Digital advertising now makes up 65% of all ad spending for marketers. It’s easy to see why — marketers are experiencing considerable sales growth through online channels, as the ability to attract new customers is no longer limited by geography. And while online ads and pay-per-click are essential sales drivers, organic content with uncapped reach provides the best ROI, and many brands are using emerging channels such as TikTok and Instagram Reels to drive significant sales growth with very few upfront costs.
In 2022, 102.6 million people in the US alone bought products using social platforms, up 5.9% from the previous year. This represents double-digit growth since 2016. Social commerce continues to grow in prevalence, and most brands have responded by integrating it into their strategies. The following post incorporates the latest insights into the current state of the e-commerce ecosystem and will help you make informed decisions as you prepare and augment your e-commerce marketing strategy.
E-commerce marketing is the practice of promoting your online store. The internet significantly increased the scale at which products could be sold and fulfilled, and as brands continue to innovate their business models, e-commerce has become an essential sales driver. Audience tastes have also adjusted as younger users have come to expect the convenience of online purchases. Many of them are finding products passively through influencer posts or sponsored content, and the growing prevalence of e-commerce means that they can buy what they see with a few taps on their smartphone. These buyers tend to skew younger, therefore giving brands a lot of runway for growth as these audiences age and their behaviors become the status quo. Investing in e-commerce now is not just about appeasing Millennials or Gen Z — it’s about future-proofing your business for every generation to come.
If you want to learn more about what social commerce is and how it’s expected to grow in the coming years, we’ve also written a guide to help you get started.
E-commerce marketing is essential for brands in the digital-first era. Brands can maximize their potential reach and attract more customers than ever, and e-commerce provides valuable insights and data on customer behavior and preferences, which can be deciphered to help inform future marketing strategies. In-person shopping does not offer the same vital insights as online shopping. E-commerce marketing not only drives success for businesses but also informs the success of product development, product marketing, and sales.
The following 4 steps will help you ideate what your e-commerce marketing strategy could look like, as well as identify your goals and objectives:
Figure out your target audience. To begin, you need to identify who you are trying to reach with your online marketing efforts. Consider factors such as demographics, interests, and behavior. If your brand is a heritage brand, you may speak to a very different audience online than in brick-and-mortar retail. Many luxury brands, in particular, use more tongue-in-cheek marketing on channels such as TikTok while remaining formal in print ads.
Set goals that make sense. Figure out what you want to achieve with your e-commerce marketing strategy. While the objective is always sales, there are other considerations, such as building brand awareness, optimizing and increasing conversion rates, and increasing website traffic.
Develop your multi-channel marketing strategy. This is where you decide how you will reach your target audience. Dash Hudson has identified that optimal campaigns use multiple channels, with each marginal channel increasing engagement and click-through rates up to at least six channels. A combination of tactics ladders up to the best results.
Create an execution plan. Develop a detailed plan that outlines the specific actions you will take to achieve your goals. This should include a budget, timeline, and KPIs for measuring success.
By following these steps, you can create a comprehensive e-commerce marketing strategy that will help drive sales
Dash Hudson’s Google Analytics integrated cross-channel campaign reporting tool, Campaigns, aggregates all the moving parts of your social media campaigns and makes reporting as easy as clicking on a dashboard. We provide visual reporting, a 360-degree view of your performance, and tools to help you uncover the ROI of your e-commerce marketing strategy.
The best marketing strategy for e-commerce is the one that works best for your brand. Consider your target audience and how you hope to attract them, and your chosen strategy will become clearer.
The 7 C’s you should consider in e-commerce marketing are customer, cost, convenience, communication, channel, content, and community.
Business to consumer (B2C). This is the most predominant model of e-commerce and involves businesses that sell directly to consumers.
Consumer to consumer (C2C). This involves consumers selling to one other, potentially through online storefronts such as eBay or Etsy.
Business to business (B2B). This involves companies selling products or services to one another.
Consumer to business (C2B). This typically includes freelance work or platforms such as Fiverr.