How to Run a Successful Advertising Campaign on eCommerce Marketplaces

ecommerce marketplaces
EB Pearls UX team By Dannie Duong March 21st 2021

Selling on eCommerce marketplaces like Amazon and eBay has become the preferred strategy for a number of businesses. These marketplaces drive a lot of traffic and selling on them gives you an increased level of credibility.

That being said, you’ll also be competing with a lot of other sellers. So, it’s important that you have a strong marketing strategy. 

One effective tactic is to run advertising campaigns. The right campaign can help you rise above the competition and make it easier for you to reach your sales goals.

In this article, we’ll fill you in on everything you need to know about advertising on eCommerce marketplaces. We’ll also give you a few tips to increase your chances of success.

Building Brand Awareness Through Advertising

Advertising is a great way to drive sales, but one of the primary benefits is building brand awareness. This is especially important for sellers who are creating their own brands and products.

Brand awareness refers to the level of familiarity a consumer has with a brand. Studies consistently show that people are more likely to buy from a brand they know. And the more aware they are of a brand the more loyal they become.

This is why advertising is so important. It gets your brand and products in front of people. Even if consumers don’t make a purchase the first time they see your ad, if you make an impression on them they’ll be more likely to buy from you the next time they see an ad or stumble upon your products in a search.

Essentially, the more ads you run the more people will become aware of you. And the more people there are that are aware of you the more sales you’ll make in the long run.

Advantages of Running Ads on an eCommerce Marketplace

Nowadays, there are plenty of options for advertisers. You can place ads on Google, social media, content sites, apps, and virtually anywhere else people visit online. So, why should you advertise directly on eCommerce marketplaces?

Here are a few advantages:

  • People are there to shop: When someone sees an ad on Google or social media they probably didn’t go there to buy something. But, if they’re on Amazon, eBay, or any other marketplace there’s a good chance they’re ready to buy. That means your ads will convert at a much higher rate.
  • Advertising increases your search visibility: There are a lot of other sellers competing to show up in the search results of these marketplaces. By paying for ads you’ll guarantee your products will appear in searches for relevant keywords, which will drive more traffic to your listings.
  • Easy to manage: Because you’re advertising on the same platform you’re selling on you can manage your entire business in one place. Plus, most marketplaces make managing their ads simple. Creating your ads is quick and easy, and they provide reports on your performance and have fixed fees to help you stick to your budget.
  • Spy on Your Competitors: When running an ad campaign, you want to keep tabs on what your competitors are doing. This can be difficult when competing sellers are spread all across the web. But when you’re advertising on a marketplace all your competitors are in the same place. This makes it easy to spy on them and steal their strategies.
  • Increase brand awareness on the platform: As we already discussed, brand awareness is key to building trust and growing your customer base. The more ads you run on a marketplace the more familiar those shoppers will become with your brand and products. Over time this will lead to more sales and revenue for your business.

While running other types of ads is always a good idea (if you can fit it into your budget), they generally won’t be as effective as running ads on the marketplace you’re selling on. For this reason, eCommerce marketplaces are always the first place you should advertise.

Tips for Running a Successful Campaign

Now that we’ve gone over all the reasons why you should run an advertising campaign, you’re probably wondering how to get started and how to do it the right way.

Here are a few tips that will ensure your next campaign is a success:

Define the Goal of Your Ad Campaign

Before you start creating ads and spending money, it’s a good idea to decide exactly what you want to achieve. When it comes to marketplace ads, there are two primary goals:

  1. Brand Awareness: These ads are simply meant to increase the exposure of your brand and products. This is a good strategy for new brands that people don’t know about yet. By educating consumers about your brand now you’ll be more likely to sell to them later.
  2. Sales: These ads are designed to generate sales now. They generally direct people straight to a product listing where people can click the buy button. These ads work best for brands and products that people are already familiar with. 

If you have enough budget you can always try running both types of campaigns at once. That way you can build brand awareness and then once people are more familiar with you you’ll be able to serve them ads that encourage them to buy.

Explore Different Types of Ad Campaigns

Most marketplaces have many different types of ads that serve different purposes. For example, Amazon has three types of ads:

  • Sponsored Products: These ads promote specific products within relevant search results.
  • Sponsored Brands: These ads promote your brand as a whole and allow you to advertise up to three products at once.
  • Product Display Ads: These ads allow you to promote products in other areas of the site besides just search results.

Most eCommerce marketplaces will have similar options. Review all your choices and choose the ad type that best suits your goals.

Don’t Advertise All Your Products

Since you’re paying for these ads you’ll want to spend your money wisely. The best strategy is to select a few items that you know will work well.

Choose products that have a relatively high amount of demand and you know are popular with customers. That way there’s a better chance your ads will generate conversions. With that said, try to also choose items that have relatively low competition. That way there will be fewer sellers competing for your advertising slots.

Optimize Your Product Listings

You might be running a great ad. But if you direct people to a poor product listing page your ads will never convert. Here are a few tips to help you optimize your listings:

  • Use multiple high-quality images that show all your item’s features.
  • Focus on benefits, not features.
  • Provide lots of information and try to answer common questions.
  • Ask customers to leave feedback so you can improve your review score.

Remember, your ads are only half the equation so make sure the pages you’re sending people to will encourage them to complete the purchase.

Use the Right Keywords

Most of the ads you run will likely be search ads, so you’ll want to ensure you’re targeting the right keywords.

Use keyword research tools to find the most common terms people use to search for your products. You’ll also want to include negative keywords, which are terms you don’t want to appear in search results for.

Monitor your results and see which keywords are converting best. If certain terms aren’t performing well make sure to add them to your negative keywords list.

Look at What Your Competitors are Doing

If you’re new to advertising then a good strategy is to have a look at your competitors. Search for products similar to yours and see what ads come up, then click through to the listing to review how they’ve set it up.

Take note of what these sellers are doing and then apply those lessons when you’re creating your own ads.

Use Automated Campaigns

Most marketplaces will give you access to automated campaigns. For the majority of sellers, especially those who are new to advertising, this is likely the best choice.

These campaigns automate most of the setup and targeting, including audiences, keywords, and other key factors. They’ll also optimize themselves as the campaign progresses. This means the campaigns are largely hands-off, so you can focus on running your business instead of managing your ads.

Set a Budget

When creating your campaigns you’ll be able to set a maximum daily budget. Start out on the low side, as it will likely take some time before your ads are fully optimized and performing how you want them to.

Once your ads start generating a positive return on investment start increasing your spend so you can maximize your sales.

Keep Your Campaigns Organized

You should be able to keep all your campaigns organized within the platform you’re running them on, but it doesn’t hurt to create a separate spreadsheet as well.

Make sure you know what’s going on with all your campaigns. That way you can increase your spending on ads that are performing well and turn off ads that are losing you money.

Conclusion

When you sell on an eCommerce marketplace you’ll be competing against a lot of sellers. But if you master the art of online advertising you’ll be able to find success no matter where you decide to sell your products.

EB Pearls UX team By Dannie Duong

With a huge amount of experience in fashion, Dannie has an inborn ability to interpret and execute user stories to produce great UX. She drives the UX evolution at EB pearls and the client products that she has designed can only end up with the top 10 charts in the app store.

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