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How digital advertising boosts eCommerce performance in 2021

There is no doubt about it. 2020 was the year of eCommerce. Whilst the Covid-19 pandemic caused unprecedented change and uncertainty, it was the catalyst for the acceleration of key trends and innovation in technology.

For many eCommerce retailers, their growth accelerated significantly, with total growth of eCommerce sales hitting 32.4% in 2020. Online retail sales in the US are expected to increase to $843.15bn in 2021 – levels of growth not previously predicted before 2024. For retailers, the opportunity is there, but only if they take it. Digital advertising is key to ensure your business can flexibly scale with increased demand and that you can get your products in front of the right people at the right time.

Let’s look at a couple of key examples.

Pureplay eCommerce

With enforced restrictions we’re spending more and more time at home. It’s only natural that people will look to improve their living spaces and their lives at home. 

In the UK, predicted spend on home improvements in 2021 is £47bn so it is set to be a transformative year for British homes. In fact, more than half of Brits (59%) claim they’ll be making some form of home improvements. The average spend is set to be £6,531 per household. With the likes of heating and appliances, beds and furnishings, and window installation considered essential services for construction, retailers in this space can really profit.

As can those in the health and well-being space as people make a conscious effort to improve their lifestyles. In fact, sales in 2020 were thought to be as high as £13.8billion, with the industry set to continue this growth in 2021. During the first lockdown, online sales of gym equipment spiked by 5,800% in the face of closed gyms. This all spells opportunity for online retailers.

Choosing your tactics

The tactics have to be right, however. Take the example of users landing on your site for research purposes. Retargeting is your chance to entice them back to site with their last viewed product. Or even those users that have already purchased, what offer, product or deal would they now be interested in? Getting your approach to retargeting is fundamental to drive conversions and ensure users that started their research journey with you become customers and regular buyers. 

Yet while the opportunity is there, budget considerations will always play a part. With Fluid Ads you can connect your live product listings to show accurate ads to the right people through Feed ads. When stock levels, prices or offers change so will your ads automatically, making sure your budget is always optimised to convert the right users and never wasted on a hap-hazard approach.

Combining your online and offline presence

If you can ensure your online and offline presence work in tandem, there’s a huge opportunity to engage with your users and increase conversions. Take the example of garden centres. Able to stay open during lockdown measures and providing an opportunity for people to create more relaxing inside and outside spaces at home, business has been booming.

In August last year, garden centre revenues were up by 14%, with hardy plant sales up 34%. Houseplant sales were almost 50% higher year on year, while garden sundries contributed 19% of total income in August. Once the high-street begins to tentatively open again in 2021, it’s essential for retailers to adapt to the new normal with potential less footfall in brick-and-mortar stores and a consumer that requires a seamless offline and online experience. Again, this is a real potential opportunity for those that get it right.

Choosing your tactics

Both online and offline can work together to achieve growth. By creating geofences around designated local areas – taking into account travel time and current restrictions – tailored ads can be served to users in those locations around key offers, best sellers and seasonal plants for example, pulling potential customers in store. Those that have researched online can be retargeted with online and offline offers, while In-Feed Ads will keep your products always up to date and your spend optimised. 

Once the high-street opens up and physical stores are back on the agenda for the wider retail industry, savvy retailers can use similar tactics to stay ahead of the competition.

When you invest in your infrastructure to take advantage of the potential opportunities in 2021, it’s crucial that you drive quality traffic to boost performance and sales. Strategic and customer-centric digital advertising strategies are essential. 

With 2021 providing a key opportunity for retailers, it’s time to invest in personalised, tailored and optimised digital advertising. Contact us today to learn how Fluid Ads can help you enhance your digital advertising strategy to stay ahead of the competition or take a look at our top 50 eCommerce tips.

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