Ending the year on a Positive Note
The State of E-commerce 2022
E-commerce has grown to become a giant pillar in the global economy. The current global e-commerce industry is measured as 5.7 trillion dollars in 2022 and is only expected to grow. The biggest nudge was the pandemic which permanently changed how people purchase and their perspective toward e-commerce shopping. The pandemic is somewhat over, but the shift in purchasing behavior stuck with us, for better or worse, mainly due to its conveniences. According to research completed by eMarketer and Statista, this figure will reach 6.51 trillion in 2033. There is no sign of slowing down for the foreseeable future.
The State of Online Ads 2022
This surge in e-commerce shopping has profoundly changed the online ads
industry as well. Remarketing using online ad platforms is the bread and
butter of the e-commerce industry. No matter how big or small an
e-commerce company is, everyone has to rely on online ads to generate
sales, traffic, and brand awareness. Where primarily the online ads are
dominated by Google ads and Meta (Facebook) ads, we have started to see
other platforms entering this industry. Now you have LinkedIn Ads, Quora
Ads, Tiktok Ads, Reddit Ads, and Twitter Ads. Basically, every online
platform is rushing to get a slice of the pie. Even Apple is rumored to
enter the industry as well. In 2022 Global Digital Ads Spending is
expected to be $441 billion.
That is a big number; let that sink in. This goes to show how massive the
online ads industry has become. As good as it sounds for the big online ad
corporations, the same can not be said for smaller to mid-sized e-commerce
and the consumers themselves.
The Unseen Ramification
No matter which online ad platform you prefer, they all work on a similar
concept.
You reach a bunch of people, show them your ads, and in return, the
online ads platform charges you money.
The target audience you choose is very critical here. No matter
what target audience you choose, the online ads platform will show them
your ads, regardless of the relevancy of the target audience with your
brand and product. You either get a lot of sales from the campaign if your
target audience choice is a good one, or you lose the campaign cost on the
wrong target audience choice.
And during special holiday events, big e-commerce companies can hike up
the bid price as they can afford to spend a lot more. Black Friday is when
larger corporations take it up a notch. Every company is trying to reach
the same online profile for their online ad campaigns, but there is a
finite number of online profiles. Anyone with a basic economics
understanding can see the demand-supply dilemma here. During this period,
larger corporations spend extensively to reach these online profiles
raising the bid cost. This brings in a new level of difficulty for smaller
and mid-sized companies. They do not have the luxury and the budget of
these larger corporations. As a result, small & mid-sized e-commerce
companies may see the campaign cost rise or the campaign reach plummet
significantly.
Read our
article about Black Friday
for more info.
This is especially true for remarketing online ads. The most common target
audiences used in the e-commerce industry is
all website visitors, product viewers, and add-to-cart audience.
There is nothing wrong with it, technically. However, inherently this is
very inefficient and can have huge effects in the long run.
A lot of people come to your website, but only a very small proportion
buys something. A lot of people might have clicked somewhere and come to
your website mistakenly; therefore, they bounce off.
Would it be wise to advertise to them without knowing their interest in
your brand and products? No is the short answer.
A lot of people look at your product on the website, but again only a few
fractions of them end up purchasing. After viewing the product, they might
realize the price is not convenient to them, and the product is not to
their taste. These are the reasons that come from the top of the head
without diving deeper.
Would it be wise to advertise to them? The short answer is No Again.
This is a big dilemma in the e-commerce industry. If you try to reach
these visitors, let's assume all website visitor is 100, only 20 are
interested in your products, and only 10 ends up buying in a very good
scenario. Then you are basically wasting your money on the 80 irrelevant
people. You could have generated the same number of sales if you could
reach the relevant 20 people from all your website visitors.
Inherently, online ad platforms do not prevent you from spending the
campaign budget on the wrong audience.
In other words, a big chunk of money is wasted on the wrong audience, and
the real profit is made from the online ad platform’s end.
If you take this small example to a global scale, you will see how much
money is wasted on the wrong audience. Now try to
look at it from the end-user’s point of view. They see hundreds of ads
daily in their digital spaces. Only a small fraction of the ads are
relevant to them, to their taste, and relevant to the products they want
to buy. No wonder the world is fed up with online ads.
Let's try to fix this from both advertisers’ and consumers’ points of
view.
Advertiser & Consumer Friendly Online Ads
Imagine this:
- What if you could reach the relevant audience from your website visitors and get the same, if not more, conversions/sales you normally do from your remarketing ads with a lower campaign budget?
- What if consumers are coming across fewer ads but relevant to what they want to buy and the taste of their product of choice?
The other aspect is the personal data protection law and user tracking scenario. However dystopian it may sound, big corporations track and use the personal data of users. It is such an intricate system that no clear solution exists at the moment.
- What if advertisers can respect the personal data protection law as much as possible and not violate any legal laws?
Wouldn’t that be great? Definitely, yes, any rational advertiser
and consumer would agree it's much better than the current state of
things.
This is where Enhencer comes into play. Enhencer tries to solve this
scenario. Enhencer is an online tool that helps e-commerce companies to
reach their most important, interested, and relevant audience from their
website visitors.
What is Enhencer?
Enhencer integrates with the e-commerce website, and using first-party cookies, Enhencer analyses the website visitors’ behavior and finds out which visitors are more interested in that particular website and its products. Enhencer does this without collecting or utilizing any personal identifying information like name, gender, email, age, location, etc. Basically, when website visitors come to the website, they leave an on-site behavior. Enhencer’s AI algorithm learns the behavior that leads to a website purchase and the behaviors that do not. As a result, Enhencer's audience only consists of website visitors that are truly interested in the brand and the product and leaves out the website visitors that are not interested. Therefore, removing the necessity to advertise to all your website visitors.
Enhencer’s Contribution to E-Commerce Industry in 2022
Enhencer’s statement and vision are to create an advertiser &
consumer-friendly online ads eco-system.
For Advertisers:
- Eliminate the need to reach out to all your website visitors and Reduce the campaign cost for the advertisers.
- Generating more sales/conversion by reaching a smaller but relevant audience.
- Protect the brand image and impression by not showing ads to irrelevant people over and over.
- Streamline the target audience selection using AI so that companies can save time on this and spend on other aspects of their business.
- Smaller to mid-sized companies were able to reach their targeted audience despite competing with a lower budget with larger corporations, thanks to precise target audience selection.
For Consumers:
- Reduce the number of ads they see on their online space.
- Only seeing the ads related to the products they are genuinely interested in.
- Respect and Protect their personal identifying data that is used for online advertising.
Enhencer is working with hundreds of e-commerce companies around the
world and has created a profound ripple effect on the e-commerce and
online ads eco-system.
In 2022 Enhencer has:
- Worked with 250 e-commerce companies from 20 different countries.
- Enhencer has seen and analyzed more than 478 Million Website visitors.
- Out of this huge number, Enhencer's Audience included 159 Million visitors that these 250 companies reached using online ads.
- Despite only reaching almost one-third of their website visitors, Enhencer has more than doubled the campaign conversions from the online ads for these 250 companies.
- Meaning these companies did not reach out to 319 million visitors as they were not interested in their products and brand.
- Companies saved a monstrous amount of money by excluding these visitors.
- 319 Million people did not see irrelevant ads from these companies. Companies prevented creating any negative brand awareness and annoyance by not showing ads to irrelevant people over and over.
- All this was possible without collecting a single personal identifying data about the website visitors.
What’s to Come
When compared with the global scale of the e-commerce & online ads
industry, enhencer’s effect may look very insignificant.
However small the effect is, it's only the beginning and a step in the
right direction
that the industry should normalize as well. Any ecosystem should have
balance and respect toward all the individuals in it. With the current
scenarios, online ads can become very tiring for both consumers and
advertisers.
Enhencer wants to change the picture even further and create an ecosystem
that is friendly to both advertisers and consumers. When you project
Enhencer’s 2022 effect on a global scale, you can see how it can benefit
both advertisers and consumers. Advertisers can increase their sales with
less campaign budget and reach a smaller but right audience for their
products and brand. Smaller to mid-sized companies can reach their
targeted audience while competing with a lower budget compared to larger
corporations. Consumers will see far fewer ads that are very irrelevant to
their taste and their interest. It's a win-win for all the individuals in
the ecosystem.
Enhencer has more than tripled its operation compared to 2021 in terms of
the companies it works with, the technological infrastructure it provides,
and the services it provides to advertisers. The enhencer team has doubled
in size in 2022 and expects to include more talented individuals that make
all these positive changes possible.
Enhencer’s objective for 2023 is to work with even more e-commerce
companies around the world and bring this positive effect on their market,
consumers, and advertisers.
Enhencer wishes to thank all the companies that trust and chose to work
with it and thank all the hard-working individuals that made it all
possible, marking the end of 2022 with a positive note that we keep
creating the online ads ecosystem that respects its consumers, their data
protection law, their online space, benefits its advertisers on both
monetary factors and brand awareness images and creating a healthy
interaction with its consumers.
