Amplifying media dollars through digital co-op
In a space typically owned by mailed circulars and print ads, Staples followed the shifting consumption patterns of their customers, by embracing a digital-centric approach. Staples identified an important opportunity to scale their digital co-op program with clear measurement strategy and by attributing sales credit to vendor products.
Return on Investment
increase in co-op programs over 4 years
Since 2011, the co-op team has built and managed 150 programs. In 2015, this accounted for a significant increase in overall revenue and vendor-specific SKU sales generated by the team, returning on investment at nearly 2:1. This scale has been possible because of clear measurement and the fact that we can prove sales credit for each dollar invested.
Vendor partners often have their own e-commerce sites and they can choose to spend their dollars elsewhere. A retail co-op allows both Staples and the vendor to enhance their advertising dollars beyond what was available to them to drive their existing .com sales goals. Achieving a positive category level ROI would create success for both Staples and the vendor.
Kicking off with paid search only, today Staples’ co-op programs involve search and display. The team has successfully integrated new ideas such as program reporting that marries Staples sales data with iProspect metrics. This includes tracking store visits, priority campaigns for keywords and SKUs with historically positive performance, as well as proactive involvement in search engine betas and inventive methods of forecasting.
We’ve built a unique team at iProspect. Co-op programs are incredibly fast paced and complex with data, due to 20+ individual programs in market at any given time. The iProspect team must be agile at all times, ready to talk about computers in the morning and tax software in the afternoon with both Staples and our vendors who are always interested in co-op as an opportunity to increase managed spend.
Staples’ digital co-op program has been a huge success and iProspect has been a fantastic partner. Co-op has given Staples the ability to amplify our media dollars and go to market in a larger sense. We’ve created deeper relationships with the digital marketers at our vendor partners.