ROAS Optimization and Multi-Creative Optimization Increases Sales for Magazine Luiza

The Challenge

Magazine Luiza is one of the largest e-commerce companies in Brazil. As an all-purpose retailer, Magazine Luiza offers a wide array of products across categories. Since launching in 2014, their app has become a key sales channel for the company. 

As demand soared during the Covid-19 pandemic and competition from other retailers increased, Magazine Luiza knew they had to invest in their app to continue to scale. The retail giant chose Liftoff’s Accelerate product to bolster user acquisition for their app.

When they began working with Liftoff in early 2022, Magazine Luiza had clear goals for their app. They sought to acquire high-value users and keep costs low. Liftoff launched new campaigns for Magazine Luiza on Android with competitive CPI (cost per install) and ROAS (return on ad spend) goals from the start. 

The Solution

As an e-commerce app that sells everything from sneakers to toys to electronics, Magazine Luiza was an excellent fit for Liftoff’s ROAS optimization model. Liftoff’s machine learning models draw on impression-level data to target high-quality users who are more likely to make in-app purchases, helping to maximize revenue. 

To increase conversions, Magazine Luiza also needed new ad creative that could reach users quickly and compete for attention. Drawing on e-commerce best practices, Liftoff designed new ads in multiple formats highlighting Magazine Luiza’s best-selling products. 

To identify top-performing ads for the app, Liftoff used Multi-Creative Optimization, a solution that tests up to six creatives against each other. This enabled Magazine Luiza to identify winning creative more quickly than A/B testing and reallocate ad spend to top performers. 

The Results

With strong ad creative, the e-commerce giant now converts high-value users at scale and has dramatically increased the volume of purchases made through its app. Since launching new creatives tested through Multi-Creative Optimization, Magazine Luiza has seen a remarkable 452% surge in impression-to-install rates. 

Soon after launch, Liftoff’s campaigns outperformed initial CPI goals by 50%. Since then, the campaign has consistently beaten Magazine Luiza’s CPI targets. After a brief learning period, Liftoff’s ML posted impressive day 7 ROAS rates of over 700%. As the campaign scaled during the year, Liftoff also increased day 7 ROAS month after month. Magazine Luiza app is now the e-commerce giant’s top channel for sales as the company looks to expand its presence in the LATAM market.  

“Liftoff has become a crucial platform for Magazine Luiza. Liftoff’s new creatives exceeded our performance goals and helped us connect with more high-value customers. Their campaigns have significantly increased sales through our app.” 

Marina Galvão, Marketing Manager at Magazine Luiza