In a world of ever-increasing digital advertising costs and intensified competition for online visibility, global consumer group THG has proven that smart partnerships can drive real commercial results.
The Manchester-headquartered business, which operates the leading e-commerce arms THG Beauty and THG Nutrition, has reported a 10% increase in incremental revenue for its beauty division, following a strategic alliance with tech platform adMarketplace.
The partnership, first launched in late 2022, set out to shift the group’s search advertising beyond the confines of traditional engines like Google and Bing.
Instead, THG turned to adMarketplace’s expansive reach across browsers and Buy Now, Pay Later (BNPL) applications to access high-intent users across the open web. The result? Cost efficiencies, smarter targeting, and more effective acquisition of new customers.
Challenging the Status Quo of Digital Advertising
As e-commerce firms face rising costs on legacy search platforms, THG recognised the need for innovation to stay ahead of the curve. By integrating with adMarketplace’s native search ad placements, the brand was able to tap into premium, exclusive inventory often overlooked by traditional advertisers.
This new approach allowed THG to reach shoppers at key decision-making moments – outside of the saturated environment of search engine results pages.
What’s more, the results spoke for themselves: alongside the 10% lift in incremental revenue, the brand also reduced its cost-of-sale (COS) by 0.3%, all while scaling up its customer acquisition efforts.
According to a statement from the firm, this move improved marketing efficiency and drove measurable savings across the board. For a global brand like THG, even fractional reductions in COS can represent significant bottom-line gains.
Data-Led Strategy and Premium Placements
The Global Head of Paid Media at THG credited the success of the partnership to adMarketplace’s unique offering. The platform’s access to premium BNPL inventory and advanced targeting options provided THG with an edge, allowing them to capture audiences that would otherwise be out of reach.
They commented that adMarketplace differentiated itself from other competitors due to the premium targeting and exclusive placements of BNPLs. Their robust reporting and insights set the way for THG to drive marketing diversification.
This blend of exclusivity and data was instrumental in helping THG pivot from the limitations of standard search engines, broadening the brand’s digital footprint and boosting customer engagement.
A Partnership Set to Scale
The success so far is just the beginning. Both companies have announced plans to build on the momentum and expand their partnership in 2025 and beyond.
The goal is to further increase efficiency and deepen the impact of non-brand search advertising on THG’s operations across international markets.
The European Managing Director at adMarketplace reflected on the joint achievement, noting that their advertiser success team has worked diligently to deliver performance and efficiency at scale.
What’s more, they have moved the needle on the two KPIs that matter most to THG: COS and new customer acquisition. Their managed service, built on industry-leading measurement and insights, has laid the foundation for long-term success.
Conclusion: A New Blueprint for E-Commerce Growth
THG’s partnership with adMarketplace is a clear signal of how e-commerce giants can break through digital noise with targeted innovation.
In leveraging non-traditional channels and prioritising efficiency over sheer reach, the collaboration has not only strengthened THG’s performance in the beauty sector but also set the stage for wider marketing transformation.
As both firms look ahead to deeper global integration, their results offer a timely reminder to the wider industry: that in the evolving world of online retail, it’s those willing to challenge the norm who are best placed to lead it.
