Dermalogica.

  • Paid Media

Paid search transformation using Google's AI solutions including SA360, New customer bidding and Performance Max.

  • The Client

    Dermalogica is a global leader in professional skin products, with a strong presence in the Australian market. They sell their products in retail department and beauty stores, professional skin treatment clinics, and directly to consumers via their website. Due to global commercial deals, often partner stockists can sell or discount Dermalogica products far lower than what Dermalogica can themselves, inhibiting our ability to compete effectively on price. 

  • The Objective

    Dermalogica’s main objective is to increase the number of customers choosing to purchase Dermalogica products directly from its owned and operated website to maximise profitability. Our Google Search Ads goal was to capitalise on the enterprise level bidding algorithm to increase the number of new customers we attract and grow long-term revenue. 

  • The Challenge

    Our key challenge is that partner stockists can sell or discount Dermalogica products far lower than what Dermalogica can themselves, inhibiting our ability to compete effectively on price. We must be smarter with our approach to the ‘value equation’, capturing new customers as they float through the exploration and evaluation stages of the purchase funnel with tactical loyalty messaging to build a relationship independent of individual product costs.

  • The Solution

    We trialled and scaled investment in three advanced AI Google solutions, including: Search Ads 360, New Customer Value bidding strategy and Performance Max campaigns. 

    The SA360 algorithm integrates campaign data from programmatic display, video, native & social channels, and helps us understand the true incremental value of Google Search Ads advertising. This means we aren’t analysing and optimising our campaigns in isolation, by using a comprehensive set of information to maximise revenue. 

    This was coupled with our client’s investment in 1st party-data analysis and activation, not only passing through various segments from Klaviyo, but measuring lifetime value for loyalty customers for us to optimise towards within campaign settings. 

    Lastly, Performance Max has been an instrumental channel for us to better compete within Shopping, Display and Video environments using powerful imagery and video content designed to show off the features and benefits of becoming a Dermalogica Rewards loyalty member. Our asset groups have been broken out into key product categories with tailored creative and audience signals to find the most relevant audience. The balance of brand & performance formats will help us sustain future growth.  

  • +40.3%

    Total attributed revenue YoY

  • +37%

    Total return on ad spend YoY

  • +516 New Customers

    3 months after NCA optimisations

The Result

Since implementing SA360 and Performance Max, over the past 12 months we’ve increased total attribute revenue by 40.3% (compared to year prior). This re-iterates the long-term effectiveness of leaning into Google’s AI & machine-learning based algorithms. 

Since implementing new customer acquisition bid optimisation in 2024, we drove an incremental 516 new customers (valued at over $68,000) into our loyalty program despite modest campaign budgets within three months. This will supercharge our retention and re-engagement strategy in Q3 & Q4 this year. 

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