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Deciphering the Basics of Shopify App Store Ads

Not hitting enough sales each month? We’ve all been there. One way that can help us through this hurdle is using proper advertising for our Shopify stores. This ensures that our released funds will be optimally used to reach the people that we intend to sell our products to.

What better way to ensure effective online marketing on the app store than by knowing the basics of how ads work? In this article, we will learn about what ad campaigns are, what they have to do with ad spend, and how they can ultimately increase our sales.

The Importance of Understanding Ads

Aside from making the most out of our budgets, it’s best to know the basics to help us with the following:

  • Determining our best-selling products and maximizing our promotions toward it
  • Identifying the products that are related to the best-selling ones but are not yet included in our product listings
  • Stopping ad campaigns that are not effective in funneling sales
  • Optimizing ad campaigns that are initially performing poorly but may have some potential
  • Observing the buyers’ behaviors that compel them to eventually buy our products
  • Retargeting ad campaigns once they start to perform differently
  • Identifying possible obstacles that prevent the buyers from clicking the checkout button
  • Knowing the most compelling CTAs as far as our customers are concerned

Keywords and Sales

When curating our product listings, we have to make sure that customers actually use the terms to search for the items themselves. This ensures that we’ll get a higher chance of landing multiple sales from different customers. For this matter, keyword research is the key to determine the commonly-used terms that can provide the highest possible results.

It gets a bit complicated when we add more product listings to our app store. If we know nothing about ad attribution and how to read the metrics, we’ll continue blindly running all the ads to ensure that we make sales just the same. The sad thing here is that we could have simply allocated the additional budget for the high-performing ads. At the same time, we can simply turn off those that are not as effective. This way, we can make more profit in the long run by maximizing the budget for ads.

To do this, we have to first determine the keywords that attracted the customers to visit our store. Even if each ad has a specific set of keywords assigned to it, it will still take time to pinpoint the one we’re looking for, especially if these keywords belong to one niche.

Shopify App Store Ad Performance

Two of the main variables often seen when measuring performance and sales are time and revenue for that given period. In traditional online marketing, we know that we’re getting good sales if the revenue goes up as time passes by. This makes sense because if we sell more products to more people, it translates to an increase in profit over time.

With Shopify app stores, it gets a bit tricky. We will start to notice increased sales when the charts show that there’s a dip in revenue over a given timeframe. It sounds weird, right? How can we tell that there’s more profit when the charts that indicate it tell us otherwise?

Well, if we strictly rely on charts and their results, we could say that the app store never made any sales at all. This looks like the case because all the sales will be attributed to the date when we launched the ad. Let’s say a customer clicks on an ad and decides to buy the product that the ads promoted one week later. In this scenario, the sales will still indicate that the item was sold one week before the actual product checkout.

Interpreting the Data

What does all of this have to do with how we look for the ads and the keyword that made the sale? Simply put, Shopify organizes the data in such a way that we just have to determine what ad we launched on what date. From there, we can readily see the assigned keyword to it.

The common practice is to allocate the same amount of funds to launch different ads. These ads may or may not be launched on the same day. To discover which of these perform the best, check the amount spent on the ads and compare it to the revenue generated. Another way to check is to simply look at the return on the specific ad spend in question. The highest percentage among all the running ads is considered the most effective. In this light, it’s safe to say that ads that run longer tend to give out more accurate results in terms of revenue and customer conversion.

However, we have to take note that over time, the sales related to this ad will likely start to dwindle. This is inevitable no matter how much or how often we try to boost it. When this happens, we have to come up with new materials for advertisement. That’s another story for another day.

Final Thoughts

That pretty much sums up all you need to know about the basics of Shopify app store ads. Just remember that when running your ads, you have to note down which ones perform the most. We have to do this as soon as possible to maximize our funds for ads. This also helps prevent unnecessary ads from running longer, thus avoiding strain between us and the customers.

With ad attribution, there’s no one-size-fits-all approach. Hopefully, this article managed to shed some light on the technical side of advertising so we can get going on our next steps. Contact us today and we’ll be more than happy to guide you to learn more about how to increase and surpass the store’s expected ROI. We can help you customize the best possible approach to ensure that ads will work to your best advantage!

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