We all might have become familiar with the word ‘Sponsored’ and many of us have seen it since the digital marketing revolt.
Sponsored products are not medieval but a modern-kind marketing and promotion strategy (some say it is a tool) used by brands selling on digital marketplaces.
The general objective of incorporating such a tool in action is unlocking greater audience reach, increasing conversion rates, and much more.
Though it’s a tool for brands, its application doesn’t restrict to one. Startups and established brands are highly utilizing it for product awareness, customer acquisition, and brand loyalty.
What Are Sponsored Ads?
Sponsored ads are kind of advertisements that are targeted only at specific shopping keyphrases or using search terms. Primarily, it is placed on top of all the products listing.
Sponsored ads imply products and hence they are also known as Sponsored product ads.
Whenever you see ads mentioned with “Sponsored‘ it means that they are cost-per-click ads that promote brand products or individual products.
Many peculiar brands and early-age startups in the field of retail media operation are using it because of the following characteristics:
- Brand awareness
Setting up sponsored product ads is simple and easy due to technological advancement. Businesses are getting relevant results and powering up their brand recognition through sponsored ads. Read more to know how sponsored product ads increase product sales.
3 Ways Sponsored Product Ads Generate Revenue
Speaking fairly, sponsored display ads have set their own legacy among other digital promotion strategies.
Today, people see products mentioned as “sponsored” with a different notion. Reportedly, it is observed that people click first on products mentioned with sponsorship.
And this is what the whole truth is all about the game.
Here are the top three ways to know how sponsored products create revenue for brands.
1) By Displaying Ads To People Who Have Previously Purchased
Displaying ads to previously purchased customers that remind them of the product they ordered and are happy with can increase their potential to buy it for others.
You can use Sponsored display ads to retarget previous purchases. This not only engages them to buy again but will also create loyalty and better relationships.
Correlate this tactic with abandoned checkouts or users forgetting to order after adding to the cart. Primitively, this will help in multiplying the product sales and increasing revenue.
2) By Showing Ads To Users Who Viewed The Detail Page
Another great method where sponsored ads fit into multiplying product sales is by showing display ads to users who viewed the detail pages of your advertised products or similar products.
This will surely entice them to see, explore, and add to cart actions. And that’s all – winning.
But you have to be more creative than before because there might be a reason why they left your detailed page and are not coming now. Be optimistic and creative while adhering to this approach.
3) By Serving Ads To Those Who Searched For Similar Products
Today’s buyers are educated and aware.
They search immersively and aren’t just stuck on one product’s alternatives. They explore more options by searching for similar products or relevant keywords.
You can serve sponsored products and bid on keywords similar to targeted products. These ad placements are distinctive and offer different results.
For instance, running a “Sponsored Products related to item” carousel escalates the opportunity for greater brand exposure and recognition.
Though this concept is completely different, you might experience a difference in the cost structure. It is important to pre-plan your cost expenses along with campaign end objectives.
Should You Use Sponsored Product Ads?
Yes, definitely brands should use Sponsored products for their marketing campaigns. It enhances your product life cycle by supporting key business objectives such as:
- Product awareness
- Customer acquisition
- Brand loyalty
- Increase product sale
- And much more!
Remember, when we consider a buyer’s buying journey, they typically take time to make purchases. Blending attractive discounts and saving options in Sponsored ads might reduce the waiting time and prompt faster buying decisions.
In the end, there are key opportunities in Sponsored products for brands. Try considering Sponsored product ads and experience them on your own.