Nov 6, 2022



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How Retailers Can Maximize Ads Campaign ROI With Minimum Spend

Here are some key figures that demonstrate the value of ad spending. This article is an important look into the growth potential of your business with paid advertisements.

How Retailers Can Maximize Ads Campaign ROI With Minimum Spend

Wow ads with a minimalistic approach for getting the point across social media and larger than life ads with phenomenal product snaps have done an excellent job in increasing brand awareness. Creative ideas combined with stunning visuals and effective copy work as a proven formula for eCommerce digital marketing. In the age of advertising, more and more tips and ideas come up to refine digital ads and guide your eCommerce marketing team with insights and trends. 

Importance Of Digital Advertising

Businesses now compete rigorously for an established online presence. Significant numbers of businesses – 50 million+ use social media for connecting with their customers to build a strong social media presence as their plan of digital media marketing.

In fact, it has been estimated that at the end of 2019, US Retailers would have spent 27.58 billion dollars on digital advertising. US Retail industry is the leading and dominating force in the US’s digital ad business.

Out of 7.7 billion people, 3.5 billion are using the media. So, when almost half of the world is on social media, putting one’s business on offline mode doesn’t make a good eCommerce marketing strategy especially when the business earns money from online customers.

Importance of reaching out to customers and motivate them to learn about your products and services counts as crucial for performance marketing. Even pitching with engaging offers to the existing customers deems to be a Priority To-Do Task. But one question will continue to hit harder than the ads:


Most businesses witness spiked orders while they run their campaigns but after that, the impact declines, lowering their order count. Seeing this, retailers once again engage in campaigning only to realize they are trapped in a never-ending loop that’s piling up the expenses and giving a scanty return on ad spend.

To understand the relation between Digital Spend and Order Count, refer to the example below of an online retailer that is using Enalito app for business analytics, insights and to optimize eCommerce campaigns.

enalito app
enalito app

In May 2019, the retailer spent $3994 on all the digital marketing campaigns and Order Count for the same month accounted for 10977. Later on, in July 2019, the retailer lessened its digital spend to $1025.

Result: Since the marketing campaign’s reach and effectiveness diminished in accordance with the budget, the retailer witnessed its impact on the orders from the store. The order went down to 10864, a degrade of 113 orders as well as the store’s revenue.

enalito app
enalito app

Such scenarios are common  in eCommerce businesses and showcase the relation between Digital Marketing and Store’s Orders. It shows how useful digital marketing campaigns can be in strengthening customer relationships. Ultimately, it all results in increased business revenue if the campaigns are executed well.

And the analysis of campaigns is as critical as strategizing them. If optimized, both of these steps can work wonders for your business. This is the case because the analysis can further help you make decisions for strategizing your next digital campaign.

Ideally, optimized digital advertising campaigns should fulfill these objectives for your business:

·        Acquire New Customers

·        Decrease Wasted Ad Spend

·        Improve Brand Recall & Affinity

·        Increase Customer Retention

·        ROAS Improvement

Knowing the numbers can significantly help in assessing the patterns and impact of business initiatives. eCommerce businesses should aim to minimize digital spend and earn maximum ROI. While the two objectives contradict each other, it will be next to impossible to carry out both in the same timeline. This is where Analytics & Personalized Marketing can help! Let’s explore its capabilities to optimize advertising spend:

1.   Tracking Important KPI Trends

Powered by advanced Machine Learning Technology and Artificial Intelligence, analytics lets you deep dive into your business and its performance by collecting all business and campaigning data and presenting it in a manner that's easy to understand. Business Analytics is based on important business Key Performance Indicators (KPIs) for insights that can help in making key business decisions. Comparing KPIs with each other in the specific timeline lets you understand how they’re interrelated. Just like how we derived the relation between Digital Spend and Order Count.

Moreover, with advanced analytics, a business can track New Buyers Cardinality and Repeat Buyers Cardinality in the same timeline of Digital Spend and Order Count. This can let you know the change in the Number of Customers before/after running digital campaigns and how well these customers respond to your campaigns. Discover whether you’re acquiring new customers with the campaigns or increasing customer retention via an Increase in Repeat Buyers Cardinality or maybe both. Such insights are followed by informed business and marketing decisions to optimize ad spend.

2.   Predictive Customer Profile

Once you’ve established an understanding of what’s happening and why is it happening, analytics will further let you dwell into customer behavior with your store by custom segments. All customer attributes are scored, calculated and updated in real-time. This continuous learning, across multiple attributes, helps predict the future behavior of customers.

Analytics’ feature of predicting customer’s behavior is no less than a treasure for retailers!

Insights related to the predictive behavior of customers can guide your marketing team on which customers you should be campaigning with what amount. With precise targeting and using advertising techniques to lower ad spend, the business can gain the maximum ROI with a minimal budget.

Additionally, the behavior reports work as a torchlight to personalizing the campaigns for each customer to encourage shopping more.  This ensures optimal usage of your resources towards campaigns for existing customers.

3.   Maximize Campaign Reach With Look-Alike Customers

Now that the business and marketing stakeholders have information on customer behavior and how well they engage with the store, targeted campaigning through social media can help in engaging new customers that are a lookalike of your store’s most profitable customers/ customer segments; indicating a high chance of converting.

For example, if your profitable customer base consists mostly of boutique owners, targeted campaigning made specifically for all boutique owners by lookalike custom segments can result in increased conversions and accelerated revenue growth.

To carry out such a powerful customer analysis and then automate marketing campaigns, you'd need powerful AI-based technology. It should be capable to understand your eCommerce business needs from the core.

About Enalito

Enalito – a retail lifecycle automation platform build for eCommerce business owners and marketing stakeholders enables you to optimize your marketing communications around real-time customer information to reduce advertising costs. Enalito uses this customer data to predict customer needs, desires and future behaviors. This lets you deliver powerful eCommerce personalized marketing campaigns targeted to your most valuable customers by minimal spend and maximum ROI.

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