Basics of digital advertising for e-commerce
Kwontavious Billingsley FEBRUARY 27, 202010MIN READ

If you have ever considered digital advertising for your e-commerce business, then you might have heard about how it can be an effective marketing tool. Digital ads are constantly evolving and have changed the way we buy and sale online.  They have become a critical part of a business's overall marketing goals and knowing how online ads work is essential for businesses.


What is digital advertising?

To put it simply, digital advertising is a targeted approach to marketing that uses data-driven advertising for reaching consumers at any stage of the buying journey. It includes promotional advertising and messages through emails, online advertising on search engines, and banner ads on websites or mobile. Digital ads are flexible in the type of promotional content used and saves time when planning marketing strategies. Overall, digital advertising allows businesses to delivery promotional messages to consumers in a more targeted way.


Digital advertising is measurable

Digital ads make it possible to fully analyze which audience touchpoints are most likely to translate to buyer conversion. Businesses now have access to measurable solutions that can be modified and are user-first oriented. These data-driven attributes help you determine exactly which ads and campaigns are having the most positive impact on your business objectives. This allows for ad buying management to be more efficient, faster and a lot more cost-effective for businesses, by getting rid of some of the human element from the process.


Types of digital advertising

Cost per Time (CPT): CPT is calculated according to the amount of time your ad is displayed, which is very similar to how businesses are charged in traditional advertising. Since you cannot target consumers precisely with this model, it's less likely to be used by businesses.

Cost per Mille (CPM): CPM is based on the cost to reach one thousand users per impression. This typically applies to display ads, banners and native advertising. It's also useful for comparing advertising costs across different media channels as a metric.

Cost per Click (CPC): CPC is the most common form of digital advertising when it comes to e-commerce ad buying. It's the actual price you pay for when a consumer clicks on your pay-per-click marketing ad. A "click" represents a visit or an interaction with your company's product or service.

Cost per Sale (CPS): CPS is an advertising model where you are charged for sales generated by the ad publisher. This model can be beneficial to your business because you are only charged after the customer makes a purchase. 



So, there you have it, the basics of digital advertising and how it can impact your e-commerce business for the better. Now that you have a basic understanding of digital advertising, you should take a look at how it can be incorporated into your business marketing goals and objectives.  Not only can it be more efficient, and often times a lot cheaper than alternatives, but it's also very effective in improving the way you spend your marketing budget.