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Lazada Sponsored Solutions
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Frequently Asked Questions

  • By Lazada Sponsored Solutions
  • Published: Jan 6, 2023

Outline

A. ON-PLATFORM SOLUTIONS

GENERAL QUESTIONS

Q: Which Lazada Sponsored Solutions should I start with first?

  • It is highly dependent on your marketing objectives:

  • If you are keen on on-platform marketing, we recommend starting with Sponsored Discovery (pricing model: cost-per click).

  • If you are keen on off-platform marketing, we recommend setting up Sponsored Affiliate (pricing model: cost-per-sale). It is easy to set up with the recommended store-wide base commission. You pay only when an order is made and delivered. Historically, we observed up to x25 guaranteed ROI (return of investment) with this solution.

Q: What products are prohibited for promotions?

  • The practice differs by country. Do check with the local regulations and policies. In general, there are five (5) product categories which might have some level of restrictions for promotion:

  • Adult Content: No nudity or exposure of genitals. Some countries might have restrictions on lingerie, swimwear, underwear, feminine care, and sex toys.

  • Alcohols: Some countries might have restrictions on alcohol or drinks that resemble alcohol.

  • Food: Some countries might restrict baby or toddler food or formula. FDA (Food & Drug Administration) registration is normally required.

  • Cosmetics: Over-claiming of cosmetic effects is normally not allowed. FDA (Food & Drug Administration) registration is normally required.

  • Medicines and Medical Devices: FDA (Food & Drug Administration) registration is normally required.

Q: Which Sponsored Solutions can I use?

Q: How do I top up credit that can be used on Sponsored Discovery and New Product Launcher?

There are two options to top up credit:

  • Auto top up - Utilize your store earnings to automatically top up your credit on a weekly schedule or when your credit balance falls below a threshold amount you've set.

  • Manual top up - Top up your preferred amount using up to 80% of your store earnings, debit/credit card, and other payment methods such as e-wallet (depending on country's availability.

Q: How do I top up credit that can be used on Sponsored Media?

  • You may top up using your store earnings or other methods such as debit/credit cards, banks, and more. Credit balance from Sponsored Discovery or New Product Launcher cannot be used for Sponsored Media.

Q: Will my prepaid credit balance expire after a period of time?

  • No, your prepaid credit balance does not expire.

Q: Can I get a refund for my prepaid credit balance?

  • No, the prepaid credit balance cannot be refunded.

Q: Is the top up value including or excluding tax?

  • The top up value excludes tax (if any).

Q: How do I clear my post pay credit balance?

  • An invoice for your postpaid Sponsored Display charges will be sent to you on a monthly basis. We will send the invoice to the email you've filled in the "billing" section during the campaign setup.

Q: Who can use Sponsored Discovery?

  • All sellers with less than 12 non-compliance points (NCP).

  • NCP refers to Non-compliance point, part of the point-based system where Lazada measures sellers' compliance with Lazada policies. Non-compliance points are issued if a seller is verified to have taken part in activities that do not comply with Lazada policies.

Q: How will I be charged?

  • The charging model is based on cost-per-click.

Q: Where will my Sponsored Discovery promoted products appear?

  • Sponsored Search placement: Search Results Page

  • Sponsored Product placement (Product Recommendations): Homepage 'For You' section, Product Details Page (PDP) 'Recommendations' section and My Review 'To review' Tab.

Q: What determines my promoted products' ranking?

  • Bid price competitiveness, keyword selection, and promoted products' quality (e.g. historical sales performance, product ratings, positive product reviews, creatives) are key levers that will determine your promoted products' ranking.

Campaign Setting

Q: What are the differences between Sales and Traffic objectives?

  • Sales objective prioritizes the promoted products that have a higher likelihood to convert; Traffic objective prioritizes driving clicks to your promoted products.

Q: What are the differences between Automated and Standard campaign type?

Q: How many campaigns should I set up?

  • Firstly, always start your journey with Automated Campaign type that is driven by Lazada's AI-powered SMART algorithm (it works 24/7):

  • We recommend setting up one Automated Campaign with Automated Product selection. Let our AI-powered SMART algorithm learn, optimize, and promote products that are more likely to drive clicks and conversion on your behalf.

  • Next, you can create one Automated Campaign with a Standard Product selection for each focus Category (e.g. skincare, hair care, make up, etc.). For each of the focus Category campaigns, include the Hero Products (i.e. the products that historically drove high store GMV with excellent buyers’ ratings and reviews)

  • Only use the Standard Campaign type after you're more experienced with Sponsored Discovery. The Standard Campaign type will require a steeper learning curve, more interventions, and optimizations as compared with the Automated Campaign type.

Q: How much budget should I allocate for each campaign?

  • In principle, set a daily budget that can drive at least 100 clicks. You can review this during the campaign setup. Our algorithm will predict the number of clicks you will likely get based on historical data, current economics, and your campaign setup.

  • Do login and review your campaign performance frequently to ensure you always have a sufficient daily budget that can drive at least 100 clicks. The budget required may fluctuate from day to day as the cost-per-click (CPC) changes.

Q: How do the First Search Slot and Audience overbid feature work?

  • Increase your bidding competitiveness by increasing x% bid price on top of your base bid price for a specific slot (e.g. First Search Slot) or specific audience target.

Q: How can I unlock First Search Slot (FSS) overbid feature?

  • Campaign Type = Standard

  • Placement = Include Sponsored Search

Q: How can I review the First Search Slot (FSS) performance?

  • You can review the First Search Slot performance in the Reports & Insights - Data Insights - Sponsored Discovery - First Search Slot section.

Q: How can I unlock the Audience overbid feature?

  • Campaign Type = Standard

  • Placement = Include Sponsored Products

Q: Is there a recommended percentage (%) for Audience overbidding?

  • Audience overbidding of +15% is a good starting point. Subsequently, you can review the campaign and audience performance and decide if you wish to increase the overbidding % further to gain more traffic or decrease the % to maintain a certain level of ROI, depending on your comfort level.

  • Note that increasing the bid may affect ROI (rise or drop). A drop in ROI may not mean 'bad' if it achieves your desired outcome (e.g. higher impressions and traffic) while it doesn't hit your profitability bottom line.

Q: How can I review the Audience performance?

  • You can review the Audience performance in the Reports & Insights - Data Insights - Sponsored Discovery - Audience section.

Product Selection

Q: How do I select the right products to promote?

  • In principle, always select top searched products, trending products, and hero products (i.e. products that are top selling historically with excellent product ratings and reviews).

  • Selecting products with great deals (e.g. competitive pricing, Free Shipping, vouchers, and more) will increase the likelihood for your promoted products to convert.

Q: How many promoted products should I select for each campaign?

  • You can select up to 100 products for each campaign. We recommend setting up campaigns based on focus Category (e.g. skincare, hair care, make up, etc.). Always include as many promoted products in each campaign, including your Hero Products (i.e. the products that historically drove high store GMV with excellent buyers' ratings and reviews). More products usually mean more traffic and a higher likelihood of allowing exposure to consumers.

Q: How can I review the Promoted Products' performance?

  • You can review the Promoted Products performance in the Reports & Insights - Data Insights - Sponsored Discovery - Promoted Products section.

Keyword Selection

Q: How do I choose the right Keywords?

  • Choose Keywords with high relevancy and trending to increase the likelihood for the Keywords to drive performance.

Q: How can I review the Keywords' performance?

  • You can review the Keywords' performance in the Reports & Insights - Data Insights - Sponsored Discovery - Keywords section.

New Product Launcher (NPL)

Q: Who can use New Product Launcher?

  • Only whitelisted stores.

Q: What products are considered "new products"?

  • "New products" are the products listed for the first time within the past 90 days. Products that are deactivated or deleted will not be considered "new products".

Q: Where will my New Product Launcher promoted products appear?

Sponsored Discovery placements:

  • Search Results Page

  • Product Recommendations: Product Details Page (PDP) Recommendations section and Homepage For You section

New Product Launcher exclusive placements:

  • Coins

  • My Orders page: To Review section

  • My Orders page: To Receive section

Q: What is the charging model for New Product Launcher?

  • New Product Launcher uses a cost-per-click (CPC) model. You will be charged when shoppers click on your promoted product.

Q: What is the recommended campaign duration?

  • At least 30 days to maximize the exposure of promoted products. For quick market validation, you can set up a 7-day campaign.

Q: Can I edit the budget after the campaign goes live?

  • Yes, you can increase your budget. A decrease budget for a live campaign is not supported now.

Q: Can I add or remove promoted products after the campaign goes live?

  • Yes, you can remove products by pausing them. The addition of products for a live campaign is not supported now.

You can find more information about Sponsored Discovery via the below course:

Q: Who can use Sponsored Display?

  • Only whitelisted stores, mainly LazMall.

Q: Why should I use Sponsored Display?

  • Sponsored Display is an upper funnel solution to maximize your on-platform exposure in the prime locations. During Mega Campaigns (e.g. Lazada Birthday, 9.9, 11.11, and more), the Mega Display Packages also commonly cover both on-platform and off-platform upper funnel exposure.

Q: What are the charging models for Sponsored Display?

  • CPT (Cost Per Time) or CPD (Cost Per Day): Mega Campaigns Packages generally use this charging model. It is helpful for customized audience group targeting and re-targeting.

  • CPM (Cost Per Mille): BAU (Business As Usual) and AP (Annual Pass) packages generally use this charging model.

  • CPM Guaranteed Delivery (CPM GD): Secure the CPM GD slots upfront and pay per thousand impressions delivered through your CPM GD campaign.

  • CPM Bidding: Participate in Sponsored Display CPM Bidding auction. You set the bid price and budget for your Display Banner to show up and compete for on-site impressions. Relative to CPM GD, it gives you better control of your budget. CPM Bidding also allows more precise audience targeting through our DMP (Data Management Platform). It is now available for piloting in selected markets.

Q: How do I get started with Sponsored Display?

  • Purchase Annual Pass (AP) earlier to secure Display banners (CPD/CPM) and other valuable assets (e.g. out-of-home, CRM, LazFlash, etc.) at a discounted rate.

  • Purchase Mega Campaign Packages earlier to secure Display banners (CPD) at the prime location earlier before it runs out. Mega Campaign Packages commonly include off-platform upper funnel assets (e.g. CRM, Email Marketing, etc.)

  • Do reach out to the local Lazada Marketing Solutions team to find out more about AP and Mega Campaign Packages.

Q: How do I use all the different buying types of Sponsored Display for an effective upper funnel objective?

  • Once you've secured Annual Pass and Mega Campaign Packages, in principle, use CPD to capture mass audiences when the platform traffic peaks. Use Sponsored Display CPM during the non-Mega or non-Campaign period to build your store's audience pool and retarget audiences.

Can we do audience targeting with Sponsored Display?

  • Sponsored Display CPM GD allows you to target audiences by Age, Gender, Interest, Store Visit, and more.

  • Sponsored Display CPM Bidding allows you to target customized audiences using the Data Management Platform (DMP) which is currently in pilot phase and available in some markets only.

  • Sponsored Display CPD captures mass audiences during peak season (e.g. Mega Campaigns). Hence, there isn't an audience targeting for CPD.

You can find more information about Sponsored Display via the below course:

B. OFF-PLATFORM SOLUTIONS

Q: Who can use Sponsored Affiliate?

  • All sellers with less than 12 non-compliance points (NCP).

  • NCP refers to Non-compliance point, part of the point-based system where Lazada measures sellers' compliance with Lazada policies. Non-compliance points are issued if a seller is verified to have taken part in activities that do not comply with Lazada policies.

Q: Why should I use Sponsored Affiliate?

  • Sponsored Affiliate allows you to capture off-platform traffic, audiences, and buyers through our extensive network of affiliate partners and KOLs. You only pay per sale made with a guaranteed ROI of up to x25 times.

Q: How will I be charged for Sponsored Affiliate?

  • The default charging model is based on cost-per-sale (CPS). The CPS will be based on the commission rate set during Sponsored Affiliate campaign setup. It will be charged from your store earnings.

  • For Brands using Sponsored Affiliate on Marketing Solutions Portal (MSP), Lazada will issue an invoice monthly.

Q: How long does it take for an affiliate to see my campaign?

  • Your campaign will be displayed on the Lazada Affiliate platform in 24 hours

Q: Is it possible to reduce the affiliate campaign duration?

  • The campaign needs to run for a minimum of 7 days. This enables the affiliate partners to prepare, implement, and communicate with potential buyers.

Q: Can I reduce the minimum storewide commission rate?

  • You cannot lower the minimum commission rate. This enables your campaign to be competitive in the market and attract more affiliate partners to promote your products.

Q: What is the purpose of additional product commission?

  • Additional product commission gives you higher visibility on the Lazada Affiliate platform. A product with a higher commission rate has a higher chance of getting picked and promoted by affiliate partners.

Q: Are there any protection against bad inventory from affiliate sites?

  • Yes. Lazada has an anti-fraud system to monitor traffic from a bad source. The bad traffic sources will be automatically rejected once identified.

Q: Are there any fraud detection in preventing fraudulent activity?

  • Yes. Lazada has fraud detection to detect fraudulent activity, such as click injection.

Q: If the customer returns the order, will I get a refund?

  • Yes. For any returned order, Lazada will refund the affiliate fee to your store revenue.

You can find more information about Sponsored Affiliate via the below course:

EXTERNAL TRAFFIC CAMPAIGN & TRAFFIC REWARD PROGRAM (TRP)

Q: Who can join the Traffic Reward Program (TRP)?

  • Only whitelisted stores.

Q: How do I join the Traffic Reward Program (TRP)?

  • TRP is currently available for whitelisted stores. TRP rewards stores with vouchers or free credits when it drives a certain number of off-platform traffic within a period of time. It only recognizes off-platform traffic that is tracked using the URLs generated through the External Traffic Campaign.

Q: What is the External Traffic Campaign?

  • External Traffic Campaign allows you to generate UTM (Urchin Tracking Module) tags for your destination URLs. You can use the URLs generated in your off-platform digital marketing campaigns.

META COLLABORATIVE ADS (CPAS)

** For updated CPAS FAQs please visit a dedicated CPAS Page. **

Q: Who can use Meta CPAS with Lazada?

  • Only whitelisted stores that have signed the Traffic Enhancement Agreement (TEA) with Lazada.

Q: What are the audience types that can be used for Meta CPAS?

  • Custom Audience: Lazada shoppers who visited your category and other relevant categories of your choice. (e.g. a Health & Beauty brand may use this to target Lazada users who have visited the Babies & Toys, Women's Fashion, and Sports & Lifestyle categories.)

  • Catalog Audience: Lazada shoppers who interacted (e.g. visit, add to cart, or purchase) with your store in the past 180 days.

  • You can use Custom Audience for prospecting new buyers and Catalog Audience for retargeting.

CPAS Migration FAQ: Onboarding

** For updated CPAS FAQs please visit a dedicated CPAS Page. **

Q: Why do sellers need to migrate to new CPAS system?

  • To improve the overall Meta Collaborative Ads (CPAS) experience on Lazada, we are moving to a new Business Manager.

    With this change, the benefits you can expect include:

  • Enhanced sync between your store catalog and CPAS ads

  • Quicker resolution of issues

  • Faster onboarding of new accounts

Q: What do sellers need to do to migrate to new CPAS system?

  • There are three main steps to migrate to new CPAS system
  1. Creation of a new Meta Ad Account ID.
  2. Re-onboarding via digital onboarding process
  3. Replication of existing campaigns in the new Ad account and re-entering the learning phase

Q: Is it possible to use the same ads account that already run CPAS instead of creating new one?

  • Ad account that linked with existing CPAS cannot be used new CPAS. Hence, you will need a new ad account as one CPAS ad account can only be linked to one catalog segment. However, you don't need a new Business Manager account.

Q: What will happen to my old ad account after we migrate to new ad account?

  • Campaigns in old ad account(s) should be paused as Lazada will stop updating the old catalog that is used by the old ad account(s) We will not delete the old ad account, so that you can see the history.

Q: What do I have to set up in my new Meta ad account and link with new CPAS system?

  1. Click and accept the CPAS TEA T&C on LSSC

  2. Enter onboarding details including Meta business manager ID (to align with the requirements based on UED's draft)

  3. Lazada will share the catalogue and custom audience to your account

Q: How long does the new ad account take to set up?

  • Normally, it would take less than an hour to set up a new ad account .

Q: How long does it take to set up a new ad account product catalog?

  • It takes 2-3 days for products to sync into the catalog.

Q: When will Lazada CPAS v1.0 will be removed for good?

  • CPAS v1.0 will be removed as soon as we complete the migration process. Support will end on 29 Feb 2024.

Q: Can one catalog be shared to multiple Business Manager (BM) IDs?

  • Yes, 1 catalog segment can be shared to multiple BMs. However, it is advised to create new catalog segments for different BMs.

Q: What should I do if I cannot onboard new ad account to the new CPAS system?

The possible reason for uncompleted account linking is you have not granted view access during account onboarding back to Lazada.

Please troubleshoot with the following steps:

1) Go to Business Settings page on Meta Business Account

2) Select your ad account. And then click "Assign partners"

3) Select "Business ID"

4) Enter partner business ID: 2723068664658551, toggle on "View performance" and click Next.

CPAS Migration FAQ: Performance

** For updated CPAS FAQs please visit a dedicated CPAS Page. **

Q: Can I duplicate my past performance history to new ad account?

  • No, learnings cannot be transferred. However, you can restart the learning and expedite the phase by running your CPAS campaigns on an ongoing basis. Learning phase will be restarted if an Ad Set is paused for >7 days. For more information regarding learning phase, please refer to this article.

  • However, You can download your past performance reports from your previous Meta Ad account.

Q: In case, sellers have set up CPAS by using 2 ads account (1 account from old portal, 1 account from new portal), and those 2 ads account are used to run the campaign at the same time. Is there any performance impact from running 2 campaigns?

  • If the campaign is identical (same objective, same product, same audience), these two campaigns will compete each other and the audience is overlapping.

  • So, this is not the suggested setup.

Q: Is there any guideline/support for brand to accelerate the CPAS performance as it takes time for system to re-learn ?

  • Please ensure that you have enough budget to allow for 50 conversions per week to move out from learning phase. Please see this article for more information regarding the learning phase.

Q: I can't accept and use the product catalog to run the CPAS campaign. What do I need to do?

  • You may need to check whether you have the right role, access, and permission. If you need help, you may reach out to the dedicated KAM.

Q: Who can use Sponsored Media?

  • Only whitelisted stores.

Q: What's the charging method for Sponsored Media?

  • The charging model is based on cost-per-thousand impressions (CPM).

Q: Do I need a Facebook page for my store to create a campaign?

  • Yes. You will need to add your store's Facebook page to be onboarded.

Q: Do I have to upload images specifically for Sponsored Media?

  • No. Sponsored Media will use the creatives you've uploaded during the store product listing stage.

Q: Where do the promoted products appear?

  • Your promotions may appear on the Instagram Feed, Facebook Feed, Instant Articles, Audience Network, and/or Messenger. The Audience Network is a group of publishers that allows your promotions to show up on other apps and websites (non-mobile websites).

  • Automatic placement will allow the system to optimize the placements to achieve your goals. Hence, you may not select or exclude specific placements. Please note that the handle will appear with the Lazada logo if you run your campaigns via Sponsored Media.

Q: What's the payment method for Sponsored Media?

  • You may top-up via any of our existing payment methods, including debit/credit cards, wallets, and your store's GMV, by clicking on Top Up under the Sponsored Media section on the Sponsored Solutions overview page.

Q: I am whitelisted for Traffic Reward Program (TRP). Is Sponsored Media part of TRP?

  • No. Sponsored Media is not part of TRP for now.

C. GLOSSARY

· Spend: Total actual spend amount within the selected date range

· Impression: The number of times your promoted product or banner is shown.

· Reach: The number of unique buyers who viewed your banner.

· Click: The number of times shoppers click on your promoted product or banner.

· Clickthrough Rate (CTR): The ratio shows how often people who see your promoted product or banner end up clicking on it. It's calculated using Clicks divided by Impressions.

· CPC (cost-per-click): The average amount you pay for each click. It's calculated using Spend divided by Clicks.

· CPM (cost-per-mille): The average amount you pay for every thousand impressions. It's calculated using Spend divided by Impressions x 1000.

· Direct Add to Cart: The total number of promoted product units added to the cart after shoppers click on it.

· Store Add to Cart: The total number of units from your store that is added to the cart after shoppers click on your promoted product.

· Direct Orders: The total number of direct orders for your promoted product during the selected date range, after someone clicks on it.

· Store Orders: The total number of orders from your store during the selected date range, after someone clicks on your promoted product.

· Direct Conversion Rate (Direct CVR): Measures how often a promoted product click leads to the same product being sold. It's calculated using Direct Orders divided by Clicks.

· Store Conversion Rate (CVR): Measures how often a promoted product click leads to units sold from your store listings. It's calculated using Store Orders divided by Clicks.

· Direct Units Sold: The number of promoted product units sold after shoppers click on it and purchase it.

· Store Units Sold: The number of units sold from your store after shoppers click on your promoted product.

· Revenue: Revenue generated from units sold after shoppers click your promoted products. It is the total buyer paid amount inclusive of all discounts applied, store credit, shipping fees, and surcharges.

· Return on Investment (ROI): It helps justify how marketing campaigns generate revenue for the store for lower funnel solutions (Note: we do not consider ROI for upper funnel solutions such as Sponsored Display). It's calculated using Revenue divided by Spend.