Small and medium-sized businesses (SMBs) are navigating a competitive e-commerce environment marked by increasing challenges and rising costs. For owners of these SMB brands, managing advertising can feel overwhelming as they juggle multiple roles, acting as CEO, CMO, and more. They face the challenge of building brand awareness while still striving to optimize ad performance.
According to our 2024 Retail Media Pulse Report, 79% of SMBs plan to increase their investment in search ads and 73% plan to increase their investment in Amazon Ads. Despite that, only 57% feel their retail media channels were extremely integrated.
With tight budgets, fewer resources, and limited access to advanced advertising tools – every dollar counts – making investments in tools for enhanced personalization, omnichannel integration, and performance that much more impactful. Due to competitiveness in Q4 and the upcoming year, the success of many SMBs will hinge on smart strategic investments.
With the right combination of technology and support, SMBs can better optimize their ad campaigns, manage multiple channels efficiently, and compete with enterprises with large ad budgets and dedicated marketing teams at their disposal.
A Crowded Market: Key Challenges for SMBs
The retail media market is becoming increasingly crowded, making it essential for SMBs to adopt comprehensive strategies that optimize advertising budgets and enhance ROAS. As 94% of marketers plan to increase their spend on at least one media channel over the next year, this pressure will create challenges for SMBs struggling to compete with expensive Google Ads keywords or when a large competitor dominates Amazon PPC placements.
While our research has shown that retail media is effective, with businesses reporting improved sales, increased lifetime value, and enhanced brand awareness; there is a notable gap between brands’ perceptions and continuous YoY improvement.
Meanwhile, enterprises are increasingly allocating more funds to Search (73%), Amazon (66%), and Social (59%), while maintaining budgets in other channels. In contrast, SMBs with limited resources often do not have the headcount nor the expertise to constantly optimize their advertising to avoid wasted ad spend.
Additionally, SMBs often lack access to advanced data tools, extensive persona strategies, and comprehensive marketing analytics teams. This gap hinders their ability to comprehensively understand performance, nor do so in real-time, resulting in less effective campaigns and reduced competitiveness.
Lastly, our research indicates that a multi-channel approach to retail media benefits retailers of all sizes by offering the flexibility and resilience of not depending solely on one channel for ROI. Unfortunately, managing multiple channels is particularly challenging for SMBs because they often lack dedicated marketing teams, and the deep expertise needed for each channel.
With SMBs typically using an average of 3-4 channels compared to the 5-6 channels utilized by enterprises, it can feel impossible for a single-person marketing team or brand owner to bridge the competitive gap.
Quartile’s Solution: AI + Expertise
Quartile offers SMBs a practical solution for optimizing product-level campaigns across Google, Amazon, Walmart, and more.
By combining our AI-powered platform with the white-glove treatment provided by our team of experts, we give small business owners a competitive edge.
Every single one of our clients, regardless of their size, gets a dedicated strategist that partners directly with them to ensure their success. Our team of retail media specialists have decades of e-commerce expertise, ready to offer continuous support and insight. From initial audits to continuous recommendations to target specific KPIs, we meticulously analyze and manage clients’ Google retail media strategies and deliver customized plans designed to drive impactful results.
From there, our extensive platform has features that make e-commerce advertising seamless, automated, and data driven. From hourly bidding to ensure that every dollar spent is used effectively to automated Amazon Ads placements, driven by machine learning, to connect with customers where they will convert. These features, and more, maximize the value derived from advertising dollars, allowing SMBs to make the most of their limited resources.
Additionally, Quartile provides advanced insights via Amazon Marketing Cloud (AMC), enabling businesses to craft better audiences using interest-based personas for use across channels. This comprehensive approach empowers SMBs to navigate multi-channel advertising with greater ease and confidence, driving sales and success in a competitive market.
Thriving as a Small Brand
Cleanlogic, a small self-care brand specializing in bath and body products, thrived with an unconventional growth strategy focused first on in-store distribution. With a lean team, they successfully secured a strong presence in Walmart’s brick-and-mortar locations with five products available chain wide. However, the brand faced challenges in expanding its digital and eCommerce presence. They were not leveraging Walmart Connect to enhance its in-store success online.
To address this, Cleanlogic partnered with Quartile to launch their Walmart Connect advertising efforts aimed at bolstering their brick-and-mortar reach. With Quartile’s platform and the partnership with our team, Cleanlogic was able to swiftly test, pivot, and optimize its campaigns, making data-driven decisions that fueled significant growth. The brand saw a 593% increase in sales volume and a 52% improvement in ROAS, all while reducing CPC rates by 33%.
Cleanlogic’s success story showcases what we can achieve together. It also reminds us that while SMBs face significant challenges in the competitive landscape of e-commerce advertising, they do not have to navigate it alone.
With the right combination of technology and a supportive partner like Quartile, SMBs can optimize their ad campaigns, effectively manage multiple channels, and compete successfully against larger enterprises.
