Everyone Should Know How to Uses Google Ads to Attract Consumers
In today’s rapidly changing economic landscape, consumer behavior has shifted dramatically, particularly in regions like Greece, where rising costs of essentials have made non-essential purchases, such as furniture, more discretionary. Vidhya Srinivasan, VP and General Manager of Google Ads & Commerce, emphasized at the Interactive Advertising Bureau's Annual Leadership Meeting that businesses must adopt AI to remain competitive. This is particularly relevant in markets like Greece, where economic challenges have heightened price sensitivity among consumers. According to recent data, Greek consumers are increasingly price-sensitive, opting for convenience and proximity in their shopping habits. This shift has posed significant challenges for large retailers like IKEA Greece, whose traditional big-box store model is perceived as less convenient compared to local shops and online platforms.
To address these challenges, IKEA Greece has strategically revamped its Google Ads strategy, leveraging seasonal promotions to attract cost-conscious consumers. By utilizing data-driven marketing, automation, and creative ad formats, IKEA Greece aims to increase brand visibility, drive traffic, and boost sales. This article delves into the details of this strategy, exploring how IKEA Greece is adapting to the evolving consumer landscape and achieving remarkable results.
I. Understanding the Greek Consumer Landscape
The Greek consumer market has undergone a significant transformation in recent years. With the rising costs of food and utilities, consumers are becoming more cautious about their spending, especially on non-essential items like furniture. This has led to a preference for online shopping and local stores, which offer greater convenience and proximity.
For IKEA Greece, this shift has presented both challenges and opportunities. On one hand, the perception of IKEA’s large retail locations as inconvenient has led to declining foot traffic. On the other hand, the increasing trend of consumers browsing products online before making in-store purchases has highlighted the importance of maintaining a strong online presence.
To capitalize on this trend, IKEA Greece has recognized the potential of seasonal promotions through Google Advertisement. By offering discounts and special deals, the brand can attract price-sensitive consumers who are actively seeking affordable options. This strategy not only helps drive online traffic but also encourages in-store visits, creating a seamless omnichannel shopping experience.
II. Revamping IKEA Greece’s Google Ads Strategy
To effectively implement its seasonal promotions, IKEA Greece partnered with performance marketing agency Kinesso to revamp its Google Ads strategy. The focus was on aligning the brand’s advertising efforts with the new search behaviors of Greek consumers.
One of the key insights from this collaboration was the increasing trend of consumers searching for furniture on a room-by-room basis, such as “living room furniture” or “bathroom furniture.” To capture these search queries, IKEA Greece adopted a broad match keyword strategy within Google Ads. This approach allowed the brand to match a wider range of relevant keywords, such as “TV furniture” or “coffee table,” without the need to manually create specific keywords for each product.
In addition to broad match keywords, IKEA Greece also leveraged Demand Gen campaigns through Google Ads. These campaigns enabled the brand to reach users who had shown interest in similar products, thanks to custom segments based on keywords like “couch” or “sofa bed.” By combining high-performing creatives and broadening the keyword strategy, IKEA Greece achieved a 20% higher return on ad spend (ROAS) and a 40% lower cost per click, significantly improving the efficiency of its advertising efforts.
III. Creative Strategies to Inspire Consumers
A crucial aspect of IKEA Greece’s revamped Google Ads strategy was the enhancement of its creative assets. Traditionally, the brand relied on static images to showcase its products. However, to better engage consumers and inspire them with design ideas, IKEA Greece transitioned to more interactive formats, such as videos, within its Google Ads campaigns.
These video ads demonstrated how IKEA products could fit into various home designs, providing consumers with inspiration for their dream homes. By showcasing the versatility and affordability of its products, IKEA Greece was able to attract potential customers who might not have initially considered purchasing from the brand.
Seasonal promotions were also a key component of the creative strategy within Google Advertisement. By tailoring ads to highlight discounts and special offers, IKEA Greece was able to emphasize the affordability of its products, particularly in a market where economic conditions have led to a strong demand for deals. This approach not only drove traffic but also increased sales, as consumers were more likely to make a purchase when presented with a compelling offer.
IV. Results and Impact
The results of IKEA Greece’s revamped Google Advertising strategy have been nothing short of impressive. The brand recorded a 62% year-over-year increase in website traffic, driven by the effective use of broad match keywords and Demand Gen campaigns. Additionally, the strategy led to a 7X revenue jump, showcasing the significant impact of seasonal promotions and creative ad formats.
From a cost-efficiency perspective, IKEA Greece achieved a 40% lower cost per click and a 20% higher ROAS compared to other ad groups within Google Ads. This not only allowed the brand to attract more users in a cost-effective manner but also improved its overall brand visibility. By showcasing a wide range of products to potential customers who might have otherwise purchased from competitors, IKEA Greece was able to solidify its position in the market.
V. Lessons from Other Brands
IKEA Greece’s success is not an isolated case. Other brands have also leveraged data-driven marketing and seasonal promotions through Google Ads to achieve remarkable results. For example, LC Waikiki used first-party data and predictive modeling to enhance its winter campaigns, achieving a 39% increase in ROAS and a 64% higher conversion rate. Similarly, Arçelik combined offline and online data to personalize its campaigns, resulting in a 201% increase in conversions and a 175% higher ROAS.
These examples highlight the importance of adopting innovative marketing strategies in today’s competitive landscape. By leveraging data, automation, and creative ad formats within Google Advertisement, brands can effectively navigate economic challenges and drive growth.
Topkee’s comprehensive Google Ads services, such as TTO tools for precise data tracking, AI-driven creative production, and advanced attribution remarketing strategies, play a pivotal role in enabling brands to replicate such achievements. By leveraging tools like TM settings for flexible customer tracking and keyword research for targeted ad placements, businesses can enhance their campaign performance. Additionally, Topkee’s advertising report analysis ensures continuous optimization, helping brands manage budgets effectively and improve ROI.
VI. Future Directions for IKEA Greece
Looking ahead, IKEA Greece plans to further enhance its marketing efforts by expanding its use of first-party data and implementing predictive modeling tools like Google Analytics 4 (GA4) within its Google Ads campaigns. This will allow the brand to better understand consumer behavior and tailor its campaigns accordingly.
Additionally, IKEA Greece aims to integrate its online and offline channels more seamlessly, creating a unified shopping experience for its customers. By continuously experimenting with new ad formats and strategies within Google Ads, the brand can stay ahead of consumer trends and maintain its competitive edge.
By implementing Topkee’s tools like TTO for data automation and TM for customer tracking, the brand can synchronize its marketing efforts across platforms, ensuring consistent messaging and a cohesive customer journey. This omnichannel approach will not only improve customer satisfaction but also drive higher conversion rates by making it easier for consumers to transition from online browsing to in-store purchases.
Conclusion
In conclusion, IKEA Greece’s success in using Google Ads to attract price-sensitive consumers demonstrates the power of data-driven marketing, automation, and creative ad formats. By leveraging seasonal promotions and innovative strategies, the brand has been able to drive traffic, increase sales, and improve brand visibility.
As the economic landscape continues to evolve, other brands can learn from IKEA Greece’s approach and adopt similar strategies to navigate challenges and achieve growth. If you’re looking to enhance your marketing efforts, consider reaching out to a professional consultant to explore the best strategies for your business.
