Thought Of The Week

5 Essential Tips for your Digital Marketing Strategy

With so many disparate businesses cropping up in the Digital Media space, the choice advertisers...

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GM Thought of the Week: GM checkout ecommerce product

With the continuing decline in sales on the high street and 97% of 16-34s in the UK making purchases online in 2019 [1], it is necessary that advertisers switch their focus towards the competitive online retail environment.

GM Checkout combines the science and learnings from all key online retailers, from Amazon and Google Shopping/Search, through to traditional retailers’ online stores and social commerce channels. Each of these routes have their own ad placements, buying methods and audience habits and we have mapped out the entire ecommerce ecosystem to ensure we are hitting the right notes for our brands, maximising return on ad spend while providing tangible insight for future campaigns.

Traditionally, marketing in the youth space has been heavily skewed towards awareness-driving activity via TV and video channels, but by neglecting activity at the bottom of the marketing funnel, brands put themselves at risk of having their sales snatched away by their competition at the point of purchase. The true key to success is striking the balance between long-term branding and short-term sales strategies

Online stores have evolved in complexity and it’s now necessary to understand the nuances of each type of digital ad format. It is useful to relate these back to the traditional brick and mortar environments to truly appreciate the roles that they play; some formats are necessary to secure online shelf space while others serve the same purpose as end caps, giving your brand a competitive advantage in a saturated ecosystem.

There are some new innovations, however, with many advertisers allowing brands to serve ads programmatically within the shopping basket, for example. If you are a mid-range headphone brand looking to conquest your competitors, undercutting their prices by £20, then this ad placement sounds like an effective way to nab a sale before the buyer taps in their credit card details.

However, by analysing behavioural data throughout the consumer journey, GM Checkout has found that this isn’t the case.

For the same reason you wouldn’t often see mid- to high-end electronics by the checkout in a conventional shop, this kind of product requires consideration and isn’t often susceptible to a quick change of mind. In other words, if an advertiser hasn’t invested in engaging their audience before this point in the consumer journey, these last-ditch ads are too little, too late. These formats are best saved for product add-ons, such as batteries, and other checkout favourites.

However, that’s not to say that harnessing this kind of impulsivity isn’t a highly lucrative business in the right online environment. We have all fallen victim to fritting our money away whilst killing time social media and this area is only set to grow with the rollout of Instagram Shopping ads for all brands, allowing users to purchase from their social feeds within just three clicks.

With so much consumer choice and fragmentation between vendors, GM Checkout’s team of experts will guide you through the ecommerce landscape, tailoring our strategies according to a product’s type, category, pricing and audience to ensure we deliver the highest ROIs possible for our clients.

[1] Office for National Statistics, Online shopping, by age group, 2018 to 2019, Great Britain