Sponsored ads are advertisements that target certain search terms or shopping keywords. Sponsored ads are ads that blend into the retail media environment they appear in, as opposed to creating a brand-specific ad and paying for it to display on a website. As a result, they blend in with the website content that a visitor has come to see.

When using digital marketplaces to buy online, customers read through listings that have been compiled based on the search term they have entered. Customers who have sponsored ads are allowed to receive both standard results for their search as well as appropriate sponsored adverts for paid product suggestions. Sponsored adverts receive special treatment, such as being moved to the top of the product list or being given a priority position on the website.  

Why Are Sponsored Ads Important for Brands?

Sellers will be attracted to buying and running sponsored ads on your online marketplace for a variety of reasons. The possible advantages all touch on key performance measures that advertisers and businesses pay close attention to:

Increase conversion rate

The possibility of conversion increases when brands interact with customers who have before expressed interest in their products.

Grow you’re following

In a digital marketplace, sponsored adverts give brands top billing among the listings, increasing their visibility and fostering customer loyalty.

Improve return on ad spend

Sponsored ads are pay-per-click, thus advertisers only get paid when a customer clicks on the advertisement and does not view it.

Reach new customers

Brands can reach and stand out to potential customers who aren't already aware of their enterprise thanks to sponsored advertisements.

Increase order value & volume

Greater revenue is created by raising order value (the amount customers spend) and order volume (the number of times they make orders).

Popular Companies’ Case Studies

HUBSPOT  

The social media team at HubSpot started an experiment in 2017 where they switched their video objectives from lead generation to audience engagement. Previous to this change, HubSpot shared results on Facebook videos. In keeping with the new plan, the team came up with a list of headlines and subjects that they believed the social media audience would find interesting, as opposed to only subjects that would result in sales.

They experimented with other video features as well, such as video style, formatting, and size, in this pivot.

Results

They observed a monthly increase in video views from 50,000 to 1 million by mid-2017 when they started to release viewer-friendly content.

Takeaways

It can be much more successful to produce content that speaks to the interests of your fan base and the social media channel it is shared on.

While videos with the explicit aim of marketing a product may struggle to gain views and engagement, creative videos that pique viewers' interest and educate them on a subject they can relate to can be a far more successful way to draw in and keep audiences. The audience may even come to trust you and get interested in your items if they consume and engage with your content.

SNAGAJOB

Finding hourly work is possible with Snagajob, known as Snag. The company behind Snagajob wants people to be aware of changes as they arise given that the site is designed for job discovery. The business used LinkedIn to generate leads and run advertising to attract the interest of its target market.

Business owners and managers make up the company's ideal clients, and they are on LinkedIn. The Job and Video Ads showed Snagajob's in-depth understanding of customer behaviour, which is that decision-makers lack adequate time.

Results

The marketers at Snagajob had a hunch that job and video ads would be successful in capturing the attention of active professionals, and they were right. Leads that were converted increased by 84% during their campaign. They decreased their cost of advertising while increasing the number of applications and achieving a high standard of leads.

Takeaways

Targeted ads are not a waste of money when used strategically as Snagajob does. Job Ads also inform others outside of a member's network about open positions at businesses in their industry.  

SAMSUNG

Samsung launched a one-month Facebook campaign to promote the 2015 Argentina Galaxy S6 smartphone launch to increase sales among its Latin American audiences.

Three videos were used in the advertising campaign to promote the phone's camera, design, and lengthy battery life.

Every week, one video was released, and they were all intended for both men and women in Argentina. The fourth week of the campaign saw Samsung release more traditional video and image commercials for the goods. These advertisements were particularly intended for viewers of the videos and audiences that resembled them.

Results

A 500% return on investment and a 7% gain in new customers were achieved by Samsung throughout the month-long campaign.

Takeaways

Like Femibion, Samsung tested with a multiple-ad strategy in which the targeting became more focused as the campaigns went on. They also recognized the benefits of focusing ads on people who had already expressed interest in earlier advertising campaigns. This approach appears like it would work well when attempting to increase the number of qualifying leads.

Working with a Retail Media Partner to Unlock Sponsored Ads

For the majority of internet marketplaces, it is not practical to build out a proprietary retail media platform. By collaborating with an experienced partner, you may:

• Increase conversion rates

• Average order prices for sellers

• Open up an effective revenue stream through sponsored adverts

• Please your consumers with a customized experience

Call We Love Digital Marketing right away.