Pen Store wanted to grow their business profitably while having incredibly diverse product margins across a large assortment. By implementing Alvie's Bidding Signals solution and shifting from revenue bidding to profit bidding, the brand successfully secured a significant lift in their bottom line.
Pen Store came to Alvie with a clear ambition: to grow the business while increasing profitability across their varied markets and broad product margins. The team succeeded in reaching their ambition, in part because of Alvie's Bidding Signals solution, and in part because of their strong, internal alignment.
Everyone from the CMO to the CEO, founder and the CFO were on board with treating Alvie's Bidding Signals as the source of truth that would help them realise their goals.
The core strategy involved moving away from optimising for an average Return on Ad Spend (ROAS) based on revenue, and shifting entirely to profit bidding, utilising Alvie to define the bidding signals and sending the transformations to the relevant channels.
To ensure a safe transition and avoid disrupting performance, the switch to profit bidding was implemented via a gradual rollout across different markets. This allowed the team to carefully test the positive impact and ensure stability before scaling up the strategy to larger markets.
The initial phase of the partnership focused specifically on activating bidding signals and the Max Net Profit tool to demonstrate clear, undeniable value. Over a focused evaluation period, the positive effect on Pen Store's bottom line was robust and fully confirmed by their CFO.
This demonstrable success with profit bidding directly led to Pen Store upgrading to the full Alvie product, adding attribution and budget optimisation to their existing scope.
By integrating complex margin data with Alvie's advanced Bidding Signals tool, Pen Store successfully achieved a 34% incremental lift in net profit. Having established Alvie as a trustworthy source of truth for internal reporting and board meetings, Pen Store is now fully equipped with attribution and budget optimisation tools to confidently drive their next phase of expansion.
