Brazil’s social commerce app Facily gains more revenue from auction-based monetization with long-tail seller engagement

November 2, 2022

2 min read
Industry:
Social Commerce
Location:
Brazil
Solution:
Sponsored Listings

Integration time

3 wks

Active vendors

100+

ROAS after autobidding

10.1x
In a unique business model, Facily vendors reached 10x ROAS after turning on autobidding and saw an impressive boost in campaign performance

“Our vendors love Topsort and how easy it is to create sponsored listings that boost their sales. On the development side, implementing such a complex-sounding ad infrastructure in such a short time was the biggest surprise to us. Topsort simply works, without cookies, without tracking user data.”

Rafael Carvalho, Head of Facily Ads

Sellers and brands need to be where their customers are! With the rise of social media apps, the ever-changing online shopping experience created a new term: social commerce. 

Predicted to reach $2.9 trillion in sales, social commerce has gone beyond the social media apps and triggered platforms solely built for social commerce. 

As one of the biggest social commerce apps, Sao Paolo-based Facily combines group buying and social commerce in a long-tail open marketplace business model to offer a unique shopping experience to millions of Brazilian consumers.

This app-only social commerce marketplace offers everyday goods at the lowest prices. Their unique strategy is promoting community group buying and harnessing the power of social media to promote offers and attract buyers. 

They have 20,000 sellers on their marketplace, make 7 million deliveries per month, and have 17.5 million downloads (as of July 2022), which is 10% of the population in Brazil! With the network effect built-in, Facily offers a truly unique and valuable experience for sellers.

To increase its profitability, Facily started looking for a new marketplace monetization strategy and a scalable revenue stream. The solution was obvious: auction-based native ads!

Intuitive Monetization Tool for The Community

With so many long-tail vendors willing to put their products in front of millions of customers and boost their sales, Facily was sitting on a gold mine of ad inventory. 

Facily wanted to monetize their top ad inventory placements and offer their vendors the opportunity to bid for these ad slots. Things were moving fast and there was no time to lose. The solution Facily was looking for had to have a speedy ramp-up time and scalable features.

Other key features Facily was seeking in a potential ad solution were self-service and ease of use. Considering tens of thousands of sellers, Facily admins running ad campaigns for their vendors was not even an option. In an open marketplace model, thousand of vendors were using the Facily vendor dashboard to sell their products. The ad solution Facily wanted to launch should have had the same simplicity and ease of use. A solution thousands of long-tail Facily vendors could easily use without being tech-savvy or ad experts. 

Topsort’s auction-based monetization infra was the perfect solution for Facily! We helped them complete the native media integration in just 3 weeks! 

Advertising on Facily took off! Their self-service monthly users grew by 5x in just 5 months. We helped Facily’s account managers to handle vendor onboarding and campaign optimization at large volumes.

With our help, Facily hosted a sales training webinar for their vendors on creating and managing sponsored listing campaigns. 

Small and medium Facily sellers were excited about the opportunity to promote their products through sponsored listings. And thanks to Topsort’s intuitive UI, getting started with advertising was easy for the vendors, even those who have never run an ad campaign before.

Topsort’s solution for the long tail was clearly a success. Marketplace and vendors were both thrilled with our suite of self-service tools. 

We wanted to improve the performance of the campaigns while helping the vendors and Facily account managers save time. We decided to eliminate the guessing game out of bid pricing and automate setting optimal bid prices to get Facily sellers to reach their performance goals. And, we had the perfect solution for that: autobidding

Autobidding Turned On: Liftoff and Scaling

Topsort’s autobidding algorithm dynamically adjusts bids to ever-changing auction environment factors to save vendors time and money. With thousands of Facily vendors, that’s a lot of time and money saved!

All vendors need to do is pick the products to promote, and set the campaign budget and duration. Autobidding takes care of the rest and determines the optimal bid price to bring the best ROAS possible. 

Sellers turned autobidding on for all campaigns in mid-July 2022. 

The results were literally game-changing. After the first week, we started to see the effect of autobidding in ROAS.

When we started autobidding, the average ROAS was 2.32x, which means for every $1 Facily vendors spent on ads, Sellers were making $2.32 back.

By the end of September 2022, the average ROAS reached 10.10x.

With autobidding turned on, everybody is happy. Vendors are selling, customers are happily buying, and the marketplace’s ad revenue is soaring.

Scaling with Brazil’s E-commerce Sellers

Facily scaled their onboarded sellers from zero to over 4,000 long-tail sellers using Topsort! With this scaling, Facily needed a campaign overview of all sellers’ success with an analytical and organized approach. 

Topsort provided them with a data visualization tool that allowed them to view specific sellers’ performance and budget details. With this information, they were able to recommend strategies that helped vendors maximize their credits and ad spend to promote products with high conversion rates.

At every step of this journey, we worked with Facily to optimize their processes.

After turning autobidding on, we saw great results, but we wanted to help Facily and vendors get the most out of the new ad platform.

Wanting to see even greater success, Topsort’s data scientists and account managers reviewed Facily’s data collection methods around conversions, clicks, purchases, and impressions and proposed solutions to improve their attribution model.

Between July to September 2022, the conversion rate doubled, jumping from 2.53% to 5.28%. By October, we have seen the conversion rate reaching above 10% levels. 

“We’re thankful to the Topsort team for supporting us each step of the way from vendor onboarding to collecting performance data in large volumes. We couldn’t have scaled our vendors’ success to today without their help.”
- Rafael Carvalho, Head of Facily Ads

Ad platforms are notoriously complicated and hard to manage, both for platform owners and vendors who use these platforms to run campaigns,  but it doesn’t have to be that way!  With our support, intuitive UI, and game-changing features like autobidding, vendors can take off with ads easily without creating extra admin work for the marketplace!

Vendors don’t need a degree in economics when launching campaigns is as simple as 3 steps: picking your products, setting the budget, and setting the duration.

This works for long-tail on any scale and Facily has the proof. 

We’re excited to see this LATAM unicorn expand its reach and its SMEs flourish with auction-based advertising. We will continue working together as they scale their ad platform!

Launch your own auction-based native advertising platform

Do you own an open marketplace and see that other ad platforms do not fit your unique needs? Topsort’s got you covered! Our solutions are flexible to fit your needs and robust to scale to thousands and millions of advertisers. We provide you with a customizable solution and an amazing team that helps you advertise the way you want to. Talk to us today!