Why isn't your cross-channel marketing driving GMV? Mercari's KGI-aligned approach reveals the key
The digital marketplace is evolving at an unprecedented pace, and companies like Mercari—Japan’s leading flea market app—are at the forefront of this transformation. Over the past decade, Mercari has witnessed a dramatic shift in its user demographics. In 2013, nearly half of its users were in their 30s, but by 2022, 23% of its audience was over 50. This change underscores the need for diversified growth strategies that go beyond traditional app-centric approaches.
Adding to this complexity, Google’s recent advancements in AI-powered creative tools—such as generative imagery for ads—highlight the growing importance of cross-channel marketing. Mercari’s challenge was clear: how to attract new users while re-engaging dormant ones. The solution? A strategic pivot toward strengthening web user experience (UX) and integrating cross-channel marketing efforts with Google Ads. By aligning key performance indicators (KPIs) with its key goal indicator (KGI)—Gross Merchandise Value (GMV)—Mercari not only optimized its ad spend but also created a seamless journey for users across web and app platforms. This article explores Mercari’s innovative approach, offering valuable insights for marketers navigating today’s privacy-first, multi-channel landscape.
I. Strategic Realignment: Elevating Web UX to Complement App Performance
Mercari’s initial success was built on its mobile app, but internal data revealed a critical gap: web users had different behaviors and needs. Many dormant users—those who installed the app but never made a purchase—were more likely to engage via search engines. However, the web experience had not been optimized to drive conversions. The registration process was cumbersome, requiring users to sign up before purchasing, which led to high drop-off rates.
To address this, Mercari redesigned its web UI/UX, enabling users to register during checkout rather than upfront. This minor yet significant adjustment minimized friction and enhanced conversion rates. Additionally, Mercari leveraged Google Search and Shopping Ads to target users who discovered the platform through organic search. By linking search data with product listings, Mercari ensured ads highlighted relevant items, increasing awareness and driving purchases. The web became a vital channel for attracting new users, particularly those hesitant to download the app.
II. Aligning KPIs with KGI: A Holistic Framework for GMV Growth
Historically, Mercari’s marketing teams operated in silos, with separate KPIs for web and app performance. The web team focused on metrics like website visits and registrations, while the app team tracked installations and session duration. This fragmented approach made it difficult to measure the true impact of cross-channel campaigns. For example, a user might click a web ad but later convert via the app, creating attribution gaps.
Mercari revamped its KPI framework with a focus on prioritizing GMV growth. Instead of optimizing for channel-specific metrics, teams now focused on contributions to short-term and long-term GMV. This shift fostered collaboration and encouraged experimentation. For instance, reactivating dormant users—once a low-priority KPI—became a strategic initiative, as these users contributed to sustained GMV growth. By aligning KPIs with KGI, Mercari ensured every marketing dollar including those allocated to Google Ads campaigns was tied to business outcomes.
III. Cross-Channel Integration: Technology and Measurement Innovations
To bridge the gap between web and app, Mercari implemented deep linking and Web-to-App Connect. These technologies allowed users who clicked web ads to be directed seamlessly to the corresponding app page if installed. This not only improved user experience but also enabled unified tracking of cross-channel journeys.
With better data, Mercari could reallocate Google Ads budgets more effectively. For example, campaigns targeting high-intent search queries were prioritized, while retargeting efforts focused on users who abandoned carts on the web. The integration also revealed surprising insights, such as the higher lifetime value of users who started on the web but converted in the app. These findings informed budget decisions, maximizing ROI across channels.
IV. Long-Term Investment Philosophy: Balancing Acquisition and Retention
Many advertisers chase short-term wins, such as one-time purchasers. Mercari took a different approach, investing in medium- and long-term GMV drivers. For example, reactivating dormant users might not yield immediate returns but builds a loyal customer base over time. The company also avoided "easy peel" ads—those designed for quick conversions but lacking retention value.
Continuous hypothesis testing was key. Mercari used A/B testing to evaluate initiatives like personalized recommendations for returning users. Data revealed that tailored Google Advertising increased repeat purchases by 30%, validating the long-term investment strategy. Through the balance of customer acquisition and retention, Mercari secured sustainable growth.
Similarly, tools like Topkee’s TTO attribution platform can help businesses analyze user behavior and segment audiences for tailored remarketing, enhancing retention strategies. For example, Topkee’s dynamic creative optimization leverages AI to generate contextually relevant ad variants, ensuring messaging aligns with user intent across the lifecycle.
V. Privacy-Centric Measurement and Industry Parallels
Facing stricter data privacy regulations, Mercari implemented solutions such as Google Consent Mode and Enhanced Conversions to uphold measurement accuracy while honoring user privacy. These solutions hash first-party data, allowing conversion tracking without compromising compliance. Similar strategies proved successful for brands like Decathlon, which saw a 42% increase in Google Ads budget efficiency after implementing Enhanced Conversions.
Mercari’s approach mirrors industry leaders who prioritize privacy-compliant tracking. For instance, Blackroll improved session tracking by 41% using Consent Mode, while Redcare Pharmacy reduced customer acquisition costs by 11% with server-side tagging. These cases demonstrate that privacy and performance are not mutually exclusive.
VI.Future-Proofing with AI and Integrated Measurement
Moving forward, Mercari is utilizing AI-driven tools such as Performance Max and AI Max for Search to optimize its Google Advertising campaigns. These technologies analyze user intent across channels, automatically adjusting bids and creatives for maximum impact. Additionally, Mercari combines marketing mix models (MMMs), incrementality testing, and attribution for a holistic view of performance.
Central to this approach is first-party data unification. By integrating CRM and CDP systems, Mercari creates predictive models to project customer lifetime value (LTV).This aligns with BCG research showing AI-driven measurement increases marketing ROI by 30% when paired with clean data.
Similarly, Topkee’s TTO attribution tool exemplifies how advanced measurement works: it segments users by behavior (e.g., cart abandoners vs. first-time visitors) and tracks cross-channel journeys via TMID-powered URLs, enabling granular ROI analysis. Topkee’s automated conversion tracking mirrors this principle—syncing offline/online events with ad platforms to refine audience targeting.
Conclusion
Mercari’s journey from KPIs to KGI offers a blueprint for cross-channel GMV growth. Key takeaways include the importance of seamless web/app integration, aligning metrics with business goals, and adopting privacy-compliant measurement. Agility, data-driven decision-making, and user-centric design are critical success factors.
For marketers navigating similar challenges, Mercari’s strategy highlights the power of unified measurement and long-term investment. If you’re looking to optimize your Google Ads performance, consider consulting with experts to tailor these insights to your business.
