Learn to Leverage Performance Marketing to Boost Ecommerce Sales


You've launched your online store and have everything up and running. You're ready to upscale your business and outshine your competitors. While SEO and content marketing are vital, performance marketing can help you gain immediate visibility and drive sales.

Performance marketing, also known as Pay-per-click (PPC) advertising, lets you pay search engines or social media platforms to run ads, with fees incurred for each click on the ad links.

Enter performance marketing! This article can help you attract customers, increase your sales, and make your brand the talk of the town (or the internet, in this case).

What is performance marketing?

Performance marketing is a digital advertising strategy in which you pay for specific actions, such as clicks, sales, or leads, like hiring a digital megaphone to spread the word about your store. You pay platforms like Google, Bing, and social media sites to run your ads and then pay a fee each time someone clicks on a link in one of those ads.

The essentials for starting with performance marketing

Before diving into performance marketing, ecommerce stores must have certain elements in place. Here are five essential items to check off your list:

1. Clear goals: Define what you wish to achieve with your ads. Are you looking to increase sales, drive website traffic, or boost brand awareness? Establishing clear goals will help you stay focused and measure your success.

2. Tracking and analytics tools: Use tools like Google Analytics or Facebook Pixel to monitor your ads' performance. These tools provide valuable insights into what's working and what isn't, equipping you to make informed decisions.

3. Content and creatives: Create visually appealing ads that capture your audience's attention and encourage them to learn more about your brand.

Now, decide how much of your marketing budget should go towards performance marketing. Many ecommerce businesses allocate around 40% since ads can be more expensive than other marketing channels. Source: Brandee Johnson

Remember, the most important metric to measure as an ecommerce store owner is your return on investment (ROI). According to Diamond Group reports, paid advertising can yield an average ROI of $2 for every $1 spent. However, your ROI may vary depending on your industry, targeting, and ad effectiveness.

Measuring your digital advertising performance

Optimizing your ads regularly and monitoring essential performance metrics is crucial to maximize your ROI and make the most of your ad spend. Here's a quick rundown:

  • Click-through rate (CTR): This measure measures the percentage of people who clicked on your ad after seeing it. A higher CTR is a good sign, indicating better ad performance.

  • Conversion rate: This track the percentage of users who take a desired action post-click, such as purchasing or signing up for a newsletter. Higher conversion rates are the ultimate goal, so keep optimizing!

  • Cost per click (CPC): The average amount you pay for each click on your ad. Lower CPC values mean more efficient spending, so aim for a sweet spot between cost and results. Impressions are the number of times your ad is displayed to users. More impressions can increase visibility and brand awareness.

  • Ad engagement: User interactions with your ad, likes, comments, and shares on social media platforms. High engagement signals that your ads resonate with your audience.

  • Quality score: This score assesses the relevance and quality of your ad content, keywords, and landing page. A high score can help improve your ad performance and lower costs.

  • Bounce rate: Measures the percentage of users who visit but leave your landing page without taking action. Optimize your landing page for user experience to lower your bounce rate.

  • ROAS: It is the revenue generated for every dollar spent on advertising. Use this metric to gauge the overall effectiveness of your performance marketing campaigns.

Different types of ads for ecommerce success:

When it comes to ecommerce advertising, choosing the right ad type is key to reaching your target audience and driving conversions. Let's explore various ad formats and their ideal use cases across different industries:

Type #1: Search ads (PPC)

Perfect for: Search ads, or pay-per-click (PPC) ads, are suitable for many industries, especially service-based businesses. These ads capture high-intent users actively searching for specific products or services.

Use case: Search ads are ideal for businesses that capture high-intent users actively searching for specific products or services.

Example: Text Search Ads Ch-12.png

Shopping Search Ads

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Type #2: Display ads

Ideal for: Visually appealing industries like fashion, travel, and lifestyle.

Use case: Brand awareness campaigns, reaching a broader audience, and retargeting. High ROI potential.


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Type #3: Social media ads

1. Facebook and Instagram ads:

Ideal for: Ecommerce, B2C brands, lifestyle products, and events.

Use case: Target demographics, promote products/services, and build brand awareness.

**Example: ** Ch-12 (5).png

2. LinkedIn ads:

Perfect for: B2B companies, professional services, recruitment, and education.

Use case: Target professionals, generate leads and share thought leadership content.

Example: Ch-12 (3).png

Type #4: Video ads

Perfect for: Engaging visual content industries like gaming, entertainment, and tutorials.

Use case: Capture buyer attention, promote products/services, and drive website traffic.

Type #5: Remarketing ads

Perfect for: All industries, especially those with longer sales cycles or high-value products.

Use case: Encourage users interacting with your brand to return and complete a desired action.


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Your choice of ad type depends on your audience, product nature, and customer preferences. Combining different ad formats can create a well-rounded ecommerce performance marketing strategy.

Why can email marketing be a sure-shot hit?

Combine ad types and channels based on your goals, audience, and products for maximum ROI. A successful ecommerce marketing strategy leverages a multi-channel approach to capture and nurture leads, ultimately driving sales.

Once you've generated leads through performance marketing, email marketing helps nurture those leads with personalized content, product suggestions, and reminders. Implement an ecommerce email flow to create targeted email sequences for leads and customers.

Here's a step-by-step guide:

Choose an email service provider (ESP) like Mailmodo. By understanding your audience, product nature, and available ad types, you can develop a comprehensive ecommerce marketing strategy that maximizes ROI and drives growth.

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  • Set up an email flow with pre-built automation tailored to your brand, using interactive elements for higher engagement.

  • Segment your email list based on customer behaviors or demographics to deliver personalized content.

  • You can optimize your overall marketing strategy and maximize ROI by combining performance marketing and email marketing.

In the next chapter, we'll explore tips for leveraging social ads to improve your return on ad spend (ROAS). Stay tuned for more ecommerce marketing insights!


Optimizing your ecommerce marketing strategy with the right ad types is essential for driving growth and success. By understanding your target audience, industry, and product nature, you can select the most effective ad types to boost brand awareness, generate leads, and nurture customers.

Combining the strengths of various ad types, such as search ads, display ads, social media ads, video ads, and remarketing ads, ensures a well-rounded approach to performance marketing. Furthermore, integrating email marketing flows to nurture leads and maintain customer engagement will help you achieve a higher ROI.

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