4 key benefits of introducing Sponsored Product Ads to your Online Marketplace
Online marketplaces are rich with shopping and consumer behavior data. Also, available in abundance are the data sets on the sales performance of SKUs. The trend is, and rightly so, to harness these data sets and find a way to seamlessly monetize them, while inviting other direct and indirect benefits. Serving sponsored product ads on various pages on a marketplace is the all-round strategy marketplaces adopt.
Let’s have a look at the potential benefits of having sponsored product ads on your marketplace.
Boost Merchant Monetization
Introducing merchant-funded product listing ads can give a boost (to the Bottomline of the marketplace) of more than 50% of the revenue generated through GMV. It significantly strengthens the revenue model of a marketplace. The boost in revenue can be utilized to improve the marketplace and the underlying technology.
Smart and self-serving Monetization Platforms like OnlineSales.ai’s Sponsored Product Ads App make the job easier for the marketplaces to scale the solution to thousands of merchants. With ML-led advertising and reporting, even a small team can run and administer the program for thousands of merchants.
Be the Frontrunner
Efficient and smart ad-serving tech gives you an unparalleled edge over your competitors. Intelligent and contextual ad-serving ends up giving advertisers (brands and merchants) great ROIs that make a marketplace the preferred choice for them.
The uptick in marketplace revenue through merchant monetization can be utilized to improve the marketplace tech and widen the offering. This places you in a competitive advantage, thereby helping you strengthen your hold in the market.
Empower and Delight your Merchants
Smartly delivered sponsored product ads can help merchants reach their target audience much faster than the organic way. It enables them to cut through the clutter and reach a potential customer with appropriate product recommendations.
Product ads make an effective tool for sellers to boost orders of both high-exposure products (to maximize profits) and low-exposure products (to accelerate overall sales).
Sponsored product listings also enable a new brand or seller to promote their products faster and compete with established giants from day one. Similarly, newly-added products to a catalog can be effectively advertised.
Sponsored product ads attract exponential attention from potential buyers. A surge in successful assisted transactions is therefore observed, with great return on ad spends for the advertisers, i.e. brands and merchants. An increase in sales also leads to an increase in customer ratings and reviews on a product. This boosts the conversion rate for a merchant further along with organic discovery. The overall result is a delighted merchant who wants to stick with your marketplace forever.
Simplify Shopping Experience
Sponsored product ads are placed in response to searches made by the customers on the marketplace, enabling contextual audience targeting. Ads are placed to match the shopping intent and requirements of the buyers, thereby helping them discover products that otherwise require more searching and extra steps like applying filters, scrolling multiple product pages, etc.
The result is shortened buying cycles and more awareness of products and brands among buyers. Buyers can also discover products with discounts, deals, and offers through sponsored ads in reduced efforts.
Introducing sponsored product ads is based on the strategy of maximizing the utilization of available platform resources, i.e., customer data and product portfolios. The results are multi-faceted, effective merchant monetization on one side, to the empowerment of merchants on the other.
OnlineSales.ai’s comprehensive Monetize App Suite is helping top marketplaces and e-commerce platform providers across industries and across locations to grow at unprecedented rates. Some of these are Sendo (Vietnam), Paytm Mall (India), Souq (Egypt), Haravan (Vietnam), BliBli.com (Indonesia), Konga (Nigeria), and Daraz (South Asia). Get in touch with us to explore how the App Suite can help fast track growth for your marketplace.