Exploring Lazada’s Success In The Internet Marketing Arena | World Brand Affairs

Exploring Lazada’s Success In The Internet Marketing Arena


4/12/20233 min read

Lazada is an online shopping platform that operates in several Southeast Asian countries, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. It was founded in 2012 by Maximilian Bittner and is now one of the leading e-commerce companies in the region.

Lazada offers a wide range of products, including electronics, fashion, beauty products, home appliances, and groceries. It also provides a platform for third-party sellers to sell their products to consumers. Lazada aims to make online shopping easy and convenient for its customers by providing a user-friendly website and mobile app, secure payment options, and fast and reliable delivery.

In 2016, Lazada was acquired by the Chinese e-commerce giant Alibaba Group, which has helped to further expand the company’s reach and capabilities.

The Effective Usage Of Google Adwords

Lazada’s primary focus is to attract and retain a large customer base and increase revenue through various online channels, including desktop and mobile devices. To achieve this goal, the company implemented the flexible bidding strategy of “Google AdWords,” which offers options to automate cost-per-click bids to achieve objectives such as ROI optimization, increased conversions, lower cost per acquisition, and greater visibility.

A Bidding Technique That Worked Wonders

Lazada used a bidding technique called “target outranking share,” which allowed the company to surpass its competitors in critical keywords. This bidding strategy enables businesses to adjust their bids up or down to a predetermined maximum cost per click to help their ads outrank those of others. The company used this approach to position its keywords in new categories, and it also provided an opportunity to bid against strategic rivals, attracting visibility and traffic from a different set of customers by targeting their competitors’ keywords. This approach allowed Lazada to determine the maximum cost per click it was willing to pay, thereby controlling the cost required to surpass its competitors’ positions.

Opening Physical Stores That Facilitated On-App Purchase

Lazada launched its first physical store in Singapore in December 2019 in partnership with Amorepacific. The store offers a unique shopping experience where customers can try out products in person while also having the convenience of purchasing through the Lazada app. Between January and March 2020, sales at the Amore Store on Lazada increased five-fold. The majority of customers, over 80%, were new to Amorepacific’s products, while 20% of buyers were new to Lazada’s platform.

Developing A Platform Of Mutual Growth  

Lazada’s LazLive platform is also helping the local community by promoting the development of valuable skills in a rapidly growing digital economy and creating new job opportunities within its ecosystem. To achieve this, the company established the Grassroot Livestreamers Incubation Program, which offers young talents training to enhance their skills as professional live streamers to assist Lazada’s merchants who are increasingly using LazLive to reach customers. 

The program has boarded more than 3,000 live streamers and was initially launched in Vietnam in November 2019 before expanding to Thailand.

Product Ads That Exuded Zest 

To achieve its third-anniversary campaign objectives, Lazada leveraged Facebook’s Dynamic Product Ads. This type of ad uses pixels to track when someone views an item from Lazada’s inventory or adds it to their social media shopping cart. If the customer doesn’t complete the purchase at that time, advertisers can retarget them with an ad that displays the specific product they were interested in. By uploading its product inventory, Lazada was able to showcase a variety of products in a single advertisement.

The ads were automatically customized for each customer. Lazada employed Custom Audiences to target previous customers and encourage them to try new products. It then utilized Lookalike Audiences to expand its reach by finding new customers who shared characteristics with existing ones.

This way, Lazada innovatively leveraged the power of online marketing. Explore captivating brand stories, learn about the latest marketing trends, and get to know the personalities behind some of the world’s most successful brands with us. Subscribe to World Brand Affairs for exclusive content and insights from across the globe.