We saw ecommerce really boom in 2020 and it looks like that trend is likely to continue throughout 2021. Whether you are selling on multiple marketplaces or just one, chances are you are noticing increasing competition. Accelerated by the ongoing pandemic, the competition is causing sellers to rethink their advertising efforts.
Read on to learn how Newegg Advertising is helping sellers get the leg up against the competition.
Pay to Play is On the Up and Up
According to eMarketer’s latest forecast, they project an ad spend surge in the US to top $70.85 billion dollars in 2021. And topping $99.22 billion in 2024. It’s a clear indicator where the market is heading as competition heats up. With that said, sellers are also paying to play because they’re seeing the returns on visibility and sales.
Just this last year, Newegg launched its Sponsored Product advertising solution that generated more than $3.4 million in sales in just 5 months! We expect to follow the up and to the right trajectory as well.
If you’re selling on Newegg and want to connect your products to the right customers take advantage of our solutions. Learn more about Sponsored Product and Headline Ads.
Implement These Newegg Advertising Trends
Trend #1: More sellers will utilize both manual and automatic targeting options
In the beginning sellers new to Sponsored Product Ads leveraged our automatic targeting. Sellers were able to set a budget, put together an ad group, and select the match types. At that point our system takes those inputs and gets to work matching their products to customers searching for those products. Sellers can download a report that details what terms customers were searching for and how those terms led to conversions. This same report was used by sellers as blue print for their manual campaigns.
Sellers maximized their exposure by creating manual targeting campaigns mirroring their automatic targeting ones, but made more aggressive bids on certain terms based on search terms report. Selective targeting allowed them to effectively present their products to the right customers while minimizing competition through their bids.
More sellers caught on during the holidays and we think this trend will continue as long as their return on advertising spend (ROAS) increases.
Trend #2: Newegg Ads will get more expensive
As more sellers integrate these tools and tactics into their marketing strategy, overall cost-per-clicks (CPC’s) will increase over time, some categories faster than others. There are a couple of ways you can navigate around this.
Again, knowledge is power. If you weren’t convinced about downloading the keywords report, you should. This report tells you what search terms customers are using and the average bid price. Perform a deep dive analysis of your campaigns and compare their performance against the report. Depending on what your goals are you can take precise steps to re-direct your trajectory.
For example, the meta data revealed how sellers were leveraging multiple match types under the automatic targeting option, however, budgets from some match types should have been allocated to top performers due to poor performance. The set it and forget it mentality often associated with the automatic option is the easiest, but can be wasteful if you’re not auditing campaigns regularly.
Trend #3: Brands will reap additional benefits from Sponsored Headline Ads
In addition to Sponsored Product Ads, Sponsored Headline Ads affords brands additional real estate space atop the search engine results page. The premium placement allows brands to effectively reach consumers in the awareness stage of the purchasing journey. Presenting a multi-product ad to your customers along with your logo allows you to make your mark on shoppers and imprint the value of your brand on a specific campaign-by-campaign basis. Whether you want to cast a wide net and showcase the breadth of your assortment across related categories, or go narrow and display variations of a singular product, the choice is yours! Choose your own tagline to stand out from the crowd and target your campaigns for increased growth.
Savvy brands are cognizant of having an effective a multi-touch approach that drives a better shopping experience resulting in improved conversion and overall customer satisfaction. We’re seeing brands understand that notion because they’ve begun leveraging both tools to effectively brand and win customers over. If you’re a brand, this is a strategy worth implementing in 2021.
Final Thoughts
2021 looks to be unpredictable like 2020, but for e-commerce we see that unpredictability showing promising growth as more consumers shop online and as more brands adopt a digital presence. Improving your visibility in a highly competitive space is quickly becoming a high stakes game. Those committed to diversifying and optimizing their digital strategies are clearly setting themselves apart, earning the lion’s share in sales and consumer trust.
