Press release April 8, 2020
For mattress manufacturer Tempur, MediaCom and OTTO implemented the new format of “Sponsored Product Ads x otto.de” for the first time as part of their retail media cooperation: MediaCom addressed Tempur’s premium target group with the help of product placements on a CPC basis at otto.de.
With success: this exclusive cooperation between MediaCom and OTTO almost tripled Tempur’s visibility in one of Germany’s most important marketplaces and almost doubled the brand’s sales.
More e-commerce visibility in the premium segment at otto.de
For Tempur’s performance campaign, MediaCom focused in an exclusive cooperation on a completely new retail media format from OTTO. MediaCom took the opportunity to participate in a beta test of the innovative “Sponsored Product Ads” on otto.de – and so became the first agency in Germany to do so in the context of a proof of concept.
In concrete terms, this meant defining focus products from pillows, mattresses, toppers and slatted frames ranges. Using a CPC-based approach, individual products could be pushed forward in the onsite search results and prominently displayed on product detail pages – on desktop devices as well as on mobile devides. During the campaign period, MediaCom and OTTO optimised the campaign using various KPIs such as delivery, click through rate and sales to achieve the best results for their customer Tempur.
The result: maximum visibility and a doubling of order turnover
Thanks to the new format on otto.de, MediaCom was able to help Tempur’s premium products achieve significantly higher visibility and sales in the sponsored product ad segment. In order to prove the effect of the campaign, the placements were only shown to a part of the otto.de visitors as part of the proof of concept. An analysis of the two test groups revealed not only a 260% increase in the number of product detail page views during the consultation phase, but also a doubling of order turnover for Tempur brand products. As a result, Tempur was not only able to positively influence the visibility of its own brand, but also to generate additional sales, which means a direct, monetary campaign effect.
Thomas Bauer, Managing Director DACH of Tempur Sealy: “Due to the massive presence of competitors, it was important for us to activate our premium target group in a suitable digital environment. With the outstanding support of MediaCom we were able to confirm our position in the market on otto.de and convert it directly into sales”.
Torsten Ahlers, Managing Director of Otto Group Media and Head of OTTO Retail Media: “We are very pleased that we were able to implement this highly innovative campaign for Tempur on otto.de together with MediaCom. For us it is the first cooperation of this kind in the area of Sponsored Product Ads with a customer and a media agency. Also the impressive KPIs confirm the success of the campaign for Tempur: more visibility, higher demand, more sales. With Sponsored Product Ads on otto.de we were able to achieve all of these things.
Mira London, Director E-Commerce, MediaCom: “Visibility in online shops and marketplaces is a major challenge, especially for premium providers. Algorithms often use conversion probabilities for organic ranking in the shopping process, which are usually lower for premium brands in direct comparison with the price entry. Together with OTTO, we have therefore placed paid product ads for Tempur for the first time to draw the attention of consumers to the brand during the consultation phase. The success is impressive: Thanks to the new format, we have not only ensured significantly improved visibility in the otherwise very price-driven e-commerce sector, but also significantly boosted sales in the premium segment.
About OTTO Retail Media:
Founded in May 2015, Otto Group Media has been a subrand of OTTO with headquarters in Hamburg Germany. Since April 2020, Otto Group Media officially rebranded as OTTO Retail Media and acts as the company’s central marketing unit of otto.de. The advertising opportunities on OTTO Retail Media are primarily focused on suppliers and marketplace partners who wish to raise their brand’s visibility and sales on the otto group’s wide-reaching platforms. Through extensive Offsite-placements, potential customers outside of the platform can also be targeted and activated into buyers.
Additionally, OTTO Retail Media is the ideal partner for media agencies, retail agencies and direct customers for user-specific branding and performance campaigns in retail environments. From a diverse range of data segments to its broad coverage and transparent reportings, OTTO Retail Media provides everything for an effective campaign rollout: partnership, flexibility and fairness.