Banking on First Party Data

Client: Tesco Bank

Tesco Bank, operating in a highly competitive financial services market, faced challenges with high Cost Per Clicks (CPCs) and fragmented search landscapes. Their core objective was to efficiently drive high-quality savings account applications by leveraging first-party data (1PD) and advanced Google Ads features. KPIs included improving conversion rates by 50%, reducing Cost Per Acquisition (CPA) by 30%, increasing 'high-value' conversions by 25%, and scaling PPC activity by 100%.

Existing PPC campaigns generated volume but suffered from high CPAs and low conversion rates. The hypothesis was that segmenting customers by value and activating 1PD as an audience signal would improve efficiency. Tests confirmed while 1PD campaigns have higher CPCs, uplift in conversion rates would significantly reduce overall advertising costs.

The strategic approach involved a bold pivot from conventional PPC, restructuring campaigns to prioritise 1PD activation alongside early adoption of Google's Performance Max (PMax) and Broad Match keywords. Allowing for precise targeting, leveraging AI and machine learning, and capturing valuable long-tail search queries without compromising quality. Campaign consolidation further optimised impact, allowing 1PD to act as a strong signal rather than a sole targeting method.

The "Valuable Customer Data Test" demonstrated an 84% reduction in CPA and a 1,907% increase in conversion rate for 1PD campaigns compared to standard campaigns. This scalable approach, continuously refined, transformed Tesco Bank's customer acquisition strategy, leading to a 50% lower CPA in Q1 2025 and 566% more accepted applications. This initiative delivered exceptional cost efficiencies and also established a robust sustainable framework for future PPC activity.