-
E-commerce Paid Advertising Highest Pricing Ceiling?
So I’m putting together a strategy for our ecom business and want to make sure we promote the right products in the right markets.
We’ve been promoting our outerwear on IG and FB paid ads to the US market (we’re UK based), although they haven’t performed that well in the past. My biggest hunch is that the price point is far too high (+300$) for people to want to invest directly from an ad without even seeing the product in real life (our business is mainly D2C but featured in some physical retailers so it’s unlikely they’ll see it before they buy).
I wanted to see if there was any research that indicated average price ceilings (maybe split by industry) of what people were willing to pay directly from a paid ad.
I appreciate there are A LOT of factors to play so not sure if a slap dash figure exists, but any research that could help support my point would help. And yes I also appreciate with the right retargeting strategy we could most probably push some customers over the line, but I’m looking at investing in more paid friendly products and then the higher price point items we do much more storytelling and organic selling around.
Any help would be appreciated!
-
4 Replies
-
We had an outwear brand 2 Winters ago and selling online even in Canada was HARD without people knowing your brand. We sold a tons of product in stores across Walmart and others. Our jackets were $200 – $300.
In generally, we find with clients selling across Canada and USA. USA are more price sensitive then in Canada. We have found paid search better for price sensitive items…. at least in our experience.
-
I sell 5-10 home appliances every day between $1000 and $8000 per sale. Paid ads are totally possible to work with almost any product, but I focus much more on paid search, social wouldn’t be great for this.
-
Google shopping has been awesome for me when selling higher priced items (average sale $1500) whereas Facebook has been awesome for selling lower priced items (average sale $75 but more quantity). YMMV but Google has much higher intent via search keywords than an interrupter ad like a FB newsfeed ad
-
I work with a lot of higher end apparel and shoe brands – with AOV’s ranging from $200-$400+. I don’t have any issues advertising them and we’ve seen huge growth. One thing I do like to do is keep the campaigns mostly all prospecting and then have an offer like 10% off their first order (sometimes better dependent on brand). We know LTV and propensity to place a 2nd, 3rd order, etc so it can make that initial purchase a bit more reasonable for the consumer. And that when they receive, touch, wear the product they will see the quality and have no problem paying full price on successive purchases.
I actually prefer to work with high end brands with high price points. It makes getting that ROAS so much easier pretty much in all the channels.
Log in to reply.