How Netprofiler lowers clients' ad spend through MarktMentor
Lars HurkmansCo-founder24 January 2024Reading time 3 minutes
Netprofiler uses MarktMentor to steer clients' ad pressure on bol per product: less advertising on products that are already found strongly organically, more on products that need visibility. Marketplace Specialist Joost Legebeke explains in this case study how Netprofiler approaches this for clients and what role MarktMentor plays in it.Netprofiler is a dynamic online marketing agency that strives to transform its clients into digital market leaders. The service covers a broad spectrum of digital marketing strategies, with a core focus on increasing clients' revenue, profits and the return on online marketing investments. A critical challenge for Netprofiler was optimising client ranges on bol, which required deep and specific market insights.
Managing clients' advertising budget
As Marketplace Specialist at Netprofiler, my job is to help our clients optimise their range on bol. Our clients often have a general picture of their profitability on bol, but often lack detailed insights at product level. This is crucial for effectively managing advertising spend and improving profit margins. Our approach focuses on evaluating profitability per product, which lets us adjust ad pressure to maximise profit margins.
The process of profit optimisation on bol that we apply at Netprofiler is a combination of precise analysis and strategic planning. The starting point is always a thorough review of our clients' existing range. We identify products that are underperforming in terms of profitability, and then investigate the causes. These can range from insufficient visibility on the marketplace to inefficient pricing or high advertising costs.
Once identified, we focus on optimising the advertising effort. This is where MarktMentor's insights are indispensable. With the detailed data on the organic findability of products, we can develop a precise strategy. This sometimes means increasing ad pressure on products that need more visibility, but more often lowering it on products that already have a strong organic presence.
“To be profitable on bol, it's essential to lower ad pressure at the right moments. MarktMentor gives us the insights we need to make this happen at product level.”
Our approach is dynamic and is constantly evaluated. We monitor product performance on a daily basis, paying particular attention to profit margins without advertising spend. This helps us determine how much we can spend on advertising while remaining profitable. An important aspect of our strategy is keeping a close eye on organic findability. As soon as a product reaches a strong organic position, we can lower ad pressure or even remove it entirely, leading to considerable savings and improved profit margins.
How transparent data helps in our communication with clients
MarktMentor's advanced features, such as My rankings, let us follow the performance of products at a detailed level. We can see which products perform best and worst in terms of findability and how these fluctuate over time. This gives us the ability to intervene quickly and make adjustments where needed.
Collaboration with our clients is another crucial component of our strategy. By creating a separate team in MarktMentor per client and giving them access to their own data, we promote transparency and collaboration. This lets our clients follow progress and gives them a better understanding of our strategies and decisions.
How insights increase profit margins
A striking example of our approach was with a client whose range was barely profitable, largely because of high advertising costs. By analysing MarktMentor's category position data, we discovered that some products already had a strong organic position, but were still being subjected to high advertising costs. By strategically reducing advertising for these products, we were able to significantly increase the profit margin.
“For one particular client we saw that profit margins were low, mainly because of high advertising costs. By using MarktMentor's category position data, we discovered that a few products were being found well organically but were still being advertised. By scaling back advertising on these products, we increased the profit margin to 30%.”
Our approach at Netprofiler is a balanced combination of data analysis and market knowledge, where we use advanced tools such as MarktMentor to help our clients optimise their presence and profitability on bol. With this methodology we keep supporting our clients in their pursuit of digital growth and market leadership.