8 Types Of eCommerce Advertising In 2021

eCommerce advertising has dominated the marketing industry over the last decade and will continue to do so. That is why it is important for companies, advertisers, and marketers to remain updated with trends! But, with so many different forms of eCommerce ads, how can one possibly keep up with everything? By conducting ongoing research and ensuring that they understand the existing types of eCommerce and new ones that are emerging. If you’re doing research on this subject, you’ve come to the right place!

Display, social media, native, search, video, and email marketing all belong to the eCommerce advertising family. Many of the features of the various forms of eCommerce ads overlap or may even be used as complementary methods.

For example, social, native, and display advertising can all appear in a Facebook newsfeed, but the user will perceive them differently. Another example is the use of video ads as display ads. It can seem a little perplexing how each Ad will fit together right now, but it will all make sense once we discuss each form of eCommerce advertising in the following content. Let’s jump right into the details!

What is eCommerce Advertising?

eCommerce advertising, basically, is any kind of advertisement that appears online, whether on your web browser, social media apps, or other places across the internet. Today, eCommerce advertisements take many forms and show up on many platforms, such as social media, video streaming sites such as YouTube, Pay-Per-Click (PPC) ads that appear at the top of search results, and others. The majority of eCommerce advertisements are paid—when you put an ad on someone else’s website, or even on Facebook, you pay for it to be seen.

Why should you have eCommerce advertising in your marketing strategy?

eCommerce advertising is used by companies for a number of purposes, including:

What motivates companies to use online eCommerce ads is the variety of benefits it provides. When you use eCommerce ads, you provide the business with a measurable and cost-effective strategy that produces the desired results. Among the most commonly mentioned advantages of eCommerce ads are:

eCommerce advertising reaches your audience.

If you buy a billboard, you can expect that your target audience not only sees it but also responds to it. However, there are no guarantees, particularly when targeting people both inside and outside of your target audience. A digital ad campaign, on the other hand, is the opposite.

With eCommerce ads, you reach (and direct your ad spend) to people who are actually interested in your product or service. You can ensure that your ads will precisely reach the people who matter the most to your company by using targeting options such as location, interests, and behavior. Not to mention that online eCommerce ads reach people when they want to be reached.

Instead of attempting to capture their attention on the highway, you interact with them while they are looking for your company or doing research for information in your industry. People are drawn to your company by eCommerce ads rather than being forced to see them.

eCommerce advertising allows for measurable results.

You’ll want to monitor your promotional efforts, whether they be offline or online. Otherwise, how can you know that your plan was successful? Fortunately, tracking and monitoring your online eCommerce advertising efforts is easy. Digital advertising networks, such as Google Ads, often track your campaigns for you. Simply log in to your account to access your info. You can also export it for analysis into reporting tools like Google Analytics.

Data from digital marketing campaigns not only lets your team evaluate the effectiveness of your approach, but it also identifies shortfalls for improvement. For instance, if you have a low-performing ad, you might come up with a new copy, pictures, and other elements to boost its performance.

eCommerce advertising is viable for small budgets.

eCommerce ads provide you with an option whether you operate a small company or a big corporation. Unlike conventional advertising, online eCommerce advertising helps the company to set a budget. There are no clear budget criteria for unveiling a billboard or airing a television ad. Instead, you dictate how much you’ll spend (and how much you’ll pay) for your advertisements.

Pay-to-win schemes are also banned on many online advertisement sites. A business, for example, cannot raise its bid in order to secure the best ad placement. They must also have a specific ad and an outstanding user interface. This bidding model enables all companies to obtain excellent ad placements without having to pay an obscene amount of money.

eCommerce advertising offers lots of options.

You want choices when it comes to ads, whether offline or online, no matter what your company is. You have options when it comes to eCommerce ads. You can run advertisements on Google, Facebook, or YouTube. Not to mention that you have the choice of running text, image, or video ads. Furthermore, you can personalize your advertising with advanced targeting options such as remarketing.

You can also use eCommerce advertising for a variety of goals, including:

  • Building brand awareness
  • Increasing contact requests
  • Driving product sales
  • And more

All these options give your team flexibility when it comes to advertising.

eCommerce advertising delivers instant results.

When you use eCommerce advertising, you can expect immediate results. You will start getting clicks, orders, phone calls, and more as soon as you launch your paid campaigns. You can also monitor and relate each of these acts to a particular campaign. 

This type of monitoring allows your company to quickly see the effect of eCommerce ads on your business and its bottom line. Traditional marketing, on the other hand, will take longer to produce results. If you use approaches like newspaper ads or billboard ads, it can take several months before you see a spike in traffic, new leads, or product sales. 

Types of eCommerce advertising

1. Display Advertising

The placing of banner advertisements on websites that accommodate advertisements is referred to as display advertising. Banner ads can include graphics, audio, video, or textual elements that entice web users to click the banner and visit the destination URL. A display advertisement network, such as the Google Display Network, is commonly used to deliver banner ads on ads-accepting websites.

Main Advantages: Display ads in the Google Display Network are normally distributed to websites with the similar subject matter, targeting visitors to such websites who may be interested in the ad’s contents. Since display ads are not always contextually relevant to the consumer, they have a lower CTR than paid search ads. Nonetheless, display advertisements are an excellent way to spread the word about the products and raise brand recognition in your target market.

2. Paid Search Advertising

Paid search ads appear at the top of search results on search engines such as Google and Bing. A paid search ad is a text ad that usually includes a headline, summary, and a link to the destination URL.

Main Advantages: Paid search advertisements are activated by search requests, so they are typically more applicable to the intentions of the person seeing the ad than display advertising. Also, paid search ads appear at the top of the search engine results page, increasing the likelihood that users will read and interact with them. Paying search ads usually have a higher click-through rate and produce more conversions than display ads.

3. Retargeting/Remarketing

Retargeting, also known as remarketing, is a form of display advertisement that focuses on users who have interacted with your website before. Retargeting uses browser cookies to recognize users who have already visited your website and serves them ads for your brand in order to reignite their interest and entice them to return and make a purchase.

Main Advantages: Users who have already interacted with your brand have already shown an interest in your products and are more likely to turn to consumers than users who have never heard of your brand before. As a result, retargeting has become a vital engine of advertising ROI for online eCommerce and SaaS companies, among others.

4. Mobile Advertising

Consumers are spending more time on their cell phones, and mobile advertising is emerging as the perfect platform for selling goods and services to mobile users. SMS messaging ads, smartphone posters, and in-app advertisements are all types of mobile advertising.

Main Advantages: As consumers spend more time surfing the internet or using mobile apps, mobile advertising is becoming increasingly relevant for reaching consumers where they spend the most time and catching their interest and attention.

5. Video Advertising

Video advertisement encompasses all types of online advertising that include videos, especially those that appear at the start or middle of video streaming content on platforms such as YouTube.

Main advantages: Smartphone users spend more than 3 hours a day on their mobile devices, with a large portion of the time spent watching video content online. With the continued increase in mobile video usage, video advertising is becoming a more common tool for marketers to reach consumers with engaging messages that drive clicks and sales.

6. Native Advertising

Native advertising is any form of advertising that is intended to blend in with the look and feel of the surrounding content. Native advertising can take several forms, such as product placements or reviews in a video, display ads on a website that blends in with surrounding images, or written advertisements embedded within the content.

Main advantages: Native ads seem more trustworthy because they fit in with the contents of a website. For the same reason, they are less intrusive and have a lower effect on user experience. When users interact with native advertisements, they may not even know they are clicking on an advertisement. As a result, when opposed to conventional display advertising, native advertisements often result in increased interaction and a higher CTR.

7. Social Media Advertising

When a company or digital marketer pays to advertise their product on a social network, this is referred to as social media advertisement. The Big 5 social media advertisement channels are Facebook, Instagram, Snapchat, LinkedIn, and Twitter.

Main advantages: The main advantage of social media ads is that users will like, share, and comment on content promoted on social media. This broadens the scope of social media advertising methods and generates a large number of low-cost engagements, resulting in increased brand recognition and sales.

8. Audio Advertising

Audio streaming platforms with large audiences, such as Spotify and Pandora, allow users to download their favorite songs and podcasts online. Marketers may target these listeners with recorded ads that play between songs using audio advertising. Users can opt-out of the ads by subscribing to the streaming service though.

Main advantages: Spotify is one of the most popular apps in the world, with users spending an average of 25 hours every month listening to content on the site. Audio ads prevent banner blindness, are impossible to skip without paying a monthly subscription fee, and enable marketers to deliver high-impact and unforgettable messages to millions of users.

Final words

There are various types of eCommerce advertising to choose from—this is not an exhaustive list. Continue to test and experiment with various messaging, targeting choices, networks, and budgets to determine the best approach for your business. Begin with a small budget and work your way up, monitoring the cost of CAC and LTV of each advertisement channel to decide which are the most successful and investing in those.

Also, keep in mind that eCommerce advertising does not exist in a vacuum. You’ll want to strike a balance between paid and owned marketing platforms that give you more leverage over the consumer experience. As your business expands, so will the costs of attracting consumers across paid channels.

The disadvantage of paying for site traffic is that if you stop paying, the traffic stops, which is why you should still be trying to expand your email and SMS lists. Even if a visitor does not make a purchase, there are other conversion opportunities available, such as a place for them to sign up for your email list or receive promotional deals and product alerts. 

Furthermore, by gathering this data, you can develop a retention strategy to nurture the relationship with your customers, increasing the probability that they will buy from you again in the future. You will continue to establish relationships with your audience over time at a fraction of the cost by leveraging owned marketing platforms such as your website, email list, SMS list, and mobile marketing and integrating them into your advertisement strategy.

I hope this article has provided you with valuable information about types of eCommerce advertising in 2021. Please feel free to leave comments below for a further discussion on this topic!

Categories: Ecommerce Tips
Phuong: Phuong Nguyen is a marketing enthusiast with over three years of experience in the world of eCommerce. He is currently working for Avada Commerce - a dedicated eCommerce solution provider. Phuong shares his knowledge and expertise on a frequent basis with his well-researched articles to bring useful information about eCommerce to entrepreneurs and marketers.
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