Ecommerce moves fast, and the only way to keep up is to know what's happening now.
Let's examine July 2024's ad numbers and consider what they mean for your strategy going forward.
The Big Picture: A Shifting Landscape
Ecommerce advertising took an interesting turn in July 2024.
The numbers have changed – and it's not all doom and gloom.
While most metrics are down, smart marketers are the ones who find silver linings and new angles to explore.
Let's see what's going on:
1. Cost Per Mille (CPM): A Breath of Fresh Air
→ Data: 11.9% decrease month-over-month (MoM), 4.7% decrease year-over-year (YoY)
This significant drop in CPMs signals a less competitive ad space.
For advertisers, this means:
- An opportunity to reach a larger audience and build brand demand
- An ideal time to expand reach or test new audience segments
- Opportunity to allocate budget to other areas of your marketing mix
2. Cost Per Click (CPC): Efficiency in Action
→ Data: 3.2% decrease MoM, 3.1% decrease YoY
The consistent decline in CPCs suggests:
- Efficient traffic driving to website due to lower CPMs
- Potential for higher return on ad spend (ROAS)
- Good opportunity to a/b test strategies that require website traffic
3. Click-Through Rate (CTR): The Engagement Challenge
→ Data: 9% decrease MoM, 1.6% decrease YoY
This result in CTR indicates:
- Consumers may be curious but not highly engaged
- Brands need to invest in fresh, compelling ad creative
- Opportunity to reassess and refine your messaging
4. Conversion Rate (CVR): The Bottom Line
→ Data: 1.7% decrease MoM, 10.5% decrease YoY
The significant YoY drop in CVR suggests:
- Consumer trends are shifting (we’re seeing a slump post July 4th sale)
- Increased competition and slowing customer demand
- Opportunity to invest in on-site conversion testing
Turning Insights into Action
While these numbers might seem challenging at first glance, they present a unique opportunity for strategic advertisers.
Here's how to leverage these insights:
- Expand and Experiment: With lower CPMs, now's the time to test new audiences or channels.
- Optimize for Efficiency: Use the lower CPCs to refine your targeting and maximize ROAS.
- Refresh Your Creative: Combat declining CTRs with innovative, scroll-stopping ad content.
- Focus on the Full Funnel: Address the CVR decline by optimizing your entire customer journey, from ad to purchase.
Remember, challenges often disguise opportunities. Stay agile and data-driven, and you can turn these market shifts into your competitive advantage.
What’s Next?
If you are ready to elevate your ecommerce strategy, let's chat about how these insights can drive your success.
Contact us here: https://www.weareqry.com/lets-talk
