The digital landscape is evolving at the speed of light, and those who don't adapt will unfortunately be left in the dark. Rather than relying on exhausted advertising channels or dated marketing strategies, brands need to explore new solutions to engage shoppers and convert them into customers.
Surviving, not thriving: The new reality of digital advertising faced by eCommerce brands
Traditional digital advertising channels are oversaturated and underperforming. Even leading brands are grappling with skyrocketing ad costs, a higher cost per acquisition (CPA), plummeting conversion rates, and a drastic decrease in return on ad spend (ROAS). eCommerce players are struggling to reach new audiences and acquire customers through conventional ad channels like Google, Facebook, and Instagram.
Why traditional digital ad channels are failing to deliver results:
- Privacy and data regulations: New privacy regulations, such as Apple's App Tracking Transparency Framework, have severely limited the data that brands and advertisers can collect on users through these platforms. And with some search engines already blocking third-party cookies, targeting ads effectively has become nearly impossible!
- Increased competition: As more eCommerce businesses flood the market every day, the competition for advertising space and visibility is at an all-time high. This has led to higher costs per ad and higher acquisition costs as businesses bid against one another for ad space.
- Ad fatigue: As more and more businesses advertise on these platforms, users may become desensitised to the ads they see, which can make it harder for new businesses to stand out and drive new sales. Ad fatigue can result in higher ad costs because businesses may need to increase their ad spend to reach new audiences and break through the fatigue.
The Google-Meta advertising duopoly: A game we're all playing
Google and Meta have both become a digital advertising powerhouse. With mountains of user data and super advanced targeting algorithms, these giants have become the go-to for advertisers looking to expand their reach and drive sales. Plus, with ownership of some of the most popular websites and apps, like Google Search, YouTube, and Facebook, they've got access to massive audiences.
It's no surprise that everyone wants a piece of the action, but with the duopoly in power, brands are practically bending over backwards to advertise on their platforms, even if it means paying a premium. And with little advertising competitors, Google and Meta can charge higher prices, leaving all of us at their mercy.
Google and Meta are not always the most effective advertising options. Instead of limiting yourself to these channels, it’s extremely important to consider alternative advertising methods that can potentially yield better results. By diversifying your advertising strategy and experimenting with different channels and tactics, you can gain a competitive edge and more effectively reach and convert new audiences. You need to think outside the box if you want to elevate your eCommerce performance and stay ahead of the game.
From our retail partners, national and global, we’ve found that:
- Google offers an unpredictable return on investment (ROI), around a 15% chunk of your ad revenue goes straight into Google’s pockets. And that’s not all, if you’re paying agency fees or investing your own time in campaign management, your advertising ROI will be drastically reduced.
- With our own advertising channel, called nextbuy, brands are achieving exceptional results, with an unmatched 6% conversion rate – a staggering increase from the average 2.3% conversion rate they’re seeing on Google search ads.
- nextbuy is a cost-effective advertising solution. With our 10x ROI and pay-per-conversion model, we're seeing over a 50% reduction in acquisition costs.
One major drawback of Google ads is that brands are paying for clicks regardless of whether or not they result in a conversion. This can add up quickly, especially for businesses that are running a large number of ads or targeting a broad audience. It can also be difficult to predict how well an ad will perform. Even if a brand is targeting the right audience and using effective ad copy, there's no guarantee that users will click on their ads or that those clicks will lead to sales. Many brands are wasting money on ads that aren't driving any real results. It's not a guarantee of high returns, and it could lead to significant loss of revenue if not used strategically.
Collaboration and referrals, the key to breaking away from traditional digital marketing channels
Despite the dominance of the Google-Meta duopoly in the digital advertising and eCommerce landscape, there’s still hope for brands looking to make an impact. Instead of viewing this as a hindrance, it's time to see it as an opportunity to explore new channels and strategies for reaching and converting customers.
At preezie, we believe that success comes from working together. As Aristotle once stated, "the whole is greater than the sum of its parts." By joining forces and sharing audiences, eCommerce brands have the power to tap into a vast pool of potential customers. Many brands have overlapping audiences that they can leverage through a referral marketing framework, and we have the solution for effectively doing so.
Retailers should leverage each other's owned marketing channels, specifically their websites, to reach shoppers after the critical but exciting moment of confirming their online purchase. This is where preezie's nextbuy network can facilitate the exchange of customers.
nextbuy, powered by preezie, is a simple yet powerful way to drive customer acquisition and generate a better return on investment than traditional digital advertising channels. Brands shouldn't be discouraged by the current digital landscape. Instead, they can all work together to break free from their reliance on tried and exhausted digital advertising channels. It's time to collaborate and cross-promote, creating new opportunities for growth.
How does nextbuy work? A unique advertising channel for brands to capture the undivided attention of potential customers on checkout confirmation pages
Brands in preezie’s nextbuy network are achieving exceptional results, with an unmatched 6% conversion rate - a staggering increase from the average 2.3% conversion rate they’re seeing on Google search ads. It’s a cost-effective advertising solution with a pay-per-conversion model that offers a 10x ROI. Some of our customers are seeing over a 60% reduction in acquisition costs.
Through preezie’s nextbuy network, you have exclusive access to low-cost referrals from the checkout pages of popular retailers. nextbuy harnesses the power of the post-purchase high to present potential customers with exciting offers they can't resist. This way you can reach new audiences you wouldn't have easily had access to, by cross-promoting with non-compete brands. Now you won’t be wasting precious ad spend on impressions and clicks because you only pay when a customer converts - this is the metric that really matters.
The setup process is effortless and requires no maintenance, all you need to do is plug in preezie's code onto your checkout confirmation page. Let the traffic flow in and reach new customers who are ready to buy.