Kenshoo, Profitero Address COVID-19-Accelerated E-Commerce Growth
Marketing technology platform Kenshoo and Profitero, the e-commerce platform for Adidas, L'Oreal, General Mills and about 4,000 other brands, have partnered to solve challenges created by recent pandemic-accelerated e-commerce growth.
The partnership was designed to pair e-commerce performance analytics with “best-in-class” enterprise marketing technology to deliver strong advertising results for brands online. It also enables brands to use multi-retailer e-commerce analytics to optimize sponsored advertising and media campaigns for maximized return on investment on retailer websites like Amazon.com and Walmart.com.
As the world adjusts to the effects of the COVID-19 pandemic, e-commerce has become a staple for consumers. Per a Cleveland Research Co. report, "manufacturers expect e-commerce to reach 21% of their U.S. retail sales in 2021, up from 15% seen in 2019," creating both significant opportunity and challenges for established brands. Among those new challenges: how to efficiently spend advertising dollars on retailer websites to capture and convert first-time digital shoppers as effectively as native direct-to-consumer brands. E-commerce advertising — led by Amazon and Walmart — was already set to build on its meteoric growth this year and saw an extra boost at the end of the quarter as consumers sheltering-at-home purchased essentials online. According to The Kenshoo’s first quarter 2020 Quarterly Trends Report, year-over-year, spending on e-commerce ads increased 47%.
Through the partnership, Profitero and Kenshoo aim to reduce wasted marketing spend by factoring in consumer purchasing signals — like a product's page traffic, conversion rates, availability rates and organic search traffic — in the algorithms used to drive ad targeting and bidding decisions. Profitero collects these signals continuously using its advanced retail data collection technology, which spans 50 countries and 8,000 retailer websites and mobile apps. Kenshoo's automation technology can translate Profitero's insights into real-time action using its enterprise-grade advertising automation platform. The combined approach will also help brands to proactively identify opportunities to scale by redirecting advertising spend towards products, categories and audiences most likely to generate return.
"In a space as saturated as ours, successful marketing boils down to making sure the data we base decisions on is full-picture and contextually relevant," said Louise Harris, head of digital marketing, EMEA for Mayborn. "As current users of both Profitero and Kenshoo, we recognized that bringing these two partners' data views together will provide holistic intelligence about our products and that can be a competitive advantage for Mayborn."
"It's impossible to separate your advertising performance on a retailer site, like Amazon and Walmart.com, from product performance. If a product is out of stock, has poor content or poor quality reviews, then all of those things are going to weigh on the consumer's decision to buy and you are not going to get the full return on investment,' said Bryan Wiener, CEO of Profitero. "Integrating our analytics with Kenshoo's technology will enable brands to make smarter, more targeted ad buy decisions based on a holistic knowledge of their best-performing products across retailers, resulting in more efficient growth online."