Maximization campaigns

Maximization Campaigns are a way for affiliates to advertise on ChaChing while maximizing ROAS and driving higher revenues.

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When users come to ChaChing, they search for a product.

In the time that a search loads, ChaChing runs a live auction (RTB) to determine the order of products that get shown to a user. This allows many advertisers to get products in front of a user, and for the user to have many products to choose to buy.

This is identical to Google, Amazon, and even Facebook.

The "bids" in this auction are:

1) The commission rate you offer us, translated into a fixed $ or £ amount based on the price of your product (i.e. a $100 product from a store with a 15% commission gets turned into a bid of $15 in the ChaChing auction, and the advertised product will rank in search accordingly)
2) Offered to the shopper as an incentive for them to shop with you instead of with other stores

When a shopper chooses which product to buy and completes their order (often adding multiple items to the basket), they are given their cash reward as promised on the item they bought.

For example, in the example above, if a shopper buys the $100 product, they get the $15 that was shown to them - no matter what else they buy. Even if they added an extra $10 of goods to their basket and spent $110 at a store, total.

Indeed, that $15 was likely the reason a shopper chose to buy from a particular store instead of one of their competitors.

This is the core of ChaChing. It is the same bidding process that takes place across Google, Facebook, or Amazon - except the "bids" are turned into purchase incentives for the user to drive higher sales. All advertisers that use ChaChing participate in this system.

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However, because you have chosen to onboard to ChaChing using an affiliate channel, you don't just pay ChaChing a commission based on the item that brought the customer into your store - you likely don't even know which item in a basket actually did that - you instead pay a commission based on an entire basket as you do for all other affiliates.

This has 2 knock-on effects that hurt your advertising and your bidding:

1) You overpay by far for the order as a consumer is only paid for 1 item but you pay for *every* item sold
2) Your bids are too low compared to other stores because you cannot increase them to levels needed to be competitive in the auctions. For example:

If your Average Order Value (AOV) is $100, and you pay a 15% commission on all sales, you're averaging a cost of $15 on every sale.

However, if, for example, that $100 order is comprised of, say, 5 items (for simplicity's sake each item is $20), then when a user searches for that item, they see your 15% shown on a product as 15% of $20, or $3.

As you've noticed, $3 isn't a very compelling offer - but 15% is already a lot of commission for you to pay.

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How can you become more attractive in ChaChing's auctions?

To overcome this challenge, ChaChing has now introduced Maximization Campaigns.

Under Maximization Campaigns, ChaChing sends most of what is not paid out to the shopper, back to you.

That means that in our previous example, where you pay $15 but the user only needed $3 to choose to come and buy from you, $12 would be sent back to you.

That means it really only cost you $3 to drive $100 in sales (as $12 is sent back to you).

That transforms your ROAS from 6.6 (15% commission) into ROAS 33.3 (3% commission), per the previous example.

This stops you overpaying for orders on ChaChing.

However, $3 is still perhaps not a compelling offer for a shopper, and your competitors are likely to offer more. To counteract that, Maximization Campaigns rely on also raising the amount you are prepared to offer to a user - now that you have the economics to do so by not paying commission on a whole basket.

In other words, instead of paying your usual rate of 15%, you should pay a higher rate of, for example, 25%.

This means that for your $20 item that appears in search, in order to drive a $100 average basket, you'd pay just $5. Again, the shopper is only paid for what they searched and clicked on (an offer they found compelling enough to come shop with you). Meanwhile, you are paid back the difference between what you paid for the whole order and what it *actually* took to bring that order in.

In this case where a $20 item with a 25% commission appears in search and drives you $100 in order volume, you pay just $5 (25% of $20, not 25% of $100). That amounts to a 5% commission (ROAS 20). Additionally, you now appear more attractive to shoppers deciding if they should buy from you or a competitor with a $5 incentive (25% commission) instead of a $3 incentive (15% commission).

Likewise, you could even offer 50% commissions and still outperform your original 15% commission by using a Maximization Campaign for your store.

For example, with a 50% commission: Your $20 item appearing in search now has a $10 reward on it - which is extremely compelling and will drive a lot of sales. Then, even if a user then adds even fewer other items to their basket and the whole basket turns out turns out to $75 instead of the usual $100, then you still only pay $10 to drive $75 in sales. Without Maximization campaigns that $75 would usually cost you 11.25. With Maximization campaigns - even with these negative assumptions - you pay less (in this case, 12.5% less). Your ROAS outperformed 7.5 to 6.6 even though things went wrong.

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Crucially, you are not just more profitable. You also appear more compelling to shoppers, who choose you over your competitors, so your revenues increase on the top line, too.

To inquire about ChaChing's Maximization Campaigns or to set Maximization Campaigns up, please reach out to joel.williams@chaching.me.

Setup can be complete within minutes.

Maximization Campaigns will send payments to you within days of receiving commissions. Ledgers of what users were paid for each order to your store are also available for full transparency. Additional Terms of Service apply.