Åhléns: profit jumps with Alvie’s Bidding Signals

Introduction:

Åhléns, a leading Swedish retailer, achieved a 20% increase in gross profit (GP3) by leveraging Alvie Bidding Signals to integrate business-specific data into their bidding strategy. By connecting data points on customer value and product profitability with Google, Åhléns ensured every bid was optimised based on what really matters to their business.

Our approach

By implementing Bidding Signals, Åhléns was able to shift from focusing solely on top-line sales to making smarter decisions that accounted for long-term profitability. Bidding Signals enabled Åhléns to integrate critical business metrics directly into Google’s algorithms.

The solution enabled real-time bidding adjustments based on:

• Gross margins: Allowing Åhléns to prioritise high-margin products in their bidding strategy.
• Return rates: Ensuring that bids reflected the true profitability of products, taking returns into account.
• Supplier subsidies: Adjusting for external cost factors that influence pricing and profitability.

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Proprietary technology as a foundation

Alvie was utilised since the beginning, automating critical factors of the performance such as bidding optimization, attribution modeling, and keyword expansion. Frequent additions of new features and ongoing development of existing ones has been a key driver to the continued improvements in results year by year.

Conclusion

With the help of Alvie’s data-driven attribution, Åhléns was able to understand the true value of generic searches, and scaled their investments. Alvie’s attribution model has throughout the years attributed digital performance tied to Åhléns’ customers’ interactions with search, which has been a crucial insight for Åhléns to understand what efforts are contributing to their bottom line more accurately.