Takealot Group
Retail Media Playbook

Start with the growth problem – then build the system

Advertising works best when it is treated as a connected journey, not a collection of isolated buttons. A shopper may first notice your brand on the homepage, compare options on a search or product page, add an item to a wishlist or cart, and only then buy. Your job is to be present at the moments that move that journey forward.

This playbook takes you through that journey in sequence. We begin with the strategic reason to broaden beyond bottom-of-funnel ads. Then we map the available formats to the funnel, show how to prepare for seasonal peaks, choose the right targeting architecture, and improve the conversion rate that turns clicks into purchases. Finally, we make measurement and operations practical – with Attribution, search-query optimisation, and wallet discipline – before closing with three proof points from advertisers.

Use the questions as a working checklist. Each answer ends with a clear takeaway so you can move from “Do I need advertising?” to “I know what to run, how to measure it, and how to keep it working.”

At a Glance: Your Advertising Strategy in Brief

A full-funnel approach to Takealot advertising means being present at every stage of the shopper journey: from first discovery, through evaluation, to purchasing and ultimately building a reputation for your brand/product that encourages customers to return for future purchases.

This guide helps you move from “Do I need advertising?” to “I know what to run, how to measure it, and how to keep it working to build my brand with customers.”

Strategy and Foundation

  • Build awareness and demand before you bid for it.
  • Match the format to the moment.
  • Prepare for peak season early.

Campaign Setup and Architecture

  • Run Auto and Manual targeting together to give you discovery and precision.

Operations and Foundation

  • Protect your wallet.

Measurement

  • Use the Conversion Rate as a diagnosis tool.
  • Use Attribution Metrics for time-bound promotions.
  • Understand the Attribution window and campaign dates before you launch.

Optimisation

  • Let shopper data tell you how to improve your campaigns.
  • Update your campaigns accordingly.
SECTION 1 | STRATEGY & FOUNDATION

1. Build demand before you bid for it

Why am I stuck growing my sales with Sponsored Product Ads alone?

Because Sponsored Product Ads are excellent at capturing demand that already exists – but they cannot, by themselves, create enough new demand to sustain your next stage of growth. They appear when shoppers are actively searching, so they reach people who already know what they want. That makes them powerful at the purchase stage, but it also means you are competing for the same limited pool of active searchers as every other seller in your category.

The missing step is discovery. A shopper who has not yet encountered your brand will not search for it by name, and may not yet have decided that your product belongs in their basket. Awareness advertising, such as Sponsored Display Ads, gives you a way to introduce the brand earlier. When that shopper later searches for “wireless headphones”, your product is no longer an unfamiliar result: recognition can support stronger click-through and give your conversion-focused ads more to work with.

There is also an efficiency reason to broaden the plan. High-intent searches attract competition, and that competition can push cost-per-click higher. Top-of-funnel awareness is typically a more cost-effective way to build recognition that fuels longer-term demand, while bottom-of-funnel ads harvest the demand you have created. The answer is not to abandon Sponsored Product Ads; it is to stop asking one format to do every job.

A practical first move is to give each stage a role: use awareness to expand the audience, consideration placements to help shoppers evaluate, and purchase-stage ads to convert intent. The rest of this guide shows how to make those roles work together.

KEY TAKEAWAY

A balanced full-funnel approach – awareness, consideration and conversion – expands your customer base beyond the limited pool of active searchers and creates a more sustainable growth engine.

SECTION 1 | STRATEGY & FOUNDATION

2. Put the right message in the right moment

Which Takealot ad format should I use when I need more than a single conversion tactic?

Start by asking what the shopper needs next. Someone discovering your brand needs a reason to notice. Someone comparing options needs reassurance and relevance. Someone ready to buy needs a clear, high-intent route to the product. Takealot’s App-based advertising system gives you formats for each of these moments, so your media plan can move with the shopper instead of forcing every shopper into the same message.

AWARENESS – earn the first look

  • Homepage Carousel: a high-visibility homepage placement for new product launches, brand campaigns and seasonal promotions.
  • Homepage Video: motion and sound for brand storytelling and product demonstrations.
  • Order Tracking Banners: reach recent customers while they track an order – a distinctive opportunity for repeat purchase or cross-sell.
  • Search Listings Page Banner: gain above-the-fold visibility on search pages to build category share of voice or protect your brand name.

CONSIDERATION – help the shopper choose

  • Search Listings Page Banner: appear on search results while shoppers actively evaluate options.
  • Search Listings Page Video: combine the intent signal of search placement with the engagement of video.
  • Product Display Page Banner: appear on individual product pages for competitive positioning and cross-selling.
  • Wishlist Banner: reach shoppers who saved items but have not purchased – a high-consideration audience.
  • Cart Banner: reach shoppers who added items but have not checked out; abandoned-cart recovery is a powerful use case.

PURCHASE – make intent count

  • Sponsored Product Ads: target high-intent shoppers precisely when they are making purchase decisions – the stage where conversions happen.

You can also shape who sees display advertising. Audience Targeting uses behaviour such as product views, purchases and cart activity. Product Catalogue Targeting automatically selects products from your inventory to show relevant ads. Keyword Targeting connects products to relevant audiences at moments of likely interest. Device Targeting directs ads to specific audiences based on iOS, Android or Desktop hardware.

Plan for the Buying Model

The platform is subscription-based and App-based: you choose the advertising products you want to use – Product Ads and Display Ads. Each has its own inventory, buying mechanism and pricing structure. Display Ads use CPM (cost per thousand impressions), rather than CPC pricing.

KEY TAKEAWAY

Do not ask “Which ad is best?” Ask “Which shopper moment am I trying to improve?” A coordinated mix gives awareness, consideration and purchase ads a job they can actually do.

SECTION 1 | STRATEGY & FOUNDATION

3. Treat peak season as a runway, not a weekend

How do I make sure my advertising is ready before Black Friday or another seasonal peak arrives?

Peak demand rewards the seller who starts before the peak. For Black Friday, Easter, back-to-school and Valentine’s Day, begin awareness campaigns 4–6 weeks before the main trading period. For Black Friday, that means launching in October. The early phase gives shoppers time to discover your brand, understand your offer and recognise your products before the marketplace becomes crowded.

Then make the creative unmistakably seasonal. Use countdown elements, seasonal imagery and gift guides where they fit the offer. Homepage Carousel and Homepage Video are strong vehicles for seasonal storytelling; Search Listings Page Banners can bring the seasonal deal into the evaluation moment. The best creative does not merely say “sale”: it shows why this product belongs in this specific seasonal mission.

Budget needs the same lead time. Seasonal competition increases, so Sponsored Product Ads can face higher CPCs and Display Ads can face higher CPM rates. Ensure the Ad Credits wallet is funded before the rush and consider significantly increasing budgets to maintain position during peak periods. That is not a promise of performance; it is a planning response to a more competitive auction and a larger opportunity.

Finally, feature the products that make sense for the season. A kitchenware brand preparing for Christmas should lead with gift-worthy items and bundles. An electronics brand preparing for back-to-school should focus on laptops and study accessories. Keep Sponsored Product bids competitive, but remember that awareness becomes even more important when many sellers are making similar claims.

  • Plan the launch 4–6 weeks ahead.
  • Increase budgets significantly to support your campaigns through the surge in traffic.
  • Use the Advertising Dashboard to monitor pacing and performance throughout the seasonal period.
  • Before the peak, check that the wallet can support expected spend and higher rates.
KEY TAKEAWAY

The peak is when demand is visible, not when preparation should begin. Build recognition 4–6 weeks early, fund for competition, and use your dashboard to keep pacing under control.

SECTION 2 | CAMPAIGN SETUP & ARCHITECTURE

4. Use automation to discover, control to scale

Should I choose Auto targeting or Manual targeting – and what if I need both discovery and efficiency?

You do not have to choose one forever. Auto targeting is the best starting point when you are launching a new product, testing a new category or do not yet know which keywords will work. It offers a “set and monitor” approach when management time is limited, and it can reveal the search terms and placements that deserve a more deliberate investment.

Once evidence emerges – from Auto targeting, organic sales or proven products – Manual targeting gives you precision. Use it when you know the keywords that drive sales, need control over niche segments or specific competitive terms, or have maximising ROAS as the priority. Its precision generally delivers better efficiency when the inputs are known and the campaign is actively optimised.

The most productive architecture is usually both at the same time. Let Auto targeting continue discovering opportunities and feeding algorithm learning. Let Manual targeting protect and scale your known high-performers with precise control. Review what Auto uncovers, transfer proven opportunities into Manual where appropriate, and keep the two roles clear so they complement rather than duplicate each other.

A Simple Decision Rule

New product, new category, limited time or need for discovery? Start with Auto.

Proven product, known keywords, niche control or ROAS optimisation? Add Manual.

Need discovery and precision together? Run both simultaneously.

KEY TAKEAWAY

Auto targeting excels at discovery and minimal management. Manual targeting excels at control and optimisation precision. Use both together to learn broadly and scale what proves itself.

SECTION 3 | MEASUREMENT

5. Turn clicks into a conversion diagnosis

Is my Conversion Rate healthy – and what can I actually change if it is not?

Conversion Rate (CR) is the bridge between paid attention and paid sales: CR = Purchases ÷ Clicks. The metric tells you what happened after the click; it does not tell you why. To improve it, connect the number to what the shopper has seen and experienced on the product page.

Use the category and price point as context. The practical range across categories is roughly 2% to 10%, but most campaigns sit in a mid-single-digit band, with strong performers reaching higher. The wider practical range varies depending on category and price point: higher-priced products tend to convert at lower rates, while consumables and lower-priced items often convert at higher rates.

When Conversion Rates are weak, work through the levers in order. Pricing is the single biggest factor. Then check product reviews and ratings, the quality of the product page, stock availability, shipping and delivery, brand recognition, and the match between the ad promise and the landing page. A strong ad cannot rescue an unavailable product, an unconvincing page or a price that feels out of step with alternatives.

Make the improvements operational: optimise pricing strategy, encourage reviews, improve product-page content, use high-quality product images, and ensure stock availability matches the volume you are advertising. Then revisit CR after the changes. This turns measurement from a scorecard into a repeatable optimisation loop.

KEY TAKEAWAY

Conversion Rate is a diagnostic, not a verdict. Use the typical mid-single-digit range as a broad benchmark, then improve the controllable drivers – price, reviews, page quality, stock, delivery and message match.

SECTION 4 | OPTIMISATION

6. Let shoppers tell you what to target next

How can I replace guesswork with the actual searches that trigger my Sponsored Product Ads?

Open the Shopper Search Query Report. It shows the actual search terms shoppers used that triggered your Sponsored Product Ads, along with impressions, clicks, CTR, conversions, revenue, cost-per-click and ROAS. That makes it one of the most direct ways to connect shopper language to campaign decisions.

Use the report as a five-step optimisation loop. First, identify high-performing search terms and protect them. Second, discover new opportunities that shoppers are already using but your targeting may not yet reflect. Third, find irrelevant searches and add them as negative keywords to reduce wasted spend. Fourth, study search patterns to understand how shoppers describe the need. Fifth, validate whether your current targeting is reaching the audience you intended.

For example, suppose you sell wireless headphones. The report may show triggers such as “wired headphones”, “earphone case” and “headphone stand”. Those searches are not necessarily aligned with the product you want to sell. Adding them as negative keywords can reduce wasted spend and make the campaign more relevant. The lesson is not to guess what is irrelevant – use the evidence in the report to decide.

Use the Dashboard to make the loop repeatable, review campaign performance, product performance, and targeted keywords to help you adjust the campaign products, keywords and bids where necessary to optimise your overall campaign performance. Optimisation is not a one-off keyword edit; it is a disciplined cycle of evidence, action and review.

KEY TAKEAWAY

The Shopper Search Query Report turns real shopper language into a practical optimisation engine: scale proven terms, discover new ones, and exclude irrelevant searches.

SECTION 4 | OPTIMISATION

7. See what your ads actually sold

How do I know whether shoppers bought the product I advertised, or something else entirely?

Standard campaign reports show clicks, impressions, and revenue, but they do not show which products customers actually purchased after clicking your ad. SKU-level reporting fills that gap with two reports.

The Purchased Product Report for Performance Campaigns covers Product Ads. It breaks the journey from advertised product to purchased product using two key fields: Same SKU and Other SKU. Same SKU means the customer bought the exact product you advertised. Other SKU means they bought a different product after clicking your ad. For example, if “Sony Wireless Headphones, Black” was advertised and the customer bought the blue version, that shows as Other SKU.

Purchased Product Reports dashboard

The Purchased Product Report for Awareness Campaigns covers Display Ads. It shows products bought after customers clicked display creatives, broken down by campaign, creative, and placement. The key field here is Is Tagged Product. This field tells you whether customers bought the products you tagged in your Display Ad, or different products entirely. If your Display Ad features a laptop, a mouse, and a keyboard, and shoppers buy the mouse, the report shows whether that mouse was one of your tagged products.

Both reports distinguish online from offline purchases. Attribution is click-based, and purchases are tracked for up to 30 days of historical data, expanding to 60 days. Run these reports weekly for active campaign monitoring and monthly for strategic insights.

KEY TAKEAWAY

SKU-level reporting shows whether shoppers bought the product you advertised or something else, with Same SKU and Other SKU for Product Ads and Is Tagged Product for Display Ads, giving you the evidence to understand true campaign impact.

SECTION 4 | OPTIMISATION

8. Turn SKU-level insights into campaign actions

How do I use SKU-level reporting to improve my campaigns?

Other SKU patterns reveal demand you did not directly advertise for. Treat each one as a signal, not a surprise.

First, expand. If certain Other SKUs show consistently high purchase volumes, create dedicated campaigns for those products. The data has already proven shoppers want them.

Second, refine. If Display Ad tagging drives few tagged-product purchases, update your creative to feature products that actually convert. Tagging should reflect what shoppers buy, not just what you want to promote.

Third, bundle. If certain SKUs are frequently co-purchased, pair them into bundle or cross-sell offers. Turn accidental cross-sell into intentional cross-sell.

Fourth, optimise placements. If certain page and inventory combinations show weak SKU attribution, your ads may be appearing where purchase intent is low. Shift budget towards placements where the report shows shoppers are buying, and away from where they are not.

  • Expand: create campaigns for Other SKUs with consistently high purchase volumes.
  • Refine: update Display Ad tagging to feature products that actually convert.
  • Bundle: pair frequently co-purchased SKUs into bundle or cross-sell offers.
  • Optimise: shift budget from placements with weak SKU attribution to those with strong attribution.
KEY TAKEAWAY

Other SKU patterns and Is Tagged Product data reveal demand you did not advertise for directly; use them to expand campaigns, refine tagging, build bundles, and shift budget towards placements that actually convert.

SECTION 5 | OPERATIONS & FOUNDATION

9. Protect the budget that keeps the strategy live

How do I prevent a wallet problem from stopping campaigns just when shoppers are ready to buy?

A campaign cannot spend from an empty wallet. Wallet exhaustion stops all advertising immediately, so operational discipline is not administrative overhead – it protects the opportunity created by your strategy. Monitor the wallet balance daily, set low-balance alerts, allocate funds to the relevant wallets, and maintain a reserve of 1–2 weeks. Plan for seasonal increases and reconcile regularly. Consider the payment method as part of the setup.

Set a trigger for when the balance falls below a threshold; a good example would be to have roughly three days of spend. Set the replenishment target to about two weeks of planned spend, and make sure that when funds are replenished you allocate these funds to the correct ads wallets.

Seasonal planning deserves its own check. Before Black Friday, calculate expected daily spend, make sure the wallet covers the full period, account for higher CPCs, and set up multiple recharge alert triggers. The goal is continuity: the shopper should not experience a missing ad because the seller’s balance was allowed to run down during the most competitive window.

The Advertising Dashboard gives you supporting operational tools: Order Logs, Change History and Notification Settings. Use them to reconcile activity, understand changes and make alerts part of the routine. The cost of maintaining an adequate balance is far less than the cost of campaign disruption.

KEY TAKEAWAY

Low-balance alerts are growth safeguards. Maintain a 1–2-week reserve, prepare for seasonal spend, and never let wallet exhaustion decide when your campaign ends.

SECTION 6 | PROOF POINTS

10. Case Studies

Can this full-funnel, evidence-led approach work for a seller like me?

The three examples below show different starting points: a luxury brand improving relevance, a small Marketplace seller scaling from zero, and a seasonal Toys Retail advertiser investing ahead of peak demand. These results reflect specific categories, budgets, and market conditions. Scaling spend aggressively without proven profitability, or concentrating investment without a clear demand window, carries real risk. Use the methods, not the multiples, as your guide.

Case Study 1: Audience Targeting | Where Relevance Meets Results

The challenge

A leading luxury dermatological brand needed to sharpen its audience strategy. The challenge was to maximise relevance and scale simultaneously, ensuring media investment delivered strong ROAS rather than trading efficiency for broad exposure.

In luxury skincare, reach alone is not a growth strategy. Over-expansion into broad audiences risks:

  • Eroding ROAS
  • Driving low-quality traffic
  • Diluting brand positioning

This required a shift from volume-based growth to precision-led scaling.

The approach

Instead of sacrificing ROAS for reach, the strategy structured scale around intent density using a three-tier audience model:

  • Tier 1 – High Intent: brand purchasers and competitor purchasers.
  • Tier 2 – Consideration: Add to Cart users.
  • Tier 3 – Scaled Reach: category product viewers.

The result

High-intent audiences delivered the highest ROAS. Add to Cart audiences were solid mid-funnel performers. Category Viewers were least efficient, but useful for awareness. The structure made the trade-off visible: the audience with the most intent was most efficient, while broader audiences served the role of expanding reach.

Why This Matters to You

Do not evaluate every audience by the same standard. If you need efficiency, prioritise high-intent segments. If you need future demand, accept that scaled-reach audiences may be less efficient while still doing valuable awareness work.

KEY TAKEAWAY

High-intent audiences (purchasers) drive the strongest returns, while broader reach audiences (viewers) should be used strategically for awareness rather than conversion. The tiered approach allows advertisers to scale without diluting efficiency.

Case Study 2: Proving the Model, Then Scaling With Confidence

The challenge

The seller started advertising from zero, then scaled investment fast once profitability was proven. The seller had no structured paid media presence at all. Visibility depended entirely on organic browse and search ranking, leaving the seller exposed to larger, better-funded competitors in a crowded category.

The approach

The seller took a test-and-learn approach: launch Sponsored Products with a small, low-risk budget, confirm it converts profitably, then scale. Once the test proved strongly profitable, the seller reinvested aggressively, increasing ad spend more than 100x over the following two quarters.

The result

Total business GMV grew steadily and consistently, up in every quarter, showing a healthy, sustainable trajectory for a small seller. At the same time, the advertising programme itself scaled dramatically: ad-attributed sales grew more than 55x, and the share of total business flowing through paid placements rose from a fraction of a percent to nearly 4%. That rising share is the leading indicator to watch: it shows the ad programme was steadily becoming a real, additive pillar of the business rather than a side experiment.

Total GMV Trajectory and Ad-Attributed Share chart
KEY TAKEAWAY

For very early-stage advertisers, the first visible wins show up in the ads funnel and channel share long before they show up as dramatic swings in total company revenue. This seller’s total business grew at a modest, healthy pace while the advertising engine underneath it scaled by orders of magnitude. For similar sellers with no ad presence today: test small, trust a strong early signal, and scale. A fast-growing advertising share of the business today is what compounds into fast-growing total revenue tomorrow.

Case Study 3: Investing Ahead of Peak Demand

The starting point

A Toys Retail advertiser operating in one of the most seasonally concentrated categories on the platform, where a small number of weeks around peak shopping periods can define the majority of annual performance.

The approach

The advertiser committed to a concentrated, aggressive spend surge heading into its peak trading quarter, funded primarily through a near 4X increase in Sponsored Display spend, to maximise visibility while shopper intent was at its highest.

The result

The surge converted into an even larger surge in total business sales: the advertiser’s overall GMV more than quadrupled in the peak quarter. Critically, advertising efficiency did not suffer at the higher spend level: it improved, because elevated shopper intent during the peak window more than absorbed the extra investment.

Before and After comparison and Display Share chart
KEY TAKEAWAY

High-intent audiences (purchasers) drive the strongest returns, while broader reach audiences (viewers) should be used strategically for awareness rather than conversion. The tiered approach allows advertisers to scale without diluting efficiency.

SECTION 7 | SELLER CHECKLIST

The seller’s advertising checklist

You now have a sequence, not just a set of tactics.

  • Build the full funnel: use awareness to create recognition, consideration formats to help shoppers evaluate, and Sponsored Product Ads to capture purchase intent.
  • Match the format to the shopper moment. Remember that the App-based model includes Product Ads and Display Ads, with Display Ads priced on CPM rather than CPC.
  • Prepare for peaks 4–6 weeks early. Consider a significant budget increase during competitive periods, fund the Ad Credits wallet, and monitor pacing on the Advertising Dashboard.
  • Run Auto and Manual targeting together: Auto for discovery and algorithm learning; Manual for proven high-performers and precision.
  • Treat Conversion Rate as a diagnosis. Review price, reviews, product-page quality, stock, delivery, brand recognition and ad-to-page match.
  • SKU-level reporting reveals what shoppers actually bought after clicking your ad, and acting on those insights lets you expand into proven demand, refine tagging, build bundles, and shift budget towards placements that convert.
  • Use the Shopper Search Query Report to scale high-performing terms, discover opportunities and add irrelevant searches to negative keywords.
  • Protect continuity with daily wallet checks, low-balance alerts, and a 1–2-week reserve. Wallet exhaustion stops all advertising immediately.
  • Use Dashboard, Sofie AI assistant and enhanced reporting to make monitoring and optimisation part of the operating rhythm.
The Practical Conclusion

Advertising is not a single bid. It is a connected system: create demand, convert intent, measure the right window, learn from shopper behaviour, and keep the engine funded. Start with the next step you can control and scale your investment in stages: start with what you can afford to test, measure honestly, and reinvest behind what works.

11. Key Terms and Definitions

Cost Per Click (CPC)
The amount you pay each time a shopper clicks your ad. Applies to Product Ads.
Cost Per Mille (CPM)
The amount you pay per one thousand impressions. Applies to Display Ads.
Click-Through Rate (CTR)
The percentage of shoppers who click your ad after seeing it.
Negative Keywords
Search terms you exclude from your campaigns so your ads do not appear for irrelevant queries.
Conversion Rate (CR)
The percentage of shoppers who purchase after clicking your ad. Most campaigns sit in a mid-single-digit band, varying by category and price point.
Return on Ad Spend (ROAS)
Revenue generated for every Rand spent on advertising. Measures how efficiently spend converts into sales.
Gross Merchandise Value (GMV)
The total value of all products sold through your store, whether or not advertising drove the sale.
Attribution
The process of crediting a purchase to a specific ad interaction. Takealot uses click-based attribution.
Shopper Search Query Report
Shows the actual search terms that triggered your Product Ads, with performance metrics for each term.
SKU (Stock Keeping Unit)
A unique identifier for each distinct product variant. The same headphones in black and blue are two SKUs.
Purchased Product Report
Breaks down which products customers actually bought after clicking your ad. Available for Performance Campaigns (Product Ads) and Awareness Campaigns (Display Ads).
Same SKU
Shows when a customer bought the exact product you advertised.
Other SKU
Shows when a customer bought a different product than the one you advertised after clicking your ad.