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Teikametrics’ advertising optimization is trusted by thousands of sellers to maximize their profitability on ecommerce marketplaces. But particularly across Teikametrics’ largest customers, an important and substantial portion of their total revenues are driven specifically by Walmart.com. This combination of Teikametrics’ long-standing history of marketplace advertising success, along with the company’s roster of major brands already selling on Walmart.com, is what drove Walmart to select Teikametrics as one of its few beta partners for the retailer’s new online ad offering.
During this beta period, Teikametrics worked with Razer, a long-time client and one of the world’s largest manufacturers of gaming-focused computer hardware, to test the new Sponsored Products API on Walmart using Teikametrics’ bid optimization. This investment has already helped Razer grow overall Walmart.com sales during the all-important holiday season.
Background on Razer’s Prior Walmart Experience, including Ads
Razer was founded back in 1998, and as a company, was one of the early sponsors and boosters of eSports. As the industry grew exponentially over the past 10 years, the resulting demand for their high-performance gaming hardware from a wide range of consumers meant that the company had to sell its products across many retail channels in order to effectively scale and capture market share.
Since 2016, Razer has used Teikametrics to optimize its marketplace advertising, which was instrumental to growing the company’s overall sales. This ongoing success has made Razer products top-10 selling items across a number of PC gaming categories – this includes its popular DeathAdder mouse being the #1 overall PC accessory on other major online marketplaces as of November 2019.
Similarly, the company’s products are incredibly popular on Walmart.com, a channel Razer has sold its products on for the past several years.
Using Teikametrics Beta and Setting Advertising Goals
Knowing that marketplace advertising worked incredibly well for the company elsewhere, Razer was willing to commit significant budget and effort to the Walmart Sponsored Products API beta program, with Teikametrics helping optimize the team’s efforts. At a high level, Razer’s goals for the advertising beta were achieving greater sales lift, and more exposure for their products across relevant, generic search terms on Walmart.com. Because Razer has a high level of brand affinity within the gaming and PC community, achieving market share gains and overall sales growth depends on attracting and converting brand-agnostic customers over a competitor.
Additionally, Razer wants to continue growing its sales across all channels to make the company less dependent on a specific retail partner.
Process – What Put Razer in a Position to Succeed
As part of Razer testing Sponsored Products on Walmart.com, the hardware company’s ecommerce team identified a subset of products sold on the retail site they wanted to commit spend against, with Teikametrics managing campaign setup and maintenance.
Specifically, Teikametrics built and managed eight Sponsored Product campaigns leveraging auto and manual targeting. Each of these campaigns was optimized for ad spend by making relevant bid adjustments along with new keyword exploration for improved ad targeting.
Using Walmart Sponsored Products helped Razer maximize the Black Friday through Cyber Monday time period. With Razer products achieving premium placements at the top of the search page during this important, high-traffic period, weekly ad-derived sales on Walmart.com jumped by more than 10X, at an extremely low ACOS.
Looking forward, Razer plans on continuing to invest in Sponsored Products on Walmart.com, with the company’s Q4 2019 test focusing on generic keyword performance across key products. The goal is to drive continual improvement on a ROAS and sales lift basis, particularly from generic, rather than branded keywords.
“While the API for Sponsored Products on Walmart.com is still fairly new, it already shows a lot of promise in terms of impactful placements that can really help us attract new consumers to the Razer brand. We’re excited to be on the front lines as Walmart’s advertising platform continues to evolve, all the while working with Teikametrics to further test and scale our Sponsored Products advertising on the site in 2020 and beyond.”