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Moloco Commerce Media GrowthU
Like any sustainable business, online retailers and marketplaces must avoid over-indexing toward any one kind of customer. Often overlooked in favor of more prominent brands, long-tail sellers still represent a significant portion of the market — and they’re vital to expanding product visibility and diversified revenue growth.
Build and grow your advertising business with Moloco Commerce Media
With the right strategies, platforms can rapidly activate small and medium-sized buyers while fostering a more vibrant marketplace.
Activating long-tail sellers is not merely a matter of inclusivity but a strategic imperative for platforms seeking sustained growth and competitiveness. Long tail sellers contribute to product diversity, cater to niche markets, and cover unique offerings that appeal to diverse consumers. Ignoring this segment means missing valuable revenue streams and limiting your overall market reach.
Even if an individual seller’s daily or monthly budgets for advertising might seem small in comparison, when you add up those contributions across tens of thousands, or even millions, of sellers, it can far surpass your biggest spenders — with much less hand-holding and fewer sales resources.
Three essential considerations are in play when devising strategies to activate the long tail of sellers.
Streamlining processes is essential to enabling long-tail sellers to onboard and manage their advertising efforts independently. Platforms can empower sellers to create and manage campaigns without requiring extensive support or intervention from the platform's team by providing intuitive and user-friendly interfaces.
Finding the right incentives is crucial to making advertising attractive for even the most minor sellers. Whether through discounted rates, promotional offers, or enhanced visibility, platforms must incentivize sellers to invest in advertising and maximize their reach.
Providing guidance and support to new advertisers ensures a smooth onboarding process. Platforms can offer educational resources, tutorials, and assistance to help sellers navigate the complexities of campaign management. Invest in step-by-step materials and instructional guides with rich-image screen captures, FAQs, and pro tips.
Several common refrains often hinder the activation of long-tail sellers. These prospects are worried about size, budgets, or learning curves. Addressing these challenges is critical to unlocking their full potential.
Platforms with machine learning targeting can improve product discovery and impact for all brands, including long-tail advertisers. ML algorithms prioritize not only bid rates or spend volume but also the likelihood of user engagement, enabling even the smallest sellers to compete for targeted searches and audiences.
Platforms can also address this concern by dedicating separate ad slots specifically for long-tail sellers. This will improve product discovery and further level the playing field for all sellers.
Simplified self-serve platforms, like Moloco, enable sellers to set up campaigns in a few minutes. Comprehensive self-guided resources and training sessions can facilitate and speed up onboarding, even for busy industry veterans.
For sellers who worry about increasing advertising expenses, platforms like Moloco offer features like Target-ROAS, ensuring profitability while maximizing overall growth margin. Alternative pricing models such as pay-per-order (PPO) or cost-per-sale (CPS) can also mitigate risks and concerns by removing upfront costs and charging advertisers only after a converted purchase occurs.
Partnering with agencies can alleviate this challenge, leveraging their expertise and resources to efficiently recruit and onboard long-tail sellers. An agency-friendly UX and proven success stories further enhance the appeal of such partnerships. Platforms can also use scaled marketing strategies like web pages, social media, seller portal integrations, events, and partnerships to convert sellers into advertisers.
Build and grow your advertising business with Moloco Commerce Media
Sponsored commerce ad listings have already improved product discovery for long-tail advertisers across verticals and geographies. Using our MCM Sponsored Ads product, we’ve seen the following results:
By collaborating with select agencies, a leading home interior marketplace successfully recruited and retained advertisers, driving significant growth in ad revenue and product visibility. Compared to new products with no ad support, this platform’s advertisers saw:
Through a partnership program offering exclusive benefits, a top luxury and fashion marketplace incentivized sellers to increase ad spending, resulting in a substantial rise in ad revenues and the number of advertisers. New advertisers achieved as much as 88% average market share gains while existing advertisers saw a 27% increase — and non-advertisers suffered a 2% dip over the same period.
Activating long-tail sellers drives numerous benefits for your growing ad business, from new revenue streams to a more diverse and thriving marketplace. By implementing effective strategies, overcoming common bottlenecks, and showcasing success stories, platforms can maximize the potential of long-tail sellers and drive sustainable growth in the competitive e-commerce landscape.
Build and grow your advertising business with Moloco Commerce Media
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