MediaMarkt - run rates
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Year
2019
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Company
MediaMarkt
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Services
Google ads, Marketing tech
Problem
If you're selling 10 televisions every minute during Black Friday, advertising is going to become much more tricky. When you're showing ads, are you sure that you still have that specific TV in stock? In addition, if you're already selling 10 televisions every minute, and you only have 50 left in stock -- is it really necessary to continue advertising? These televisions will probably sell out without the help of (digital) ads. It was estimated that MediaMarkt lost 6-number budget on these kind of products.
SOLUTION
This is where run rates come in. The first part was to combine online and offline stock using Bigquery and several ETL solutions in Google Cloud Platform. Then, sales data also both online and offline was joined. The first iteration was a very simple calculation:
This dataset was then shared to Channable, which in turn allowed to create a rule to exclude any products from all advertising platforms (search, meta, shopping) if they have a run rate higher than 5 days until sell-out. We could easily tweak and experiment with this number.
Impact
As a result, MediaMarkt saved >€XXXk per year advertising on products that were already well on its way to sell out and didn't need ads to further support it. This saved spend was used to reinvest and acquire an additional €XXm in revenue.
