Insights from the Experts
Promoting your business can be a challenging task. We’ve been working hard to acquire valuable expertise in this area for quite some time. Today, we're excited to share a special post with you, delving into a real-life situation revolving around Shopify Ads.
Recently, we had an illuminating conversation with Anton from SpurIT. With a remarkable track record, SpurIT has successfully delivered more than 50 large Shopify projects and introduced over 25 apps to the Shopify App Store over time. We've distilled Anton's wealth of experience, highlighting key insights and actionable strategies that you can start implementing right away. Join us as we explore the world of Shopify Ads, and discover the tips and tricks that can propel your business to new heights. We've got the insider scoop to help you thrive in the competitive e-commerce landscape.
Navigating the Shifting Landscape of Online Advertising
In the ever-evolving world of digital marketing, the tried-and-true methods no longer guarantee the same results. Remember the days when you could use Google Ads to target "Shopify" as a key search term, driving a flood of relevant traffic to your listings? Unfortunately, those days are behind us.
Today, businesses seeking to promote themselves across multiple channels often encounter challenges. To gain visibility, you ought to invest in building your brand and optimizing your presence through Google Ads. Similar hurdles await those diving into SEO, as crafting unique, Shopify-specific content has become increasingly challenging. The platform's expansive reach means they're siphoning a considerable portion of this traffic to their landing pages.
Media ads have lost their effectiveness, particularly when it comes to targeting a lookalike audience interested in Shopify. Experiments may sometimes positively surprise you, but not the ones with Bing that clearly yields poor results, with exorbitant costs per click and almost no relevant traffic available. Facebook Ads may still work for specific business models, such as dropshippers-focused apps. Collaborations with YouTube bloggers, once a reliable tactic, has become less effective due to the escalating technical support requirements and increased costs.
Then there are Shopify Ads. The costs of running these ads have surged significantly. In less competitive categories, the Cost Per Install has jumped from $5 to $12-15 in just a few months. More competitive categories have witnessed the Cost Per Install skyrocketing to $50, making it difficult to justify ad spending, especially if your Lifetime Value (LTV) is in the low double digits. That said, some developers who persistently use Shopify Ads month over month have seen a gradual reduction in Cost Per Install. For example, going from $43 to $39 and eventually $28 over the last three months. However, such an approach demands a monthly budget of $1500-2000 to make it feasible.
There’s been a massive inflow of merchants on Shopify platform during Covid pandemic, but growth has slowed down substantially since then. The rate of new Shopify Apps emergence is mind-blowing, with up to 70-80 new Apps being launched every week lately (as per SASI stats). The market is becoming increasingly saturated. Getting on the title page of Shopify Store (relatively new display addition) isn’t easy with various developers reporting racking their bids from $3 to $15 and above and not being featured there still…
Practical Tips for Navigating the Shopify Ads Landscape
In the ever-evolving world of Shopify Ads, practical strategies are your secret weapon. Here are some valuable tips to help you make the most of this dynamic platform:
1. Choose Your Category Wisely: Carefully selecting the category you want to compete in has never been more critical. In a landscape where businesses are still pouring substantial funds into advertising, standing out and securing bids in the Shopify Ads battleground can be challenging.
2. Maximize In-App and Cross-App Promotions: In-App and cross-App promotions, while contributing a modest 3-4% of overall traffic at best, can still be effective. However, the key lies in closely aligning thematic content to make these promotions work. Remember, most conversions occur at the point of install, so capturing attention in that crucial moment is your best bet.
3. Leverage Time-Tested Sales and Business Development Approaches: Don't underestimate the power of traditional sales and business development tactics. These strategies can still work effectively, particularly for mature businesses, even if they rely less on online advertising.
4. Forge Partnerships with Professional Agencies and App Developers: Collaborating with professional agencies and other app developers remains a worthwhile pursuit. However, it's essential not to rely solely on these partnerships as your primary sources of traffic.
5. Analyze Unit Economics: If your business model heavily relies on usage charges tied to merchants' sales volumes, closely track this dependency. Invest in marketing when your unit economics favor it.
Is the Game Worth Playing?
Whether Shopify Ads is worth the investment depends on your business and its goals. If you aspire to significant growth, Shopify can serve as an excellent springboard. However, it's essential to have a clear strategy and a unique selling proposition. Rather than relying on just one or two channels, consider utilizing multiple promotion methods to maximize your success.
For those who prefer a steady, incremental approach, consider using Shopify Ads as a second step once your app has gained traction with reviews and momentum. Shopify Ads can not only provide immediate traffic (albeit potentially costly) but also contribute to a higher ranking on the Shopify App Store. And if you are looking for a helping hand with Shopify Ads, don't hesitate to check our Shopify Ads Services.