News & Insights
Feeling the Pinch? How Ecommerce Brands Can Tackle Rising Advertising Costs
If you’re running an ecommerce brand right now, chances are you’re feeling the pressure from rising advertising costs.
Maybe your ad spend is creeping up, but your results aren’t.
Maybe the cost to get new customers is higher than it used to be.
Maybe your return on investment (ROI) just doesn’t stack up like it did last year.
You’re not imagining it – online advertising is getting more expensive. But the good news? There is something you can do. There are smart, strategic ways to turn things around and make PPC work harder.
What’s Causing Rising Advertising Costs?
Before you can fix the problem, it helps to understand what’s going on.
Here’s why so many ecommerce brands are facing challenges right now:
- More competition online: As more businesses invest in ecommerce, digital ad space has become crowded. This drives up costs for everyone.
- Consumers are more cautious: Tighter budgets mean people are taking longer to make purchasing decisions – and are harder to convert.
- Marketing platforms are changing: Google and others are using more automation, giving you less control over how your budget is spent.
- It’s harder to track what’s working: With new privacy rules and tech changes, measuring results is tougher than ever.
Put simply, it’s costing more to do what used to work – and it’s harder to know which parts of your strategy are paying off.
Cutting Spend Isn’t the Only Answer
Rising advertising costs are a challenge for many online advertisers, and it’s natural to want to cut back spend. But pulling your ad budget without a plan can mean losing visibility, sales, and momentum.
Instead, the key is to spend more wisely – focus on what works, get rid of what doesn’t, and find ways to make your budget stretch further.
Here’s how forward-thinking ecommerce brands are doing just that, and staying on top.
1. Focus on Best-Selling Products
Not every product needs the spotlight. Some sell better, earn more profit, and attract more interest than others.
Start by identifying your best-sellers, best performing campaigns, and highest-margin products. Then, focus your advertising around those – it’s a smarter way to use your budget and put your account in the best possible position to drive performance and results.
Think of it like this: would you rather spend £1,000 promoting five top sellers, or spreading that budget across 50 products with mixed results?
2. Don’t Let Platforms Make All the Decisions
Tools like Google’s Performance Max and Smart Bidding promise to do the hard work for you. But here’s the thing:
- They don’t know your business like you do.
- They don’t know which products are most important to your brand.
- And sometimes, they spend your budget where it doesn’t really help.
It’s OK to use automation – but it works best when paired with a clear strategy and regular check-ins.
3. Make Your Website Work Harder
If you’re spending money to get people to your website, make sure it’s set up to convert those visitors into customers.
Here’s what top-performing ecommerce sites are getting right:
- Clear, fast, mobile-friendly design
- Strong product descriptions and photos
- Trust-building elements like reviews and delivery info
- Easy-to-use filters and search for large product ranges
Even a small improvement in your website’s conversion rate can have a big impact, and more sales from the same traffic means a better return on investment.
4. Know Where Your Budget Is Really Going
When you’re busy running a business, it’s easy to ‘set and forget’ your ads. But without regular check-ins, you could be wasting money on:
- Ads targeting the wrong audience
- Products that never convert
- Traffic that doesn’t turn into sales
That’s why PPC audits are so valuable – they helps you to spot what’s working, what’s not, and what to do next.
The Bottom Line: Growth Is Still Possible
Yes, ecommerce is more competitive. Yes, rising advertising costs are a challenge. But that doesn’t mean growth is out of reach.
The brands that are succeeding right now aren’t always spending more – they’re spending smarter:
- Prioritising what works (and what sells)
- Simplifying their strategy and using automation where needed
- Improving the customer journey
- Keeping a close eye on performance
Not Sure Where to Start?
If rising ad costs are eating into your profits, it might be time for a fresh perspective.
We’re here to help you drive growth, remove budget waste, and run PPC campaigns that convert!
Common Questions About Rising Advertising Costs (That You Might Be Asking Too)
⬇️ “How do I reduce ecommerce advertising costs?”
Start by focusing on your best-performing products and campaigns, monitoring where spend is being allocated, and improving your website’s ability to convert.
🤔 “Why is my ROAS dropping?”
It could be a combination of higher ad costs, lower conversion rates, or campaigns that aren’t well-optimised. An audit can help pinpoint the issue.
👀 “Does Performance Max actually work?”
Yes – but it’s not a magic solution on its own, and it’s not one-size-fits-all. Success will depend on a number of factors such as business goals, industry, and campaign setup.
