Toward Data-Driven Advertising Operations
Agile Operational Framework
AI Ad Optimization Reduces Acquisition Costs by 10% and Increases Conversions by 15%
- Ando
01.
Client Challenges and Mission
Improving performance decline due to intensifying advertising competition
The D2C e-commerce company had been actively investing in major digital advertising platforms, but acquisition efficiency had slowed due to intensifying market competition and frequent changes to advertising algorithms.Specifically, customer acquisition costs (CPA) continued to rise while ROAS (Return on Advertising Spend) declined, resulting in a significant gap against business KPIs. Although they had previously trialed automated optimization features, they failed to deliver sufficient results, leading to a return to manual operations. To overcome this situation, they considered re-selecting a partner agency well-versed in the latest digital advertising technologies and consulted with us.
02.
What is the overview of services provided for client challenges?
Proactive product introduction aligned with media technology updates
We actively implemented and customized the automation products provided by the media using the MACT method.
While automation products themselves are a recent trend and our client had prior implementation experience, there was a background of performance deterioration leading to rollbacks.
Automation products inherently offer limited operational levers and make granular performance analysis difficult, meaning hasty implementation carries inherent risk.To maximize success probability, a role akin to a skilled pilot is required—one who discerns the AI's learning state from subtle behavioral differences and provides optimal learning signals.
For this e-commerce client, we maximized the automation product's potential by redesigning conversion data and adjusting ad creative messaging from a learning perspective. Agile course corrections enabled us to commit to the business KPIs.
03.
What are the results of the services provided?
Performance improvement is a given, but we also evaluate the visualization of players and the PDCA flow.
Compared to before our involvement, we achieved a 15%+ increase in conversion volume while reducing CPA by over 10%.
While there were concerns that introducing automated products might obscure operational improvement actions, our expertise in meticulous task/schedule management and clear communication has enabled a rapid improvement cycle.
