E-commerce has grown rapidly since the start of 2020 as consumers embraced the efficiency and convenience of online shopping. The channel shows no signs of slowing down, with e-commerce sales expected to exceed $1 trillion this year. How are advertisers taking advantage?
To help guide your 2022 campaign strategies, we analyzed e-commerce campaign data across the Simpli.fi platform from January 1 through December 31, 2021 to see how e-commerce advertisers utilized various Simpli.fi solutions and identified key trends. Then, we compiled recommendations to help you maximize performance for your e-commerce advertising campaigns this year.
In this report, find answers to questions like:
- What targeting tactics did e-commerce advertisers use to most effectively reach customers?
- How successful were the targeting tactics at driving conversions?
- Did holidays and TV events affect CTV campaign count?
- Which device and creative types generated the most online conversions for advertise
KEY FINDINGS FOR E-COMMERCE PROGRAMMATIC TRENDS
- What targeting tactics did advertisers use to reach consumers? Across the Simpli.fi platform, e-commerce advertisers found the most success with Addressable Geo-Fencing and Site Retargeting.
- Did e-commerce advertisers increase the number of CTV campaigns around special TV events and holidays? The number of weekly CTV campaigns remained the same throughout the first few months of the year, peaking at the end of every month as advertisers looked to maximize budgets. There was an increase in CTV campaigns during late July and early August, potentially due to increased advertising around the Summer Olympic Games and back-to-school sales. There was also an influx of CTV campaigns during and after the week of Thanksgiving as advertisers sought to reach consumers via their large-screen devices regarding Black Friday and Cyber Monday deals. Campaign growth was the highest during the first week of December, reaching 121% YTD, as advertisers looked to fully utilize budgets before end of year.
- Which targeting tactic drove the highest number of online conversions? E-commerce advertisers saw the most conversions when using Site Retargeting, which accounted for 73% of total conversions in 2021. Keyword Search and Contextual Retargeting came in second with 18% of total conversions, showing success through targeting users based on online behaviors.
- Which devices saw the highest growth in conversions? Last year, consumer media consumption via mobile and tablet increased by over half an hour. In correlation, e-commerce advertisers also saw a high growth in conversions on the Simpli.fi platform from mobile and tablet devices, increasing by 216% YTD at the end of December. Additionally, CTV conversions grew the most in the latter half of the year. In November, e-commerce campaigns served on CTV devices grew by 212% compared to conversions in January. The high growth in conversions indicates e-commerce advertisers were successful in converting users when serving CTV ads about holiday deals.
- Which creative type generated more conversions—display or video? E-commerce advertisers saw relatively the same number of conversions via display and video ads. However, each creative type generated significantly more conversions than the other during various times in 2021. Display ads generated more conversions during two major shopping events—back-to-school in August and holidays in November. Video conversions grew the most the week before Thanksgiving as consumers began their holiday shopping, increasing 258% YTD during the week of November 15th.
RECOMMENDED STRATEGIES FOR E-COMMERCE PROGRAMMATIC ADVERTISERS THROUGH 2022
Drive More Conversions by Reaching Consumers on Mobile and Tablets
Mobile and tablet usage is expected to grow again this year. Paired with the high increase in mobile and tablet conversions this past year, capitalize on the momentum and target consumers on their phones and tablets to drive action.
Ramp Up Advertising Efforts Around Key Events
Advertising typically increases around month-end, summer, and holiday shopping. Boost your advertising efforts during these key events to remain competitive and reach consumers when they’re most likely to take action.
Continue Taking Advantage of Advanced Attribution Capabilities to Prove Return
As the momentum of e-commerce continues, ensure you are tracking online conversions and using Simpli.fi’s advanced attribution capabilities, even for CTV ads. Measure online actions like form fills, purchases, and more to understand the performance and optimize your campaigns as needed. In addition, utilize Simpli.fi’s Transaction Value Reporting to measure purchase value and order IDs from online conversions to help calculate your campaigns’ return on advertising spend (ROAS).
Overall, e-commerce advertising will continue to rise as more and more consumers turn to the channel for efficiency and to purchase goods. By incorporating programmatic advertising into their campaign strategy, marketers can precisely target relevant audiences who are most likely to convert, and also gauge the return of their campaigns.
Capitalize on the growth of e-commerce this year by using a blend of targeting tactics to reach consumers at various stages of the buyer’s journey. In addition, reach consumers on their mobile and tablets as consumption increases this year. And, tap into Simpli.fi’s attribution and reporting capabilities like Transaction Value Reporting to determine ROAS and prove the success of your campaigns. Nevertheless, e-commerce advertising is booming, and programmatic advertising is here to help you reach consumers and make the most out of the opportunity.
Enhance your e-commerce advertising strategy using Simpli.fi’s programmatic solutions.
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