December 2, 2022
“like Amazon, but for corner shops”
Co-founder and CEO José Bonilla describes Chiper with these words. Similar to Amazon, Chiper wanted to create a scalable revenue model with auction-based media advertisement. But first, let’s see learn a little bit about this unique business.
Chiper is the leading B2B eCommerce ecosystem and one-stop shop for corner stores in Latin America, providing products from Mars, P&G, Diageo, Aldor, Kimberly-Clark, Mondelez, Pernod Ricard, and other big CPG brands. Corner store owners in Mexico and Colombia use Chiper to find whatever they want to sell and get their inventory replenished in less than 24 hours.
Through a completely digital experience, more than 70k corner stores can find 3k products in bulk from 500+ brands (both CPG and local producers).
Chiper wanted to better monetize through auction-based ads and give their CPG brands an effective tool they can add to their marketing mix. The solution was right around the corner for this corner store B2B ecosystem: Topsort’s game-changing monetization infra!
Auction-based media monetization was the perfect solution for Chiper and the brands like Mars, P&G, Diageo, Aldor, Kimberly-Clark, Mondelez, and Pernod Ricard. With auction-based sponsored listings, hundreds of CPG brands could put their products in front of thousands of mom-and-pop corner stores that use Chiper to fill their shelves.
The Topsort API integration went smoothly and the ad platform was ready to go!
Before scaling up its nascent ad platform to hundreds of brands, Chiper wanted to give selected CPG brands in Colombia a test run. Big CPG brands like P&G, Mars, Diageo, Aldor, and Kimberly Clark used Chiper’s Topsort-powered auction-based advertising solution for 15 days. CPG brands that did the test run with the live platform were surprised to find that in-app ads were bringing them returns they have not seen in other marketing channels.
ROAS of campaigns from these big CPG brands landed well above their other marketing channels such as Amazon or Google, showing the power of retail media and auction-based marketplace monetization.
Chiper was able to monitor the campaign metrics with each impression, click and purchase showing up in real-time on the vendor and admin dashboards.
Needless to say, both Chiper and the world’s biggest brands were happy! It was time to move forward.
The unique nature of Chiper B2B marketplace where orders had high value (AOV and LTV) and stickiness made ads a very strategic tool for Mars, P&G, Diageo, Aldor, Kimberly-Clark, Mondelez, Pernod Ricard, and other big CPG brands. The value was clear: when a corner shop orders from Pepsi after seeing the sponsored listings, they are more likely to restock their inventory with Pepsi next time.
Chiper started inviting their key brands to leverage the sponsored products on their app to reach the corner stores in Colombia.
Seeing the results that well performs above other media channels, vendors were open and eager to invest in Chiper ads. 5 more brands signed up and started running their campaign, with more brands joining the platform.
While Chiper is strategically scaling up its new monetization platform in Latin America, Mars, P&G, Diageo, Aldor, Kimberly-Clark, Mondelez, Pernod Ricard, and other big CPG brands are enjoying a seamless advertising experience they’ve never seen before. Even with the increased competition, the average ROAS is high between 5-8x ROAS across search, category, checkout pages, and landing pages.
The competition among brands to promote themselves in these premium spots boosted the average CPC as well. As more brands invested in Chiper ads, the initial CPC of $0.25 increased more than 4x and crossed $1 in less than 2 months.
Chiper plans to turn auction-based ads into a core revenue stream in their business model after increasing their ad inventory and extending their Topsort-powered ad platform to other markets in Latin America. With such a unique business model that adds value to corner stores, brands and producers in a $500B market, Topsort’s game-changing auction-based monetization infra, and tools perfectly fit Chiper’s business goals.
You can also embark on your auction-based monetization journey on your own terms as Chiper did. If you’re a B2B marketplace thinking of monetization, get in touch with us!
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