Scaling Sponsored Products: How One Retailer Grew its Retail Media Business

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Challenge: Retail Media Relevance 

A nationally known office supplies retailer with close to $10 billion in revenue aggressively planned to scale its retail media business. Yet, it noticed a concerning pattern while reviewing its’ existing retail media platform as its Head of Retail Media explains: 

“We could clearly see that our customers didn’t click sponsored products to the same extent as they clicked organic products. Even if they clicked, they didn’t convert as expected. It became clear that the third party sponsored products ad engine wasn’t working as well as our organic ranking algorithm.”  

This retailer knew that to grow the program, they needed to put relevance first. Not only would this approach benefit their shoppers, but it would also create the foundation needed to scale in the future. 

Approach: Personalized Sponsored Products  

Because this retailer had just finished a year-long project to improve its online personalization and site search, the seamless integration offered by Crealytics’ Fluid Sponsored Products, part of our retail media solution, was instantly appealing. 

“In other solutions, sponsored products were like patches placed independently among organic product results. The more patches you added, the more we affected our user experience.  And the less effective the shopping experience becomes.

In contrast, Crealytics’ Fluid Sponsored Products uses our own organic listings to determine which sponsored ads appear.  Products our algorithm determines to be less relevant are prevented from showing up, while products that score with high relevancy can be boosted to the top of the page.”  

Results: More Relevance for Improved Performance 

When the retailer evaluated the new approach, the sponsored products’ Click-Through-Rate (CTR) clearly suggested that shoppers had seen more relevant results (uplift +123% to +933%). And the retailers’ vendors benefitted as well, improving their Return on Ad Spend (ROAS) between +389% and +477%. 

Retailer's growth in ROA and CTRs using Crealytics Fluid Sponsored Products
Uplift: CTRs (click through rates) and ROAS (return on ad spend) with Crealytics Fluid Sponsored Products

According to the project’s leader:

“Crealytics’ Fluid Ads approach unites sponsored products and organic results. We can help users find the right products while our vendors achieve a better advertising ROI. It’s huge because our company can finally reconcile eCommerce and site monetization goals.” 

Retailer's growth in ROA and CTRs using Crealytics Fluid Sponsored Products
Another example of uplift: CTRs and ROAS with Crealytics Fluid Sponsored Products

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