A big advertising opportunity in Latin America
With more than 130 million 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 a high purchase intent throughout a wide range of product categories. For this reason, advertisers from various verticals flock to MercadoLibre to set up programmatic guaranteed deals with Google Ad Manager 360.
Better information, better ads
In order to better support its advertisers, MercadoLibre used Google Analytics 360 to turn its first-party knowledge into tailored audience segments based on shopper activity and product interests. Using these segments, MercadoLibre set up programmatic guaranteed deals in Ad Manager 360 that corresponded with each of the defined segments. Advertisers using Google Display & Video 360 were then able to negotiate desired impression volumes at a fixed cost per thousand impressions (CPM) to transact deals for each of their priority segments.
With MercardoLibre bringing audience insights to their programmatic guaranteed deals, advertisers were guaranteed reach, and they had the opportunity to tailor ads more effectively. Additionally, advertisers were able to organize their creative executions for each of the segments, further increasing benefit.
Programmatic deals lead to better performance
Since it began analyzing engagement based on different audiences for programmatic deals, MercadoLibre has seen a substantial increase in revenue. For example, campaigns that utilized audience segments created in Analytics 360 produced over 60% higher RPMs than standard campaigns.
And it’s not just programmatic guaranteed deals that performed well — programmatic direct delivered 2 times higher RPMs than open auction impressions. Only five months after MercadoLibre adopted and implemented the platform, 35% of its programmatic revenue was coming from programmatic deals in Ad Manager 360.
With one of the company’s clients, Magazine Luiza, one of the largest retailers in Brazil, 23% of all conversions could be attributed to MercadoLibre. Also, more than 25% of all revenue generated during the campaign was from audiences who had been shown the improved programmatic guaranteed ads on MercadoLibre. Even more remarkably, the campaign advanced new customer acquisition for Magazine Luiza, with 40% of sessions coming from new visitors. So for MercadoLibre, using Ad Manager 360 and Analytics 360 really made an impression on its advertisers.