In the increasingly competitive e-commerce landscape, effective product promotion is crucial for any business's survival. On-platform and off-platform advertising represent two popular and highly effective approaches to reach customers. However, with a limited budget, how can businesses allocate resources wisely, optimize costs and achieve maximum impact? Let's explore the answer with Lameco in this article!
What Is On-Platform Advertising?
In-platform advertising is a form of product/service promotion directly on e-commerce platforms such as Shopee, Lazada, and Tiki. This method allows you to reach potential customers who are looking to shop directly on the platform by increasing traffic to your store through advertising.
There are two ways to increase traffic to your store:
Free Traffic
- Shop Optimization: Optimize keywords, images, product descriptions, etc., to improve product visibility in search results.
- Participation in Platform Promotions: Leverage flash sales, discount vouchers, etc., offered by the platform.
- Live Stream Selling: Enhance customer interaction and showcase products in real-time.
Paid Traffic
- Use the advertising tools of e-commerce platforms such as Shopee Ads, Lazada Ads, and Tiki Ads to display your products in prominent positions, allowing you to quickly reach your target customers.
What Is Off-Platform Advertising?
Off-platform advertising involves promoting products/services on channels external to e-commerce platforms, directing potential customers to your online store. Popular off-platform advertising methods include:
Owned Media
- Website/Blog: Create high-quality content that attracts potential customers and guides them towards your e-commerce store.
- Social Media: Utilize platforms like Facebook, Instagram, TikTok, etc., to run ads, create mini-games, host live streams and engage customers.
Paid Media
- Google Ads: Employ search ads, display ads, etc.
- Facebook Ads: Target customers based on demographics, interests and behaviors.
Earned Media
- PR and Reviews: Collaborate with media outlets and product review channels.
- Influencer Marketing: Send products to influencers for reviews and endorsements.
The Importance Of On-Platform And Off-Platform Advertising
Off-Platform Advertising Drives Traffic
- Expands Customer Reach: Reaches potential customers who haven't used e-commerce platforms before.
- Increases Brand Awareness: Enhances brand visibility and recognition.
On-Platform Advertising Drives Purchases
- Targets Customers with Existing Demand: Reaches customers who are already shopping and more likely to convert.
- Encourages Purchase Decisions: Utilizes attractive product images, enticing promotions, etc., to accelerate the checkout process.
Combining On-Platform And Off-Platform Advertising
For optimal results, businesses should strive for a harmonious blend of on-platform and off-platform advertising, creating an effective sales funnel:
- Awareness: Employ off-platform advertising to reach potential customers and introduce products/services.
- Conversion: Guide potential customers from off-platform channels to your e-commerce store.
- Action: Utilize on-platform advertising and promotions to encourage checkout.
Budget Allocation For On-Platform And Off-Platform Advertising
The ideal budget allocation between on-platform and off-platform advertising depends on various factors: the industry, target audience and stage of business development.
For New Sellers
Focus the budget on:
- On-Platform Advertising (70%): Generate initial orders quickly and build credibility.
- Off-Platform Advertising (30%): Run Facebook and Google Ads with smaller budgets to reach potential customers.
For Businesses With Stable Traffic
Allocate budget more flexibly based on objectives:
- Increased Brand Awareness: Prioritize off-platform advertising (Owned Media, Paid Media).
- Sales Growth: Focus on on-platform advertising and attractive promotions.
Conclusion
Effective budget allocation for on-platform and off-platform advertising is crucial, requiring sellers to track, evaluate and adjust their strategies based on their shop's development stage.
Looking to thrive in the e-commerce world? The team of experts at Lameco is always ready to support you with the best optimization solutions! Contact us today for a free consultation!
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