There is an inherent challenge for retailers when it comes to advertising their products. Product-specific advertising is a necessity to compete in the market, but retailers lack the ability to create and manage these granular and custom ads in an efficient and automated way.
One Retailer’s Challenge
Product-specific advertising was a major pain-point for Brazilian e-commerce sporting goods retailer, Netshoes, as it sought to scale its Facebook advertising program. Netshoes has an online inventory portfolio comprised of approximately 40,000 items. In order ensure coverage of all these SKUs, the team was manually creating and managing product-specific ads with individualized URLs. As one can imagine, this process was very time consuming and labor intensive for the team.
Once campaigns were launched, the team ran into additional challenges. As product attributes fluctuated – prices or stock quantities dissipated—the team did not have an efficient way to adjust ads to reflect these updates. In addition, Netshoes lacked the insight to understand which products were performing the best. Both of these challenges meant that the team could not properly optimize its program, leading to underutilized budget and plateauing performance.
Discovering a Dynamic Solution
The Netshoes team sought a solution that would address the challenges created by the company’s large amount of inventory – enter Skai Social Demand-Driven Campaigns (DDC). This unique solution allowed the team to dynamically create ads on Facebook based on their product inventory. By connecting with Netshoes’ back-end product feed, Skai’s technology could automatically identify, select, and advertise the brand’s most relevant, trending products on Facebook, based on demand and performance signals.
This translated to: ads launching quickly, proper products being prioritized, better management of spend, and ultimately, a more relevant experience for consumers.
Seeing Results
After implementing Skai Social DDC during the end-of-the-year shopping season, Netshoes saw significant improvements versus its baseline Facebook advertising activities. The campaigns with DDC proved to be much stronger with significant improvements in key performance indicators and, ultimately, ROI. DDC created more tailored and relevant ads, optimized for the best performing products, resulting in more than a 200% increase in conversion rate (CVR) while lowering the cost per conversion by nearly 40% in just one month’s time.
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