Not long ago, Google held a conference with leaders from almost 50 global retailers to discuss how e-commerce platforms are changing digital advertising. We collected these five SEM lessons to share with you.
1. Ad spend on e-commerce is projected to double in the next 4 years
Ad spend grew 50% in 2020, and if that change stays constant, you have the total doubling in the next four years. It’s the fastest growing sector of the digital ad market, and should be worth $40 billion by 2024. What’s more, e-commerce sales will continue to grow post-pandemic. eMarketer projects an 18% increase in total sales. By 2024, over 20% of all retail sales will take place online. How this will change the auto industry is still debated, but customers are showing a clear preference for more if not all of the car-buying process to take place online.
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2. Brands are advertising in each other’s stores
Ads run by brands not sold in the online stores in which the ads are running are a growing segment of the market. In other words, advertising your dealership in other online stores is a potential outlet for ad buys. Those running these types of ads are happy with the ROI, finding this outreach to be a great way to increase brand awareness among potential customers. It’s unlikely that this would be as big a thing if not for the phasing out of third party cookies.
By 2024, over 20% of all retail sales will take place online.
3. Display and video are the new preferred formats
Display and video ad formats are growing faster than Sponsored Products, thanks to their ability to highlight multiple products. Imagine an ad with more than one of the vehicles on your lot, priced to move. A customer might not like one of them, but another could bring them through your doors.
4. First party data is king
As mentioned before, third party cookies are a thing of the past. For that reason, your ads need to be driven by first party data. Best Buy increased their conversion rates by up to 45% with first party data.
5. As the market grows more complex, you need an agency
Someone like DealerOn. We can handle complexities. It’s our whole thing.
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