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Lazada 3rd Anniversary Sale: Social Media Case Study

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About Lazada

Lazada.com is an online shopping site that operates throughout Southeast Asia. Lazada Group is a privately owned e-commerce company headquartered in Singapore that was founded by Rocket Internet, with the intention of establishing the Amazon of Southeast Asia, to take advantage of Amazon’s relatively low presence here and the ever-growing online consumer market here. It offers a broad range of products across categories, including electronics, household goods, health, beauty and fashion, etc. The retailer has a web presence in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.

Lazada’s ecommerce websites was launched in March 2012, with a business model of selling inventory to customers from its own warehouses. In 2013 it added a marketplace model that allowed third-party retailers to sell their products through Lazada’s site; the marketplace accounted for 65% of its sales by the end of 2014.

In Lazada, they claim that they ensure all products are carefully selected for the quality, originality and a no compromise approach to offer the best price available in the market.

Lazada’s Business Objectives

To celebrate its 3rd anniversary, Lazada threw a 3-day birthday sale using Facebook dynamic product ads. The objective was to increase its sales by 3.5 times as compared to the previous year sales during this period.

Lazada wanted to build excitement around its third anniversary sale and use the momentum to grow its customer base. It also wanted to find new customers and also reach to the existing customers with enticing promotions to boost its sales during the 3-day sale period.

This sale is as big, if not, even bigger as the ones such as the Black Friday event or even the 12/12 promotion. There will be Flash Sales, Hot Deals, Partner offers and Private sales on mobile app.

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Approach / Strategy adopted by Lazada

To achieve its 3rd birthday campaign goals, Lazada used Facebook’s Dynamic Product Ads. A Dynamic Product Ad uses pixels to report, when someone views an item from your catalogue or adds it to their online shopping cart. If that person does not complete the purchase at that time, advertisers can retarget the customer with an ad that displays the product that they had been browsing.

By uploading its product catalogue, Lazada was able to show a variety of products in a single ad. These ads automatically changed for each customer, depending on the product that they were searching for. After browsing Lazada.com and coming out, people would see an ad on their Facebook mobile or desktop News Feeds, for the exact products that they had been viewing on Lazada.com. The ad has a link, so that people could easily click back to the product page and complete the purchase.

Lazada also ran link ads in the mobile and desktop News Feed to drive people directly to its website, making it easier for them to buy the products.

For its targeting strategy, Lazada used Custom Audiences to reach previous customers and encourage them to buy something new. It then used Lookalike Audiences to expand its reach, by finding new customers who resembled existing customers.

Other than these Facebook promotions, Lazada also used bloggers to spread the word about their campaign and got people interested and waiting. There were also games available in the microsite which people can play and win attractive prizes and vouchers,  which they could use in the sale.

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Results achieved by Lazada

The 3-day campaign, which ran from March 24–26, 2015, achieved the below results:

  • 2 times higher return on ad spend on dynamic product ads than on any other forms of retargeted media spend
  • 50 % decrease in the cost per visit
  • 50 % decrease in the cost per order
  • 5 times increase in year-on-year sales
  • Was able to attract new customers
  • Retain existing customer base and made them buy new products also

Learning

Dynamic product ads helped Lazada to reach their website visitors with the most relevant products in an efficient manner.  This was a good way to target their customers, who might be reluctant to buy the product in the first instance. It was a good example to show our offerings to customer and make them buy the products. “Try till you succeed “approach was practised perfectly by Lazada and it helped them to a great extent. Dynamic ads are available in Power Editor under Facebook Ads.

It is understood that after seeing such great results across its campaign, Lazada rolled out its dynamic product ads campaign across all its Southeast Asian markets and is tweaking and continuing the same every year and getting better results.

Lazada heavily invests in Search Engine Optimization (SEO), Search Engine Marketing (SEM), Social Media and Affiliate Program. Moreover, Lazada adapts itself to the local marketing language for each and every promotion that they run in the different markets that they are present in. These activities boost their impression and attract people to visit Lazada. Furthermore, they also have a well-constructed mobile app that attracts lots of mobile customers as well.

Reference and Photo Credits: Facebook, Wikipedia, Scribd

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