Media > Insights & Media Strategy

INFLATION-TARGETING

MEDIAPLUS GERMANY, Munich / MOTATOS / 2024

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Overview

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Overview

Why is this work relevant for Media?

Food waste has several ecological consequences. Due to inflation, awareness of sustainability is declining in daily shopping habits, and everyone is becoming bargain hunters.

The digital online supermarket Motatos has successfully addressed exactly those potential digital bargain hunters with its smart data-driven approach: Inflation Targeting.

Price-efficient, without scattering losses, and above all, addressing the zeitgeist of the target group. Motatos smartly linked different data sets such as real-time inflation trends and combined them with humorous messages to catch the user’s attention. Low prices for the inflation-plagued shoppers and new customers for the company – a true win/win strategy.

Please provide any cultural context that would help the Jury understand any cultural, national or regional nuances applicable to this work.

The disposable income of our young and digital target group has been eaten up more and more by constant inflation. 70% of all shoppers are turning even more to reduced offers and 49% are paying less attention to sustainable food than before. As a result, sustainability awareness in daily shopping is suffering. Everyone is becoming more and more of a bargain hunter.

And yet sustainable food consumption is more important than ever before: Food waste has serious ecological consequences. In Germany alone, 12 million tons of food are thrown away every year. That's a truckload of food every minute. 10% of global emissions come from food waste. Annually, 17% of all purchased food, totaling 931 million tons, is wasted.

The food production system must change sustainably. The online provider Motatos is campaigning for a world without food waste. From incorrect packaging to just before the best-before date, everything is included in the Motatos range. And up to 80% cheaper than the competition.

Background

In times of crisis and inflation, everyone becomes a bargain hunter, often at the expense of sustainability. The most sustainable foods are those not wasted.

Motatos is committed to a world free from food waste, calling for a sustainable transformation in food production. Their philosophy: 'Save CO2', 'Save Food', 'Save Money'.

Online markets like REWE are their main competitors. Motatos's edge? Motatos offers brand products up to 80% cheaper by rescuing items destined for the trash, including mislabeled packaging or near-expiry items.

To achieve our campaign goal of closing the gap between consumer behavior, environmental concerns, and bargain hunting, we need to target the right consumers at their point of purchase with the right offer.

When buying groceries online, shoppers often create shopping lists or fill their shopping baskets without buying them directly. And this is exactly the moment where we come in.

Describe the creative idea/insights

What can we do to convince bargain hunters to become Motatos customers?

With the Motatos Inflation Targeting! How did it work?

We read the competitor’s shopping cart data of our target groups and linked them to the current daily food inflation trend.

Every 1-2 weeks, we evaluates the price fluctuations and if inflation rates exceed a threshold value of 3 %, the campaign is played out addressing different product categories like “dairy products” or “softdrinks”.

Whenever the price of a certain product group rises due to inflation, we show EXACTLY THOSE people who want to buy these products from the competition the irresistible offer to buy them cheaper from us. With dynamic, daily updated prices and entertaining ads. Fully automated, of course.

True to the motto: Good for your wallet and good for the planet!

Describe the strategy

A 10% increase: something that unfortunately doesn't usually appear on a paycheck was a sad reality when it came to food prices. Inflation is higher than in decades.

Our strategy focuses on price-conscious consumers who are under inflationary pressure. By using behavioral data, the focus is on people who tend to discounts.

To reach as many new buyers as possible, we developed an innovative inflation targeting. By smartly linking different data sets and humorously addressing the target group without scattering losses. We screened consumers’ online shopping cards and combined them with real-time inflation data to highlight Motatos' low-cost offers. The strategic placement of dynamic ads at various online touchpoints ensured precise targeting and maximum reach.

We were able to turn bargain hunters into advocates of sustainable shopping behavior. Oh, and by the way – selling products with an expiring best-before date also reduces food waste and thus protects the environment.

Describe the execution

Our first step was to gather and analyze data from the shopping carts of supermarket chains and online customers. This provided us with the perfect foundation to identify the target group.

Then, we fully automated the monitoring of inflation rates and associated price increases. Our focus was on various product categories.

We combined these two data sets to create the first 'Data Discount Booklet' based on inflation data. For our fully automated ads, we linked the corresponding current offers from the Motatos online shop.

Our monitored ads were only displayed when the inflation rate went over 3%. We addressed potential new customers who were about to buy from the competition with fully automated, humorous ads like "Inflation can suck dip”.

The ads appeared in online mailboxes or various websites, which are part of a specially curated Private Marketplace setup. Through programmatic control of various formats, targeting precision increased exponentially.

List the results

Motatos innovative “Inflation-Targeting” expanded our regular customer base and transformed bargain hunters into climate heroes by hitting the relevant audience at the right time with the perfect message.

Data usage par excellence.

A sweet success over competitors.

Our Click-Through rate doubled compared to the baseline.

The clever data linking predominantly reached new users, recording a 170% increase.

The hyper-relevant messaging met users' expectations, with a 9% decrease in bounce rate and a 220% increase in website dwell time over the baseline.

Good for the wallet and good for the planet.

Motatos – Where change happens – When change happens.

Describe the use of data, or how the data enhanced the work

Data played a crucial role in improving the effectiveness of this campaign. First, extensive data collection from shopping carts and real-time inflation rates provided the basis for actionable insights. These insights enabled precise targeting and ensured that dynamic ads reached consumers at the right moment.

In addition, data integration facilitated the seamless adaptation of Motatos' offers to consumer needs. By dynamically linking shopping data to inflation rates, Motatos was able to show relevant, cost-effective alternatives that met consumers' desire to save money, in addition to reducing food waste. This personalized approach significantly increased the impact of the campaign and ultimately a shift in consumer shopping habits towards sustainability.

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