In their Retail trends for 2023, Deloitte has highlighted a crucial priority for retailers: maximizing the value of customer data to generate incremental advertising revenue. There is no doubt that e-commerce is continuing its ascending trend, meaning that more and more people visit e-commerce websites daily. The data that e-commerce websites gather from all of these visitors, whether they make a purchase or not, is a highly valuable asset that can be monetized by displaying relevant ads. In this article, we look at how to monetize e-commerce websites with ads and leverage every single website visit.
By providing the opportunity for suppliers and other advertisers to place ads on their digital properties, retailers not only open avenues for increased revenues but also foster stronger relationships with their suppliers.
This collaborative approach transforms the retailer-supplier dynamic into a mutually beneficial partnership. Suppliers gain heightened visibility and exposure through strategically placed advertisements, leading to increased sales and brand recognition.
As e-commerce websites attract a vast and diverse audience actively engaged in the purchasing journey, they provide advertisers with a prime opportunity to connect with potential customers at critical touchpoints. The targeted nature of e-commerce advertising enables advertisers to tailor their messages based on user behavior, preferences, and demographics, ensuring relevance and resonance.
As already mentioned, the power of e-commerce websites lies not just in the transactions but in the wealth of first-party data that retailers can gather from their website visitors and customers. First-party data includes information directly collected from users, providing a valuable resource for personalized marketing strategies and, ultimately, boosting advertising revenue. The most important aspect then, becomes the segmentation of the various audience groups by using first-party data.
Having established the power of first-party data available to e-commerce website owners, we will now look at two of the most popular strategies for efficient monetization. The strategy chosen should align with the overall goals of the business and with the audience’s expectations.
At the forefront of e-commerce website monetization strategies are sponsored listings. This strategy offers an additional revenue stream to retailers, increased sales for suppliers, and a personalized advertising and retail experience for shoppers.
Sponsored listings, labeled as "sponsored" or "Ad," stand out at the top of product/service lists on websites or applications, representing paid placements. These ads allow businesses to pay for increased visibility and exposure, creating an enriched consumer advertising experience. Despite blending seamlessly with organic listings, they often include dynamic elements such as product images and prices, strategically placed to maximize visibility and drive consumer engagement.
Sponsored search ads, akin to search engine results, respond to consumer search intent, appearing prominently among search results. Sponsored brand ads, resembling display banner ads, offer brand visibility above search results, showcasing multiple products for comprehensive representation. These placements, particularly favored by big retailers and diverse marketplaces, generate revenue while ensuring a non-intrusive and effective shopping experience.
Screenshot from Tesco.ie
Main Benefits of Sponsored Listings:
The second strategy is the monetization of email through strategically placed ads. Email remains a direct and powerful channel for customer engagement. By integrating ads seamlessly into email content, retailers can create an additional revenue stream while delivering personalized advertising experiences to their audience.
Email ads embedded within newsletters or promotional emails represent a sophisticated approach to monetizing customer communication. These ads can range from email clicks to sponsored content, strategically positioned to align with the user's interests and purchasing history. As consumers increasingly rely on emails for updates and offers, incorporating ads into this channel ensures that advertisers can directly reach their target audience in a non-disruptive manner.
Similar to sponsored content, the success of email ads lies in their strategic placement within the customer's journey. Whether it's a personalized product recommendation or an exclusive offer, email ads can enhance customer interaction, driving clicks and conversions. The types of email ads can vary from dynamic product showcases to exclusive deals, allowing advertisers to tailor their content for maximum impact.
Main Benefits of Email Ads:
After deciding on a strategy, the next step is to decide on the advertising technology required and its implementation. Navigating the complexities of an in-house advertising solution demands substantial investments in technology, time, and resources. Developing proprietary solutions can quickly become a costly and time-consuming endeavor, potentially distracting from the core functionalities of the business.
A hosted white-label ad server like EXADS, can provide e-commerce sites and apps with a seamless avenue to monetize their potential, eliminating the need for the development and maintenance of an in-house advertising technology infrastructure.
By leveraging a white-label solution, e-commerce website owners will unlock the advantages of robust and advanced advertising technology without having to build it from the ground up. Here's the breakdown:
For e-commerce platforms, having the right set of tools is pivotal in defining the success of their advertising efforts. Let's explore the indispensable features and functionalities that they should prioritize:
Moving from regular e-commerce websites to dynamic media platforms is a big change for retailers. They have to decide whether to build their own retail media platform or use a ready-made solution from an ad tech company like EXADS.
Creating an in-house retail media platform is a complex and time-consuming task. It involves understanding new ideas, managing budgets, and allocating resources for a long-term project. This includes dealing with issues like flexibility, scalability, how things work day-to-day, and how they get paid. On the other hand, teaming up with an ad tech company like EXADS makes launching a retail media platform easier. Our ready-made solution, which can be customized quickly, reduces the time it takes to get started. Retailers can focus on changing their operations and bringing in advertisers while EXADS takes care of the technology side.
EXADS' Retail Media Platform gives retailers a strong base to make money from their customer data. In just a few weeks, retailers can have their platform with their brand on it, managing their ads and relationships with advertisers. EXADS provides a complete solution, including easy-to-use technology for sales, access to different ad types like sponsored listings, display, video, and email ads, and real-time performance tracking. This all-in-one solution lets retailers start making money from ads with the support of a reliable ad tech partner.
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