Connexity grows Groupon’s Shopping ads sales revenue by 300%

Connexity helps retailers to compete effectively for shoppers across all evolving retail channels. As a Google Comparison Shopping Premium Partner, Connexity has developed channel-specific technology and operations to help retailers participate and scale their marketing spend on Shopping ads. Groupon is one such client that has benefitted from their expertise.

About Connexity
  • Google Comparison Shopping Partner
  • Manages marketing services for retailers, including Shopping ads management
  • Operating in France, Germany, Italy, UK
About Groupon
  • Worldwide e-commerce marketplace
  • Connects subscribers with local merchants
  • Special offers for activities, travel, goods, and services
Goals
  • Increase sales revenue from Shopping ads
  • Maintain return on ad spend
Approach
  • Connexity simultaneously ran Shopping ads campaigns along with Groupon's in-house campaigns
Results
  • Shopping ads sales revenue increased by approximately 300% in four months following launch
  • No changes in cost of sale or cost per click in direct campaigns
  • Delivered on cost of sales target

Connexity aimed to help Groupon increase sales revenue and maintain or improve their return on ad spend. Four pillars made up the strategy.

Feed management and data enrichment. Connexity processes up to 1 billion products every 30 days and then enriches roughly 5% of the content in their feeds, which provides Shopping ads with clear signals on attributes such as brand, material, size, and so on. After algorithmically classifying Groupon’s offers to match Google’s taxonomy, Connexity added key product metadata to improve the offer acceptance rate and performance of the brand’s Shopping ads.

Feedback loop automation. Using Google APIs at scale gave Connexity access to automated reporting and feedback, which allowed them to optimise Groupon’s campaigns more efficiently and quickly.

Adaptive, real-time bidding. Connexity used their proprietary technology platform to automate bid optimisation according to Groupon’s objectives, product attributes, and campaign dimensions.

Analytics. Using large-scale analytics, Connexity modelled performance insights to feed the bidding engine, including search query trends, auction insights, purchase propensities, brand affinities, seasonality, and more.

Groupon ran Shopping ads through Connexity. Results were impressive; in the four months following the launch of Shopping ads through Connexity, Groupon’s sales revenue from Connexity increased by 297%. Ad spend increased by 232% during that period while consistently delivering on their cost of sale target. At the same time, Groupon saw no material changes in cost of sale or cost per click in their existing Shopping ads campaigns running on other CSSs.

The significant incremental sales we have been receiving via Connexity have helped us reach and win new customers across the EU. As Connexity reached our return on investment goals, we uncapped the budget and are expecting to scale this even further.Brian Nevin, Head of Affiliate Marketing International, Groupon