How automation helped MediaMarkt increase online revenue by 30%

August 2019

Discover how MediaMarkt’s digital transformation enabled the company to leverage automation, and harness employee talent to restructure campaigns and boost return on ad spend.

Modern consumers expect more from online experiences. “Being relevant at the right moment with search ads for each potential customer is more important than ever,” explains Robbert Smit, MediaMarkt’s Lead Performance Marketer for Search and Shopping in the Netherlands.

German-owned MediaMarkt is Europe’s largest electronics retailer, and with over 150 million online visitors a year and 20,000 stock keeping units (SKU), Smit acknowledges: “It’s crucial to bring supply and demand together on its most granular level.”

Their flexible customer-first approach means that consumers can shop online, pick-up in store, or have products delivered 7 days a week.

Led by the ever-rising expectations of the modern, online-savvy consumer, the electronics retail giant called for an internal digital transformation.

Transforming from the inside out

MediaMarkt was determined to streamline their online marketing activities, use data to get a better understanding of the customer journey, and automate personalised messages at scale. To kick off their transformation, they started by bringing all of their search efforts in-house.

“Moving to a fully in-house paid search execution was one of the first milestones of our new digital marketing strategy,” reveals Sander van Steenpaal, Head of Performance Marketing at MediaMarkt. “By having paid search integrated in our organisation, we acquired new insights about our customers and their shopping behaviour at a fast pace.”

“One key insight we discovered is that online-to-offline behavior differs in terms of where consumers are in their customer journey, and how likely they are to visit a store,” van Steenpaal explains. “Renewing our search strategy was part of our digital transformation and it was important that we leveraged these insights. We partnered with Google to do this in an automated way and at scale.”

Their performance marketing team was trained on Inventory Management in Search Ads 360 and was determined to use the tool to create highly personalised automated ads.

Inventory Management allows search marketers to fully automate ad and keyword creation, saving them hours of work, while increasing relevance. It’s particularly suitable for retailers who have to market thousands of products, of which availability can change multiple times per day.

Search Ads 360 helps online marketers efficiently manage large search marketing campaigns across multiple search engines and media channels.

Within as little as two months, it was clear that MediaMarkt’s strategy was paying off.

“As a direct result of using Inventory Management, we were able to finish the transition within two months and saw great improvement in performance,” explains Ender Ozcam, Search & Shopping Performance Marketer at MediaMarkt.

Saving 39 marketing hours a week

After migrating all of their existing campaigns, dynamic ad templates allowed the team to adapt discounts, copy, and prices to near real-time stock information. What’s more, the tool automatically pauses and reactivates ads depending on stock availability.

Following their digital transformation, MediaMarkt swiftly met its goal to increase operational efficiency. Return on ad spend increased by over 20% year-on-year and revenue grew by 30%.

The cherry on top was that it saved the marketing team 39 hours a week on analysis, reporting, and optimisation each week.

“Inventory Management has helped us by creating campaigns at scale for our entire product portfolio whilst also creating alignment between our ads and the different phases in the search journey,” says Robbert Smit.

Looking to the future, he adds: “We want to continue developing on the strong foundation we have laid down and develop our automation and search strategy. Areas such as expanding automated bidding and connecting online to offline will be top of mind.”

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