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Do you want to increase your sales figures and turnover on the Kaufland Marketplaces? Are you already a Kaufland Global Marketplace seller? Then this SPA Strategy Guide is important for you.
For sellers who are active on the Kaufland marketplaces, Sponsored Product Ads (SPA) offer an excellent opportunity to advertise your products effectively and thus to increase sales. With the introduction of the new SPA tool, Kaufland Global Marketplace has opened up numerous optimisations that will make it easier for you to successfully implement your marketing strategies.
In addition, with the new SPA tool you as a seller profit from an improved average Return on Advertising Spend (ROAS), which increases the profitability of your advertising measures. For example, the ROAS for the category Electronics & Computers on the German marketplace Kaufland.de is around 1,100 percent. (More on this: Important KPIs for Sponsored Product Ads (SPA) )
Best practices of different campaign goals and appropriate strategies
What are the benefits of Sponsored Product Ads?
As a seller, you can use Sponsored Product Ads to prominently advertise your products at various contact points on the Kaufland marketplaces and in the Kaufland app. SPAs are among the most popular performance tools for onsite promotion.
The core features and benefits of SPA include:
- Increased visibility: Products are displayed at strategically important locations, such as on the search results page, the category page and the product details page. As a result, your advertisements are displayed selectively to the customers who have already searched for similar products.
- Positive long-term effects: The increased traffic can have a positive effect on the organic ranking of your offers, resulting in a sustainable increase in your visibility.
- Competitive advantage: Thanks to targeted advertising you can stand out from your competitors by letting customers see your best offers at the ideal time. Sponsored Product Ads ensure that your offers are highlighted so that potential buyers can discover the advertised products quicker.
- Control of advertising costs: Sponsored Product Ads work according to the cost-per-click principle. This means you only pay when a customer clicks on your ad. You can control your advertising costs by specifying separate bids individually and adjusting your targeting strategy. This allows flexible and budget-friendly advertising.
Proven strategies for success with SPA
In order to exploit the full potential of Sponsored Product Ads, you should consider some proven strategies:
- Optimise targeting
When creating campaigns, you can use various targeting strategies, including automatic and manual targeting, and orient your ads towards specific keywords. This allows a more precise target group reach and increases the relevance of the ads. Selecting keyword targeting can influence the success of your campaigns.
The advantages of the two approaches should be considered and adjusted to your own goals and requirements:
Automatic targeting: With this option, keywords are automatically selected by the algorithm and customised to your campaign. This is particularly advantageous for new sellers or those who have not used SPA very much and therefore have little experience in developing target-group-specific keyword strategies.
Manual targeting: This method allows you to select your desired keywords yourself. This is recommended if you have sales experience with the search habits of your target group and already know the most relevant keywords.
Our how-to guide for the new Sponsored Product Ads tool provides detailed step-by-step instructions on how to set up, manage and monitor the performance of a SPA campaign according to your objectives. Download the SPA handbook now!
Source: Kaufland
- Flexible bid management
Bid management is another important aspect of a successful SPA strategy. You should regularly review and adjust your bids to achieve the best results. You can choose either an automatic or a manual bidding strategy, depending on your budget and goals. Regularly analysing your performance will help you to adjust your bids to your goals.
Automatic bids: With this variant, the algorithm automatically sets the bids for you. You simply have to specify a target value for the ACoS (Advertising Cost of Sales), which makes the management of your campaign considerably easier. This strategy is ideal for sellers who are new to SPA, as it requires little effort and still guarantees effective visibility.
Manual bids: Here you enter a maximum bid that you are willing to spend per click on your ads. This bid is then applied to all the selected products. However, you can also specify individual bids for certain products and keywords (only in conjunction with manual keyword targeting), which gives you more control of your costs. This option is suitable for sellers who already have some experience with SPA and want to selectively manage their campaigns.
- Detailed performance tracking
One big advantage of SPA is the access to detailed performance analyses. Use this data to gain insight into the search habits of the customers and into the performance of your ads. Evaluating this data allows you to optimise future campaigns and thus to achieve better results. The best thing is that you don’t have to go to the trouble of gathering the data you need; instead, you can create the reports you want with just a few clicks. Find out more in the Seller University.
Tips to optimise campaign creation
Creating successful Sponsored Product Ads (SPA) campaigns requires a strategic approach and selecting the right campaign types. Here are some proven methods for optimising your campaigns, along with an overview of the campaign types available.
Source: Kaufland
Important KPIs for Sponsored Product Ads (SPA)
When evaluating the efficiency of SPA campaigns, sellers should pay attention to various key performance indicators (KPIs). The most useful KPIs are as follows:
Advertising Cost of Sales (ACoS): The ACoS indicates how much of the advertising costs are spent in relation to the sales generated. It is expressed as a percentage and is calculated as follows:
A low ACoS means that the costs for the campaigns are low compared to the sales achieved, which indicates efficient advertising. Both the ACoS and ROAS (see next KPI) are critical for evaluating the profitability of a campaign
Return on Advertising Spend (ROAS): The ROAS indicates the amount of sales generated by each euro invested. It is calculated as follows:
A ROAS of 1,100 percent in the main category Electronics & Computers, as can be achieved with the new SPA tool from Kaufland Global Marketplace, means that for every €1 invested in SPA, an average of €11.00 is generated in sales. A higher ROAS indicates that the SPA measures are more efficient and achieve more sales compared to the costs.
Click Through Rate (CTR): CTR indicates how often visitors click on an ad in relation to the number of impressions, i.e. how often the ad was displayed. This KPI helps you assess the relevance of a product for certain keywords. High CTR values indicate that the product is appealing for the selected search terms.
Conversion Rate (CVR): The CVR indicates how many visitors made a purchase after clicking an advertisement in relation to the total number of clicks. For example, it provides information on the attractiveness of pricing and delivery conditions as well as the quality of product images and descriptions, all of which are crucial to the success of a campaign.
The Kaufland Global Marketplace team wishes you every success with Sponsored Product Ads! Do you have any questions or need help? Our Advertising by Kaufland team will be happy to help you!