Online retail has grown at a frantic pace over the past ten years.

For many companies, the web is now a central business channel, making e-commerce marketing a crucial part of operations. Understanding how e-commerce marketing actually works is essential for every entrepreneur, marketer, and salesperson.

In this guide, we will go through the most important aspects of e-commerce marketing and best practices.

• We offer an in-depth perspective on various marketing strategies that help you increase the visibility of your online store, attract new customers, and engage existing customers more effectively.

• Among other things, we delve into search engine optimization, digital marketing as a whole, data and analytics, various ad formats, and many other factors that determine the success of e-commerce – both now and in the future.

E-commerce marketing is complex, but it's not insurmountable. Our guide is aimed at anyone who wants to understand how to build an effective and precisely targeted e-commerce marketing strategy.

Whether you run a small startup or an international growth company, there's something for you in this guide.

The article is written by Wuohi Digital's CEO and co-founder Erik Back.

 

E-commerce marketing is a holistic approach

Digital marketing is a broad and complex whole. It is a dynamic world where rapid technological developments and changing user behaviors constantly create new challenges and opportunities.

E-commerce marketing is just one part of this larger whole, but to succeed, one must understand the context and be able to utilize its various components correctly.

The main elements and channels of digital marketing can be divided into five main categories:

• search engine optimization (SEO)
  

• search advertising (SEM, display advertising, Performance Max, retargeting)
  

• content marketing
  

• social media marketing
  

• email marketing
  

Each area offers different opportunities to increase e-commerce visibility and sales, but they work best together – as part of a holistic digital marketing strategy. The overall scope is so extensive that it is wise to break it down into smaller parts to work structured and efficiently.

At Wuohi, we strive to view digital marketing from the perspective of the product or service provider. We use a funnel as a metaphor: at the top, there is a broad group of potential buyers. The further down the funnel you go, the greater the proportion of potential customers who become likely buyers. At the same time, some of the mass spills over the edges of the funnel.

On our G.O.A.T. Funnel™ pages, we provide more detailed information about the different stages of the funnel and how a funnel mindset can be used to maximize the effect of a holistic digital marketing strategy.

The five main pillars of e-commerce marketing

In e-commerce marketing, there are five fundamental pillars upon which successful marketing rests.

1. Search Engine Optimization (SEO) helps people find your business in search engines

Search engine optimization is a central part of e-commerce marketing, as it helps people find a company's products and services via search engines like Google and Bing – organically, meaning without a separate media budget.

SEO, however, is not done solely for search engines but also for people. Through high-quality, informative, and well-planned content, one can answer users' questions and searches, which improves the website's visibility in search results and drives relevant traffic to the e-commerce site.

Search engine optimization should always begin with keyword analysis. Through keyword analysis, the e-commerce site's current situation and the terms and phrases that potential customers use when searching for the products offered by the store – and where visibility is desired in the future – are mapped. The content is then optimized to be qualitative, informative, and responsive to searches that are important for the business.

SEO is not solely about strategic content production – the technical part is at least as important. So-called technical SEO focuses on the website's technical aspects, such as loading speed, mobile-friendliness, and website structure, all of which affect how well the page is indexed and ranked in search engines.

Organic ranking is also influenced by "backlinks," i.e., links from other websites to your e-commerce site. The World Wide Web is an enormous network of links (think spiderweb) that users click through to get from one website to another. Simply put: the more quality backlinks, the higher the credibility in the eyes of search engines – and the better the placement in search results.

SEO is also an important part of improving the customer experience. Fast loading times, clear and intuitive navigation, and relevant and valuable content improve the user experience and increase the likelihood of the customer making a purchase.

Search engine optimization is an ongoing effort. Competition is fierce, and search engines are updated in real-time. Through careful measurement and correctly implemented analysis, one can track how search rankings and traffic volumes change, how users move within the e-commerce site, and what obstacles they encounter.

In summary, SEO is a central part of an e-commerce marketing strategy. It helps companies increase their visibility, attract and engage customers, and drive sales – making it an invaluable tool in digital marketing.

One of the main purposes of this very blog post is to drive quality and service-interested traffic to our website. Did you find this article through a Google search? Then we have likely succeeded – at least when it comes to you.

"Search advertising is a significant part of digital marketing for every e-commerce business."

2. Search Advertising: a cost-effective advertising form for e-commerce contacts at the end of the customer journey

Search Engine Advertising, or SEA, is a significant area within digital marketing for every e-commerce business. It is also an important part of SEM – Search Engine Marketing.

Search advertising is based on displaying ads in search engine results based on predefined keywords. The difference compared to search engine optimization is that search advertising is paid marketing, where different advertisers compete for visibility for specific search terms in an AI-based auction – with real money.

Search ads are placed above and below organic search results in search engines and are displayed when a user searches for a specific term or phrase. Ads can be targeted very precisely, making search advertising an effective way to reach potential customers at the exact moment they are actively looking for a specific product or service.

Search advertising is cost-effective because you only pay for clicks. It enables quick setup, efficient scalability, and often a strong return on investment. Therefore, it is a particularly useful tool, for example, when launching new products or during seasonal campaigns.

Search advertising responds to an existing customer need, placing it primarily at the end of the customer journey. At this stage, it is possible to achieve concrete results very quickly. However, in e-commerce marketing, one should not rely solely on search advertising – precisely because it only meets already existing demand.

Search keyword advertising is one of Wuohi Digital's strongest areas of expertise.

3. Social media advertising creates awareness and attracts new customers

Social media advertising is a central part of digital marketing, especially within e-commerce. With social media advertising, you can cost-effectively reach a broad target audience, create awareness, and attract new customers – especially when we talk about paid advertising.

Paid social media advertising = You buy media space, i.e., visibility, with money.

Organic social media advertising = Posts where no budget is used.

Image posts, stories, updates, reels, and similar are free ways for content creators to promote their business on platforms like Facebook, TikTok, and LinkedIn. These posts cost nothing to publish, but their reach is limited. However, the same content can be used in paid campaigns – but then it explicitly concerns paid advertising.

Social media advertising is also not solely marketing at the top of the funnel. Especially advertising on Meta (Facebook & Instagram) is very versatile and can in some cases be even more effective than search advertising for e-commerce businesses. The reason is that social media offers very precise target group steering.

Even though third-party cookies are being phased out, platforms like Meta, X (formerly Twitter), and TikTok can still collect data about their own users. This allows advertisers to use the platforms' first-party data in their marketing. This means that e-commerce businesses can reach exactly those people who are most likely interested in their products – which improves the efficiency and return on ad spend (ROAS).

Another strength of paid social media advertising is its flexibility. With the same ad channels, you can cost-effectively reach hundreds of thousands of people based on age, gender, geographical location, or interests – but also conduct very precise conversion advertising towards tailored target groups. We have previously written a blog post about how advertisers can cover the entire customer journey using only Meta's channels.

"With the help of social media advertising, e-commerce businesses can reach exactly those people who are most likely interested in their products."

4. Content Production – E-commerce digital marketing doesn't work without quality content

Content production is a central part of digital marketing that helps companies differentiate themselves from competitors and build long-term customer relationships. Quality, personalized, and informative content creates value for customers, which in turn strengthens the company's credibility – both in the eyes of customers and Google.

In an e-commerce context, content production offers many advantages. Well-written and search engine optimized content helps the online store achieve higher rankings in search results, increasing organic traffic and thereby sales.

However, content is not created solely for search engines – it is also a powerful tool for building brand and brand awareness. Examples of this type of content include:

• blog posts
  

• educational videos
  

• product reviews
  

• customer cases and testimonials
  

• social media posts (updates, stories, live broadcasts, etc.)
  
  

Informative and educational content is particularly important for e-commerce businesses. Through it, real-time service and support can be offered, making it easier for customers to understand, choose, and order products. Examples of such content include FAQ sections, guides and instructional videos, and clear and in-depth product descriptions.

It is also crucial that the company's content meets the customer's needs at different stages of the buying journey. Quality content production considers information seeking at the beginning of the customer journey, the decision phase, and even the time after purchase. In this way, the company can support the customer throughout the entire process, increasing customer satisfaction and strengthening loyalty.

In summary, content production is a cornerstone of digital marketing – and its importance will only increase as customers seek more information online. In the world of e-commerce, quality content is crucial for long-term success.

5. Email marketing – a cost-effective channel for e-commerce

Email marketing is a central part of e-commerce marketing. It helps companies maintain and deepen relationships with their customers, strengthen customer loyalty, and generate highly cost-effective sales.

Effective email marketing is targeted and personalized. It is based on customer needs and interests. E-commerce businesses can leverage customer purchase history, website behavior, and other relevant data to improve the customer experience, deepen relationships, and increase customer lifetime value.

Email is also an effective way to drive traffic that leads to sales. Campaigns such as discount codes, product launches, or seasonal offers can be communicated directly to the customer's inbox, encouraging repeat visits and purchases.

Furthermore, email is an excellent channel for regular communication. Continuous and relevant communication strengthens the relationship between the company and the customer over time.

In practice, email is a very cost-effective marketing channel. Most email platforms charge a small monthly fee, but overall, email marketing is one of the most profitable channels in digital marketing.

The target audience for email marketing is also warm. Recipients have chosen to subscribe to the communication themselves, making them more receptive to conversion-driven marketing. According to GDPR, email marketing may only be directed to individuals who have given their consent, for example, by subscribing to a newsletter, making a purchase, or registering.

Incorrectly executed email marketing is simply spam. Therefore, it is crucial to work structured and with clear personalization. When done correctly, email marketing improves the customer experience, drives sales, and builds long-term, sustainable customer relationships.

"Incorrectly executed email marketing is simply spam."

Analysis and follow-up in place with the right key figures

The world of e-commerce is dynamic and constantly changing. Small mistakes or delays can quickly lead to significant losses.

To ensure results and long-term success, it is crucial to understand how the online store performs, what captures customers' attention, and what they actually demand. This insight is gained through reliable metrics and continuous analysis.

Why are analysis and follow-up important for e-commerce?

One of the biggest advantages of analysis is the ability to make data-driven decisions. Instead of relying on assumptions, you can use real data to guide operations. Analysis can, for example, show:

• which products sell best
  

• which marketing strategies work
  

• how customers navigate the website
  

With the help of analysis, problems can also be identified at an early stage. For example, if a specific page has a high bounce rate, it can be detected and addressed quickly. Similarly, an advertising campaign that is not meeting its goals can be adjusted based on collected data.

Important KPIs in e-commerce

Effective analysis is built on clear KPIs (Key Performance Indicators). For e-commerce, the following metrics are particularly important:

Conversion rate

What percentage of visitors make a purchase? This is one of the most central metrics in e-commerce and shows how well marketing and the website's user experience are performing.

Share of new vs. returning customers

This metric provides insight into customer loyalty and how effectively marketing is at both attracting and retaining customers.

Average order value

Shows how much customers spend on average per purchase. It helps in planning product range, pricing, and upsell strategies.

Bounce rate

What percentage of visitors leave the website after viewing only one page? A high bounce rate can indicate problems with content, relevance, or user-friendliness.

Tools for analysis and follow-up

Several powerful tools are available to analyze and track the performance of an e-commerce business.

Google Analytics is the most widely used tool and provides a comprehensive overview of website performance, visitor demographics, and behavior. As a Google service, it integrates seamlessly with Google Ads, facilitating optimization and tracking of advertising.

Hotjar is another valuable tool that provides deeper insights into user behavior. Using heatmaps and session recordings, you can see where visitors click, how they move on the page, and where they might get stuck or leave the website.

Best practices for analytical work

Analysis and follow-up require continuous attention. Markets change, customer behaviors evolve, and strategies must adapt accordingly.

Set clear goals

For the analysis to be meaningful, what needs to be measured must be clear. Define concrete and realistic goals and follow them up continuously.

Use segmentation

Not all visitors are the same. By segmenting customers based on, for example, demographics, behavior, or purchase history, you can gain a deeper understanding of the needs of different target groups.

Test and optimize

Data itself creates no value until it is used. Conduct A/B tests on, for example, headlines, product images, prices, or CTA buttons and optimize based on the results.

Analysis and follow-up are key to success in e-commerce. When the right metrics, tools, and processes are in place, the company can make well-founded decisions that directly affect the results.

It is also important to remember that analysis is an ongoing process. With regular evaluation and adjustment, the conditions for continuous improvement – and thus for long-term growth and profitability – are created.

Versatile use of ad formats

Digital marketing channels are developing rapidly, and with this development, the range of ad formats has also broadened considerably. This means that advertisers today have more channels and tools than ever before.

For e-commerce businesses, new ad formats mean new ways to market products and thus differentiate themselves from competitors.

Why is versatility in ad formats important for e-commerce?

A versatile use of ad formats is necessary for several reasons:

Versatility makes it possible to reach a broad target audience at different stages of the customer journey.

Different ad formats have their own strengths and purposes, and therefore it is crucial for the advertiser to understand who the ads are intended for. For example, product catalog advertising in e-commerce is very effective for a target audience that has already visited the webshop and, for example, added a product to the cart. The same type of product catalog ad, however, is rarely particularly effective or interesting for a so-called cold target audience that has never visited the webshop before.

When choosing an ad format, it is also important to understand what you want to achieve with the specific ad. The e-commerce merchant's primary conversion goal is naturally to drive sales, but few customers make a purchase immediately after seeing the first ad. Therefore, it is important to define smaller sub-goals in the customer journey, known as micro-conversions. Micro-conversions can include website visits, additions to cart, or interaction with an ad. Formats like video or animation are excellent for building awareness and driving micro-conversions but are not always as effective for direct purchase-optimized conversion advertising.

Ad formats that are particularly useful for e-commerce

Below are some of the most common digital ad formats that e-commerce businesses should use in their marketing.

Search engine ad formats

Google Ads and other search advertising platforms offer powerful tools to reach customers who are actively searching for the products offered by the e-commerce business.

Google Search Ads

Google Search Ads is one of the most popular and effective ad formats – especially for users actively searching for specific products or services.

Google Sales Performance Max

Sales Performance Max, or PMax, is a highly AI and automation-based ad format that utilizes Google's entire ad network in a versatile way.

For e-commerce businesses, PMax enables so-called product catalog advertising (formerly Smart Shopping), which is extremely effective for conversion-driven e-commerce. However, PMax advertising should not be left entirely to AI and automation. Full effect is achieved when the algorithm receives clear instructions, for example, regarding search terms and target audience targeting.

Google Display

The Google Display Network (GDN) is Google's advertising network that reaches over 90% of internet users globally.

Google Display fundamentally works similarly to Google Search Ads, but instead of ads only appearing in search results, they can also be displayed as banner ads for a cold target audience. For e-commerce businesses, Google Display enables broad visibility at a cost-effective level and, in the best cases, precisely targeted conversion advertising.

Google Discovery

Google Discovery advertising is an ad format that reaches users in their personal Google feeds, such as Gmail, YouTube, Google Maps, and Google Discover. The ads are responsive and designed to blend naturally into the content.

Discovery advertising is a very effective way to reach users at the right moment and in the right context, when they are interested in a certain topic or are in a purchasing decision. The ads are displayed when the user is actively searching for information or products online.

YouTube

YouTube advertising is video-based advertising that consists of several different formats, such as pre-roll ads and in-stream ads. Through YouTube advertising, visibility can be precisely targeted, for example, towards specific YouTube channels or search terms, and thereby generate large viewing volumes in a cost-effective way.

YouTube is an effective channel for advertising.

Programmatic advertising and native advertising

Programmatic advertising is a method in digital marketing where ad spaces are bought and sold automatically using various platforms and technologies.

Adform

Adform is a well-known programmatic advertising platform that offers advertisers versatile solutions for digital advertising. Adform's platform enables the automatic and real-time purchase of ads across various ad networks.

With Adform, advertisers can target their ads very precisely through various audience settings, such as geographical location, demographics, behavioral patterns, and interests. In Adform advertising, DMP audiences (Data Management Platform) can also be used, where the audience and targeting are based on purchased cookie data.

Readpeak

Readpeak is a Finnish programmatic advertising platform specifically developed for small and medium-sized businesses that want to engage in broad and cost-effective digital advertising.

With Readpeak, advertisers can purchase ad space in various ad networks and on individual websites. The platform enables precise audience targeting based on factors such as geographical location, demographic data, and user behavior.

Native advertising

Native advertising is an ad format designed to blend seamlessly into the surrounding content and provide the user with a natural experience. Native advertising differs from traditional banner advertising by striving to create added value in a narrative form, for example, by using article-like content.

Native advertising often blends so well into its surroundings that consumers do not always immediately perceive it as an advertisement. Therefore, it is important that native ads are always clearly marked as advertising to ensure ethical marketing.

Social media advertising

The most common channels for social media advertising are Meta's Facebook and Instagram, and TikTok.

Meta ad formats

In Meta advertising, still images, videos, dynamic product catalogs, collection ads, dynamic variant ads, and manual product carousels can be used.

Still images

Still image ads are simple, single ads in a feed or story format. Images can contain a headline, a short text, or solely a visual element. As an ad format, still images are effective for generating interest and can be used both at the beginning of the customer journey and in conversion advertising.

Videos and animations

Video and animation ads are dynamic and interactive, often capturing significantly more attention than static images. They are particularly effective for storytelling or showcasing a product's or service's features.

Dynamic product catalog advertising

Dynamic product catalog advertising is a highly effective ad format for e-commerce.

Dynamic product ads responsively display different products to different people. The customization is based on the e-commerce customer's cookie data or social media behavior. One of the biggest advantages, besides customization, is that the product images in the ad lead directly to the product's page in the online store.

Collection ads

Collection ads are interactive ads that combine both branding and conversion advertising. They can include multiple product images, videos, and texts. Users can browse the collection and click on specific items for more information or go directly to the product's page in the online store.

Dynamic variant ads

Dynamic variant ads also work responsively and provide advertisers with excellent tools for testing different content. In a single variant ad, up to ten different images or videos, five different headlines, texts, and descriptions, and multiple call-to-action buttons can be used.

Manual product carousels

As the name suggests, manual product carousels are handcrafted carousels where up to ten cards can be selected.

A manual product carousel allows you to display several different products or services in a single ad. The user can scroll between images or videos using arrows or by swiping. For each product, you can specify your own headline, description, and link that leads directly to the product's purchase page.

TikTok ad formats

TikTok's ad formats include In-Feed Ads, Spark Ads, Brand Takeover, TopView, Branded Hashtag Challenge, Branded Effects, and Shopping Ads.

In-Feed Ads

In-Feed ads appear on users' "For You" page, meaning in their main feed. These ads can be up to 60 seconds long and include audio, motion graphics, and a call-to-action prompt.

Spark Ads

TikTok Spark Ads is an ad format that allows advertisers to use organic content in their campaigns. Advertisers can choose existing TikTok videos – either their own or others' – and use them as part of their ad campaign.

Spark Ads helps advertisers create better engagement because they are based on already popular and organic videos. This can increase both brand awareness and engagement.

In practice, an advertiser could, for example, find a popular video created by a content creator that fits the brand's image and campaign, and contact the creator to obtain permission to use the video in advertising. This makes Spark Ads a unique and very effective way to leverage existing, high-quality, and well-performing content.

Brand Takeover

Brand Takeover is an ad format that appears immediately when the user opens the TikTok app. The ad can be a three-second still image or a five-second short video. This format is particularly effective for increasing brand visibility as it reaches a large audience in a very short time.

TopView

TopView is similar to Brand Takeover, but gives the advertiser more room for creativity and storytelling as the ad can be up to 60 seconds long. TopView also appears immediately when the app is opened.

Branded Hashtag Challenge

Branded Hashtag Challenge is one of TikTok's most unique ad formats. Here, the brand creates a challenge that encourages users to create and share content with a specific hashtag. It is an effective way to increase visibility and engage the target audience.

Branded Effects

Branded Effects is an ad format where brands can create their own filters, effects, or animations that users can use in their own videos. This can increase brand visibility and engagement in a playful and interactive way.

Video Shopping Ads

Video Shopping Ads function similarly to product catalog advertising on Meta or Google. These ads allow for purchasing products directly through TikTok ads.

TikTok advertising has grown significantly and is now the most important marketing channel for many online stores.

Summary: 5 tips for e-commerce marketing

Successful marketing of an online store in the digital world is complex and multifaceted – but entirely possible. In this guide, we have highlighted the most important areas that an e-commerce marketer should focus on.

Everyone has limited time. Since an e-commerce marketer's desk is filled with much more than just marketing, we want to emphasize the most important keys to success in e-commerce marketing in this summary.

1. Understand your target audience

A crucial factor for successful marketing is a deep understanding of the target audience.

Conduct a comprehensive target audience analysis and use available data to understand their needs, preferences, and purchasing behavior. This will help you tailor your marketing message and reach the right customers with the right message.

2. Target your marketing to the right channels

Multi-channel marketing is key to success. However, if you don't have a clear understanding of the advantages of different channels, it may be wise to focus on a few selected ad channels.

3. Create content that adds value

Content marketing is an effective way to differentiate oneself in e-commerce marketing. Create high-quality, useful, and engaging content that attracts and engages visitors. Show through your content how your products create added value, solve everyday problems, or evoke emotions.

4. Track and analyze results

It is important to follow up on marketing efforts and analyze them with the right metrics. Track website traffic, conversions, website engagement, and other relevant KPIs. This way, you can identify successes and bottlenecks and continuously optimize your strategy with the help of data.

5. Continuously learn and develop

E-commerce marketing is a process of continuous learning and development. Stay updated on new trends, technologies, and channels. Be prepared to adapt and test new ideas. Follow developments in your industry and continue to grow as a marketer.

Bonus tip: outsource your marketing

Every e-commerce owner should at least have a basic understanding of the customer journey and how to market their online store. But you don't have to do everything yourself.

Sweden and Finland are full of competent digital agencies and digital marketing experts who can handle all or part of your marketing. An investment in the right expertise can, in the best case, pay for itself within a few months.

Do you want to discuss digital marketing further or are you considering outsourcing your e-commerce marketing? Contact us! We offer a free review of your WooCommerce or Shopify store, your ad accounts, and ensure your analytics are working flawlessly.