Advertising Technology Blog

The Moloco SDK is a new solution for app publishers to maximize revenue by accessing Moloco's global advertisers directly. It is a certified bidding partner for AppLovin's MAX and Unity's LevelPlay. The SDK benefits both marketers (improved ROI, better performance, transparency) and publishers (direct demand, ML technology, creative control). Partners praise its high eCPMs and performance.

Advertising is key to e-commerce growth, as seen with Amazon and Walmart. Amazon derives 68% of profits from ads, while Walmart generates 12% of profits from Walmart Connect. Commerce media delivers high margins without heavy capital expenditure, enabling reinvestment in lower prices, distribution, and innovation. Balancing user relevance, advertiser results, and profit reinvestment is crucial.

Online retailers and marketplaces are converging. Marketplaces like GrabMart adopt 1P models for quick commerce, taking inventory risk. Meanwhile, retailers like Walmart embrace marketplace models to expand offerings without inventory. This convergence impacts ad businesses, requiring tailored strategies for diverse sellers and sophisticated advertisers, leveraging commerce media platforms.

The open internet offers vast, incremental scale for app marketers beyond walled gardens, but its complexity requires supply path optimization (SPO). With non-exclusive inventory and multiple bid requests per impression, advanced machine learning is crucial to select optimal paths, price bids accurately, and serve effective creatives in milliseconds.

Advertising new products in commerce media significantly boosts discoverability. Advertised products see 10-15 times more engagement and reach their first sale 50% faster than non-advertised ones. This rapid consumer feedback helps brands quickly assess market fit, make informed investment decisions, and optimize offerings. For retailers, integrating relevant ads into user experience enhances engagement and purchases, building a sustainable ad business.

Commerce media relies on two types of machine learning (ML): Organic and Ads. Organic ML predicts item click-through rates (pCTR) for ranking, evaluated via A/B tests. Ads ML predictions are part of a complex system involving bidding and budgeting; inaccuracies can misplace ads and reduce revenue. Separating these ML models allows teams to optimize independently without interference, a strategy used by big tech companies.

Moloco earned top ROI rankings in the 2024 Singular ROI Index, securing top 5 positions in iOS SKAN non-gaming and Android global ROI/retention categories. It achieved 'Golden 6' status for appearing in all categories. This recognition highlights the effectiveness of Moloco's machine learning in acquiring high-value users on the open internet.

Online retailers and marketplaces are strategically adopting advertising to enhance user experience, empower sellers, and diversify revenue. ML-driven ads personalize recommendations, boost product discovery, and improve satisfaction. Sellers access targeted promotion tools, leveling the playing field. Ads provide high-margin revenue and data insights for optimizing marketing and user experiences. This integration solidifies platforms as competitive one-stop shops, creating a win-win ecosystem.

Unlock first-party data power in retail media by using a unique customer ID (e.g., loyalty ID) to track omnichannel interactions. Attribute sales to touchpoints, assess incrementality, and optimize via machine learning. ML enables efficient budget allocation and incremental sales growth, making every impression count.

Retail media, where retailers build advertising businesses, offers high margins (75% vs 5% trade) and can significantly boost profits. Initially, many retailers outsourced ad sales, operations, and tech to third parties due to lack of internal capabilities. However, this created a wedge between retailers and suppliers. Now, as the industry matures, retailers like Kroger are bringing these capabilities in-house, hiring staff, and adopting white-labeled tech to reclaim control and strengthen supplier relationships.

Machine learning models need high-quality data to perform well. In mobile advertising, first-party data collected directly from users is becoming crucial as third-party data sources diminish due to privacy regulations and platform changes. High-quality first-party data enables more relevant targeting and faster model training, leading to better campaign performance and return on investment.

Retail media advertising is booming, with US spending expected to surpass $41 billion in 2022 and reach $50 billion by 2023. Key trends include diversification, video ads, first-party data value, and machine learning for optimization. Marketers should leverage self-service options for smaller brands, multiple partnerships, engaging video formats, and data-driven AI to succeed.

Sponsored ads in retail media networks mimic native site content, like search results on Instacart. They boost brand visibility, credibility, and sales. Retailers like Amazon earn most ad revenue from these ads. Successful examples include Reebok using eBay's Promoted Listings to increase sales by 55%, Clorox leveraging Target's Roundel for a 25% retention boost, and Hershey using Walmart Connect omnichannel to lift sales 73%.

Retail media platforms provide infrastructure for marketplaces to offer advertising like sponsored ads, boosting revenue without building from scratch. Top platforms include Moloco, Amazon Personalize, Criteo, Crealytics, and Epsilon, each offering unique features such as ML-based targeting and managed services.

Retail media networks (RMNs) offer brands access to motivated shoppers and first-party data for precise targeting. Top RMNs include Amazon (dominant, with 89% US ad spend), Walmart (omnichannel, linking app to stores), Walgreens (leveraging loyalty data), Instacart (CPG-focused with high-quality data), Home Depot (strong online traffic, 2x ROAS), and eBay (cookieless targeting with eAAT). Maximizing ROAS involves understanding RMN evolution and leveraging data.

Retail media advertising targets consumers near the point of sale, both in-store and online. As e-commerce grows, brands pay to promote products in marketplaces like Amazon. These ads use first-party data for targeted campaigns, offering high attribution. Building an in-house retail media network is resource-intensive, so partnering with platforms like Moloco's Retail Media Platform can unlock revenue with minimal risk.