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Magic Margin™ – doubling the margin in practice

  • Jozef Zelenay
– 2 min reading

Magic Margin™ – doubling the margin in practice

  • Jozef Zelenay
– 2 min reading

Are you interested in a technical solution for managing PPC ads on margin? Would you like to see for yourself how the implementation of this solution could help you? Then this article is right for you! We have prepared for you a demonstration of how and what results can the implementation of Magic Margin brings.

The following table shows the values of individual indicators of our anonymized customer before and after the implementation of our controller of the click prices (so-called CPC bidding) on the web Heureka. The first five months reflect the situation before the implementation of the Magic Script Algorithm. In the sixth month, our collaboration and the automated control of Magic Script bidding has begun. But the controlling of the campaign click´s price (bidding) wasn´t done traditionally, by the TCS metrics (Turnover Cost Share) which aims to increase turnover, but with the goal of increasing the overall margin of the e-shop. This upgrade of price management from the SOT (Share of Turnover) logic to the SIM (Share in Margin) logic which we internally call “Magic Margin”.

 

 

As can be seen from the table, our customer’s margin increased by 108.44% in the first month. Another very important indicator that is important to note in the table is the margin cost ratio (MCR). Already in the first month, we see a decrease from 21.09% to 8.90%, which represents a decrease of 57.80%. The monthly change in the ROI indicator increased by 126.70% in the first month of cooperation. The satisfied customer decided to continue the collaboration and the second month confirmed the uniqueness of the solution on the market. As with the first inter-monthly margin change, we see an increase, namely by 77.30%. For a better graphic display, we enclose the following graphs:

 

For a better graphic display, we also attach a graph of the development of ROAS and ROI indicators:

 

 

Did these results interest you? Would you like to try what it’s like to switch to managing PPC ads on a margin with the help of Magic Margin? Feel free to contact us via start@magicscript.co.uk