Advertising on ecommerce

Advertising on eCommerce platforms: 9 Key Trends & strategies  

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It’s a quiet Friday evening, and you’re browsing your favourite online store. You’re on the lookout for something specific, maybe a new pair of noise-cancelling headphones. As you scroll, options start popping up— some top-rated, others offering exclusive discounts. It feels almost as though the platform knows exactly what you’re after, showing you the right products at just the right moment. This isn’t a coincidence; it’s the power of targeted advertising in action, orchestrated by eCommerce leaders like Amazon and Flipkart to capture and hold your interest.

With eCommerce expanding at a staggering pace, Statista estimates that the Indian market will reach $200 billion by 2027. Changing consumer behaviours, coupled with greater internet access and digital payment solutions, have sparked an unprecedented growth in online shopping, creating immense opportunities for brands to engage their audience.

Now is the ideal time for businesses to delve into eCommerce advertising. This strategy involves paid promotions across online and offline channels, from Amazon Ads and social media campaigns to billboards and TV commercials. Beyond just driving traffic, eCommerce advertising cultivates brand loyalty and maximises sales through upselling and cross-selling opportunities.

In today’s competitive landscape, a well-defined eCommerce advertising strategy is essential for brands aiming to captivate their market and achieve sustainable growth. While developing one, here are a few things that you should consider:

eCommerce advertising strategies: 9 Tips and Tricks

eCommerce advertising strategies

Know Your Target Audience

Understanding your audience begins with building a detailed buyer persona—a fictional profile representing your ideal customer. When crafting a buyer persona, consider factors like age, interests, demographics, location, purchasing power, spending patterns, language, challenges, and goals. This process is essential for keeping your advertising plan focused and aligned with the preferences of potential buyers. With clear audience insights, you’ll make data-driven decisions that maximise reach and engagement, allowing you to leverage targeted advertising on platforms like Amazon Ads and Flipkart Ads effectively.

Seek Expert Guidance

If your business is still in its growth phase, an expert’s advice can be invaluable. While resources on social media, email marketing, and SEO tactics are plentiful, the intricate details of creating an impactful eCommerce advertising strategy often require hands-on experience. Connecting with a seasoned eCommerce advertising expert or successful entrepreneur can provide insights beyond online tutorials. Their advice can help you create a structured, result-orientated plan that covers all aspects of digital marketing and paid advertising, ensuring your strategy is both actionable and optimised for success.

Set Realistic Goals

Once you’ve reviewed the strategies of established brands, you’ll be better positioned to evaluate your business’s starting point and set practical goals. Identify factors such as the types of ads suited to platforms like Amazon or Google, the budget needed for different campaigns, and any product improvements required to remain competitive. Begin with straightforward, DIY promotional tactics, and as your business scales, refine your strategy and consider hiring professionals to craft a more comprehensive advertising plan.

Move Strategically with Competitor Analysis

With a clear understanding of your business stage, each move should be intentional and informed. Competitor analysis plays a crucial role here; by examining successful campaigns of your competitors, you can identify strategies that resonate with your target audience. For instance, a major shoe brand recently leveraged the demand for an active lifestyle by creating a campaign that encouraged healthy habits, skilfully linking it to their latest product line. Analysing their approach can offer valuable insights into effective positioning, allowing you to create campaigns that highlight your brand’s strengths and capitalise on current market trends.

Define Your Mission, Vision, Pricing, and Value Proposition

Your brand’s long-term success depends on a clear mission, vision, pricing strategy, and value proposition. Consider questions such as:

  • What is the purpose of your business?
  • Where do you envision the brand in the next five years?
  • What values set your business apart?

Take, for instance, a successful packaged food brand that launched in 2005. With a mission to supply high-quality products, support sustainable farming, and cater to both local and international markets, it clearly defined its values and goals. By focusing on quality, innovation, and a strong value proposition, the brand leveraged eCommerce advertising tools across major platforms, reaching a broader audience and building long-term customer trust.

Leverage Data Analytics to Refine Strategies

To make eCommerce advertising sustainable, continually assess performance using data analytics. Track key metrics such as click-through rates (CTR), conversion rates, cost-per-click (CPC), and return on ad spend (ROAS) across platforms like Amazon and Flipkart. Analyzing this data helps identify high-performing campaigns and underperforming ones, allowing you to optimize targeting, ad placements, and budget allocations. Additionally, by leveraging A/B testing for ad creatives, you can refine content based on customer response, ensuring your advertising strategy evolves with changing consumer behavior.

Build a Strong Brand Identity Across All Platforms

Consistency is key to a lasting brand impression. Establish a unique brand voice and visual style that is recognisable across all advertising channels, including Amazon, Flipkart, and social media. Use cohesive messaging and imagery in every ad to create a seamless experience, strengthening brand recall among customers. This consistency fosters trust, which can significantly enhance customer loyalty. A strong, recognisable identity not only improves immediate ad performance but also builds brand equity, making it easier to introduce new products and expand into new markets over time.

Use AI-Driven Personalization for Targeted Campaigns

AI-powered tools can analyse customer data to create highly personalised ad experiences. By leveraging machine learning algorithms, you can predict user preferences, shopping behaviours, and purchase likelihood, enabling hyper-targeted ads on platforms like Amazon Ads and Google Shopping. For example, AI can dynamically adjust ad creatives based on real-time data, showing personalised product recommendations to different customer segments. This level of personalisation significantly increases engagement, click-through rates, and overall conversions, making your ads more impactful.

Automate Campaign Management and Optimisation

AI-driven automation tools streamline campaign management by handling repetitive tasks such as bid adjustments, ad placements, and budget allocation. Platforms like Google and Amazon Ads offer AI-based features that automatically optimise campaigns based on performance metrics. By automating these aspects, you can focus on strategy while AI ensures cost efficiency, maximising return on ad spend (ROAS). Additionally, AI-based predictive analytics can forecast future trends and customer demand, allowing you to proactively adjust your advertising approach, stay ahead of competitors, and improve long-term brand performance.

These guidelines form the foundation for crafting an effective eCommerce advertising strategy. In the next section, we’ll explore how to use advertising solutions from top eCommerce platforms to boost your brand’s visibility and engagement.

Major eCommerce platforms and its advertising benefits

Amazon

Amazon Advertising is an advertising solution that can tremendously increase product searches and visibility when implemented effectively. It includes sponsored ads, product display ads, headline search ads, native ads, video ads, programmatic advertising, brand store, Amazon Media Group, discounts and offers, flash deals, giveaways, free shipping, and promo codes. Using all these advertising tools can increase return on ad spend only if they are strategically planned and rolled out. Jungle Scout 2024 Amazon Advertising Report reveals that brands, agencies, and third-party sellers are opting for rigorous advertising on Amazon. Listed below are some of the whopping statistics from the report: 

  • Sellers were able to expand their outreach to customers willing to buy their products. 
  • In 2023, Amazon’s advertising revenue grew 24% compared to 2022.
  • The survey revealed that 56% of US consumers search on Amazon first while looking for a product online. 
  • Amazon’s revenue from third-party sellers rose 19% from 2022 to 2023 
  • Approximately 70% of the brands and sellers on Amazon are 3P sellers. 
  • 36% of Amazon sellers advertise their products on Google and other search engines. 

Flipkart

With more than 500 million active users, Flipkart has managed to capture the badge of one of the most established and popular eCommerce stores in India. Noteworthy here is that this platform is known to be a boon for small and medium-scale industries. Here is an example of how Flipkart helped a small-scale business owner grow and tap potential audiences.

There are more than 150 million +  products from over 50,000 sellers on Flipkart. Product Listing Ads and Product Contextual Ads enable sellers to increase their engagement with their targeted customers. While PCA and PLA placements differ in that PCA allows you to select which page to showcase your ads on, be it the Search page, Browse page, or Product page, while PLA runs on all three pages. The Flipkart Ads Platform’s reporting dashboard provides access to all campaign metrics for optimising campaigns. Moreover, it allows real-time campaign performance tracking on a dashboard. Flipkart offers a total of five types of reports to the brand to measure their campaign performance. The seller report, FSN report, placement performance report, and search term report are accessible for both PLA and PCA campaigns, while the product page performance report is available only for the PCA campaign. 

 

Grocery Shopping: From Physical Stores to Door-Step Convenience

Just a few years ago, grocery shopping meant visiting local fruit and vegetable vendors or making biweekly or monthly trips to nearby stores to pick out items in person, inspecting freshness, and checking expiration dates. Fast forward to today; the essence of grocery shopping has transitioned us to an entirely new digital experience. Platforms like Bigbasket, Blinkit, Zepto, Jio Mart, Flipkart Minutes, and Swiggy Instamart have brought convenience to households across India, especially with the rise of Quick Commerce (Q-commerce), where groceries, essentials, and even electronics are delivered within minutes.

This shift was catalysed by the demand for contactless, fast shopping solutions, which accelerated during the pandemic.  By offering a seamless “click, read reviews, add to cart, swipe, and pay” experience, these platforms have revolutionised the way people shop for everyday essentials. According to Global News Wire, the Indian online grocery market was valued at USD 3.95 billion in the financial year 2021 and is projected to grow at a CAGR of 33%, reaching USD 26.63 billion by 2027.

The Indian online grocery market was valued

Why Online Grocery Shopping or Quick Commerce is Thriving

Consumers are drawn to online grocery shopping for various reasons, especially as Quick Commerce meets the demands of convenience, speed, and quality assurance.

  • Ultra-fast Delivery: Quick Commerce platforms like Blinkit and Swiggy Instamart now promise delivery within minutes, catering to time-sensitive consumer needs.
  • Flexible Delivery Slots: Customers can schedule deliveries to suit their busy lifestyles.
  • Easy Returns and Replacements: Damaged or incorrect products are swiftly replaced, ensuring customer satisfaction.
  • Brand Exploration: Ratings, reviews, and suggestions encourage consumers to try new brands and products.
  • Contactless Delivery & Online Payment Options: Enhanced safety and convenience through contactless options and digital payments.
  • Competitive Pricing: Regular offers, cashback, and discounts make online shopping cost-effective.

How FMCG Brands Are Leveraging e-Grocery Platforms

FMCG brands are tapping into the popularity of online grocery platforms by using in-house advertising tools designed to increase product visibility and drive conversions. Here’s how brands are making their mark:

Leveraging eGrocery Platforms

  • Banner Ads: Eye-catching banners promote new launches, discounts, and product features.
  • Category Banners: These introduce new products, categories, and exclusive deals to capture attention in specific sections.
  • Trending Offers: Highlighting discounts, cashback, and wallet payment offers, trending offers entice budget-conscious consumers.
  • Emerging Brand Features: Highlighting new brands, price reductions, and lightning deals drives discoverability for emerging FMCG players.
  • Video Ads: Brief, engaging videos showcase product features, benefits, and ingredients, educating and attracting customers.
  • Push Notifications: Timely updates notify customers of deals, new arrivals, and personalized offers.
  • Product Sampling: Sampling opportunities encourage trials and help gather valuable customer feedback, aiding brand awareness and trust.

This blend of convenience, choice, and real-time delivery has made online grocery shopping a preferred choice for millions of consumers. As Q-commerce platforms continue to innovate, brands have an exciting avenue to reach audiences faster and more effectively than ever.

Read more: How Paxcom amplified a consumer wellness brand’s sale by 8X on Amazon

Conclusion

A consumer wellness brand was facing challenges in scaling their business on Amazon. After a detailed analysis, our team of guided experts followed a step-by-step approach and utilised Amazon-sponsored ads to accelerate visibility and revenue, leading to 865%  tremendous growth in visibility and exponential growth of 827% in revenue. 

Our team of E-commerce analysts and content experts has end-to-end knowledge of advertising on online stores. Our experts know exactly what kind of content, including product details, company profiles, copies, images, and banners, will attract buyers, while our eCommerce analysts have a stronghold over running campaigns and social media ads. We create, target, and scrutinise, and finally extract the figures that are evidence of progress. Grab your chance to scale your business with us; reach out to us at info@paxcom.net for further discussion.  

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