5 Trends Shaping the Future of E-Commerce Advertising

5 min readDec 9, 2019

E-commerce is among the fastest-growing industries nationwide, penetrating nearly every aspect of the retail market in a digital way. And, as all companies know, advertising is integral to expanding and evolving appropriately in any online environment.

The e-commerce advertising industry is constantly growing and expanding due to digitalization, customer demands, and new technological possibilities. This, of course, creates a significant layer of complexity, making it more challenging than ever before to drive advertising revenue.

However, for those who put time into staying on top of key elements of the advertising field, there’s a lot to be gained. The generation and maximization of advertising-based income can provide businesses with a competitive advantage, such as increased revenue and diversified business.

We have examined five trends shaping the future of e-commerce advertising. Knowing how and why they matter can be the difference between success and wasted effort.

1. Video Advertising

Video marketing has been on the rise for the last several years, leading to a large increase in video content on platforms such as Facebook and Instagram. Today, video advertisements are just as common as images and text, and the stats back this up: web users are more engaged by video content, with video generating 20% more clicks than images alone. This trend shows no sign of stopping, either. It is estimated that by 2022, around 82% of web content will be video-based, therefore highlighting the fact that video advertising holds a lot of potential.

Video advertising is a compelling medium for e-commerce operations as videos allow for a quick preview while also showing products in use. Instead of a picture and a text of a product, video ads combine voice, text, and video, making video advertising a strong tool for e-commerce by providing a better picture of what a customer will actually receive. Thus video advertising leads to an enhanced capability to raise awareness and increase sales numbers. With the expectation of video ad spending to double in the next four years, this is definitely a trend for e-commerce to consider and to be prepared for by having a media advertising solution on hand that supports the diversity and complexity of video advertising.

2. Voice Advertising

Voice advertising is still in its initial ascent, but the rise in smart home devices including Alexa and Google Home are making voice-based web use far more popular than ever before. Today, the industry stands at just $2 billion, but by 2022, this is expected to grow to around $40 billion. A tool affecting advertising across all industries, voice advertising is shaping the way customers shop and interact with companies.

Voice advertising can be extremely influential, as customers want to hear purchase options that are the best fit rather than an exhaustive list. This creates a competitive marketplace, and those who can’t keep up will likely lose out. By embellishing product descriptions in a way that best speaks to customers’ interests, conversation typed advertisements can focus on customer demands through the use of storytelling and content. If utilized correctly e-commerce operations can lead the competition.

3. Social Selling

Social media is one of the top targets for e-commerce advertisers. And it’s not surprising; with the opportunity to put ads in front of millions of eyeballs, social advertising is a great way to link both products and customers. Now that Facebook and Instagram both have on-site purchase options, it’s easier than ever to browse and purchase through social media.

A lot of money gets invested in social media marketing, making involvement a key part of staying competitive. In the third quarter of 2019, e-commerce retailers spent 39% of their search-related budgets on shopping campaigns and around the same amount on product ads, showing a strong dedication toward social media prominence. For e-commerce advertisers, the reliance on social may feel like being pigeonholed into a strategy that may or may not feel like a priority. However, staying engaged in social media means staying competitive, especially in the e-commerce industry.

4. Artificial Intelligence

Artificial Intelligence (AI) has been growing rapidly in the advertising spectrum across all industries, with companies such as Google, Amazon, and Microsoft heavily relying on more artificial intelligence solutions than ever before. A large player in the programmatic market, AI now does a significant amount of the legwork in everything from ad placement to writing and optimizing text.

For those with little experience in AI, the concept can be overwhelming. Luckily, the major industry players provide many tools to users that can be implemented in the advertising industry. This can be particularly valuable to e-commerce companies: solutions such as media-specific CPQs or ad sales management software supporting AI, make it easy to collect and organize large amounts of data to reveal trends and patterns, guiding things like merchandising decisions and ad targeting opportunities. Using artificial intelligence can be a huge facilitator for e-commerce advertising revenue, as it can be used to predict which type of consumers will lead to increased sales, analyze their interests and thus send more personalized offers and suggestions.

5. Omnichannel Advertising

For some advertisers, the web exists in silos rather than one overarching entity. It’s easy to feel this way; in many ways, each advertising platform or channel feels like one distinct avenue with varying rules and approaches. However, this is an antiquated way to view advertising.

Regardless of where customers are coming from, a cohesive experience is essential. No matter where visitors to a shop or store come from, they should be targeted in an informative and individual way meeting the demands and interests of every single person. Embracing omnipresent advertising means offering personalized purchasing opportunities via email, social media, banner ads, and anywhere else e-commerce advertising may be utilized. Shoppers come in all forms, and the more channels that can be covered, the more likely it is to strike success. Therefore using tools supporting cross-media advertising in all forms and ways is the basis of an efficient and strong omnichannel e-commerce advertising.

Embrace Advertising Capabilities to Diversify Your Revenue Streams

Advertising, in general, is a complicated and ever-changing landscape, and this is particularly true in the evolving e-commerce industry. Advertising is a viable opportunity for e-commerce retailers, offering an additional revenue stream in a way that can enhance business opportunities. With these five e-commerce advertising trends, it’s possible to gain a solid foothold in the market without compromising your primary operations.

Originally published at www.advendio.com on December 4, 2019




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