Lazada: acquiring higher-value users at lower cost

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Lazada is the leading online shopping and selling destination across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Pioneering ecommerce in the region, it provides consumers with an easy shopping experience, multiple payment methods, extensive customer care and free returns. Retailers on the platform gain simple, direct access to 550 million consumers through one retail channel covering categories that range from consumer electronics to household goods and fashion. The brand’s app is core to the business, generating more revenue than the mobile site and offering even more functionalities than the Lazada website.

THE GOALS
Acquire high-quality users
Drive in-app transactions
THE APPROACH
Used Universal App Campaigns as main driver of installs
Optimised towards in-app events to acquire users most likely to conduct purchases
THE RESULTS
19% uplift in install-to-purchase rate compared to campaigns focused only on installs
59% uplift in purchases compared to campaigns focused only on installs
14% lower cost per purchase

Because Lazada operates in six countries, performance optimisation can be time consuming. As a way of making efficient use of existing resources, the team adopted Universal App Campaigns to promote the Lazada app across Google Search, Play, YouTube and within other apps and mobile websites on the Display Network.


"Universal App Campaigns are simple, scalable and powerful. Setting up a campaign is quick and easy, which enables my team to focus on more strategic tasks. The difference in quality between users acquired with this new version of Universal App Campaigns and previous campaigns is clear, and it works on a Google scale."

- Tuong Nguyen, Regional Head of Display Marketing, Lazada Group


With the main goal to expand by acquiring new customers, Lazada opted to optimise not only for installs to drive volume but also for in-app events to obtain high-value users. It was straightforward to establish the in-app action that mattered most: in-app purchases were signified by a transaction confirmation, meaning a user had successfully completed the payment process and confirmed an order.

By optimising Universal App Campaigns towards acquiring those users who were most likely to conduct in-app purchases, Lazada not only saved tremendous time through simplicity and scale, but also produced enviable results. Compared to campaigns focused only on app installs, the activity produced a 19% uplift in install-to-purchase rate and a 59% uplift in purchases, all at 14% lower cost per purchase. With volume and quality of users acquired through Google on the increase, the Lazada team can focus on measurement and other strategic activities.

 

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