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  • Writer's pictureBeerajaah Sswain

Ecommerce Trends - Tough times need fresh approaches

Updated: Apr 1, 2020

Yes, we do see a declining trend but encouragingly, opportunities appear to exist – at least to an extent. We’ve pulled together a few macro trends and observations, share some of the strategies that we have been seeing success with, here are the ones that stand out.

Global CPMsfor eComm is down by around 50% since the start of the month. However, they may be on the rise again.

Global CPCshave also been dropping, but not quite as dramatically. They have been relatively stable since March 14 but are about 33% down since the start of the month.

Conversion rates are around 20% lower than the average we observe. However, for some advertisers, the decline in CPMs have been greater than the decline in conversion rates. This translates to lower average CPAs across the board.


  • The economy has taken a hit, and as expected, several affected advertisers in the travel and hospitality sectors are pulling ad spend from all their channels, including Facebook. These conditions should lower prices for Facebook inventory.

  • Because consumers’ ability to spend offline is severely curtailed, many people will have money available to spend once confidence begins to return.

  • Consumer confidence is low, so more “affordable” product lines, especially those in household and convenience segments, could fare better than those at the higher end.

  • If fulfillment and supply can withstand the pressure (we appreciate that’s a very big “if”), there could be an opportunity for many eCommerce brands. The next 15 days will dictate what happens of deliveries of non-essential items start.

What you should do?

Think Broader

Campaigns with larger expanded cohorts will help weather the effects of change within individual markets. These campaigns will also take advantage of the broader reach and lower cost CPMs. Advertisers we have tested this approach with have seen an 80%+ increase in ROAS in the first 2 weeks.

Rethink your Messaging

You may need to rethink your messaging. Consumer behavior has changed dramatically, as more people spend more time at home and more time online. 

People are turning to their smartphones to keep themselves occupied at home, so finding ways to engage them and speak to their current mindset will help improve your chances of conversion. You can do this by making connections with the things that are in front of minds such as family, social interaction, health and hygiene.

Some may have concerns around delivery, so it’s important to try to make deliveries easier – or free, if possible. 

It may also be a time to test strategies designed to generate interest, banking up new user pools ready to convert at a stage when things are moving out of this difficult period and back to normal.

Test New Channels

With CPMs on the decline across most ad platforms, there’s a great opportunity to test the waters on channels that may have been considered but not yet tested.

Try repurposing some of your Instagram stories into Tiktok or Snapchat Ads. This can be an easy way to try engaging an incremental audience as lower competition helps boost initial results.


Use your brand to your advantage

Pure-play e-commerce brands have the advantage of being top of mind for shoppers who are cautious about crowded places. Emphasize your brand’s at-home convenience as a value proposition. With people choosing to stay home more often and becoming more cost-conscious, verticals like affordable luxury, food & beverage, everyday necessities, and consumables have the opportunity to push a campaign of comfort.

Connect with us if you want to know what we can do for you in this time of uncertainty.

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