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[What’s the Deal with Rakuten CPA Ads?] We’ll Explain How to Manage Them for Better ROI!

Rakuten CPA Advertising is a performance-based advertising program where you are charged based on sales generated through the ads.

Unless a conversion occurs,
The fact that there are no advertising costs is a major advantage.

"I want to raise awareness of my products and store, but,
"Rakuten Ichiba ads often don't deliver a good ROAS..."

If you're struggling with this issue, I highly recommend you read this!

What is Rakuten CPA Advertising?

Rakuten CPA Advertising is, as the name suggests,
Performance-based advertising where advertising costs are incurred based on conversionsThat's it.

20% of sales generated through advertisementsWe will pay this amount to Rakuten as advertising fees.
Since this is performance-based advertising, the risk of the ROAS falling short is low, but
One characteristic of this approach is that it results in higher advertising costs.

The listings appear in various places, both on and off Rakuten Ichiba, as shown below.
An attractive advertising option for those who want to increase awareness of their products or storesThat's right.

・Rakuten Ichiba Category Pages
・Event pages such as the Shopping Marathon
・Within Rakuten Group media
・Rakuten Email Newsletter

Before You Start Running Your Campaign: The Pros and Cons of Rakuten CPA Ads
Let's make sure we understand this thoroughly.

Benefits

As long as there are no conversions, advertising costs are zero.

Rakuten CPA Ads, a performance-based advertising program, are
You won't be charged for advertising unless a conversion occurs.

Therefore, just like other ads on Rakuten, such as Rakuten Ichiba ads and RPP ads,
"We ended up using up the entire budget even though the ROAS wasn't where it should be..."That sort of thing is unlikely to happen.

Also, since it’s a performance-based model, stores that have just opened, for example,
Even for stores that have difficulty setting aside a substantial advertising budget,Can take on a challengeThis can certainly be considered a major advantage.

Posted in places where people gather

Shopping Marathons, Super Sales, and more
One of the benefits of Rakuten CPA ads is that they appear in places where people gatherIt is one of them.

Rakuten Ichiba ads displayed on the Rakuten homepage and other pages are
They are expensive, ranging from 40,000 to 1,200,000 yen per slot.

In comparison, a way to easily increase exposure is
Rakuten CPA ads seem like a great deal!

Easy to submit and set up!

Setting up Rakuten CPA ads is easy! It only takes 30 seconds.

Select the "Active" radio button under "Status," and
Just click the "Set" button
Ad delivery will begin within 24 hourswill be done.

If you want to stop receiving ads,
If you select the “Invalid” radio button and reconfigure the settings,
By design, ad delivery will stop within 24 hours.

Disadvantages

All purchases made within 720 hours of a click are eligible for advertising fees.

The Pitfalls of Rakuten CPA Advertising You Need to Know AboutThere is.
That means all purchases made within 720 hours of clicking on an ad
It is eligible for advertising expenses.

For example, if you click on the ad for Product 1,
When you purchase Item 1 (1,000 yen) and Item 2 (2,000 yen).

Advertising cost = (1,000 + 2,000) × 0.2 = 600 yen
That's how the calculation works.

Also, since there is a 720-hour (30-day) period after clicking,
If a repeat purchase is made within the specified period,
Second purchases are also eligible for advertising credits...is the result.

Set exclusions for products other than those you want to advertise, and
Let's take steps to avoid wasting money on advertising.

Product Image 1 Becomes the Creative

Rakuten CPA ads, which require no ad submission, are
The image set as Product Image 1 is the creative.will be.

To increase the CTR,
We'll need to get creative with the product images, won't we!

At a glance, the product's key selling points and
We recommend a design that clearly highlights offers such as free shipping.

Unable to set an advertising budget

Rakuten CPA ads, such as RPP ads and Coupon Advance ads, etc.
Unlike other ads on Rakuten, you cannot set a monthly budget.

The more advertising-driven revenue grows, the more
Since advertising costs will also go up,
We recommend narrowing down the products you advertise and managing your campaigns accordingly.That's it.

Tips for Efficient Operation

Focus your ad campaigns on high-margin products

Since we are required to pay 20% of our sales as advertising expenses,
Unless the product has a high profit margin, there is a risk of operating at a loss.too.

Focus your ad campaigns on high-margin products, and
Let's set exclusions for other products to hedge against risk.

Run ads during times when traffic and conversion rates are high, such as during events

To coincide with the periods when Shopping Marathons and Super Sales are held
The ability to start and stop campaigns at any time is a unique benefit of Rakuten CPA advertising.

During the event period, you can, of course, visit Rakuten Ichiba,
Conversion rates also tend to be higher.

By placing ads timed to coincide with the event,
Let's work on generating sales through advertising more efficiently.

▼For more information on Rakuten ads other than CPA ads, please read this article!

Summary

We've explained how to use Rakuten CPA ads!

Issues such as not being able to set a budget or the fact that listings aren't guaranteed, etc.
While there are many aspects of Rakuten CPA advertising that are beyond our control,
As long as you fully understand the investment and manage it while hedging your risks, you shouldn't lose money.

Hide&Seek, the author of this blog, is,
We provide management services for Amazon, Rakuten, and Yahoo! Shopping.

"I want to open a store on an e-commerce marketplace, but I don't have the resources to spare."
"We want to expand our sales channels while maintaining the competitive edge of our own online mall."
"I opened a store on an e-commerce marketplace, but I'm too busy to manage it properly, so my sales aren't going up."

If you're facing such concerns,
Please feel free to contact us using the contact form below.
Thank you for reading to the end!

Author

Hina Kato

I am part of the E-commerce Mall Consulting Division. I am in charge of managing Rakuten. I strive every day to deliver results!