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Herbert Knibiehly

Client Acquisition for E-Commerce in 2015 - What's Changed?

Herbert Knibiehly
Client Acquisition for E-Commerce in 2015 - What's Changed?

Client acquisition for e-commerce has been a hot topic in 2015 and we can expect this trend to continue into 2016. We’ve seen e-retailers consistently working to improve their understanding of how to achieve client acquisition.

With hundreds of features added to AdWords and Google Shopping every year and the development of new platforms, advertisers have a great number of tools available in their arsenal. But managing all of these tools is not as simple as it sounds - let alone trying to stay ahead of the competition!

Online marketing has become increasingly complex in 2015

While Facebook, Twitter and Google Shopping positioned themselves as must-haves for acquisition strategies, this year we saw the arrival of several new players such as Instagram, Pinterest, and Vine. These companies have tapped the advertising market and developed a range of features that e-commerce companies can use to teach potential customers. However, with the arrival of these new platforms and their new features, advertisers are now faced with a ‘scissor effect’ where acquisition costs are increasing, yet margins are decreasing.

Google Shopping on the rise

Despite the increasing popularity of Display over recent years, Paid Search remains the preferred method of online advertising. When it comes to paid search channels, we can note the growth of Google Shopping as well. Just last year, advertisers’ budgets increased by 47% on this platform and we can only expect that this trend will continue in 2016.

The number of variables required to predict the value of a click in search marketing campaigns has significantly increased with increasingly complexity. Fortunately, automated solutions are now able to take numerous variables such as keywords, user segments, the type of device, the day and the hour into account. As we come into 2016, we will see an increase in optimized spending and marketers frequently adjusting bids using systems that are similar to those used in RTB.

The future of Search Marketing

Finding success on Google Shopping in 2016 will focus around 3 big trends:

Audience segmentation: Search marketing campaigns have always been successful because using keywords allow us to understand the user’s intent behind what they look for and buy.

With the added segmentation features in Google’s RLSAs, we can better understand the user behind the intention.

Product-level information: Having access to product-level information is crucial. Best selling products change constantly and businesses that have access to a large amount of sales information are generally ahead of the game. Advanced tracking allows us to interpret weak signals at user level and to optimize campaigns.

We can find out if the user previously looked at this product, if they have added it to their basket and later abandon, and what is the affinity of users with this product category?

Real-time bidding: Combining search intention, user segmentation, and product information instantly allow us to make better bidding decisions. The most advanced platforms adjust bids in real-time and their pricing engines calculate the value of each click based on the predicted conversion.

The world of e-commerce has transformed into a better market with tools available to help traffic managers and agencies to integrate them into their campaigns. Automated real-time bid managers lets marketers dedicate more time to defining campaign targets, to finding a creative multi-channel approach, and to piloting their strategy.

What do you think bid managers spend too much time on? Is there an area that deserves more research than the others?

VP Marketing at Twenga, Herbert Knibiehly is a true e-commerce expert with over 10 years’ experience in product management, marketing and international development roles in both France and the United States. Twenga proposes advanced audience acquisition solutions on main online advertising marketplaces, which drastically improve e-retailers’ ROI on their advertising spend.

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