Shopify says its new advertising push will help redefine enterprise retail
Shopify continues to challenge Apple’s data collection policies
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Following the recent launch of its “Audiences” marketing tool, Shopify hopes that it has found a solution to skirtApple’s changes to data collection for advertising, which put an end to third-party data being collected without the explicit permission of its users (most of whom had refused, according to theFinancial Times).
Apple’s move is expected to have put a huge, multi-billion dollar dent in the global advertising market. In fact, Kaz Nejatian, VP of Product at Shopify, stated that independent merchants were paying twice as much to find new customers in mid-2022 compared with the year before. That said, the colossal shift that saw years-old practices being challenged didn’t necessarily have such a negative impact on all businesses.
Shopify Audiences
One such example isAmazon, which focuses its ad targeting on data that’s collected in-house; first-party data collection is still allowed under Apple guidelines.
Shopify Audiences processes similar sorts of data in-house, though despite integration with Instagram andGoogleintegration, the company argues that this constitutes first-party data, thus bypassing Apple’s rules.
This is a move that Shopify hopes will see a healthy boost to its revenue after its share prices have dropped by around three-quarters since a 2021 post-pandemic high.
The early rise in the company’s value saw its founder and CEO, Tobias Lütke, admittedly overestimate the growth of the e-commerce sector following the easing of restrictions, according to theFinancial Times.
These are the best e-commerce hosting providers>Apple could be tracking your every move in the App Store>Shopify gifts ecommerce websites more than 100 new features
It has since announced the redundancies of almost 15% of its workforce as it looks to make cutbacks in other areas of the business. Company president, Harley Finkelstein, explained that Shopify has shifted its focus to operations with a “much shorter-term payback” in an effort to claw back some market share.
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While presenting a valuable tool to businesses seeking to grow their advertising revenue, Shopify’s Audiences tool has been met with some concern. This is largely centered around the fact that retailers must share their data more openly with potential rivals, though Finkelstein explains that this concern can often be negated when a company is able to sell more as a result.
With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!
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