The Benefits and Power of Automated Ads for eCommerce: Why & How To Use
We are sure that you watch the news or even scroll through social media and monitor how all people are discussing how artificial intelligence (AI) will shape the future. We are also sure that you are astonished by Elon Musk and his developments in AI.
Well, whether we like it or not, AI is going to shape the future. Yet, a glimpse of the impact of AI has started to occur with the emergence of automated ads for e-commerce.
As an e-commerce business, you might not need a marketing agency or even an expensive ad campaign to manage your ads anymore, as everything will be automated.
Well, did we grab your attention? We are confident we did
So, it is the time to fill you in on everything related to automated ads for e-commerce; how it works, its benefits, and how to get started.
Table Of Content:
- What are automated ads?
- How Automated Ads work?
- Why to use automated ads for e-commerce?
- How to get started with automated ads?
- Automated ads for e-commerce examples
What Are Automated Ads?
Automated ads for e-commerce can be regarded as an easy, hassle-free way to manage your paid ads. To understand automated ads even more, we relied on the description of the social media giant, Facebook.
According to the description provided by Facebook, automated ads are created by identifying your goals, and ads will be personalized to suit your needs. In addition, it will offer you suggestions and improvements to get your audience to take an action.
Running your ads will be a piece of cake, isn't it?
Automated ads allow you to get going with your campaign but with less effort from your side and less input to ensure more efficiency.
How Automated Ads work?
1- Data merging
Automated ads help you gather all the relevant data from all the necessary platforms and put it under one roof. Data from surveys, polls, excel sheets, websites, and social media platforms become available to you with a single click.
Now that we know who your buyers are, their buying behavior, when they are most likely to purchase, and on which platform, these AI-powered tools place them into different categories. Then, they can create automated ads for your eCommerce store, offers, messages, and recommendations most suited for your buyers.
These categories can include age, gender, location, income bracket, buying frequency, or cart abandonment. For instance, if a user abandons their cart, you can send them an email or a message notification reminding them to finish their purchase. In addition, you can sweeten the deal by offering them a discount.
Or, if your buyer is a college student, you can send them ads about back-to-school offers or deals on summer, winter and spring outfits, depending on their location.
3- Building and conquering
The customer journey is not a straight road. Your customer can be a loyal buyer for a couple of months and then completely stop purchasing your products for several reasons. They might go cold turkey, or you will notice a significant reduction in their purchasing frequency. Whether your eCommerce store is big or a budding enterprise, it is hard to keep track of the customer journey of every buyer manually.
These Automated ads tools can automatically track each buyer’s journey and match them with recommendations, offers, and messages that suit the point at which they are in the purchasing cycle.
For example, suppose you have a loyal buyer that you wrongly categorize as an inactive one. In that case, you may hound them with numerous emails that can irritate them to move to another vendor or remove all notifications from your site.
On the other hand, when you correctly categorize a buyer as a new subscriber, you can send them offers through welcome emails and discounts if they sign up for a loyalty card. Sending the right ads to the right buyers increases your chances of closing a sale.
Importance and Benefits of Using Automated Ads for E-commerce
The wide use of automated ads for e-commerce did not occur out of the blue. Its importance and benefits are what encourage businesses to automate ads. In the following paragraphs, we will share with you the benefits of automating ads and why you should use automated ads in your marketing strategy.
1- Saves TimeOne of the first benefits of automated ads for e-commerce is saving time. By utilizing automated ads for e-commerce, you won’t have to create ads from scratch every time you launch a campaign. You just enter all the information, and your ads will get formulated and running.
Also, you won’t have to check your ads performance daily. In addition, you won’t have to pause, launch or re-launch certain campaigns. Everything can be done according to your preference and automatically.
Research showed that automating social media ads and campaign save more than 6 hours per week on social media management (Entrepreneur, 2016).
In addition, 74% of customers argue that automated marketing efforts are highly important as it saves time (LLC Buddy,2023)
2- Saves Money
Using automated ads certainly leads to saving money. This arises from the fact that you are not required to direct your efforts or your team toward managing these ads. Therefore, you can focus on other strategic tasks while also preserving your resources.
Therefore, you are saving money invested in labor and directing your efforts toward other lucrative tasks.
Therefore, automated ads allow e-commerce businesses to reach effective results with minimum costs, effort, and time.
A study showed that automating ads saves businesses 130,000 dollars per year ( Excel Point,2019)
3- More Effective Ads
As part of formulating automated ads for e-commerce, you will have to insert the demographics, interests, and even behaviors of your audience. Therefore, you are creating more personalized ads tailored to the needs of your target audience.
In addition, the automated ads rely on information provided on your page or website. As a result, your ad copy will be compatible with your brand, its identity, and even the tagline.
All of these aspects contribute to creating more effective ads that are directed perfectly to your target audience and compatible with your brand identity.
Also, automated ads provide you with a report regarding the performance of your ads compared to your goals. Accordingly, you will be able to assess the well-performing ads.
It has been found that automated and personalized ads and offers are more likely to increase sales by 20% (Napolean Cat, 2022). Also, automated online ads increase average order size by more than 360%.
How to Get Started With Automated Ads?
As previously mentioned, automated ads require minimal effort from the side of the e-commerce store. This is because it relies on AI to run your paid ads to successfully reach your objectives.
So, you might wonder how automated ads actually work.
1- Define Your Objectives
The first thing you need to do when automating your ads is to define your objectives. What do you want to reach from the utilization of automated ads for your e-commerce store?
Your objectives might vary from generating leads to increasing conversion rate, increasing website traffic, reach, or sales.
Accordingly, you have to be specific and determine your objectives to start working on your automated ads.
2- Choose The Right Channel
There are plenty of channels that offer automated ads for e-commerce. For example, Facebook, Google, and Microsoft offer e-commerce businesses the chance to utilize automated ads. Therefore, you need to choose the right channel that will help your e-commerce store achieve its intended objectives.
Other tools can handle your automated ads while offering you additional features. For instance, Convertedin is an automation tool that can handle your automated ads through many channels like Facebook, Google, Tiktok, Snapchat, and more in one place.
3- Identify Your Target Audience
Regardless of the channel you are intending to use, you need to identify your target audience. If you choose Facebook as your channel for automated ads, you will have to identify your audience, their hobbies, interests, and demographics to ensure the creation of successful automated ads.
4- Choose Your Ad Copy
You will have to choose your ad copy to have booming automated ads. Facebook automated ads, for example, allow you to choose several ad copies, and once your ads are working, the best-performing ones are going to be shown to your audience.
We told you that managing your ads would be a cakewalk by automating them, didn’t we?
5- Calculate Your Budget
Finally, you will have to identify your budget. However, we are glad to tell you that by automating your ads, you will be provided with budget suggestions to achieve the best results.
Automatic bidding is an important feature in automated ads. It enables e-commerce stores to choose the right bid for their ads to help achieve their desired objectives.
6- Use An eCommerce Marketing Automation Platform/Tool
We are sure that you are so excited by now to start working on automating your ads. However, if you are struggling with how to start your automation journey, we have got you covered.
First, you will have to check out Convertedin, an automation tool that will help marketers and e-commerce businesses to get the job done by managing ads and audiences effortlessly.
Second, you will provide Convertedin with all your information about your customers and just watch the magic. It will use this information to formulate your segments which will then be your target audience.
By having these segments, you will be able to create successful ads directed to the right audience and understand your customers even more.
Third, we can discuss the fun part which is ad automation. With Convertedin, managing your ads won’t be a tough task anymore, as everything will be done automatically from your account.
Not to mention that it can manage up to 1,000 of your ads all at once!!
Automated Ads For E-commerce Examples
The benefits accompanied by automating ads made e-commerce businesses more open to using them. Accordingly, we will provide you with examples of e-commerce businesses automating their ads for inspiration.
- Fore Ladies Golf
Fore Ladies Golf is an e-commerce brand that sells clothes for women golfers. It automated its ads by running targeted ads to its customers through social media. In addition, it was able to auto-segment the market to ensure a successful ad. Also, automating its ads allowed Fore Ladies Golf to monitor the best-performing ads and adjust the low-performing ones.
By automating ads, it was able to save time and money by focusing on the strategic matters required for running its e-commerce brand.
Adidas could not skip the accelerating feature of automated ads and utilized it on Snapchat. Snapchat has offered a new feature of automated ads which is dynamic product ads (DPA).
The DPA allows e-commerce businesses to automatically put their products into snaps to be shown to relevant users. If product prices or availability change, the ads will automatically change as well.
Accordingly, Snapchat’s new feature helps businesses by reducing the time of managing their ads.
Adidas was part of the new feature offered by Snapchat of automating ads. It allowed Adidas to reach its millennial audience more easily. In addition, it led to a 4x increase in return on advertisement spending (ROAS) (CampaignMe,2020).
Streamlined marketing across platforms
With the advancement in technology, there are multiple platforms to reach your users, aside from your official website, such as SMS messages, email notifications and social media: Facebook, Twitter, Instagram, and WhatsApp. With automated ads, you can integrate all these channels and streamline communication across these platforms depending on each user's behavior.
Your business has to stand out from the competition in the current eCommerce market. If you want to drive sales and take the lion's share of buyers, you must boost your brand awareness through continuous, relevant and exciting advertising strategies. This can all be simplified through incorporating AI in eCommerce.
Are you interested in growing your business and boosting sales through automated eCommerce ads? Then, check out Convertedin for accurate and comprehensive customer insight and personalized ads across numerous channels.