A New and Unique Method of Optimising Towards Cost of Sale

By Josh Swerdlow.

Everybody likes to get the best of both worlds.  Imagine a scenario where a store could provide to their sellers and brand partners the benefits of an automatic bidding campaign whilst returning the sort of Advertising Costs of Sale (ACOS) that are usually associated with time consuming manual campaigns.

Here at Mabaya, we have developed a feature which can deliver just that.  And, we believe, it is a feature within our platform that is unique to us.  Simply, you will not find anything as effective anywhere else.


A Bold Claim – Here’s the Proof


Let’s start with the facts:

  • Number One: Up to 90% of online retailers media revenue from sponsored ads came from automated bidding campaigns.
  • Number Two: Those automatic bidding campaigns yielded retailers on average seventeen per cent (17%) more revenue than if the bids were done manually.
  • Number Three: CTR is ten percent (10%) higher than in manual campaigns

So, as a store why aren’t you seeing more of your sellers/brand partners make their bids automatic?  The answer is twofold.  It might cost, on average, more per click than having somebody sit down and decide upon that day’s keywords, but the return on ad spend (ROAS) is better when using an automated campaign. Or maybe it’s that the feature isn’t available within your current sponsored ad platform

Our research at Mabaya demonstrated that the CTR of automatic bidding campaigns is typically around 10% higher than that of manual campaigns, although it is true that some stores for some periods can do better than that with their manual keywords bids.

Then there is convenience.  Leaders want to spend their time – and employ their staff – to improve their company; to develop strategy, identify new markets and improve efficiency and productivity.  What they do not want to have to do is commit time and energy to what is fundamentally a mundane task which an algorithm will perform better.

However, cost is a factor.  Nobody wants to waste their money bidding more to make an impression if they can do it less expensively and more effectively.   Which is where Mabaya come in.


How Does it Work?

Mabaya’s platform optimises towards sellers’ & brand partners’ goals

We offer a highly flexible, multi-level system of automatic campaigns, using our advanced algorithms to streamline a seller’s ACOS.

Automated Bids:  Sellers identify their target ACOS; our platform places bids in real time to achieve their ACOS.  Besides the automatic bidding options, there is of course a manual option to take control on max bids on a keyword or product level.

Keywords:  Advertisers can opt for keywords to be selected automatically.  These selections are optimized around the products they wish to promote. Alternatively, they can manually choose their target keywords.

Our research demonstrates that between 75% and 90% of revenue that stores generated from sponsored product ads originated from campaigns which featured automatic keywords.

Products:  Once more Mabaya offers a multi-layered and flexible approach for promoting your sellers and brand partner’s products on your site.  Sellers can choose to select the products they wish to promote in a given period, or they can allow us to do this for them automatically.

In this situation our algorithm will choose several products which it identifies as having the highest chance to perform in that given period and Mabaya also monitor and update products daily according to performance, removing and adding products accordingly.


The Benefits of Using Mabaya’s Platform to Optimize ACOS

The best advantages are the simplest ones.  Bluntly, using our platform will offer retailers the maximum opportunity to monetize their site. But the benefits we offer go beyond this.  Let us imagine a scenario where automated campaigns did not exist.  What would happen then?  Certainly, some sellers and brand partners would use manually inputted campaigns.  Some choose to do so anyway.  For some sellers and brand partners in some circumstances that is the best option in any case.  But for the overwhelming majority, automated campaigns are the most efficient and cost effective.  Without them, many would simply not use campaigns at all, and you as the store would lose the potential advertising revenue.

Those that did opt for a manual campaign would then face the time consuming and challenging task of evaluating their campaign.  That is something that we do for you, providing you with detailed analysis of how your campaign has fared.

Next is the fact that Mabaya is a proven and growing platform, with an excellent reputation.  Our white label self-service Sponsored Products Ads platform is integrated into over 50 ecommerce sites globally, serving billions of ads monthly for more than 50,000 sellers and brand partners.  Plus, of course, we believe that our ACOS optimizing feature is unique.

Lastly, but certainly not least, the brands whose products you sell benefit from our automated approach.  Simply through the efficiency of our algorithm these brands gain greater exposure.  Their products are seen more often; views, clicks, impressions, sales are all reported and optimized for them too.

Imagine the benefits of being able to demonstrate to these big brands that their increased exposure comes through your site.  Imagine the advantages that brings to your relationship with these brands.


Summing up our Automatic ACOS Optimization Platform

And here is the most astonishing fact of all:  our research indicates that up to 92% of revenue derived from sponsored ads originated from campaigns which featured automatic bidding, automatic keywords, or both.

Using Mabaya’s platform to improve your sellers and brand partners ACOS delivers a perfect storm of opportunity:

Maximum sales at an optimized advertising cost of sale