Magalu’s New Growth Engine • Demand Gen + Shopping and Creativity at Scale
As a leading Brazilian multi-brand retailer, Magalu hit a performance ceiling by over-relying on lower-funnel campaigns, which inflated CPCs and saturated auctions. To scale, we pivoted the strategy to engage customers earlier in their journey, using AI to turn visual discovery into impulse purchases.
By focusing only on declared intent, Magalu’s strategy overlooked the 75% of consumers who make impulse purchases. Our plan was to unlock growth by proving that top-of-funnel discovery drives final conversions.
Building a full-funnel intelligence engine.
We transformed Magalu’s siloed approach into a full-funnel engine, merging first-party data with Google’s AI powered audience modeling and automated bidding. Integrating Demand Gen with real-time Shopping feeds enabled us to deliver personalized offers through high-impact visuals on YouTube and Discover, turning “scrolling moments” into a seamless path to checkout.
We built high-intent segments based on real customer data, then scaled asset production with Monks.Flow, our AI ecosystem for marketing orchestration. This creative engine transformed performance data into thousands of optimized assets, matching specific audiences with hyper-relevant visuals. Fresh, personalized Demand Gen formats triggered impulse actions from the first touchpoint to the final sale.
In partnership with
- Magazine Luiza
(..) Our bet on diversifying creatives and scaling production with Monks.Flow was specifically designed to engage users during these moments of visual discovery. Demand Gen acted as that bridge, allowing us to reach new audiences with the right message, qualifying them, and increasing sales results.
Felipe Cavalheiro
Sr. Growth Marketing Manager
Strategic discovery drove massive impact.
Demand Gen results validated that discovery drives efficiency. The strategy delivered 74% incremental reach, a 37% increase in GMV, and a 2.85x conversion rate lift—proving that early-funnel engagement significantly accelerates the path to purchase.
Despite increased top-of-funnel spend, ROAS grew by 25%. This fusion of data and tech won the Media & Personalization category at Google’s inaugural Next Generation Partner Awards for AI innovation. Magalu’s success now serves as a benchmark for using AI and full-funnel strategies to scale creativity and drive sustainable growth in a competitive market.
