Vaša Lekáreň | Case Study Recipe for Margin

Client: Your Pharmacy

Industry: Online pharmacy / pharmaceutical e-commerce

Company size: Medium-sized e-shop

Duration of cooperation: Since 2013 - present 

• Performance Marketing Strategy
• Google Ads
• Meta Ads
• Feeds

The pharmaceutical segment is among the most regulated areas of e-commerce. In addition to strong price competition, it is influenced by strict legislative rules and restrictions in measuring campaign performance. 

For the e-shop Your Pharmacy, the situation became even more complicated after the purchase tracking was disabled for pharmacies due to EU legislation and GDPR. Suddenly, it was much harder to accurately evaluate which campaigns and products actually bring profit.

The client's assignment was to increase the margin by 10% while maintaining the e-shop's turnover. Therefore, we found a new approach that did not optimize campaigns only for sales, but especially for the real profitability of products.

Diagnosis: Measurement Problem

In an environment lacking precise purchase tracking, we first needed to address the data. We designed our own UTM tracking and attribution approach, which helped better understand campaign performance even in GA4. Thanks to this, we were able to better interpret campaign performance even in environments with limited data.

Prescription for New Treatment: Margin-Oriented Bidding

Instead of optimizing for conversions or ROAS, we started managing campaigns based on margin.  We utilized the Dotidot tool and a feed optimized through a custom labelizer. The model incorporated data on the actual product margin, including back bonus simulations, allowing the budget to be directed towards products with the highest business benefit.

Diagnosis: Measurement Problem

In an environment lacking precise purchase tracking, we first needed to address the data. We designed our own UTM tracking and attribution approach, which helped better understand campaign performance even in GA4. Thanks to this, we were able to better interpret campaign performance even in environments with limited data.

Prescription for New Treatment: Margin-Oriented Bidding

Instead of optimizing for conversions or ROAS, we started managing campaigns based on margin.  We utilized the Dotidot tool and a feed optimized through a custom labelizer. The model incorporated data on the actual product margin, including back bonus simulations, allowing the budget to be directed towards products with the highest business benefit.