For all e-commerce businesses searching for a new way to expand their revenue, we present to you our newest product, the Retail Media Platform powered by MOLOCO’s industry leading machine learning solutions.
Over the past 12 months, e-commerce as a sector has experienced immense growth. As COVID-19 fueled consumer convergence to online outlets, digital channels witnessed excellent growth just in the past one year. Online shopping has become one of the most popular online activities worldwide. In 2020, retail e-commerce sales worldwide amounted to 4.28 trillion US dollars and e-retail revenues are projected to grow to 5.4 trillion US dollars in 2022. With online shopping continuing to peak in popularity, retailers have made it easier than ever for consumers to take advantage of the convenience of their platforms. Consumers are taking advantage of the on-the-go benefits of mobile shopping for several purchasing needs such as daily supplies from convenience markets through their smartphones. Luxury brands, which had long shied away from ecommerce due to lower margin, now forecast the luxury market to grow 20% by 2025 and are expanding on their investment.
With an increase in demand, you will get the centralization of capital, consequently, product competition has become fierce to interest customers with diverse promotions. As more ecommerce sellers participate in in-app inventory promotion, e-commerce apps now have a tremendous new opportunity for monetization.
Tech giants have taken actions to preoccupy this opportunity. Through M&M and partnerships, they are deformating the landscape of the entire market. However, retailers who natively lack the robust technical resources of the tech oriented corporations are still struggling with their digital transformation. Apart from relying on external traffic and adapting general tools like chatbots, what actions can they take to succeed in unison with these changes while also preparing themselves for the future?
Answers from the First-party Data
Before we start to discuss the future of e-commerce, we need to mention how Apple’s new policy enforcing privacy protection has a huge impact on the performance marketing field. In March 2021, Apple introduced and announced that from iOS 14.5, IDFA, Apple’s Advertising ID, is set to "uncollectable" by default. Therefore, targeting based on these unique identifiers in iOS traffic has become essentially impossible without the users’ explicit consent.
Mobile businesses will inevitably need to rely more squarely on their first-party data, not third-party data. First-party data has become the utmost important and valuable form of information that enables more precise understandings of the customers, while not intruding on user privacy. And this means greater opportunity for ecommerce players than any others. Ecommerce businesses with lots of seller networks, various products, massive users with consumption data could flourish when met with an adequate technology that can interpret these data into valuable growth.
Major retailers have already tried to lead these changes. Amazon introduced their own personalized recommendation engine that helps customers find and purchase the products they want among 350 million products. This technology is a major revenue source that contributes 35% of Amazon's entire commerce revenue and is an ultimate solution that made Amazon become a 19-billion dollar commerce advertisement medium, following Google and Facebook.
MOLOCO’s machine learning engine for e-commerce businesses: Retail Media Platform
The question for many digital retailers, however, is often, is it possible for all online retailers to develop a solution like Amazon’s? The reality is, such a task would take a lot of time and resources to invest in and even longer to turn this into a source of change for internal management, let alone the financial investment. But, what if you could take a well-made technology and adopt it in your business?
This question is in fact why MOLOCO is introducing a new solution to help bring you an efficient resolution for your e-commerce needs. Built using MOLOCO’s battle-tested machine learning engine, the Retail Media Platform enables retailers to create new and incremental ad-based revenue streams with Sponsored Ads and Recommendation Engine.
Unlock new ad-based revenue streams for digital marketplaces
MOLOCO's Recommendation Engine contributes to increasing organic sales and enhancing customer’s satisfactions on app experience by displaying the optimized products in the right space based on personalized predictions made according to the shopping scenario. By training the users’ shopping preferences and actions, the recommendation engine finds the best product for the user.
MOLOCO’s Sponsored Ads help e-commerce operate their own media businesses with their apps. Sponsored Ads is a solution that supports all players in the marketplace, mobile shopping apps, its sellers, and its customers. E-commerce apps can maximize their profit by running highly efficient ads on the app inventories while showcasing new products and boost sales for popular items. For sellers, they can maximize user reach within their target budget and track the marketing effect transparently. Ultimately, shoppers in the app can get useful product information, instead of irrelevant ads.
All these key performance qualities are backed up by MOLOCO’s world-class machine learning engine, proven to work successfully with MOLOCO Cloud (DSP’s) performance, and strong infrastructure that can seamlessly handle mass transactions with ease. MOLOCO’s Retail Media Platform can easily be integrated with the existing campaign tools based on API and also is very easy to use, opening up an opportunity for e-commerce businesses of all sizes.
GS SHOP, the world’s leading retailer based in Republic of Korea is the first mover that adapted MOLOCO’s retail media platform to their service. With Retail Media Platform’s recommendation engine, GS SHOP attained revenue growth performance of 123% higher than their in-house solution and have recorded 650% of ROAS (Revenue on Ads Spending) via Sponsored Ads.
“Thanks to the amazing team at MOLOCO, we can now pinpoint our valuable customers more efficiently and recommend the best suitable products to them. MOLOCO is a team with state-of-art technology: we were able to improve our business by facilitating their Recommendation engine and Sponsored Ads solutions, which otherwise would have been a great challenge for us to develop first hand.”
Seonghwa Lee, Director of CVC department, GS SHOP
We welcome you to join our new Retail Media Platform and experience success with us. Now in beta, you can experience the Retail Media Platform with minimal cost in advance to the official launch. Please contact us for more information.