Topsort generated 5x Ad Revenue than Legacy Provider in Falabella’s A/B Testing

Before Topsort: 

Founded in 1889, Falabella has become a leading multinational in the retail sector, boasting a wide range of operations throughout Latin America. This prominent company manages a diverse portfolio that includes department stores, home improvement centers, supermarkets, and financial services, making it one of the largest and most influential retail entities in the region

Early in 2021, Falabella approached Topsort to try auction-based sponsored listings and banners in one of their multiple marketplaces, which offers a wide variety of items from electronics to home goods to toys to clothing to perfume - over 4 million items in total. They have been working with Legacy Provider C but were dissatisfied with the results - the takeup among merchants was disappointing, and the monetization results were underwhelming. 

They were excited to try real auction-based Advertising, so they turned to Topsort! 

The A/B Testing: Topsort vs Legacy Provider C

Falabella wanted to see whether Topsort could provide better results… So to put Topsort to the test, Falabellas's Product team devised an A/B test, comparing Topsort directly with Legacy Provider C solution. 

The methodology

The Falabella’s team carefully selected a diverse set of categories in two of the countries they operated. Some popular categories included: Appliances, Phone accessories, Shoes, Kitchen, Vitamins, Perfume, and more. 

Organic results shown to the customers would be the same in both cases, but sponsored listings would be divided between the two competitors. Half of the ads would be provided by Legacy Solution C server  and half by Topsort’s ad auction engine. The company would then compare the results.

The Process

On the Falabella’s side, the engineers were responsible for “splitting” the traffic accurately, so that the “A” and “B” parts of the test were comparable. For the “A” part, they then called on the Topsort API to run the auction and retrieve the ads, while the “B” part continued to be sent to the legacy solution. On the Topsort side, the engineers helped answer Falabella’s team questions, and made sure that everything was running smoothly. 

The test ran for a total period of 30 days, to have sufficient time to compare the systems in “steady state” and obtain statistically reliable comparisons. After the test was over, Falabella could compare the results.

The Results

After approximately one month of the A/B test, the results spoke for themselves—Topsort emerged as the clear winner. Across both countries and all relevant metrics, including click-through rate, conversion, and attributed sales, Topsort outperformed Legacy Provider C solution without ambiguity. 

In one country, Topsort achieved a click-through rate (CTR) on selected ads that doubled Legacy Provider C, while in the other country, Topsort surpassed Legacy Solution C by over 90%. 

Topsort’s conversion rate was also superior, being  20% higher than Legacy Provider C in one country, and more than 80% higher in the other country. Falabella was delighted with the outcome!

In summary, Topsort generated 5x Ad Revenue  despite having the same number of ad slots. 

Our superior Click-Through Rates (CTRs) indicate better predicted relevance and quality, resulting in improved Cost-Per-Click (CPC) for our sellers

Superior Performance & Smooth Integration

While the main goal of the test was to evaluate the performance of Topsort’s technology, it also gave a chance for Falabella to experience the quality and responsiveness of Topsort’s engineering team, as well as the ease of integration. 

 “TopSort's effort was exceptional throughout the A/B testing and integration. Their unwavering support and comprehensive documentation made the development process seamless. The implementation was not only effective but remarkably straightforward. Huge thanks to the entire team!", commented Erik Alanis, the Software Engineer at Falabella who led this project. 

The revenue potential with Topsort technology is estimated to be five times more than Legacy Provider C…

Falabella’s A/B testing serves as a testament to the power auction-based ads and the promising future Topsort holds in the market. Its innovative technology sets Topsort  apart from traditional legacy solutions, signaling its potential to reshape the advertising landscape.

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Read more about building an ad platform with Topsort or get in touch with us today.