How a testing model is driving SEAT and CUPRA’s search marketing performance
"Will we ever be able to put search marketing strategy in the driver's seat?" This is almost every search marketer's dilemma as the community continues to remain at the mercy of Google's algorithms and updates.
SEAT S.A, the Barcelona-based multinational automaker part of the Volkswagen group have innovated a testing model that is driving growth for its brands, SEAT and CUPRA in the European market. While SEAT is the young, cool and urban brand that offers cars with striking designs and several mobility solutions - CUPRA is an unconventional brand, which is defined by its progressive design and the performance of its electrified models.
We spoke with Corinne Calcabrina, Global Media Manager at SEAT S.A, Sophie Santallusia, Global Paid Search and Programmatic Director, and Alejandro Sebastian, Global Search Team Lead at PHD Media Spain to discuss the 'Performance innovation program' (SEAT S.A's testing model) and its value add to the businesses.
A fast-paced industry
Digital is a fast-moving sector and search is always reinventing itself with new formats and everchanging ways to create and manage accounts. The teams at SEAT and CUPRA had several pain points:
1. Staying on-top of all innovations and changes in the industry
"We needed to become first movers who actively capitalize on opportunities that appear. To ensure this our teams needed to take advantage of search space dynamics, apply best practices, and gain a technological and intelligence edge over the competition."
- Corinne Calcabrina, Global Media Manager at SEAT S.A.
2. Improving visibility of the team's hard work
"While we were putting all these efforts, we wanted to improve our team's visibility. While we are busy becoming the best performing channel, always reinventing, working towards results and efficiencies, we often miss the glitter of other channels. Adding an official scope and framework means we get to report and showcase our achievements."
- Corinne Calcabrina, Global Media Manager, SEAT S.A.
3. Maintaining performance and improving efficiency
"As the best performing channel on a last-click attribution model, we were also facing multiple challenges. The pandemic lockdowns and microchip shortages made search performance improvements a constant, ongoing must-have. This meant decreasing the cost per click (CPC) and improving the cost per acquisition (CPA) were always core reasons to develop such a testing model."
- Corinne Calcabrina, Global Media Manager, SEAT S.A
Putting testing in the driver seat: The SEAT and CUPRA Performance innovation program
The SEAT S.A testing model, 'Performance innovation program' was designed to align with the inherent love for innovation that runs at the core of SEAT and CUPRA brands. The testing model was built centrally to maintain brand focus on the strength of paid search - improving cost efficiencies and accelerating performance.
Corinne and her team at SEAT S.A and their agency, PHD Media reviewed brand strategies for SEAT and CUPRA respectively, their performance, and local needs. They created a framework that provides structure, helps the brands expand their market share, and deliver central visibility on the testing results. They created specific testing roadmaps, based on quarterly goals that align with local markets based on their needs and strategies.
"We then applied our tests, sharing the hypothesis (highlighting results from other markets) of what we hope to achieve and then applying the test into the main strategy.
"We had a clear timeline and roadmap. We always test and learn. This allows us to have a specific position with partners, allowing us to always be part of the alphas and betas, testing new formats, always trying to improve results at the same time", Corinne shared.
To facilitate consistency the SEAT S.A team organized tests throughout the year pacing one test at a time for an ad group or campaign to maintain efficiency and gain clear observations. The roadmap was created on these factors:
Priorities for markets based on the impact and workload
Changes that Google makes to ad formats or different features that it sunsets or iterates
The search marketing grand prix: data, automation, and visual optimization
SEAT S.A and PHD Media started differentiating strategies by keyword type and defined them for each ad group. Keywords were segmented based on brand and non-brand search, their role, and their respective KPIs. This data was then used during the auction bidding. Artificial intelligence (AI) was used to segment audiences and target ads that were top of the funnel. Comparative insights from these tests were later fed into the business to inform the direction of strategy.
To improve the click through rate (CTR) and lower CPCs, the SEAT S.A team focused on adding visuals to ads, improving ad-copies, and testing new extensions. They also decreased CPAs by using bid strategies and the system's AI to get the best of their budgets.
To master their visual impact on audiences SEAT S.A used image extensions for each ad across all their campaigns. Google displayed these images based on multiple factors like clicks, content, and keyword triggers to optimize the best performing ones.
From a data point of view, in Search SEAT S.A used Google Search Ads (SA360) to manage and monitor their Google Ads and Bing Ads respectively. The data sets tracked all the core essentials of paid search:
Keyword conversion performance
Audience data through all the custom bidding options available in SA360
The 'Performance innovation program' model has helped SEAT and CUPRA achieve one of their best tests which catalyzed their search performance in terms of the cost per visit (CPV), one of their main KPIs that signaled top of the funnel conversions. The cost per visit (CPV) improved by 30% and cost per acquisition (CPA) improved by 37%.
SEAT S.A (SEAT and CUPRA) are now equipped with new ways to deduce and analyze conversions on a market-to-market basis.
Sharing intelligence across diverse markets
After completing the testing phase, the SEAT S.A team and their global partner PHD Media reported on results and observations. Sharing their learnings and insights with other markets has empowered other teams to benefit from the knowledge and expertise derived from the successful test prototypes. Focusing on components that drive results has allowed the teams spread across to be challenged and has facilitated constant learning while embracing changes and new features. The SEAT and CUPRA teams are now strongly positioned to outperform the competition.
Gearing up for a cookie less future
Going cookie less will bring challenging times and impact the search channel. SEAT and CUPRA plan to counter this with the use of Google Analytics 4 (GA4) to maintain performance and target the right audience. Opening up to new visual formats like Discovery campaigns and MMA/MSAN from Bing will also take an important place within search in the future, as the core of search might evolve with more automation, less granularity and control.
Greater focus on measurement and a privacy-first future
The team is testing 'consent mode' with GA4 and 'enhanced conversion' to estimate the attrition due to privacy guidelines. They are also focused on identifying and designing a risk contingency plan for the paid search elements that they won't be able to test in the near future.
"We are testing all the new solutions and features that Google is bringing to the market in terms of privacy and cookie less capabilities. Particularly, our testing is focused on deploying the full suite of Google Analytics 4 (GA4), site-wide tagging, consent mode, and enhanced conversions.
Additionally, we are also testing new audience segments that GA4 allows within a privacy first ecosystem on our paid search campaigns. We are seeing some positive and promising results."
- Corinne Calcabrina, Global Media Manager at SEAT S.A
SEAT S.A and PHD Media are actively focused on Google solutions for mapping markets and audiences that are privacy compliant and applicable for targeting segments.
They are also working towards gathering and connecting first party data like CRM audiences and customer match solutions.
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