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Social Media Spends Rising as Product Ads Boom
Ilya Nasedkin • 30 July 2019
Pay-per-click product ads have longed formed an integral part of e-commerce platforms, with Amazon especially being shown to dominate the paid ad landscape. In fact, it has been reported that almost three quarters of all Amazon users click on products ads while browsing the online store. However, there is now a growing trend for product ads to extend beyond the likes of Amazon, and venture into social media.A newly published report by cross channel intelligence network Kenshoo confirms that product ads now make up nearly 40% of all social spending by businesses as brands begin to take advantage of the benefits of ‘targeting’ customers during their journey.
A
New Method of Marketing
In a Search Engine Land opinion piece,
Editor Ginny Marvin claims that this increased spending could be one of the
first signs that product ads will become their own distinct category underneath
the digital marketing umbrella in the near future, with dedicated budgets being
created for this particular form of campaign. Many networks are backing this
idea, and are beginning to shift their priorities to give greater focus to ads.Snapchat, for example, is understood to
be testing product ads in a bid to compete with Pinterest and Facebook in the
hopes of securing a percentage of the increased social media business spends.
But it’s not just social jumping on the bandwagon. In fact, Microsoft is also
said to be experimenting more with product ads following a notable 33% increase
in product ad clicks. What
Does This Mean?
So this leaves us with a question. What
does a product ads boom mean for web developers who a) want to advertise their
services, and b) want to promote the websites they’ve designed for their
business clients? Quite simply, it means that there are now more opportunities
than ever to reach the right audiences at the right time.However, it also means being willing to
take a leap, moving away from tried-and-tested processes and trying out new
ways of working. There’s
no denying that this is the first step towards a future that isn’t dominated by
SEO. Instead, it’s highlighting the growing power of targeting and retargeting,
and giving more weight to intent-based behaviours rather than simply search
terms and keywords. Businesses must be able to adapt to the changes and use SEO
alongside other methods to succeed in the product ad world.
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