Case Study: How reduced its cost-to-revenue ratio by 19%

Case Study WirWinzer

Every now and then, we think it’s ok to do some self-promoting and to share insights with you from our work with some of the most successful online retailers. Today, we want to illustrate how WirWinzer, one of the most popular German online wine distributors, strengthens its market position and achieves further growth through paid search using our technology ‘camato‘ and our expertise.

Handling specific search queries isn’t easy

WirWinzer is an online shop for wine lovers, one of the top players in the market and, besides other aspects, the largest online provider of German Riesling. The Munich-based company has a broad range of red, white and rosé wines as well as champagnes. PPC advertising plays an enormously important role in the marketing of this product range. Against this backdrop, the biggest challenge for them is to handle not only general but also, and above all, specific search queries. So far, however, it has not really been possible to manually create text ads that match exact search queries, such as “2012 Riesling Late Harvest Online”, without increasing human resources. Lacking software support, the wide product range cannot be mapped with a sufficient number of exact keywords.

Technology, heel!

With the help of our semantic PPC technology camato, WirWinzer wants to reach a wide-ranging and high-quality level of coverage of the actual search queries and bridge the gap between searches and products – with the aim of improving the performance of advertising campaigns in a low-cost manner. There is also great potential in relation to existing customers in the wine industry, which WirWinzer would like to open up and develop.

“We have noticed that new customers often return to make subsequent purchases and can see the potential here”, says Sebastian Zellner, Managing Director of E-Commerce Werke GmbH, the operator of WirWinzer.

How to use semantics to create perfect campaigns

In order to achieve better coverage of the complete product range with relevant keywords and matching ad texts, the camato technology uses a unique semantic approach: the software automatically detects the semantic component of the keywords. With our support, WirWinzer is able to adjust the software according to the semantic characteristics which are important to them: wine makers, grape variety, origin, type of wine, vintage and buying incentive. When processing keywords such as “2012 Riesling Late Harvest Online”, camato now detects the included semantics. On the basis of this logic, camato creates a fine-grained campaign structure that can process thousands of keywords with just a few clicks. With the help of camato Ad Assistant, relevant ads can be created in bulk mode. These accurately reflect the search queries and enhance the relevance of the ads. The click-through rates and the number of sales improve – at lower click prices.

Ad Assistant
The camato Ad Assistant using the example of:
“2012 Riesling Late Harvest Online”.

In addition, the camato reporting function makes it possible to group the keyword performance according to the semantic characteristics, e.g. grape variety, and therefore derive important (optimisation) strategies at a glance.
The camato tracking system provides margin-specific keyword tracking as well as the ability to show new customers. Coupled with the margin, a new customer value that is meaningful to WirWinzer serves as the basis for campaign optimisation according to customer lifetime value. Sales potential in areas with high rates of new customers can be more strongly utilised. With camato bid management, the keywords and categories which help win new customers are higher priced. Often it is the generic areas that profit from this logic.

WirWinzer sees a decrease in cost-to-revenue ratio

In addition to valuable strategic insights, e.g. the areas where the range should be expanded, WirWinzer has achieved broad and high-quality coverage of the relevant keywords and matching ads – and thus improved the performance of its campaigns. In mid-2013, the original structure was revamped to appeal and target the wine industry. Within six months, the cost-to-revenue ratio in the non-brand area went down 19%, while the click-through rate increased by 38% and the sales after returns rose by 75%.

In 2013, WirWinzer increases the customer lifetime value as well as the number of new customers with camato.

Over the same period, WirWinzer also increased the number of new customers by 82% and the customer lifetime value by 142%.

“In camato, we have found powerful software which has enabled us to significantly increase our new customer rates and turnover in recent months while still complying with our internal CRR requirements. We are extremely satisfied with our working relationship with crealytics”, says Sebastian Zellner.

You can find further case studies on our website.

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Maximilian Hainlein

I'm working for crealytics as Social Media and Marketing Manager since 2011. My motto: "It's better to be the needle than the haystack."