Overview
Tuft & Needle is the pioneer and leader among direct-to-consumer mattress startups. In September of 2018, T&N merged with Serta Simmons Bedding (SSB), making the combined company the largest sleep brand in the world. The eCommerce team at Tuft & Needle identified a spike in CPCs for their branded keywords, and turned to the powerful advertising intelligence and reporting within Pacvue’s Ads Solution to uncover answers. They discovered that a specific competitor was aggressively targeting their branded terms and running a 25% off promotion campaign that was trying to seize Tuft & Needle’s shoppers. Utilizing a combination of Pacvue’s AI capabilities, Dayparting and Share of Voice Tool, Tuft & Needle can now track organic and paid share of voice before and after any CPC spikes and set automated rules around optimal ROAS.
The Challenge
Tuft & Needle identified a spike with their CPCs for their branded keywords, and there wasn’t definitive evidence to pinpoint the cause at first. The team was not sure if it was due to an issue with their campaign, or if there was another reason for the spike. There was a strong business need to understand exactly what drove the spike to combat it and create a plan to keep pace (and outpace) specific competitors going forward. They wanted to mitigate any opportunity that their competitors might have to lure their shoppers away.
The Solution
Pacvue’s reporting and advertising intelligence helped to quickly identify that there was a problem. By looking at the smart analysis of the competitive intelligence available via Pacvue’s Share of Voice tool and the timing around the spike, Tuft & Needle was able to identify exactly why their CPC went up. They discovered that a specific competitor was aggressively targeting their branded terms and running a 25% off promotion campaign that was trying to seize Tuft & Needle’s shoppers.
The Results
Tuft & Needle was still able to win their branded terms once they pin-pointed what caused the CPC spike, and they gained a solid understanding of what to do next time they come across a similar landmine. Some key Pacvue functionality is now in place, including:
Implementing Pacvue’s AI Capabilities such as a rules-based optimization loop for Tuft & Needle’s branded campaigns. These set of rules maintain optimal ROAS, increase bids on keywords that aren’t getting as many impressions, safeguard CPC pricing so they keep pace with competitive bids and help to defend key branded terms.
Using Pacvue’s Dayparting Capabilities to help with overall campaign performance.
Leveraging Pacvue’s Share of Voice Tool to track organic and paid share of voice before and after any CPC spikes.
“Without Pacvue, I’m confident that we wouldn’t have been able to track down the true cause for the CPC spike. With this type of intel, Tuft & Needle is better positioned to outpace our competition.” -Byron Kerr, Head of eCommerce at Tuft & Needle
