Segmenting Lancôme’s Pmax campaign for improved ROI

As a trusted partner to Lancôme, one of the world’s leading luxury beauty brands, Acquisit collaborates closely with their teams to elevate the brand's online visibility and drive e-commerce growth in GCC’s key markets. This case study delves into our strategic overhaul of their Pmax campaigns, focusing on segmentation tactics designed to boost click-through rates (CTR), ultimately enhancing return on ad spend (ROAS) and delivering a stronger overall ROI for the brand.

Segmenting Lancome's product inventory into Asset Groups

The initial Pmax campaigns were set up following Google’s default recommendation, consolidating all of Lancôme’s e-commerce products into a single asset group.

We identified an opportunity to optimize the campaigns by segmenting Lancôme’s product inventory into five distinct asset groups, each focused on a specific product category.

We significantly enhanced the campaign's targeting precision and algorithmic effectiveness by organizing assets, listings, audiences, and search themes around each product category. This segmented structure allowed us to tailor creative assets and messaging to each category, driving higher engagement and conversions.

Creative and Campaign Execution

Our creative strategy focused on crafting content tailored to resonate with each target segment. Each asset group received specific and visually compelling assets aligned with Lancôme’s brand identity, with luxurious imagery and messaging. This personalized, segmented approach empowered the algorithm to deliver engaging content to the most relevant audiences for each product, driving higher engagement and conversions.

To maintain a cohesive approach, we applied a unified bidding strategy across all asset groups, ensuring consistent ROAS targets and maximizing performance without increasing the campaign budget.

The image above shows the previous structure with all segments—fragrance, skincare, makeup, Maison Lancôme, and Absolue skincare—grouped within a single asset group.

The image below shows the new structure with dedicated assets to each specific segments:

Results: Achieving Remarkable Performance

By implementing a single campaign with five distinct asset groups, we delivered more personalized, relevant content that resonated with the target audience, improving both CTR and conversion rates.

This targeted and data-driven approach allowed us to exceed campaign objectives by significantly improving key performance metrics over the timeframe Jan 2024 to June 2024:

• CTR Increase: Our Pmax CTR went up from 0.7% to 1.24%.

• Conversion Rate improvement: Our campaign's CR increased by 107%, driving more conversions across all product categories.

• ROAS Improvement: this changed improved the overall efficiency of our paid media strategy, particularly for high-value segments like Absolue Skincare and Maison Lancôme.