A growing presence online, targeted storefronts are poised to take over a growing share of web-based marketing by offering integrated, customised browsing and buying experiences.
Up till now, brick and mortar stores had the advantage of showcasing multiple products in attractive displays. Now, new online ad formats like Facebook Canvas or Collections are letting brands create ads with a variety of products automatically tailored to the website visitor. Unlike traditional banners displaying the same ad to anyone who visits a site, targeted storefronts use smart data to shape the experience and increase conversions. An ad for Gap might show office wear or prom dresses depending on the visitor’s age, gender, and other information. If you recently visited the Gap website, the ad might show some of the items you looked at while you were there, with a dynamic display of discounts and offers that lets you click through to buy.
Targeted ads tend to appear less intrusive than traditional ads because they reflect what a visitor actually wants to see. They allow marketers to automate the process of adapting the message to their audience and increase click-through rates by showing viewers more items that match their tastes. All of these things are true for targeted ads in general, but a key advantage unique to targeted storefronts is that they can convert visitors with just a tap or a swipe. These new ad formats that they take the legwork out of the shopping experience by seamlessly integrating the viewing and buying experience. Consumers have access to a preselected group of items to choose from, and they don’t have to navigate to a different application or browser window when they want to make a purchase.
Targeted storefronts can achieve a much greater level of personalisation at a much lower cost per customer than brick-and-mortar displays. There are certainly other ways to tailor the customer experience, but by using customer data in real time, the new targeted storefront formats achieve a more dynamic form of advertising with a higher ROI.
And the likelihood is that this online trend will start to be seen in physical stores, as well. One New-York-based company called Outernets analyses the characteristics of people passing by a store window and uses the data to determine the message on a digital display. But for the time being, digital storefronts have the advantage when it comes to customised, high-converting ads, and the trend is set to grow in 2018.
