E-commerce has grown more and more competitive as more companies move their operations online. Businesses must create strong marketing plans that promote sales at their online stores if they want to stand out in this crowded market. Ecommerce marketing campaigns are one important method for accomplishing this.
An ecommerce campaign is a coordinated set of marketing activities designed to promote a specific product, service, or event in an online store. Increased website traffic, the production of leads, and increased sales are the objectives of an ecommerce campaign.Performance in the world of e-commerce is crucial. An online store’s success depends on its capacity to draw in and convert customers, which is largely determined by the success of its marketing initiatives.
Measuring the performance of an e-commerce campaign is critical to ensure that the goals are met and making the most out of the marketing budget. Without proper measurement, it can be challenging to understand what is working and what needs to be improved.There are several general campaign performance norms that marketers might employ to evaluate their campaigns. These standards differ depending on the industry, campaign objectives, and audience demographics. Few industry benchmarks for campaign performance are:
- Click-through Rate (CTR): The CTR divides the number of clicks received by a campaign by the number of impressions or views. The average CTR varies by campaign type and industry, but a benchmark of 2-3% is a reasonable expectation.
- Conversion Rate (CR): The CR divides the number of clicks by the number of users who complete a desired action, such as making a purchase or filling out a form. The average CR varies according to industry and campaign type, but 2-3% is a good starting point.
- Cost Per Click (CPC): The cost of each click on a campaign is measured by the CPC. The average CPC varies greatly depending on the industry, but a $1-$2 per click benchmark is a reasonable expectation.
- Return on Investment (ROI): The ROI is calculated by dividing the revenue generated by a campaign by the cost of the campaign. A positive ROI indicates that the campaign was profitable, whereas a negative ROI indicates that the campaign failed. For most campaigns, a 5:1 return on investment is considered a good benchmark.
- Engagement rate : It is the number of likes, comments, shares, and other interactions received by a campaign on social media or other digital platforms. The average engagement rate varies according to industry and platform, but 1-2% is a good starting point.
The budget for campaign performance can greatly differ based on the campaign’s specific goals, tactics, and industry. In general, the budget for campaign performance should be based on the campaign’s expected return on investment (ROI). The budget should be large enough to cover the campaign’s costs while not being so large that it undermines the ROI.
There are several platforms that are ideal for running ecommerce campaigns , some of the most popular platforms are:
- Google Ads-: It is a powerful platform for ecommerce businesses to target customers actively searching for products.
- Facebook Ads-: It is a powerful platform for ecommerce businesses to reach a large audience on social media.
- Instagram Ads-: It helps businesses reach a younger demographic through image and video ads.
- Pinterest Ads-: It helps ecommerce businesses target customers based on interests, search terms, and demographics.
- YouTube Ads-: It is a platform for ecommerce businesses to showcase their products through video content and provide product tutorials to customers.
- Platform-oriented Ads-: It is a platform for ecommerce businesses to promote their products a specific platform like Amazon and uses Amazon’s sponsored products feature to drive more sales.
Importance of Campaign Performance Analysis:
Campaign Performance Analysis is an important component of any marketing campaign, including e-commerce campaigns. Below are some of the reasons why doing campaign performance analysis is critical:
- Measure the Campaign’s Success: Campaign Performance Analysis assists in determining the effectiveness of a marketing campaign. It enables you to monitor how well your campaigns are performing, identify areas for improvement, and make changes to improve overall campaign performance. You can determine which campaigns are generating the most revenue and optimise your marketing efforts to get the best ROI by analysing the data.
- Identify Improvement Opportunities: Analysing campaign performance data can assist in identifying areas for improvement. This information can be used to determine which channels are generating the most traffic and sales and then allocate your resources accordingly. You can also create targeted campaigns to reach specific audience segments that are responding well to your campaigns.
- Optimize Your Campaigns: By analysing campaign performance data, you can improve the performance of your campaigns. You can allocate more resources to campaigns that are generating the most conversions and tweak campaigns that are not performing well by identifying which campaigns are generating the most conversions. This enables you to improve the ROI and overall performance of your campaigns.
- Determine ROI: Campaign Performance Analysis assists in determining the ROI of your marketing campaigns. You can determine which campaigns are generating the most revenue and calculate the ROI of each campaign by analysing campaign data. This data is critical for making educated decisions about how to allocate your marketing budget and resources.
- Maintain a Competitive Advantage: Analysing campaign performance data allows you to maintain a competitive advantage. You can stay ahead of the curve and outperform your competitors by monitoring and optimising your campaigns for better performance. You can also use this information to identify new opportunities and keep up with changing market trends.
CASE STUDY:
One of our clients in the United States, a young ecommerce player who sells beauty products online, wanted to boost their online sales through digital marketing campaigns. In 2021-22, they created a paid search campaign on Google Ads and Facebook Ads. They have a target budgeted of overall 10-12% of their annual revenue for digital campaigns.
They contacted us to help them uncover insights from their data so they could gauge the success of their marketing campaign.
Objective:
- Increase sales: Increasing sales and revenue is one of the primary goals of this ecommerce campaigns. To encourage conversions, promote specific products or categories, offer discounts and promotions, and optimize the user experience.
- Build brand awareness: The company also focuses their campaigns for increasing brand awareness. Promoting the brand’s unique value proposition, creating engaging content and social media posts, and leveraging influencer partnerships to reach new audiences .
- Increase website traffic: Increasing website traffic is another important goal for this ecommerce campaigns. This can be accomplished through search engine optimisation (SEO), paid search and display advertising, and social media marketing.
- Expand into new markets: Expand into new markets and target new customer segments. This include creating localised content and promotions, targeting specific demographics or geographies, and identifying new growth opportunities using data-driven insights.
Our Analysis and Insights:
According to the analysis, the campaign primarily reaches people between the ages of 25 and 34, who are our target market. Additionally, more people between the ages of 34 and 45 are interested in the campaign, so we can include products which will appeal to them as well.
As we cannot determine the type of device in most of the cases still the share of views of the campaign in mobile is relevantly higher than desktop and tablet.
CAMPAIGN PERFORMANCE OF GOOGLE ADS 2021-22
After analysis, we can see that our ad was mostly run on the Brand sub channel on Google Ads, with a significant increase in views from November 2021 to January 2022.
However, it remained stagnant from February 2022 to March 2022, indicating a decrease in the number of functions, gatherings, and events during that time period, Indicating a decline in consumer interest in cosmetics. The reason for this would be an increase in the number of events and parties during that span of time, which would result in an increase in demand for cosmetic products.
CAMPAIGN PERFORMANCE OF FACEBOOK ADS IN 2021-22
With the aid of the above visualization, we can deduce that the campaign was launched on Facebook in December 2021 and the campaign was performing quite well on Facebook between January 2022 and February 2022 whereas it was stagnant in the month of March 2022 and got ended in April 2022. Indicating a decline in consumer interest in cosmetics.
IMPRESSIONS IN 2021-22
Audience Type 1 have the highest share , inferring that they are the segment of customer that will be our target consumers.
Inference from the case study and its business impact:
Based on above findings, the company was recommended to alter its Ads spending strategy.
- The management revisited their Target audience strategy to capture potential customers who are more likely to be interested in their products based on their previous purchase behavior and interests.
- The marketing team re-strategized their creative designs and developed more visually appealing ad creative that highlighted their products’ unique selling points.
Following the implementation of these changes, the company saw a significant increase in CTR, traffic, and sales, resulting in an increase in YOY revenue (Year on Year). The company was able to optimize their strategy and achieve better results by using campaign performance analysis to identify areas for improvement and make data-driven decisions.
Overall, the case study on campaign performance analysis demonstrates the importance of data-driven marketing decision-making. The company was able to identify areas for improvement and make changes to their marketing strategies by improving audience targeting and developing more captivating ad creative, the e-commerce company was able to enhance their Ads campaign. Overall, the case study emphasizes the importance of collecting and analyzing campaign performance data to make better marketing decisions.
We at Venturesathi, have undertaken the project and provided valuable insight which helped them re-strategize their media campaigns to optimize the overall cost and performance. Partnering with us means gaining access to a dedicated team of professionals who are committed to delivering outstanding data analytics services tailored to your unique needs. We are passionate about unleashing the power of data and helping you achieve your business objectives. Our team of experts understands the importance of aligning analytics with your business goals, conducting thorough data exploration and preparation, designing impactful visualizations, and creating interactive dashboards. With our systematic approach, we have successfully helped numerous clients unlock the power of their data, driving growth, improving operational efficiency, and gaining a competitive edge.
Interested in learning more? Contact us today, to learn how we can assist you in achieving your business objectives.
