About Pixum
Pixum is one of the leading online photo services in Germany and Europe. The company offers high-quality personalized products like photo books, wall art, and calendars, helping customers preserve and share their most beautiful photo memories.
Executive Summary
Using the innovative Synthetic Users feature from JENTIS, Pixum was able to restore lost conversion data caused by missing user consent. This synthetic data was then activated in Google Ads in a privacy-compliant way. In a three-week A/B test, the campaign powered by Synthetic Users achieved significantly better results: +24.1% ROAS and –9.3% CPC. Pixum successfully reached previously inaccessible target audiences, unlocking new revenue potential.
Challenge
The implementation of cookie banners on Pixum‘s websites led to reduced data collection and activation, as many users declined to consent to tracking. This resulted in fewer conversion and behavioral data being captured, which not only impacted analytics and attribution but also decreased the efficiency of advertising campaigns on Google Ads. Platforms like Google Ads rely on complete and accurate conversion data to ensure precise and effective audience targeting. As such, Google strongly recommends that its clients focus on collecting and sharing the highest quality and quantity of first-party data as a key optimization strategy. The reduced data quality and quantity posed a significant challenge for Pixum’s marketing efforts.
Solution
Pixum found an ideal solution to tackle the challenge of missing user consents in marketing with JENTIS‘ Synthetic Users. This innovative technology combines real data captured with consent and uses Machine Learning models to replace the non-consented missing information with actionable synthetic data. The resulting behavioral and conversion data have actionable IDs that, for the first time, can be shared with advertising tools, like Google Ads, without any personally identifiable information (PII). These optimized campaigns led to increased efficiency and higher revenue potential.
Functionality
At the core of the technology is a Machine Learning model that works on top of your real data to create the missing data synthetically. This is done based on anonymized reach data, which can be collected in compliance with data protection regulations when consent isn‘t given, using the JENTIS feature called Essential Mode.
The system models synthetic users from this data and categorizes them into segments or pools based on similar behaviors and characteristics. Once the model is ready, the technology enables, for the first time, the collection of IDs (such as the Google Click ID) and the possibility of sharing them with platforms like Google Ads, without any personally identifiable information, even when consent isn‘t given. This means you can recover your previously lost conversions and use this new information to optimize your bidding and overall marketing campaigns.
The system collects conversion IDs and assigns them to the existing user pools. For every conversion of a synthetic user, the system sends a random ID from the corresponding pool back to Google Ads. Since this process is randomized, it ensures that the ID can no longer be traced back to individual users. This allows you to now leverage these conversion data in Google Ads for campaign optimization, boosting efficiency and performance.
Results & Impact
Pixum demonstrated the effectiveness of Synthetic Users in an A/B test between two Google Ads campaigns. Over the course of several weeks, the campaign powered by synthetic user data achieved significantly higher performance compared to the control campaign, with measurable results seen in just a few days. The performance boost depends on the consent rate and conversion frequency: the lower the consent rate and the higher the frequency, the greater the optimization potential with Synthetic Users.
The use of Synthetic Users offers significant advantages ROAS increase: With Synthetic Users, Pixum saw a 24% higher Return on Ad Spend (ROAS), translating into real revenue growth in Pixum‘s e-commerce business. Pixum successfully transmitted the highest possible data quality and the maximum number of non-personalized conversions to Google Ads, optimizing the bidding algorithm as a result. Pixum was able to more effectively target audiences that were previously unreachable due to missing consent. The results highlight the potential of synthetic user data, especially in terms of campaign optimization and ROI.
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