Throughout the marketing journey, E-commerce marketing should pay attention to 4 primary metrics on evaluating the advertising efficiency. Here we suggest ROI/ROAS, CPOrder, go-to-market selection and good media mix with continual effort on optimization.
E-commerce related user acquisition approach is a bit different from the one used in game or utility apps. For example, E-commerce marketer sees ROI majorly on shopping spending per acquired users, rather than CPI(Installation). Throughout the marketing journey, E-commerce marketing pays attention to 4 primary keys on evaluating the advertising efficiency.
Select your targeted go-to-markets
Do consider demographic factors and market nature which help you identify markets of opportunity. E-commerce app success relates to local market’s logistic performance, ease of doing business, internet and mobile internet network infrastructure, GDP, Internet population, etc. It’s always sense-making to evaluate the market appetite for e-commerce – is the population familiar and willing to do e-shopping? Is the targeted key-force shopper takes large population? Is responsive customer service available? All these facets might ultimately reflect local market’s total e-shopping market share, as well as the e-trade development.
ROI and ROAS
ROI/ROAS is a primary metric to evaluate your revenue return after your overtime advertising cost. It refers to the efficiency of e-commerce site’s profitability and hint to optimize ad campaign. By viewing ad performance of high ROI, you can find its corresponding hot product category, ad creative format, countries and audience profile. Optimizing your ad campaign towards the best performing ad of highest ROI meanwhile testing other ad formats and products can help gear up sales and installation conversions. ROI/ ROAS varies based on different business season and product offering, averagely 1.6 – 1.8.
Cost per Order refers to ad spending cost to take customer an placing order. It is a secondary metric to look at cost efficiency on customer’s sales conversion value. CPO might be affected by season (peak season makes the market competitive so CPO speeds up) and sales price structure of products (high averagely purchase price lowers CPO). CPO might surge to serval times fold in peak seasons. Marketer shall also assure smooth user experience on site and payment process, so that customer’s order can be seamlessly and solidly conversed into sales.
Above three prime keys offer you a quick look at quantitative & qualitative perspectives in key markets. Connecting your audience and building up strategic communication are vital to E-commerce, and you need a good media mix for a long-term loyal customer cultivation.
Media Mix and continual optimization
Marketing with premium and trackable medias can help you to reach new and existing customer from their full purchase journey: Google and Facebook are good choice scalable campaign targeting new customer acquisition and existing customer re-marketing because of their global coverage and strong targeting capacity. Marketer should also understand local region’s media landscape and select key local medias that is influent to your targeted audience and fit with your E-commerce site’s positioning, say, Pinterest and Snapchat and any other vertical (local search engine and news) medias that takes a large share of the local market. Continual optimization over major medias or even each one in your media mix can steer you towards highest ROI/ROAS.
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