Daytrip

Daytrip

D2C Travel Platform • 120+ Countries

Travel & Tourism

How We Saved $2.7M by Working WITH Google's Algorithm

Operating across 110 countries with 60,000+ routes, Daytrip's Google Ads account had spiraled to 17M keywords and 63K campaigns. We built a proprietary route scoring system blending backend profit data, PPC performance, and SEO search volume-transforming 99% complexity reduction into 85% POAS improvement.

≈$2.7M
Total Savings
-40%
Monthly Investment
+85%
POAS Lift
+9%
Avg. Gross Margin

The Challenge

When I logged into the Daytrip Google Ads account during the interview process, I saw archaeological layers of 6 years of continuous campaign creation, built on top of each other without a single layer being removed.

17.3M
Keywords
63,846
Campaigns
2.8M
Ad Groups
4M
Ads

For context, a large e-commerce account might have 50-100 campaigns. A complex multi-country operation might push to 500-1,000. This was 63,846.

Three Critical Problems

1. Algorithmic Concentration

Google's algorithm naturally pushes 80% of spend to the top 20% of performers within any campaign. With 60,000+ routes mixed together, the algorithm decided where money went-not the business. High-potential routes never got enough budget to prove themselves. Strategic business priorities were ignored.

2. No Connection Between Ad Spend and Business Value

A high-margin route in a strategic new market would get the same treatment as a low-margin route in a saturated market. There was no system connecting backend profitability data to advertising decisions. The team was optimizing for POAS, but POAS doesn't tell you if you're making $10 or $100 per booking.

3. Google's "Other Search Terms" Black Box

Approximately €1.5M in annual spend was going to searches we couldn't see, performing 32% worse than the searches we could see:

POAS: Known Terms
126%
POAS: Other Terms
94%

The Algorithmic Concentration Problem

Google's algorithm naturally applies the 80/20 rule. You can't fight it-but you can control WHERE it happens.

Before
No Strategic Control
One mega-campaign with mixed routes
Top 20% get 80% of budgetBottom 80% starve
Algorithm pushes budget to same proven winners
High-potential routes never get meaningful budget
No control over strategic priorities
Algorithm makes business decisions
After
Strategic Segmentation
Cash Cows Campaign
High Potentials Campaign
Low Score Campaign
Sleepers Campaign
Algorithm optimizes within strategic segments
Control WHERE the 80/20 distribution happens
Budget aligns with business priorities
Human strategy + algorithmic execution

💡 The Breakthrough

You can't stop the 80/20 rule-it's fundamental to how machine learning works. But by segmenting routes into separate campaigns, you control which 20% gets the 80%. The algorithm's natural behavior now works FOR your business strategy, not against it.

The Solution

The answer wasn't in Google Ads data alone. It required building a custom scoring system that blended multiple data sources to give us a holistic view of route performance and potential.

Route Segmentation Framework

Blending backend profit data, PPC performance, and SEO search volume to classify all 60,000+ routes into strategic segments

Cash Cows

Highest Priority
Criteria

Proven winners • High revenue & margin • Consistent POAS >150%

Strategy

Maximize investment • Never miss traffic opportunities

High Potentials

High when scaling
Criteria

Strong margins • Good signals • Limited data but promising

Strategy

Scaling candidates • Tomorrow's Cash Cows

Low Score

Baseline only
Criteria

Underperformers • Low margins or poor POAS • Limited demand

Strategy

Minimal maintenance • Test occasionally

Sleepers

When diversifying
Criteria

Never advertised • Zero historical data • Unknown potential

Strategy

Controlled exploration • Discovery pipeline

📊
Backend Data
Revenue, margins, booking volume, LTV
📈
Google Ads
POAS, conversion rate, CPA, efficiency
🔍
SEO Data
Search volume, demand, seasonality
🔄 Continuous Re-Scoring

Routes move between segments based on performance. A Sleeper that performs well gets promoted to High Potential. A High Potential that proves out becomes a Cash Cow. The system continuously adapts to align budget with actual business value.

Transformation Timeline

From unmanageable chaos to strategic control in 4 phases

Phase 01

Immediate Cleanup

Paused 11,000 poor-performing campaigns. Killed phrase match. Split brand campaigns by region. Implemented regional tPOAS targets.

+45% POAS in 2 months
01
Phase 02

Build Route Scoring

Blended backend profit data (BigQuery), Google Ads performance, and SEO search volume into proprietary scoring system.

Holistic view of 60K+ routes
02
Phase 03

Strategic Segmentation

Classified all routes into Cash Cows, High Potentials, Low Score, and Sleepers. Separated into dedicated campaigns.

99.8% complexity reduction
03
Phase 04

Domain Migration Launch

Complete rebuild during domain change. Parallel run strategy. New structure: 127 campaigns vs. 63,846 old campaigns.

+85% POAS, $2.7M savings
04
🎯Result: Strategic control over 60,000+ routes with 99% less complexity

The Transformation in Scale

From unmanageable chaos to strategic control

Campaigns-99.8% reduction
Before
63,846
After
127
Ad Groups-99.98% reduction
Before
2,884,270
After
438
Keywords-99.99% reduction
Before
17,351,824
After
1,564

Less complexity = cleaner signals = better optimization

The Results

By week two after the domain migration launch, the algorithm started finding its footing. Spend stabilized. Conversion rates improved. POAS climbed. By week four, we were exceeding previous performance levels.

≈$2.7M
Total Savings (6 Months)

Eliminated approximately $15,000 in daily wasted spend through route scoring and strategic segmentation.

+85%
POAS Lift

From ~115% to ~213%. Algorithms finally had clean signals within strategically-defined segments.

-40%
Monthly Investment

Cut total ad spend by 40% while maintaining year-over-year growth through major disruption.

+9%
Avg. Gross Margin

Increased absolute gross margin by focusing budget on high-margin routes (Cash Cows and High Potentials).

Key Takeaways

1

Multi-Source Data Beats Single-Source Data

Google Ads data alone is insufficient at scale. We blended backend profit data (BigQuery), PPC performance, and SEO search volume for holistic route scoring. High POAS but low margin? Not a Cash Cow. Low data but high search volume + good margin? High Potential.

2

Work WITH the Algorithm, Not Against It

Google's 80/20 concentration is inevitable-you can't fight it. But you CAN control WHERE it happens. By segmenting routes into separate campaigns (Cash Cows, High Potentials, Low Score, Sleepers), the algorithm's natural behavior now aligns with business priorities.

3

At Scale, Less Complexity = More Performance

17M keywords sounds impressive, but 99.85% never converted. They were just noise preventing algorithms from optimizing effectively. The 99% complexity reduction didn't lose performance-it gained it.

4

Algorithms Optimize for the Past. Strategy is About the Future.

The route scoring system worked because it combined algorithmic optimization (within segments) with human judgment (defining the segments based on business strategy). Don't confuse the two.

Ready to Transform Your PPC Strategy?

Whether you're drowning in complexity or just want to align your ad spend with business value, let's talk about how multi-source data scoring can transform your performance.