Better performance with price in e-commerce ads
December 6, 2022
Should I include price in ad? Yes, and here's why…
Historically marketers have debated that it is better to wait to show pricing until the potential customer expresses interest in our product.
On the other hand, including price is one of the 4P's in marketing and an important tool to persuade your audience. This article will dive into the data and explain why including the price should be part of any successful eCommerce ad on paid social channels. We will also cover what days of the month this strategy will give you the absolute best results.
Ecommerce ads sell better with price
What’s one of the first questions that come to mind when a customer wants to purchase something?
How much does it cost?
The customer is asking this question and evaluating whether the cost of the product is reasonable compared to the benefit and value.
On many occasions price could be linked as a direct indicator of perceived quality. You don’t want to leave your customers guessing what you offer value and quality.
Displaying your pricing clearly communicates the type of deal you are offering and also increases the purchase rate by 25%.
The data shows that it’s definitely worth including the price in eCommerce ads.
The 25% increase is excellent, but is there any way to increase the purchase rate even more?
Yes, and it’s all about timing.
Talk about the price on payday.
Showing the price makes the offer more specific, meaning your audience can quickly ask themselves:
Is this a good deal for me? Can I afford it?
Our perception of value/ benefit is influenced by context. Provide the proper context, and you increase the price somebody is willing to pay.
Now check this out:
Showing the price on the average payday (30th) could mean an 87% increase in purchase rate versus not showing the price.
This clearly shows that when people have the money available, they are ready to spend it.
Price and timing make all the difference.
E-commerce can be very lucrative, but especially when your strategy includes the following.
Include the price. This works for eCommerce companies because it pushes the buying decision quickly in front of the potential customer.
Payday is your best day. Showing the price generally works well, but especially shortly around payday. When people have the money, they’re ready to spend it.
Remember that seeing the price helps people quickly assess the value and benefit of the product. They can quickly answer the questions: Is this a good deal for me? Can I afford it?
More to read
This article focuses purely on including the price in eCommerce content. To learn how to optimize your ads further, read these blogs:
The dataset from this article is based on 5.6B+ impressions and 6k+ pieces of individual content on Meta (Facebook) platforms. It takes into account data from all countries and only e-commerce brands, with the campaign objective of Conversions. The period is from 1st of September 2021 - 16th of September 2021. Numbers are looking at correlation only, not causation. Remember to check your own data: numbers for different brands, industries, and contexts will vary. If you were intrigued about a specific insight, you can go in-depth into the various dimensions and how data can be segmented in Confect, here.