Trendy reduces its CPA by 38% by integrating Google's Demand Generation campaigns

Challenge

Diversification of advertising investment without increasing the cost per purchase

Solution

Implementing Google Demand Generation campaigns to impact new audiences

To address this challenge, Trendy activated a mid-funnel Demand Generation campaign designed to impact audiences through prospecting and remarketing. Google's Demand Generation campaigns are an advanced tool that allows brands to reach new and existing audiences through personalized ads across multiple Google placements, such as YouTube, the Google Display Network, and Discover. These campaigns are particularly useful for building interest and consideration among users, integrating features such as engaging ad formats and the ability to include product feeds.

In the case of Trendy, the Demand Gen campaign took advantage of new placements such as YouTube Shorts and various ad formats ideal for the beauty vertical, as well as integrating the product feed into the ads. This strategy sought to complement existing brand and Performance Max (PMax) campaigns, diversifying investment without increasing costs.

"Having different types of campaigns with the objective of maximizing conversions has been a challenge and at the same time a success for customer acquisition and retention, as well as bringing a high number of revenue per ad.

— Daniela Loaiza, Account Manager at Adsmurai

Results

Reduced CPA and increased traffic

During the first three months after activation, the Demand Generation campaign contributed 5% of total conversions, complementing the brand and Performance Max campaigns. Compared to the previous period, the Google Ads CPA decreased by 38% from a high value to a significantly lower value for a similar investment. In addition, campaign traffic increased by 16% and the cost per click (CPC) decreased significantly.

When comparing costs to social media campaigns, Demand Generation's CPC was almost 200% lower than the social channel, demonstrating a remarkable efficiency in Trendy's ad spend. This approach not only maintained a stable CPA, but also boosted the brand's growth and diversification in its digital marketing strategy.