Advertising on Rakuten Market is necessary to increase traffic and boost sales, but there are so many types of advertising that many people may be unsure which one to choose.
This article is aimed at the following people and explains the types of Rakuten advertising, how to choose the right one for your purpose, and the key points to achieving results.
- I want to know about the types and menu of Rakuten advertising
- I want to know about Rakuten advertising fees, charges, and costs
- I want to know how to choose Rakuten Advertising
There are two main types of Rakuten advertising: "Rakuten Market Advertising" which is posted within Rakuten Market, and "Rakuten Group Advertising" which is posted outside Rakuten Market. In this article, we will focus on "Rakuten Market Advertising".
*This article was updated in May 2023.
table of contents
- Utilizing advertising in store operations on Rakuten Ichiba
- Types of advertising on Rakuten Ichiba
- RPP advertising (search-based advertising)
- Coupon Advanced Ads (Programmatic Coupon Ads)
- Rakuten CPA Advertising (guaranteed effectiveness advertising)
- Targeted Display Advertising (TDA)
- Recommended news advertisements (store distribution)
- Recommended News Advertisement (Rakuten Distribution)
- Large event advertising
- Seasonal Ads
- News Advertisement
- How to choose the right Rakuten Ichiba advertising plan for your purpose
- Tips for maximizing your advertising results on Rakuten Ichiba
- If you are having trouble managing your Rakuten Ichiba ads, we recommend placing ads or outsourcing to an agency or management agency.
Utilizing advertising in store operations on Rakuten Ichiba
Before looking at the types of ads, let's understand the importance and role of advertising on Rakuten Market.
Store sales can be broken down into three components:
Sales = Number of visitors × Conversion rate × Average customer spending
All three elements are important, but the one that is easiest to control and most directly linked to short-term sales is "number of visitors." Advertising is the main measure to increase the number of visitors.
To achieve your sales goal, you can work out the number of visitors you need by working backwards from the sales formula.
Example: Sales target: 5 million yen/month
The conversion rate and average customer spending will be calculated based on the current store's average values.
5 million yen = Number of visitors x Conversion rate 3.0% x Average customer price 5,000 yen
Doing the math, we find that the required number of visitors is 33,334.
You can compare the required number of visitors to your current average number of visitors per month and use advertising to make up for the difference. Of course, SEO measures are also necessary to increase organic traffic from email newsletters and Rakuten Search (search), but they take time to be effective and the scope of expansion is limited. To increase sales quickly, consider using advertising at the same time.
The next thing you'll want to determine when using advertising is ROAS.
ROAS is an abbreviation for "Return On Advertising Spend" and refers to the cost-effectiveness of advertising. It is an indicator that shows the amount of sales per 1 yen of advertising expenditure, and it can be calculated using the following formula.
ROAS = Sales / Advertising Costs x 100 (%)
For example, if your advertising expenses are 100,000 yen and your sales increase by 2 million yen,
ROAS = 2 million yen ÷ 100,000 yen x 100 = 2,000%.
The higher the ROAS, the more efficient the ad is.
Setting ROAS standards in advance, such as "this is the amount of advertising budget we can spend for this amount of sales," can help you select advertisements and determine their effectiveness.
ROAS will vary depending on the profit margin of the product, the number of repeat purchases, and the situation of the store, so try setting it for your own store.
Types of advertising on Rakuten Ichiba
Rakuten Ichiba advertisements can be broadly categorized into three types: "Programmatic Advertising," "Display Advertising (Rakuten Ichiba Advertising)," and "News Advertising."
Programmatic Advertising
This is a type of advertising where advertising fees are charged based on results.
The definition of success varies depending on the ad and can include number of clicks, coupons obtained, sales amount, etc.
This is called programmatic advertising because the store can adjust some aspects of the ad, such as the products to be displayed and the bid price.
Since advertising guarantees a certain level of results, it is good at leading to purchases and actions. Some ads can be started at a low cost, so it is an easy challenge for stores with limited advertising budgets or stores that have just opened. It is also an ad that makes it easy to control the ROAS mentioned above.
Display advertising (Rakuten Ichiba advertising)
This basically refers to advertisements posted on Rakuten Market in the form of images etc.
Advertisements submitted will be posted on planning pages for major events such as the Rakuten Super Sale, seasonal feature pages such as Mother's Day, and on each genre page.
Since this is a guaranteed placement type, advertising space is purchased at a fixed price.
To use an analogy with regular advertising, it is similar to buying advertising space for a set amount of time, such as magazine advertising pages or hanging ads in trains. You choose a location where you think it will be seen by users who will buy your store's products. The cost is fixed when you buy the space, and there is no guarantee of results, so the key is to be able to identify and select a good space that will be effective.
Display ad slots are fixed, so you may not be able to buy popular slots even if you want them. There is a priority sale before general sales from the management screen, so stores that purchase a large amount of money can reserve slots first via ECC.
News Advertisement
This is a form of advertising in which email newsletters are sent to Rakuten Ichiba members as advertisements.
You cannot reach your store's email newsletter members alone. Since it can be widely distributed to Rakuten Ichiba's members, it is suitable for expanding sales in the short term. The cost is fixed and incurred for the posting period.
To give an example of general advertising, it is similar to paying a mail-order company with many customers to include a flyer with their products when they are delivered to their customers.
You can advertise to a customer list that you do not have in your own store, but depending on the product, it may not lead to sales or the ROAS may be low. However, you can also adopt a strategy of making a large sales in a short period of time, posting it in the rankings, and aiming for access from the rankings.
We will explain the details of each of Rakuten's advertising menus, which belong to the three advertising categories.
RPP Advertising (Search-linked Advertising, formerly known as Rakuten CPC Advertising)
Category: Programmatic advertising
RPP ads are ads where products are primarily displayed on the Rakuten Ichiba search results page.
It's like a listing ad on Rakuten.
It is displayed at the top of the search results screen with the word [PR], in the top 4 slots per page for PCs and in the top 6 slots for smartphones. It is also displayed on the second page of search results, so the actual number of slots is quite large.
PC
RPP ads are extremely important among programmatic ads because they can efficiently appeal to users who are searching on Rakuten Ichiba and have a high desire to purchase.
Products with higher bid prices are not simply ranked higher; rankings are also influenced by the relevance of the product's name, tagline, and product description to users' search results, as well as past purchases and search keywords that led to clicks.
Benefits of RPP advertising
- You can start with a low budget (from 5,000 yen) and set your budget flexibly.
- It is efficient because it appears at the top of search results
- Pay-per-click for no waste
- Since product information is used as advertising, there is no need to prepare images, etc.
Disadvantages of RPP advertising
- Since bids are adjusted manually, fine-tuning such as adjusting CPC for each keyword takes time.
- Bids for popular keywords are rising
RPP Advertising Costs
- Monthly budget: 5,000 yen and up
- Product CPC starts from 10 yen, keyword CPC starts from 40 yen (set at least 1 yen higher than the product setting)
*The rank-based bid optimization feature was released in January 2024. This is an optional feature that automatically optimizes the bid price when viewing a product based on the user's membership rank. This setting is optional.
Key points for operating RPP advertising
By default, all products (products that have been shipped from the RMS warehouse and are in stock) are included, but you can exclude individual products.
- Remove low-profit products
- Check ROAS by product over a certain period of time and lower your bid
- Set as many keywords as possible (prioritize best-selling products)
Coupon Advanced Ads (Programmatic Coupon Ads)
Category: Programmatic advertising
Coupon Advanced Ads are ads that attract customers and encourage purchases by issuing coupons that predict the optimal product discount amount. They are displayed in the form of coupons to users who are logged in with their Rakuten ID, and the coupon is automatically acquired when the ad is clicked. They are personalized and automatically delivered to users who are highly motivated to purchase.
Advertisements are mainly displayed on the Rakuten Ichiba homepage and search result pages.
Among the various Rakuten ads, this one is particularly strong in encouraging purchases, as it can encourage users who are likely to be interested to make a purchase by using the powerful hook of a "discount." Although it does not increase access as much as other ads, this is an ad that can be used to increase conversion rates.
Coupon Advanced Ads are pay-per-click ads in which the bid amount set by the store is charged when a coupon is obtained (i.e. when a user clicks on the coupon) ( for manual product selection: minimum 40 yen to 1,000 yen, for automatic product selection: minimum 25 yen to 1,000 yen, for keyword units: minimum 40 yen to 1,000 yen ).
In addition, the store will be responsible for the cost of the coupon discount.
Benefits of Coupon Advanced Advertising
- It is easy to ensure ROAS because of the strong purchasing incentive.
- It is efficient because it appears on the top page of users who are eager to purchase and at the top of search results.
- You can start with a low budget starting from CPC 25 yen or 40 yen (plus discount amount)
- Keyword bids may be displayed at a lower bid than the RPP
Disadvantages of Coupon Advanced Advertising
- Stores that issue a lot of coupons need to coordinate with other coupons.
- The amount that can be purchased varies depending on the user, which may seem unequal.
Coupon Advance Ad Cost
- 40 yen per click ( 25 yen for automatic product selection ) + minimum 4% discount fee
Key points for using Coupon Advance
For Coupon Advanced Ads, you can choose to decide the discount rate and products to be displayed by yourself, or leave it up to Rakuten (automatic optimization). If the products that can be discounted at your store and the discount rate are precisely determined, it is recommended to set it to manual, and if you have a large number of products and the discount rate is flexible, it is recommended to set it to automatic.
Also, since keyword bids can sometimes be displayed at a lower bid price than the RPP, we recommend offering coupon advances for keywords that are rising in price at RPP.
If you would like to know more about the key points and precautions for running Coupon Advanced Ads, please check out the article below.
Rakuten CPA Advertising (guaranteed effectiveness advertising)
Category: Programmatic advertising
CPA advertising is a pay-per-performance type of advertising where the advertising fee is 20% of the sales made through the ad.
By simply enabling the setting, products will be automatically selected from those registered with RMS and will be posted both inside and outside of Rakuten Ichiba, such as in the "Featured Items" at the top of the genre list, on Rakuten Ichiba's special feature and event pages, and in Rakuten Group services and email newsletters.
Since it is a performance-based compensation system where the rate is fixed at 20% of sales, the ROAS is fixed at 500%.
If a 500% ROAS is within the acceptable range and there is no limit to advertising costs as sales increase, then this is definitely the way to go.
Benefits of CPA Advertising
- Reliable payment based on sales
- Easy to set up
- Just activate it in the admin panel and it will be delivered within 24 hours.
Disadvantages of CPA advertising
- Advertising costs are higher because results are fixed
- Unable to set advertising budget
- The billing period after an ad click is long (720 hours = 30 days)
CPA Advertising Cost
- Sales from advertising x 20%
Key points for operating CPA ads
CPA advertising is attractive because it is a performance-based pay-per-click advertising with a fixed ROAS, but if you target all products, the advertising costs will be high. Also, for products with low profit margins, 20% advertising costs may be difficult. Focus on products with high profit margins and products for which you want to advertise.
Targeted Display Advertising (TDA)
Category: Programmatic advertising
TDA ads allow you to deliver banners based on your desired segment conditions. By setting the segment, delivery period, and budget, the banner will be delivered to users who fit the segment.
This is a pay-per-impression ad where you are charged for each impression.
The locations are updated regularly.
Since you can appeal to your desired target audience with the message you want to convey using your store's original banners, it can be used at every stage of the purchasing funnel, from awareness to purchase to continued purchase.
ROAS will vary depending on the segment you set, but because it is charged by impression, it is generally suitable for stores that want to increase awareness rather than promote purchases. We recommend using TDA ads when you have a budget to spend after allocating budgets to RPP ads, coupon advanced ads, and CPA ads that are likely to lead to purchases.
In addition, since it is possible to segment users based on purchase history, it can also be used for retargeting advertising.
Benefits of TDA Advertising
- You can deliver targeted ads to your desired segments.
- It can increase awareness
- Visual appeal
- Retargeting possible
Disadvantages of TDA advertising
- ROAS tends to be low depending on the segment
- Since you are charged only for displaying the information, it can be inefficient.
- ROAS also includes view-through conversions (those who see your ad but don't click on it later).
- As the number of stores advertising is increasing, there may be cases where the display is low and the budget is not used up.
TDA Advertising Costs
- Choose from bids between 0.75 yen and 10.00 yen/Vimp.
*Vimp stands for "viewable impression" and is the number of times an ad is displayed and 50% or more of the banner ad is displayed to the user for at least 1 second. TDA is charged based on the number of impressions.
Key points for TDA advertising operations
For new stores or those with limited advertising budgets, TDA ads are a low priority among programmatic ads. If you have a budget to spend after allocating it to RPP ads, coupon advanced ads, and CPA ads that are more likely to lead to purchases, we recommend using TDA ads as the next step.
If you prioritize efficiency, start by retargeting users who have visited your store.
The effectiveness can be maximized by delivering the ad in conjunction with events such as the Rakuten Super Sale or Shopping Marathon.
- Ad review is strict, so submit early.
Email newsletter distribution (automatic)
*This is a feature that will be integrated into the email newsletter distribution function after the "Recommended News Ads (Store Distribution)" feature ends on September 30, 2022.
Category: Programmatic advertising
"Email newsletter distribution (automatic)" is a distribution method in which distribution conditions are set for your store's email newsletter subscription list and email content created in advance by your store is automatically sent.
This is the Rakuten version of step emails and scenario emails.
Advertising fees are based on a performance-based system of 50 yen per click.
For store distribution, you can set up four types of campaigns of your choice, and emails created for each campaign will be automatically distributed.
You can encourage repeat business by sending emails tailored to users' circumstances, such as introducing recommended products to email newsletter users who have purchased a specific product.
Benefits of automatic email newsletter delivery
- Repeat customers can be cultivated
- Once you set the manuscript, it will be automatically distributed at the appropriate time.
- Email delivery is possible according to the scenario
Disadvantages of automatic email newsletter delivery
- The number of emails sent is limited because it is only targeted to your store's email newsletter subscription list.
- If products are frequently replaced, regular maintenance of the manuscript is required.
Email newsletter delivery (automatic) costs
- 50 yen per click
- Store distribution budget: 30,000 yen and up
Key points for automatic email newsletter distribution
Among the Rakuten Ichiba advertisements, the "Email newsletter delivery (automatic)" is ideal for cultivating repeat customers, and since it targets your store's email newsletter subscribers, it is an efficient advertisement that is likely to produce a high ROAS.
On the other hand, if there are few email newsletter subscribers, the number of recipients will be small, and the impact of the ad will be small. We recommend combining it with other ads.
If you would like to know more about the key points and precautions for operating "Automatic Email Newsletter Distribution", please check out the article below.
Large event advertising
Category: Display advertising (Rakuten Ichiba advertising)
Large-scale event advertisements are advertisements that are posted on the planning pages of large events such as the Rakuten Super Sale and Shopping Marathon.
Advertising costs start from 50,000 yen but vary depending on the slot, with more popular slots with more exposure having higher advertising fees.
During events on Rakuten Ichiba, the point redemption rate increases, attracting more users with a stronger desire to purchase than usual, making this an ideal ad to maximize sales in line with the excitement of the event.
This type of ad attracts users who are looking for a good deal rather than those looking for a specific product, so it is suitable for products that are widely targeted and are likely to be purchased on impulse. This type of ad is recommended for stores that sell products with low unit prices and high purchase frequency, such as food and apparel stores.
To post an advertisement, you will need to submit an image and a catchy copy that fits the frame.
Benefits of large-scale event advertising
- You can reach out to users with high purchasing intent during events.
- Recognized by many users
Disadvantages of large event advertising
- Because the target is broad, ROAS tends to be low
- High-priced items and niche products are less effective.
- Unable to purchase from promotion menu
Large event advertising costs
Depends on the frame.
50,000 yen and up
Key points for advertising at large events
While large-scale event ads can be recognized by many users, they also attract access from users with low accuracy, which tends to result in low ROAS.
That's why it's important to choose the right frame for your product.
In addition, to encourage users who access your ad to make a purchase, you should also implement measures to increase conversion rates, such as distributing coupons and increasing point multipliers, during the ad posting period.
It cannot be purchased from the promotional menu, so if you would like to include it, you will need to consult with ECC.
Seasonal Ads
Category: Display advertising (Rakuten Ichiba advertising)
Rakuten Market's seasonal ads are ads that can be placed on special pages that coincide with seasonal events and sales seasons, such as Mother's Day and year-end gift-giving.
Pages are available for different prices, free shipping, double points, etc., making it possible to appeal to users based on their needs.
This is recommended for stores that sell seasonal or gift items, and is an important form of advertising to maximize sales during seasonal events.
To post an advertisement, you will need to submit an image and a catchy copy that fits the frame.
The benefits of seasonal advertising
- You can reach out to users who are highly motivated to purchase during seasonal events.
- Special feature pages for each product category can appeal to users who want the product in question.
Disadvantages of seasonal advertising
- Popular slots have high posting fees
- Scheduling is difficult
Seasonal advertising costs
Depends on the frame.
Key points for running seasonal ads
The key to seasonal advertising is schedule management and advance preparation.
- Selection of slots/application: Approximately 3 months before the event date (period)
- Submission: Approximately 2 months before the event date (period)
- Posting: Approximately 1 to 1.5 months before the event date (period)
As mentioned above, you need to select the slots about three months before the event, so you need to decide the products and gift specifications to be sold at the seasonal event well in advance. Understand the sales season of your store and make a schedule in advance.
Since seasonal advertising feature pages display products in the same genre as your store or similar products, it is important to use images and catchy slogans that make your store look more attractive than other stores.
Also, the effectiveness will vary depending on how competing stores reserve their spots, so if there is a store to benchmark, check their advertising methods, the appealing content, and conditions such as early bird discounts, coupons, and point increases, and use them for your own store.
You may not be able to purchase popular slots even if you want to, so if you are considering posting, be sure to consult with ECC.
Standard display frame
Category: Display advertising (Rakuten Ichiba advertising)
This is a general display ad that can be placed on Rakuten Ichiba's genre pages and time sale slots. Since it is sold monthly, you can see the details of the slot from the promotion menu. (Some slots can only be purchased through ECC's guidance.)
The purpose and effect vary depending on the slot, but they can be used when you want to increase awareness through continuous visits or when you want to encourage purchases by using time sales or points as a hook.
Seasonal advertising costs
Depends on the frame.
News Advertisement
Category: News Advertisement
News advertising is a form of advertising delivered via email newsletter to Rakuten Ichiba members.
By concentrating access to specific products, it maximizes short-term sales and is a type of advertising that works well with ranking strategies.
*Ranking strategy: Being ranked highly on Rakuten Ichiba leads to increased traffic and sales, so the aim is to generate sales in a short period of time and aim to be ranked.
Unlike the "Recommended News Ads" introduced in this article as programmatic advertising, you can choose the emails in which your ad will be published, and the billing method is fixed and varies depending on the email you choose.
Benefits of News Advertising
- You can appeal to users who want the product category but cannot be reached through your store's email newsletter.
- If your product is a hit, you may be able to maximize your sales in a short period of time and be featured in the rankings.
Disadvantages of News Advertising
- Because there are many recipients, even if you gain access, you may not make any sales, resulting in a low ROAS.
News advertising costs
Depends on the frame.
Key points for running news ads
You can attract a lot of traffic to a specific product, but if the product or service is not attractive, it will not lead to sales. Use it when you want to attract traffic to a product that already has a high conversion rate and has a well-developed product page. At the same time, you also need to prepare to increase the conversion rate and average customer spending by using coupons and increasing points.
How to choose the right Rakuten Ichiba advertising plan for your purpose
We have introduced a wide variety of Rakuten Ichiba advertising types, but many people may be having trouble choosing.
Here we will introduce how to choose based on the situation of your store and the products you offer.
Choose according to the store situation
When opening a new store or when you have a small budget Purchase funnel: Purchase
If you are a new store or have a limited budget, we recommend that you focus on increasing sales within your limited budget and start with "programmatic advertising."
With performance-based advertising, charges are based on performance, which reduces the risk of incurring high advertising costs but not increasing sales.
Among them, let's start with "RPP Ads" and "Coupon Advanced Ads," which are effective at appealing to users who are considering making a purchase.
Sales expansion period Purchase funnel: purchase, interest
During periods of sales growth, when the number of customers and repeat customers is increasing and sales are on the rise, try display advertising (Rakuten Marketplace advertising) and news advertising in addition to programmatic advertising.
By approaching the "interest" purchasing funnel layer that has not been reached before, we aim to increase sales, rank higher, and expand market share. It is also important to secure an advertising budget to maximize sales.
Mature Buying Funnel: Purchase, Interest, Awareness
In the mature stage, when sales have stabilized and the proportion of repeat customers has increased, advertising is used to maintain market share and further expand sales.
As with the sales expansion period, you will use programmatic advertising, display advertising, etc., but you will also need to try out new ad slots and new advertising that you have not used before, and be prepared to increase "awareness" even if it means lowering ROAS slightly.
Choose according to the product
Model number products (JAN codes are assigned)
Products with model numbers, such as home appliances and brand-name goods, tend to be purchased with a specific purpose in mind, such as searching for a specific product, making them suitable for programmatic advertising.
As an exception, products with low unit prices or that are purchased frequently are often impulse purchases, for which display ads are also appropriate.
Non-model number products (JAN codes not assigned)
Display advertising is suitable for items such as fresh foods like meat and original apparel products that are not barcoded, as these items tend to be impulse purchases.
As an exception, niche products, high-priced items, and items that are purchased infrequently are not purchased on impulse but tend to be purchased with a specific purpose through search, so programmatic advertising is suitable for them.
Tips for maximizing your advertising results on Rakuten Ichiba
Verification of effectiveness
To maximize the results of Rakuten Ichiba advertising, it is important to always verify its effectiveness.
The effectiveness of your ad will vary greatly depending on the frame you choose, the products you advertise, the images and catchphrases you use, and the measures you take at the same time. After you advertise, look back on what went well and what didn't, and use that knowledge to advertise your next time.
Competitor's Watch
Unlike a company's own e-commerce site, which can be accessed by a variety of users through a variety of entrances, at Rakuten Ichiba, stores compete with rival stores for the limited number of users available on Rakuten Ichiba, so the actions of competitors have a major impact on sales.
Methods that have worked well up until now may no longer be effective, or sales may decline. Check the advertising status and measures of stores in the same genre that are selling as well as you, stores that have risen to the top of the rankings, etc., and use this information to review your own store.
If you are having trouble managing your Rakuten Ichiba ads, we recommend placing ads or outsourcing to an agency or management agency.
Because there are many types of Rakuten advertisements and the content is constantly being updated, it has become extremely difficult to operate them in parallel with regular store operations.
There may be some people who don't have the time to manage their ads, or who have only placed ads without being able to verify their effectiveness.
As sales grow and advertising budgets increase, and you start investing aggressively in display advertising (Rakuten Ichiba advertising), even choosing a slot can be a struggle. It may be time to consider outsourcing to an agency or management agency that is familiar with Rakuten Ichiba advertising operations.
Also, the ads introduced in this article are only those that are publicly available. There are other ads that can be displayed through internal adjustments, so if you are interested, please contact Commerce Media.
If you would like to know more about Rakuten Ichiba's consulting and management services, including advertising management, please check out the article below.