According to a report, it is estimated that global retail sales with exceed 7 Trillion by 2025. With the growth of e-commerce, there is a parallel growth of competition. Every day new sellers are joining the industry with the mission to be at the top list. What differentiates sellers on online marketplaces is their advertising strategies. Online Advertisement is an essential part of e-Commerce to stand apart from the competition and minor sellers.
To start with, online advertising/e-commerce advertising is advertisements through paid placements on third-party platforms to promote your products and upgrade your sales by acquiring new potential customers or retargeting the current customers. Precise targeting at every stage of the advertising funnel can work wonders for the brands/sellers.
For advertising strategies to be effective in the e-commerce industry, one needs to have a reliable understanding of the different online channels available. The brand/seller needs to have good knowledge about how an algorithm works on each channel to achieve the desired matrices.
CTR stands for Click Through Rate. It is the metric that calculates the number of clicks advertisers got on the specific advertisement per impression. CTR helps the brand know how many customers were interested in the product and clicked on it to explore more about the same.
CVR also known as Conversion Rate, signifies how many conversions happened on a particular ad. Conversions happen when a customer clicks the ads and also makes a purchase. Analyzing CVR is very important for the brand to get an accurate picture of how the particular advertisement is working.
ROAS refers to Return On Ad Spend. It is the measurement of revenue earned per rupee spent on the ad. ROAS is an indication of the effectiveness of the ad. the higher the ROAS, the better.
ACOS stands for Advertising Cost of Sale. It is the financial metric that is used to determine the cost spent on a particular ad campaign to acquire sales. The higher the ACOS, the worse the ad campaign.
Create Awareness- Advertising creates awareness among the customers about the brand which helps the brand/seller to identify its potential customers better. With efficient advertising, an online seller can reach an audience from all over the country without having to worry about geopolitical borders.
User Interaction- Advertising enhances the interaction between the brand and the customers. It helps the customers to be aware of the brand’s updates and identify which brands match their requirements the most. In return, advertising helps brands understand what strategy is working in their favor to capture more customers and which is not.
Increase Sales- If done with the utmost efficiency, advertising can do wonders for the brands/sellers. Advertising is one of the most important factors of marketing in e-commerce to increase sales.
To make the best use of advertising, brands need to have a good understanding of the marketplaces they are dealing with. They should also study their customers' behavior regularly to recognize their needs and requirements.
Not only this, but for advertising to give the best results, brands need to have their hands on the data to make informed and data-driven decisions. To ascertain which campaign or strategy is most effective on which platform and for what product/category, the seller is required to have a reliable data analytical tool.
Advertising is as baseless as no advertising without proper research about the customers and marketplaces. Without data analysis and study of the changing scenarios on regular basis, advertising will be nothing but a waste of time and money. Managing advertising campaigns on daily basis and driving data manually can be exhausting for growing brands. It can be very time-consuming and would require bandwidth.
To aid brands/sellers from the agony, Love In Store is here with the best-in-class practices to make the best use of advertising. Professionals at Love In Store have supreme knowledge of marketplaces and they stay updated with the latest practices of every e-commerce platform.
Our in-house data analytical tool ‘Crawler’, is one the best tech to help the sellers/brand retrieve the data analysis. Data analytics at Love in Store are equipped with the best knowledge and guide the brand/seller with the most efficient campaigns and strategies. We organize data in the most seller-friendly way. It is easier for the seller to analyze data and take further steps.
If you are a recognized brand or a budding seller on e-commerce facing issues with advertising or need guidance for data analysis for the best outcomes of advertisement, reach out to us @ 1800-257-7750 or email@example.com.