How NBS Shrank PPC With Call Tracking
Google flew a few AdWords representatives out to meet with executives at Austell, Ga.-based e-commerce marketer National Builder Supply (NBS) in April 2014. At that time, NBS was spending nearly $4 million on paid search, says David Gallmeier, who leads marketing and development at NBS. When Google reps returned in February 2015, NBS had slashed its paid search spending by 60 percent that month — most of which came out of the AdWords budget. In total, NBS has reduced PPC spending by $1 million since October 2014, he says, all while keeping sales steady.
Challenge: Improve PPC lead generation efficiency.
Solution: Introduce call tracking.
- 60% PPC spend decrease
- 0% drop in sales
- $1 million PPC spend reduction so far
- 100% more Web-to-phone customer data
“A lot of people who advertise in Google ... are basically handing all of their profits over,” Gallmeier says.
After all, that’s what NBS had been doing as of April 2014. Gallmeier says NBS is now “breaking past” the amount it pays Google for the e-commerce company’s main lead generation source — AdWords. At the same time, it’s seeing a lot of its competitors go out of business.
Gallmeier, a Georgia Tech computer science graduate, says the secret to business success is being data-driven. He saw his company’s AdWords spending getting too high, so he helped NBS implement tools from Atlanta-based call-tracking software and services provider CallRail. By October 2014, it was time to start seeing which paid ads were working and which ones had to go. Between 33 and 50 percent of the sales come through the call center — mostly B-to-C — and he had no idea which ads were prompting the calls.