Increase CTC, impressions, and ROAS for your brand.
In August, The Home Depot partnered with a leading SaaS company on the digital advertising scene: PromoteIQ.
This shift to a new Sponsored Product service provider comes right before the unveiling of Retail Media+, The Home Depot’s all-encompassing digital marketing and advertising solutions package for online vendors. Like other big-box retailers, The Home Depot is ramping up its advertising business to leverage as an additional revenue stream.
But let’s stay focused on Sponsored Products and why The Home Depot switched to PromoteIQ.
The Home Depot is the largest home improvement retailer in the world and has seen a 20% increase in digital growth since H1 of 2019. The company gets 5 million online visitors—daily—and Sponsored Products is one main way sellers can grab the attention of its thriving customer base. Finding (legitimate) ways to place a product in front of consumers is not only smart but vital, especially when you consider that over 5,000 different brands and over 2 million products share the same virtual space: The Home Depot’s eCommerce site.
PromoteIQ will increase impressions, CTC, and ROAS for brands on The Home Depot.
In this post, we talk about how brands can harness the power of PromoteIQ, what new programs are coming down The Home Depot’s 2020 pipeline, and why now is the perfect time for businesses to use The Home Depot as a serious marketing and advertising channel.
Who is PromoteIQ and how is it different?
If you haven’t heard of PromoteIQ before, that may be about to change. The digital advertising platform was recently acquired by Microsoft and the company has already captured large retailers—Overstock, Office Depot, and Kroger—as clients. The latest retailer to join this powerhouse lineup? The Home Depot.
While on the surface PromoteIQ may appear to be like Criteo (The Home Depot’s previous Sponsored Product Platform), these two SaaS companies approach this form of advertising in completely different ways.
Let’s dig deeper into each of these key features to get a sense of how they work.
Detailed data: retailer and SKU specific reporting
The main reason Home Depot moved away from Criteo is because the platform didn’t offer detailed reporting on individual campaigns. How undetailed was it? Brands couldn’t separate data based on retailer, let alone campaign. Criteo combined data from all partners, making it impossible to know which retailer or product, your metrics (CTC, impressions, and ROAS) were accredited to.
Not only does PromoteIQ separate data based on retailer, but the platform also allows you to see SKU-level attribution. You get ROAS, CTC, and CPC data on every single product you sponsor.
This deep dive into data is essential. Not only do metrics inform users of how successful a campaign is, but they also help vendors make more informed decisions about how to spend their remaining ad budget. This analysis, after all, is the point of data reporting.
Without detailed data, a company is essentially throwing money into the algorithm without the ability to grow a successful advertising strategy. But with PromoteIQ, data gives brands the ability to track individual sponsored product performance on The Home Depot. This feature will help convert data into dollars.
Product placement: carousel, in-grid, and banner ad campaigns
PromoteIQ gives vendors the following ways in which a brand can promote its products on The Home Depot: carousel, in-grid or banner. This sets the platform apart because, traditionally, vendors didn’t have much control over where their ads showed up on a retailer’s site.
Here’s a breakdown of how each advertising format works.
Sponsored Products show up in a single row when campaigned in the Carousel format. Carousel is popular among online retailers because it is highly visible and easily grabs the attention of shoppers.
PromoteIQ is taking the capabilities of Carousel a step further. While other retailers, like Amazon, also use Carousel to showcase Sponsored Products, most only place it on product listing pages (also known as search result pages). Thanks to PromoteIQ, vendors can use Carousel on the following locations within The Home Depot’s D2C site:
- Home Page
- Product Listing Pages
- Order Confirmation
- Store Page
Sellers can now capture customers at multiple stages of their purchasing journey.
There is one more thing to note about Carousel campaigns created in PromoteIQ: Sponsored Products show up at the bottom of all pages. This may seem counterintuitive at first—placing Sponsored Products at the top of pages gives vendors the best chance at increasing metrics, right?—but because Carousel has been a commonly used digital ad format for the past 2-5 years, consumers may be jaded from seeing it over and over again (on multiple company sites, no less).
Now maybe the perfect time in advertising history to revamp existing ad formats. PromoteIQ and The Home Depot are helping lead the charge.
In-Grid is a new form of advertising. Unlike Carousel, which boldly places sponsored products in a separate section on pages, In-Grid integrates sponsored products with organic product listings.
In-Grid is subtle. Because consumers have grown increasingly aware and sensitive to certain forms of advertising placement, PromoteIQ has found a way to more organically present sponsored products to The Home Depot audience.
Banner ads: coming soon to The Home Depot. Banners will be placed on the top of product listing pages, or on the home page. Brands will be able to pick from several templates to custom create ads. When a consumer clicks on a banner, he or she will be directed to a search page of that brand’s products only.
The Home Depot thinks this type of exposure—placing products in a highly visible format on highly visited pages—will drive massive outreach for a brand.
Page placement: bid by category
Campaign bids are where PromoteIQ really differentiates itself. Vendors cannot bid for keywords…We will give you a moment to take that in…
Instead, vendors bid for placement on category pages.
In this example, vendors can bid for Sponsored Product placements on the following pages: “Home Page”, “Appliances”, “Beverage Coolers”, and “Built-In Beverage Coolers”.
This is a new way of doing things. While there isn’t a lot of data to see how bidding on category pages is performing, it is safe to say that brands will now have more control over where sponsored products show up on The Home Depot.
What else can brands expect from The Home Depot in 2020?
In addition to the new in-site advertising opportunities, The Home Depot is rolling out several marketing programs to help brands target online consumers and drive them back to the site.
The Home Depot’s email list exceeds 50 million customers and 30 million business email contacts, making the potential outreach to new consumers massive.
Here’s how it works:
- The Home Depot will create a custom list of contacts for the email campaign. But vendors have control. They simply send over their key demographic criteria and The Home Depot will do the rest, all the way down to the execution of the campaign.
- The Home Depot will track the email campaign in real-time. Contacts who have opened, clicked, or engaged with the content during an 18-month period will be retargeted. Look-a-like audiences will be generated, and new lists refined over time to build a highly targeted audience.
Email marketing is ultimately an option for any brand looking to increase its brand exposure and reach on The Home Depot’s eCommerce site.
Dynamic media marketing retargets consumers on social media after they have visited a product listing on The Home Depot. Potential customers will link back to the same product listing to increase the likelihood of a conversion.
The Home Depot does all the tracking and managing when it comes to the campaign process. This means the company generates all the ad creative content, followed by launching campaigns across Facebook, Pinterest, Google, and Display.
The specifics of how Geotargeting will work on The Home Depot is still under warps—not much information has been leaked by the retailer.
Targeting consumers based on their location isn’t a new form of marketing. However, it is for big-box retailers. The Home Depot appears to be the first, out of its competitors, to even float the idea of offering Geotargeting capabilities for its vendors to take advantage of.
A larger shift in the marketing and advertising landscape
The roll-out of a digital marketing and advertising solutions package marks a significant shift in the way The Home Depot is approaching its advertising business. And it isn’t the only one taking that side of the business more seriously. Big-box retailers are following Amazon’s lead and capitalizing on increasing website visits from consumers.
It makes sense for retailers to enhance the advertising capabilities for vendors. Not only is it another stream of revenue, but this increased ad power helps retailers maintain ownership of consumer loyalty. Brands also benefit. They get tools to capture sales from a large customer base—a base that has higher conversion rates on trusted big-box retailer sites.
But what is the bottom line for brands? They now have more factors to consider when figuring out ad and marketing budgets and strategies. Which route results in more long-term revenue and company growth: driving consumers to its D2C site? Or, to retailer sites like The Home Depot?
Why brands should act now on The Home Depot eCommerce site
When brands use PromoteIQ, they should feel reminiscent of the early Google AdWords days—a time when competition and CPC were low but ROAS was high. Not a lot of vendors on The Home Depot have tapped into the live programs, making the barrier to entry low.
Over the course of 3 weeks, NewAir®, Retail Band’s client, experienced ACOS as high as 11.1% and impressions of 1,231,022—all for the low CPC of $.51.
NewAir also saw 3x the CTC, 3x the ROAS, and a 22% lower CPC on Sponsored Products after The Home Depot switched to PromoteIQ from Criteo.
All Retail Media+ programs will be launched by 2020. And vendors should be ready for it when it does. These new advertising and marketing opportunities will help brands target a larger audience of online customers and make product conversion rates soar.
To increase sales growth by 60% on The Home Depot, email firstname.lastname@example.org.