- Shopify launched Shop Campaigns, buying ads for merchants on Google and Meta.
- Shopify aims to acquire customers for brands using its scale and data.
- The move pressures smaller platforms to prove they can drive e-commerce sales.
Shopify’s bold move
E-commerce platform Shopify made waves last week with the launch of Shop Campaigns – an new ad product where Shopify essentially serves as the in-house marketing agency for its merchants.
Shopify will now purchase Google and Meta ads on behalf of merchants to drive traffic to their storefronts.
The move represents Shopify’s first foray into providing full service advertising for its merchant base.
Full-service advertising
Brands simply set a target cost per acquisition (CPA), and Shopify handles ad creative, targeting, and placements across Meta and Google properties.
Early pilot advertisers like Thrive Cosmetics already used Shop Campaigns to acquire over 1 million new customers
Industry experts say Shopify’s new role as media buyer gives the company significant leverage and scale.
“Shopify is going to become one of the largest advertisers in the world,” said adtech firm Market AI’s co-founder James Borow.
The significant shift
Shopify can negotiate preferential ad rates while also driving adoption of its own Shop online marketplace.
Shopify is set to pour major ad spend into Meta and Google channels, the product also applies pressure on smaller platforms like Snap and Reddit to prove they can drive sales for e-commerce brands.
As Shopify centers its ad strategy around the retail giants, it risks diverting ad budgets away from emerging social apps.
