To Provide Targeted Ads, Shopify Provides Data To Merchants
Shopify aims to increase its income by assisting shops in delivering tailored advertisements.
According to a story published by the Financial Times (FT) on Monday, the eCommerce platform uses its newly announced agreements with Meta and Google to help merchants find and connect with potential consumers (Jan. 2).
“Especially right now, merchants want to be able to find more customers,” Shopify President Harley Finkelstein told the FT.
The company’s solution, dubbed Shopify Audiences, aids shops in delivering tailored adverts when consumer spending has been hampered by economic uncertainty and rising inflation.
According to the article, Shopify Audiences enables shops to submit their customer data to Meta and Google advertising platforms. These platforms then utilize the data to allow marketers to target their advertisements to customers who have bought comparable items from other sources.
Shopify stated that this service offered a novel, economical method of reaching customers prepared to make a purchase when it first debuted in May.
“Shopify Audiences uses the collective power of Shopify merchants that band together to unlock the power of their data,” Shopify Senior Product Lead Jonathan Zhao wrote in a May 11 blog post introducing the service. “Buyers who purchase from our merchants are some of the highest quality customers on the internet.”
Due to the slowdown of eCommerce sales, this tool has become a crucial opportunity for Shopify.
Retailers consider their involvement in Shopify Audiences as a method to reach new prospective consumers based on data from Instagram, Google, and YouTube, the research states, despite their reluctance to submit data that would be gathered and utilized by other merchants, which may include their rivals.
Some trepidation will always accompany data exchange, Finkelstein told the Financial Times. But that’s frequently counterbalanced by my overall earnings and sales.
There is a growing interest in ad sales among many merchants.
According to Sept. 22 report, Walmart and its Sam’s Club warehouse subsidiary made significant marketing pushes, and Amazon Advertising introduced new techniques for merchants to stand out in the “Attention Economy.”
