The partnerships expand the reach and efficiency of Shopify Plus merchants, allowing them to target customers more effectively using their preferred advertising networks, Shopify said in a Monday (Sept. 25) blog post. The integrations join an existing lineup of channel partners, including Meta, Google and Pinterest.
Shopify Audiences also introduced a benchmarking functionality that enables merchants to compare the performance of their ad campaigns to similar businesses, according to the post. The feature provides insights and facilitates data-driven decision-making, allowing merchants to optimize their ad performance.
The new features join a tool that is being continuously fine-tuned with new features and updates to enhance customer acquisition and return on ad spend, the post said.
Shopify Audiences has reduced customer acquisition costs by up to 50% via its algorithms that analyze data and optimize ad campaigns, per the post.
“Since launching Shopify Audiences last year, our algorithms have only gotten smarter and more effective thanks to the collective power of our merchants,” Shopify Vice President of Advertising David Wurtz said in the post. “We’ve long said that commerce is not a zero-sum game. Together, the independent merchants on Shopify help each other win.”
As more businesses join the platform and use Shopify Audiences, the algorithm becomes more impactful, leveraging insights from shoppers across participating merchants, according to the blog post. The positive feedback loop has been instrumental in driving the success of Shopify Audiences.
Shopify Audiences is seamlessly integrated with the company’s other solutions for merchants, the post said. For instance, Shopify Plus merchants can put their advertising expenses on their Shopify Credit card and earn cash back.
Introduced in May 2022, Shopify Audiences helps retailers deliver targeted ads. For example, in its partnership with Meta, Shopify retailers can upload their customer data to Meta’s advertising platform, which then uses the information to allow marketers to target their ads to consumers who have purchased similar products from other sources.
While retailers may be hesitant to contribute data that will be pooled and then used by other merchants — which could include their competitors — they also see their participation in Shopify Audiences as a way to reach new potential customers.
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