Rakuten's Programmatic Loyalty: A New Era for Retail Marketing with AI-Driven Ad Solutions

Rakuten Introduces Programmatic Loyalty



Rakuten, a frontrunner in the cash-back shopping industry, recently unveiled its innovative advertising solution, Programmatic Loyalty. This groundbreaking initiative leverages artificial intelligence (AI) and Rakuten's extensive first-party data to dramatically enhance advertising performance while assuring a guaranteed return on ad spend (ROAS) for participating retailers. Released on February 5, 2025, this industry-first solution is aimed at optimizing marketing budgets for retailers, mitigating financial risks, and delivering quantifiable results.

Transformative Effects on Retail Marketing



Retail marketers have begun to adopt the Programmatic Loyalty system with remarkable success. One notable case involves a prominent home and garden brand that reported a staggering 107% increase in shopper numbers during the latter half of 2024 as part of its ongoing marketing campaign. The solution facilitates a structured three-step process for brands and retailers, designed for efficiency and effectiveness through automation, data utilization, and personalized strategies.

1. Performance Alignment: Retailers set their campaign's gross merchandising value (GMV) according to their budget while ensuring guaranteed ROAS.
2. Consistent Commission Rates: Throughout each month-long ad campaign, fixed commission rates can be maintained for simplicity and reliability.
3. Dynamic Adjustments: By harnessing AI and data analytics, the program allows for real-time modifications of personalized incentives and placements. This includes adjusting cash-back rates, targeting specific audience segments, and managing media inventory to maximize overall GMV.

In tandem with boosting shopper engagement, the participating home and garden brand also recorded an 81% increase in customer visits and a 5% rise in average order value (AOV) during the same timeframe—all while consistently achieving its monthly ROAS goals.

A Game-Changer for Retail Investments



Julie Van Ullen, the Chief Revenue Officer at Rakuten Rewards, remarked on the significance of this new solution: “Programmatic Loyalty is revolutionizing the way in which retailers approach their affiliate investments. We have the confidence in our technology, data, and internal expertise to introduce a goal-oriented solution tailored for retailers—something that no other rewards platform provides.”

Rakuten's Mission and Impact



Founded in 1999, Rakuten is recognized as a leading shopping platform that offers cash back on purchases from various brands across diverse categories including apparel, beauty, dining, groceries, travel, and more. With its considerable network of brand partnerships, Rakuten enhances the shopping experience by allowing members to save on their everyday purchases. To date, Rakuten has distributed an impressive $4.6 billion in cash back to its users, reflecting an ongoing commitment to delivering value to its customers.

In an age where data-driven strategies are paramount, Rakuten's Programmatic Loyalty signifies a major leap forward in retail marketing. Not only does it record impressive performance metrics for marketers, but it also emphasizes Rakuten’s dedication to blending technology with consumer engagement, making it a formidable competitor in the evolving e-commerce landscape.

For further details and to explore the offerings of the Programmatic Loyalty platform, check out Rakuten's official website.

Topics Consumer Products & Retail)

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