust measurement framework, ensuring the statistical significance of the results.
Activations
ROAS
CPA Decrease
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