E-commerce Startups Driving the Growth of Digital Advertising

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If there is one industry that seems to attract the most significant growth, it is the digital advertising sector. In 2019 alone, the total market share of digital advertising was worth US$166 billion and is expected to reach the US$350 billion of valuation by 2026, with a compound annual growth rate (CAGR) of 18.5%, based on the Global Digital Advertising Market report. Similarly, global media spending grew unprecedentedly despite economic and political turmoil.

What is driving this growth? E-commerce.

According to the data provided by Statista, the global e-commerce market reached sales amounting to US$3.5 billion, which represented 14% of the global retail sales. Based on the above data, it is safe to assume that the numbers will continue to perform strongly in the new decade.

How is this going to impact the digital advertising industry?

Selling goods online is much more challenging than offering products on brick-and-mortar stores – the competition is tougher, and the digital noise is louder. Store owners must make sure that their message is getting across their target markets. As such, it is critical for e-commerce startups to utilize the best modes of digital advertising that would convert leads to sales.

 

E-commerce Investing in Mobile Advertising

The growing use of smartphones among online consumers is what drives e-commerce startups to invest in mobile advertising. The availability of accessing different services and content through various apps are transforming how people communicate. Many rely on their mobiles to carry out most of their tasks, such as browsing the Web, reading books, playing games, watching videos, and accessing social media platforms. For this reason, most e-commerce startups are spending their resources on mobile monetization, particularly the in-app and video ads. Through strategic ad placement, they can showcase their products through in-app advertising in exchange for rewards and extended game time for the user.

However, mobile advertising has a notable decline after its tremendous run in its first few years. Perhaps, it is due to the changing consumer behavior and the demand for better advertising regulations and fraud protection.

 

Social Media Favoring Growth of In-App Advertising Segment of E-commerce Startups

When it comes to the in-app advertising segment, social media is where most e-commerce startups are diverting their attention to. These social media platforms permit startups to advertise their products and services on the Internet because it allows them to have direct interaction with their clientele. Due to this, digital advertisers are continually developing creative in-app ads that can capture the interest of different age groups in various geolocations. Of all ad types, video ads are going to change the landscape of digital advertising as new platforms such as YouTube and Netflix are paving the way for advertisers to promote their products through effective visual content.

Based on all these observations, both e-commerce and digital advertising serve to benefit each other. E-commerce spending would propel the growth of digital advertising. Effective digital advertising, on the other hand, would ensure ad placement can convert leads to sales. And with the way things are gong now, both industries will grow exponentially in the years to come.

If you want to know how digital advertising can impact your e-commerce startups, see how AlgoriX can help you.

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Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.