Question 1

How do I know if e-commerce advertising is right for me?

Accepted Answer

If you run an online store selling products, e-commerce advertising is a must. The challenge comes in deciding which platforms and campaign formats best suit your products/categories, ad budget, and ROI targets based on COGS and your target audience. If you’re selling high-volume B2C products with standard profit margins, you likely have strong opportunities across shopping, search, social, and video/display. It’s all about prioritizing based on expected ROI to iteratively scale. If you’re selling B2B products, your best bets are search, shopping, and LinkedIn. If you’ve established strong organic presence on Amazon, then Amazon ads, search, shopping, social, and video/display can all serve to augment your sales and net ROI. If you’re selling low-volume products with high-ticket values, then we’d need to identify the best place to reach customers at the bottom-of-the-funnel so you’re most likely to get direct ROI from your advertising efforts. While we’d still recommend running top-of-funnel campaigns that feed into our bottom-funnel campaigns, the key comes in ensuring we show ads to people the moment they’re seriously considering and ready to buy your high-ticket offer. We’d want to do a combination of low budget top-of-funnel campaigns to feed bottom-funnel campaigns, high-intent keyword search campaigns, shopping campaigns with optimized product feed data, and/or 1 to 2 social channels that enable us to directly target decision makers with the means to buy your products.

Question 2

What budget do you recommend I start with?

Accepted Answer

There’s no “right answer” to this question. However, through discovery calls and market research, we can identify the ideal budgets for you to choose from. The biggest factor for deciding on ad budget is whether or not you’ve run ads in the past. If you have, then we can align the correct budget based on historical CPA/ROAS performance in line with your ROI targets. If you’ve never run ads, we can identify average costs of acquisition by studying your competitors, and work backwards to identify what you’ll need to spend in order to hit your monthly ROI targets. The key is to build enough data that enables our team and AI-algorithms to optimize. Another factor is the 45 to 90+ day learning period needed to start hitting ROI targets. With that in mind, we recommend striking a balance between staying conservative (so you don’t waste money), while ensuring you spend enough to return at least 30+ revenue-centric conversion events per month. As an example... if it costs $100 to acquire a new customer, we’d recommend you start with a budget of at least $3,000 per month (30 customers/month x $100 CPA).

Question 3

What are the keys to success for e-commerce advertising?

Accepted Answer

The primary keys to success in e-commerce advertising are a conversion-optimized online store, quality product feeds, stellar ad copy and image+video creative, qualified audience targeting, and accurate conversion tracking. It’s very difficult to get e-commerce ads right without the combination of all these factors. Ignoring ads for a minute, your online store is where customers directly purchase your products. Whether that’s a Shopify or Amazon store, the quality of your product+category pages, store UX/UI, page copy, checkout flows, product feeds, and strategies for post-sale reorders, promotions, and cross/upselling all play the biggest factor on whether you drive strong conversion rates with higher average order values and LTV. Without an optimized store, you waste a large majority of your ad budget. Beyond this, stellar product feeds play a pivotal role in ensuring your products show up to the right people, at the right time, with the right information, and across other purchasing channels such as directly on Google shopping. Stellar product feeds need to be robust with solid product images, names, IDs, pricing, descriptions, attributes, units+variants, meta data, and other copy, while always remaining up-to-date (price changes, sold out items, etc). Beyond the copy and images used on your store and in your product feeds, you also need to ensure you have compelling and resonant copy and image+video ad creative that’s segmented to directly match ad segments based on your target audiences, use cases for your products, stage of the buying journey (discovery, consideration, or ready to buy), and for where ads show up (channels and placements). To close the loop, your purchase conversions need to accurately reflect revenue generated with analytics set up to track every stage of the buying journey from items viewed, to add-to-cart, checkout, and drop-off. We also recommend integrating offline conversions so you can track and attribute repeat orders as a way of optimizing ads towards higher LTV.

Question 4

Can you guarantee my results?

Accepted Answer

We cannot guarantee your results. What we can guarantee is that we will optimize and double down on what does work while cutting out what doesn’t. Achieving ROI targets requires constant optimization+experiments with real data to test and validate any strategy. Any marketer that guarantees results is selling you false promises. That said, so long as we have enough budget, data, and time to execute on informed ad strategies with iterative optimization based on real data, we can hit ROI targets for most any client with a confidence interval of 90%.

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