Published April 2017
With more than 130M registered users in Latin America, MercadoLibre is among the most prominent ecommerce sites in the region. More than one third of all internet users in Latin America use the site, together making an average of 4.6 purchases every second.
Because of its high traffic volume, MercadoLibre offers advertisers unique opportunities to reach large audiences with high purchase intent, across a wide range of product categories. For this reason, advertisers from various verticals flocked to MercadoLibre to set up Programmatic Guaranteed deals via DoubleClick for Publishers in 2016.
Segmenting audiences by intent
To give their advertisers access to premium audiences, MercadoLibre used Google Analytics 360 to turn its first party data into tailored audience segments for advertisers. Supporting advertisers from an array of industries, MercadoLibre created segments based on shopper activity across product interests like cell phones, cameras, cars and more. The team then used DoubleClick for Publishers to make these segments available to advertisers interested in running campaigns against those audiences.
Our main goal is to deliver great ad experiences, connecting brands with the right people, at the right time and context. With more than 130MM users and unique insights into the shopper journey, integrating MercadoLibre with DoubleClick for Publishers and Google Analytics 360 allowed us to enhance our clients' campaigns by creating precise audience segments. This alliance enables us to keep innovating, and offering new and better ad solutions to our partners and users. As a media player, it's a major asset to be able to access and smartly leverage quality information in this way.
Packaging audiences into Guaranteed deals
Using the data sets, MercadoLibre set up Programmatic Guaranteed deals in DoubleClick for Publishers that corresponded with each of the defined audience segments. Advertisers using DoubleClick Bid Manager were then able to negotiate desired impression volumes at fixed CPMs to transact deals for each of their priority segments. With MercardoLibre bringing audience data to their Programmatic Guaranteed deals, advertisers were guaranteed reach while their ads were targeted to users that were more likely to buy their products. Additionally, because the audiences were so precisely defined, advertisers were able to tailor their creative executions for each of their segments, which further increased effectiveness.
Programmatic deals with audience precision delivered for both MercadoLibre and advertisers
Since implementing targeting based on audience segments for programmatic deals, MercadoLibre has seen a substantial lift in revenue. For example, campaigns that utilized audience segments created in Google Analytics 360 produced over 60% higher RPMs than standard campaigns. And it’s not just Guaranteed deals that performed well. Across all deal types, Programmatic Direct delivered 2X higher RPMs than open auction impressions. And only five months after adopting and implementing DoubleClick for Publishers, 35% of MercadoLibre’s programmatic revenue was coming from programmatic deals.
Selling to these audiences through programmatic premium made sense. If we want to deliver better ad experiences, we need to use all our capabilities, data and ad formats, no matter the sales channel. Programmatic deals allow us to automate advertising processes, optimize our resources and minimize operational time while reaching marketing budgets from main brands that we otherwise wouldn't be able to gain.
MercadoLibre’s clients are also seeing improved performance. For Magazine Luiza — one of the largest retailers in Brazil — 23% of all conversions could be attributed to MercadoLibre and more than 25% of all revenue generated during the campaign was from audiences who had been exposed to the targeted Programmatic Guaranteed ads on MercadoLibre. More remarkably, the campaign drove new customer acquisition for Magazine Luiza, with 40% of sessions initiated being new visitors.