The Paid Media Myth John Lewis Just Dismantled

Search marketing has long relied on the same playbook. Bid competitively, target efficiently, optimise continuously, report (rinse and repeat), even if no one quite understands what the numbers mean outside of the marketing team.

John Lewis & Partners has taken that formula, stripped it back to its commercial foundations, and rebuilt it around something far more valuable: customer experience and business profitability. Search is no longer treated as a standalone tool designed to drive traffic. It now functions as a live commercial asset, one that supports trading priorities, reflects real-time customer behaviour, and contributes directly to bottom-line results.

“Pound for pound, we’re as optimal as we’ve ever been for paid Search.” - John Lewis' Digital Marketing Lead, David Bailey

What changed?

The team at John Lewis moved away from traditional metrics of success and began aligning paid search activity with the parts of the business that matter most: high-margin products, in-demand inventory, loyal customers, and valuable user behaviour.

This involved:

• Prioritising product-level profitability when setting bid strategies

• Using first-party data to understand intent beyond keywords

• Adjusting campaigns in line with stock levels and promotional focus

• Segmenting traffic by potential value, not just interest

• Improving landing environments to reflect the expectations of an engaged, brand-conscious customer

Search was no longer measured purely by what it delivered on paper, but by how well it supported commercial goals and long-term customer value.

The results

• 20% increase in profit directly linked to the new search model

• 4% improvement in return on ad spend across core categories

• 60% of all sales now come through digital channels

• Increased engagement across high-margin, high-availability product groups

• Stronger alignment between paid search, brand messaging, and customer experience

None of this was achieved by spending more. The gains came from improved focus, smarter targeting, and better internal integration.

Why it worked

Most brands still treat search as a funnel-filling exercise. The goal is usually to drive volume, reduce cost per click, and show upward trend lines. But that mindset rarely accounts for product margins, fulfilment realities, or customer retention potential.

John Lewis took a step back and asked the more meaningful questions: Which products need support? Which customers are most valuable? Where are the gaps between what we promote and what people actually want to buy?

The answers shaped a new approach. Paid search became part of a broader commercial ecosystem, sitting alongside merchandising, supply chain and customer insight. The result was a search programme that made the business smarter, not just louder.

For the rest of us

If your current paid search activity is still focused on winning auctions rather than driving outcomes, there is work to be done. This shift from tactical to strategic marketing requires closer collaboration between teams, stronger internal data alignment, and a willingness to prioritise value over visibility.

Ask yourself:

• Are we bidding on products that generate real profit, or just traffic?

• Do we adjust campaigns based on what is in stock and what is selling slowly?

• Are we using customer lifetime value to shape who we target and how?

• Does our paid search experience reflect our brand or just deliver a click?

• Can we trace a clear line from media investment to commercial return?

These questions are not overly complicated, but they are often avoided. That avoidance creates distance between media performance and business reality, and it is that distance John Lewis has closed.

We help brands restructure their search marketing to reflect what the business actually needs, not just what the platform optimises for. That means moving beyond the mechanics of bidding and focusing on outcomes that make sense across commercial, operational and customer experience teams.

We do this by:

• Aligning search campaigns with your margin structure and product roadmap

• Building dynamic feedback between what is in market and what is in demand

• Using behaviour-driven segmentation to improve who sees what, when and why

• Refining landing experiences so they convert, inform, and reflect brand value

• Translating performance data into informed decisions (not just metrics)

Search marketing should never exist in isolation. It should be a bridge between customer demand and commercial strategy.

Source: Marketing Week, LinkedIn commentary, and internal performance reporting