The newly launched advertisements in January have made TEMU semi hosted merchants feel unfamiliar. To this end, we have compiled the core logic and FAQ of advertising streaming services to help you quickly get started. Enable businesses to fully utilize this new tool, seize business opportunities, and achieve sales growth.
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1、 The core logic of advertising streaming services
1. Charged by exposure:
Advertisements are charged based on actual exposure times (CPM mode). The more ads displayed, the higher the cost. It is recommended to set the priority of advertising placement based on the budget,
2. Bidding mechanism:
The system conducts real-time bidding based on the bids set by merchants, and prices fluctuate greatly due to the intense competition for resource positions.
3. Recommended ROAS coefficient:
The platform provides recommended ROAS (advertising investment to output ratio) coefficients based on your product conversion performance for merchants to refer to in order to ensure the economic and effectiveness of advertising.
4. Custom coefficient:
Merchants can also customize ROAS targets to flexibly adjust advertising strategies based on actual needs and budgets, meeting specific operational goals. You don't have to worry about wasting resources, and advertising placement is more efficient and accurate.
2、 Example of advertising scenario:
1. High conversion rate products (with less exposure)
Characteristic: The product has strong conversion ability, but due to insufficient exposure, it cannot fully reach potential users.
Advertising strategy:
a) High priority advertising: Allocate advertising budget to these products first.
b) Recommended ROAS coefficient: Adopt platform recommended ROAS to ensure rapid increase in exposure and maximize the conversion ability of products.
C) Target: After increasing exposure, monitor CTR and CVR to ensure conversion rates do not decline.
2. Potential products with decreased exposure (historical bestsellers)
Characteristic: The product had excellent sales performance before, but its recent exposure has decreased, resulting in a decrease in sales.
Advertising strategy:
a) Traffic placement: Push products into advertising resource slots to seize exposure.
b) Short cycle data monitoring:
>Observation period: 3-5 days is a data feedback period, with a focus on the following indicators:
>Exposure: Whether the expected traffic target has been achieved.
>Click through rate (CTR): Whether it can attract users to click.
>Conversion rate (CVR): Whether it is converted into actual orders.
Insufficient exposure: Increase bidding and enhance the competitiveness of advertising resource positions
Low click through rate: Adjust advertiser images or keywords to enhance attractiveness
Low conversion rate: Analyze whether the details page and price affect user decisions, and adjust pricing if necessary.
3. New products (high inventory, main products)
Characteristics: New products usually have no sales records, making it difficult to obtain natural traffic, but with sufficient inventory and large profit margins, they need to quickly open up the market through advertising.
Advertising strategy:
a) Concentrated exposure: Set high budget and high priority for new products to ensure continuous advertising display.
b) Recommended ROAS coefficient: In the initial stage, use a lower ROAS coefficient to quickly increase exposure, and in the later stage, optimize advertising based on data.
3、 Frequently Asked Questions
Q1： What is the bidding logic?
A1： It can be simply explained that at the same time, there is competition between merchant A and merchant B for traffic advertising space. The platform's system bidding is used as the standard, and the bidding will be judged based on various factors. For example, if the merchant sets a low ROAS value, their bidding will be slightly higher to have a higher possibility of seizing the resource space (similar to the advertising logic in China, but not exactly the same)
Q2： Is it true that products that do not appear in the data center have not been exposed
A2： If the product does not appear, first check if SKC is placed on it, because once the product is advertised, even if no order is generated, there will still be exposure data, so generally speaking, it will not be without exposure
Q3： Can I change the main image if the advertisement has already been opened but has not been converted
A3： If an advertisement has already been launched and there have been no conversions in the short term, it is recommended not to make any changes. After seeing certain historical data (exposure data, click through data, CTR), we can check whether to change the main image. For example, if the CTR is low one day after the advertisement is launched, we can check whether the title is not attractive enough or whether the main image of the product is not attractive enough. Search for similar products with keywords, see how their main images are made, and optimize our own main image or title
Q4： Can we have independent pricing power?
A4： At present, the semi hosted advertising function and pricing function are separated, and the current advertising function does not affect the original pricing logic