About 20 years ago, mobile phones were used only for calls, Google was used to search for information, Facebook was used to connect with friends, eBay was used to sell things, and Amazon was just an online bookstore. But it is these characters who have completely changed the shopping process around the world.
In the past few years, many companies have appreciated the benefits of digital commerce and decided to transfer their products and services to digital. Now, most entrepreneurs are primarily thinking about how to sell on the Internet, and not offline.
Online shopping has now officially surpassed retail sales, and e-commerce has become one of the fastest growing industries of the 21st century. Therefore, if you want to optimize and automate your advertising campaigns in e-commerce, digital advertising advertising management tools can help you with this.
Most e-commerce advertising management platforms offer such feature sets and tools:
- Automatic bid management and optimization;
- Amazon advertising campaign;
- Campaign performance analysis and reporting.
The platforms are starting to change and offer additional options that include:
- Tools that are specific to an Amazon seller;
- Support in such additional platforms as Facebook, Microsoft Ads, Google Ads and others;
- Functions of machine learning and artificial intelligence for managing bets;
- Sophisticated business intelligence;
- Multi-channel attribution.
In this article, we examined some of these features and the main considerations related to the choice of a e-commerce advertising management platform and came to the following:
Amazon seller-specific tools
These include keyword research, demand forecasting, product price optimization, inventory tracking, and a seller-buyer automatic messaging system and reviews.
Multi Channel attribution models
When platforms offer management, business across multiple platforms, interacting with touchpoints on them, they can also track the client’s path. This enables marketers to assign credit to various messages that move the consumer down the funnel so that they can reduce or increase costs based on the findings of this analysis.
AI and machine learning models for optimization
Rule-based optimization, where the advertiser indicates circumstances in which bids should be lowered or raised, is standard in pay-per-click advertising, but more advanced ones use machine learning and artificial intelligence to perform optimizations. With these technologies, the advertiser can potentially optimize for a refund or for other purposes directly, without relying on proxy measures.
Sophisticated Business Intelligence
Some of the suppliers go beyond the basic reporting principles and provide advertisers with recommendations on various issues, such as: competitive and market activity, whether the product should be advertised or not, profitability for each product separately and much more.
Multichannel Media Support
Many vendors focus solely on Amazon ads. But marketers may want to manage their Amazon campaigns along with ads placed elsewhere.
Some of these platforms allow you to manage campaigns on search sites, some include social placements like Instagram, Facebook, Snapchat and Pinterest, and some include video and display ads.
It is also worth noting that some vendors are more hostile than others when it comes to any extension of the platforms with which they integrate. If you want to include new platforms in your campaigns, you are better off choosing one of these suppliers that are developing in this area as a partner.
Other tools also provide a more holistic view of product performance by combining organic and paid sales information.
The effect of coronavirus on marketing, e-commerce and advertising
The ongoing coronavirus pandemic affects every area of our lives, and especially how we spend our money at this time. This has implications not only for marketing, advertising, and e-commerce, but also for a number of other sectors, such as travel, entertainment, and consumer goods.
- E-commerce growth
In a study conducted from March 12 to 14, respondents from the affected regions described how their lifestyles, opinions, and reactions changed because of the pandemic.
As retail stores close, e-commerce is booming. According to the study, 50% of Chinese and 31% of Italian consumers “buy more often on the Internet” instead of buying in an ordinary store. Other countries have also seen an increase in the use of e-commerce: Vietnam (57%), India (55%) and Russia (27%).
In the UK, only 18% of respondents said they began to use online stores more often, and almost half of them said that the habit of buying on the Internet was earlier.
- Advertising Costs
According to the March forecast, industry experts revised the forecast for growth in advertising spending in China due to a pandemic – it is 3.9% year on year, which is much lower than the previous estimate of 6.9%.
Of course, there are other reasons, such as a decrease in retail sales and output (which, on the contrary, has only grown over the years). However, the projected growth of 3.9% is higher than in 2019, even despite the pandemic. This is mainly due to the sharp increase in spending on mobile advertising, which is expected to grow by 17.6%.
Estimates of advertising costs have been revised for other regions of the world (the last forecast before that was published in June 2019):
- for the Asia-Pacific region, the estimate fell by 0.7%,
- in the UK – a decrease of 0.6% (although it may be associated more with Brexit than with coronavirus)
Meanwhile, it is expected that by 2020 and 2021 advertising costs in Spain, Italy and Germany will generally be reduced. Italy is expected to suffer more: a national ban on gambling advertising was introduced last year, and an outbreak this year.