Kolon Mall exceeded ROAS goal by 28% with Moloco's Dynamic Product Ad

About 

Kolon Mall is a leading fashion platform in Korea that offers stylish products and delivers a fast and convenient shopping experience. With over 40 Kolon Industries FnC manufacturing brands and a curated selection of 1,000+ brands, Kolon Mall showcases a wide range of fashion and lifestyle products that enhance users' lives.

Madup is a prominent mobile performance agency in Korea that achieves innovative results based on its excellent technology. Madup holds a diverse portfolio spanning various verticals, including finance, fashion, and e-commerce.
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Challenge

Kolon Mall aimed to establish a robust digital marketing strategy offering a better shopping experience through personalization and gaining competitive advantage among commerce platforms. 

With a diverse brand portfolio, including golf, men's and women's fashion, and premium international labels, Kolon Mall has many products with short replacement cycles. Therefore, they needed to find a way to make personalized recommendations tailored to each user's preference and diversify the purchased products.

In the highly competitive domestic and global e-commerce market, it was also crucial to maximize revenue for achieving sustainable growth.
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Solution 

Kolon Mall partnered with Moloco for the Cloud DSP as a solution based on industry-best Machine Learning (ML) models to enhance the user's shopping experience and reach high-value users. Using the solution's personalized product recommendation feature, Dynamic Product Ad (DPA), Kolon Mall displayed ads for products with a high likelihood of purchase. Moloco's advanced ML model matched various products on Kolon Mall with users' in-app activity, creating hyper-personalized product ads tailored to each user. 

Key advantages of Moloco DPA include:

• Automatic customization of creative assets: Moloco's DPA enables the automated display of ads that align with users' interests based on their in-app activities. This automation generates creatives without manual intervention, enabling more effective campaign management.

• Increase in purchase amount per user through personalization: DPA offers personalized ads based on in-app user activity and their User Lifetime Value (LTV). For this reason, especially for commerce apps like Kolon Mall, which operate many products with short product replacement cycles, DPA can drive higher campaign efficiency compared to static ad campaigns. 

Moloco's advanced ML was important in identifying and retaining high-value users for Kolon Mall across the open internet. To achieve Kolon’s re-engagement goal, Moloco’s ML model automatically exposed ads to users with a high likelihood of conversion, without the need for complex manual targeting. To further optimize campaign performance, a sophisticated targeting strategy was deployed. Customized ads targeting active users with login and purchase history within the last 60 days were used to drive purchases, while also targeting uninstalled users based on the user data extracted from MMP.

In addition, Moloco's access to high quality exchanges such as Kakao and TMAP in Korea enabled Kolon Mall to tap into the premium inventory to secure high-value users. This approach allows Kolon Mall to capture the benefits of boosted branding and efficient performance marketing. Even with the higher costs associated with premium inventory, Moloco's ML models optimize with real-time bidding. The ML models efficiently identify the optimal bidding opportunities, delivering ads to relevant users at the most effective cost while providing branding impact and performance measurement advantages.

Madup also played an important role by implementing a user targeting strategy based on cohort ROAS analysis, ensuring that all ads are exposed only to meaningful users. As a result, this led to an improvement in CPA, ultimately enhancing the overall efficiency of the ad performance.
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Results 

Kolon Mall's partnership with Moloco and Madup was particularly successful during the F/W season, providing the most intuitive product content tailored to each user through DPA. This resulted in increased purchase conversion among existing users and ultimately enabled Kolon to exceed its target ROAS.

• Exceeded ROAS goal by 28%.
• Achieved KPI within 2 weeks through faster optimization of the ROAS model compared to other media.
• Achieved a 5X+ increase in both purchase volume and amount per user in just two weeks.
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"The Moloco team offered valuable assistance throughout the campaign management process, ensuring smooth operation. We were particularly satisfied with the flexibility and performance offered by Moloco Cloud DSP, allowing us to create custom segments to reach high-value users within the desired audience pool." 
— Kolon Mall Operations Team, Performance Marketing Department

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