~5.
7x Profit in the
last 3 years
Lessons in Digital Marketing
Before we go deep into
digital marketing, let's
first understand it's
impact via
PnL statement...
Mar'21 to Mar'22
47% ⬆️ in Revenue.
Just ~8% ⬆️ Marketing Cost.
Source: Moneycontrol
How is the ROI became
so efficient?
Let's understand with
marketing channel
distribution...
Marketing Channel
Distribution
2 Key Insights
Paid is led by Google Search Ads
[~21% contr]
Organic(direct/indirect) is driving
growth [~71% contr]
Source: Similarweb; checked on 3rd Apr'23 | Note : Data is from desktop visits
What can we learn from
Google Search Ads...
(a lower cac channel because of
high intent<> pull channel)
Brand Search Campaign
Running Ads on Brand Kws!
I hope it ends the debate on should
we run brand search ad?!
Key Takeaway 1
Have significant brand SV +
decent revenue scale >
Brand campaign should
always be ON!
Don't wait for your
competition to start bidding
on your brand search term,
and then you start the ads
But 1 thing they could do
better with
brand search ads.
Search for
"Nykaa Lipsticks"
i.e.
[Brand] + [Query]
If you click on the ad for
"Nykaa Lipsticks",
it lands on the Sales LP or
Home Page.
Rather it should land on the
category page of Lipstick.
And that's exactly what
the SERP recommended. 😇
Key Takeaway 2
[Brand] + [Query]
Check queries that are
triggered with your brand.
Do you want the same Ad &
LP as is used for the brand
term?
If not> it needs a separate
adgroup/campaign.
Next, Nykaa wanted to
reach new audiences
other than focusing on branded
keywords for their search
campaigns.
They wanted to go BROAD!
But...
Generic search terms such as
“lipstick” or “eyeshadow,” are
often perceived by brands as too
broad and upper funnel,
and hence too costly to be worth
the investment.
So...
They wanted to test if
the Broad Keyword
strategy could change
the game?
Hence, it was put to the
TEST...
Experiment Setup
Focused on Mobile only
All Tier 2 cities were split into
control and test groups with the
Geo Experiments tool.
Run Time: 5 weeks + 2 weeks
cooldown period for delayed conv.
Test Group
Broader keyword strategy used
across all Nykaa beauty
categories.
Control Group
Excluded from all mobile generic
search campaigns.
Source: Case Study Published with Google.
And, Nykaa increased
sales with a broader
keyword strategy!
"Using Geo Experiments helped us prove beyond a doubt
that generic search drives incremental conversions
online and in-app. It also helped us realize the value of
using a non-last-click-attribution model."
— Hitesh Malhotra, Chief Marketing Officer, Nykaa
Key Takeaway 3
Investing in generic search
terms can help drive
incremental lower-funnel
results.
One has to look beyond the
last-click attribution.
Key Takeaway 3
Geographic experiments can
help measure such
experiments.
Btw, let me know in
comments if you need the
link for:
Previous Google Study
Publication on Geo
Experiment
PDF copy for this case
study
For now, let's go ahead...
Disclaimer
Don't just blindly copy &
paste such a broad keyword
strategy.
First: Experiment before you
think about going all in.
Second: Scale of the
campaign + Stage of the
company also influence such
decisions.
Key Growth Lever
Search Engine Marketing
(low cac)
Now, let's dive deep into
Organic...
Organic Traffic
Mar' 21 - 3.7 M
Mar'23 - 8 M
Source: Ahref; checked on 26 Mar'23
And it's not just because
of traffic from
Brand Kws
It's a dedicated focus on
SEO for Non-Branded
Kws.
⬆️
Observe in Organic pages over
the years & its correlation with
Traffic
Result:
~75% of overall traffic is from
Non Branded Kws.
Source: Ahref; checked on 26 Mar'23
Key Takeaway 4
Performance Marketing
alone can only lead you from
point A to point B.
One has to invest in building
organic channels for
sustainable growth. Ex: SEO,
Referral & WOM .
Key Growth Lever
Search Engine Marketing
SEO
But I liked one thing
more than just driving
organic traffic...
Focus on
Traffic to Conversion %
"Our marketing efforts are
focussed on order-conversion
ratio, rather than chasing visits
alone, which is reflective of the
highest ever conversions of 3.8%
in BPC, and 1.2% for Fashion in Q3
FY23,”
- Falguni Nayar, executive
chairperson, MD, and CEO of
Nykaa.
Respect 🙏
Key Takeaway 5
Focus on optimizing your
Traffic to Conversion %.
That's 100% in your hand.
It even helps you strategize
to bring the relevant traffic.
(esp relevant for D2C brands)
Key Growth Lever
Search Engine Marketing
SEO
Visit to Order Conversion %
Shh!
There is 1 last lever...
Dominating
Social Media Game!
Strong presence on
Facebook: 3.4M+ Followers
Instagram: 5M+ Followers
Youtube: 1M + subs
Helped Increase
Brand Awareness
~40% direct traffic
can only happen with consistent
engaging social content.
What I love the most!
YT and other social content are
all about how-to guides, tutorials
led content!
Key Takeaway 6
Social content should be less
about you and more about
the user.
Reminds me of book: Jab, Jab,
(many more jabs) & Hook by
Gary Vee.
Think of ways of honestly
adding value. Metrics will
take care of itself :)
And, how can we
forget...
Influencer Partnerships
Influencers sharing personal
experiences with the product
helped with the mass reach &
drove sales.
Key Growth Lever
Search Engine Marketing
SEO
Visit to Order Conversion %
Social Media Marketing
(+ Influencer Partnerships)
Summary
What's the learning?
kya sikhe munna!?
Summary 1
Search Engine Marketing
Keep your brand search
campaign ON.
Do you want the same ad and
LP for all [Brand] + [Query]
as that for just [Brand].
Explore Broad Keyword
Strategy.
Summary 2
Organic
Invest in building organic
channels from Day 1:
SEO(non-branded kws),
Referral, WOM.
Visit 2 Order %
Have a laser-sharp focus on
improving the conversion
rate of the traffic. If a CEO
can go deep into it, what's
your excuse?
Summary 3
Build Brand Awareness
There is no great brand
campaign than adding
consistent value to the end
user via content creation on
social channels.
Amplify social distribution
via Influencers (if right fit).
That's All!
I hope you like it :)
You must 😠, it took me
a hell a lot of time to work on it. 🙈
ONE LAST THING
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