People love to shop, and are increasingly doing so on their phones. Shopify reported that mobile orders have increased 44% in the past two years and eMarketer predicts mobile commerce (mcommerce) will exceed half of all ecommerce by 2028.
Ecommerce companies have previously concentrated most of their marketing reaching people through desktop advertising because of the targeting capabilities and the expectation that most people shopped on desktop. Mobile was more of an afterthought or something only for brands with their own mobile apps.
But much has changed, and it’s now clear that ecommerce providers have the opportunity to reach high-target customers in an increasingly natural shopping environment through mobile performance marketing (MPM).
Smaller and mid-sized companies can now take advantage of what players have known for a while: mobile performance marketing is a growth superpower for all ecommerce providers.
Many ecommerce companies have accelerated growth by following a simple rule: do what Amazon does. Amazon is both a large platform for advertisers and a huge mobile advertiser itself.
It’s about time that ecommerce companies lean into this environment to identify new prospects, drive sales and strengthen their relationships with existing customers.
Here are some of the reasons why smaller and mid-sized ecommerce sellers should embrace MPM:
The rise of mobile-first consumers:
Almost everyone today has a mobile phone and is comfortable using it to make purchases. And newer generations will use them even more, managing their entire lives on the go. Ignoring mobile advertising means you’re neglecting an entire generation of customers. According to the Pew Research Center, the percentage of teens ages 13 to 17 that use a desktop or laptop computer at home has decreased in recent years from 90% to 88%, while mobile phone usage remains stable at 95%.
Embracing the opportunity:
Whether building their own mobile ecommerce storefronts or using venture-backed providers like Shopify, Big Commerce, or Fabric, it’s never been easier to have customers buy entirely on a mobile phone. The user experience is also much better these days, especially with mobile-first platforms, so there’s less risk that a customer will abandon their cart for a desktop visit that may never come.
New cost basis and tracking opportunities:
Mobile advertising now offers several different cost basis opportunities that can work for any type of advertiser. Instead of the traditional cost-per-install costs basis that typically dominated mobile advertising, ecommerce providers can now buy ads on a cost per event (CPE) basis, which creates new opportunities to pay for more meaningful actions, like add-to-cart, checkout start, or completed purchase.
New targeting capabilities:
Ecommerce providers may be under the impression that mobile marketing is still imprecise and opaque. But increases in tagging events for platforms like Shopify makes attribution and tracking much easier. There’s better pixel-based event tracking than ever before, which means ecommerce companies can more effectively track their return on ad spend (ROAS).
Novel messaging:
One of the hallmarks of a good ad is being able to break through the clutter. Sometimes that’s due to unique creative, other times it’s the medium in which it runs. The reality is that many mobile ads are for games or for other application downloads. That means ecommerce advertisers looking to drive people to mobile storefronts have the opportunity to stand out in a veritable sea of game ads.
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Now that we’ve explored what you need to do:
Target CPE campaigns:
Ecommerce sellers can take advantage of new campaign targeting that mobile performance networks provide now, like target cost per engagement (CPE), instead of the traditional install driven targeting.
Accurate tracking:
Campaign optimization requires dedicated tracking. New tools enable previously unavailable tagging events that can attribute clicks to user behavior and map those clicks to platforms like Shopify. That attribution can reduce costs, identify true drivers of revenue, and help continuously refine campaigns.
Identify the right partners:
First-time ecommerce entrants to PMP have several important decisions to make to ensure successful campaigns. They need to know which networks are best, what goals they need to set, and which pitfalls to avoid. Ecommerce companies specifically should ensure they are optimizing for the right KPIs, using the right creative and attribution, and ensuring they get the right level of transparency and reporting from their PMP partners.
Keep an eye to the future:
One of the most powerful mobile ad formats today is “playable ads,” which are extremely popular ways to get someone who is playing one game to switch to another (or at least download the game to play later). While playable ecommerce ads are not a huge trend right now, innovative companies can explore how they might use that technology and their creative vision to drive ads that hook and intrigue more customers.
All signs point to a world where fewer people use desktop or laptop computers for all activities, especially shopping. An ecommerce company that does not advertise on mobile, through performance marketplaces, will likely fall behind those who do.
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