Ads play a significant role in the success of e-commerce businesses. With over 2 billion people shopping online today and predictions that 95% of purchases will be made online by 2040, you need to put more effort into creating ads for your products to reach the right people.
A good ad doesn’ t just sell a product—it grabs attention, builds trust, and helps people remember your brand. Smart advertising puts your products in front of the right audience, increases sales, and strengthens customer loyalty and brand recognition.
In this article, we’ ll discuss the different types of e-commerce ads and examples to create ads that work.
But let’ s break down the basics first.
What are e-commerce ads, and what is their role in the sales funnel?
E-commerce ads are online ads that promote your products or services to potential customers. You’ ve likely seen these ads on platforms like Facebook, Instagram, or Google in the form of text, image, video, or carousel formats.
Their goal is simple: to grab attention, drive traffic to your store, and encourage purchases. They play a vital role in your sales funnel;
At the top of the funnel, they create awareness and attract potential customers. In the middle, they engage audiences with targeted offers or retargeting. At the bottom, they encourage conversions through compelling calls to action.
e-commerce ads are crucial for businesses like dropshipping because they drive visibility and scale quickly. By leveraging these ads, businesses can effectively grow sales and customer loyalty.
4 Types of e-commerce ads
There are different types of e-commerce ads, but they fall under four categories: Social Media, Search Engine, Display, and Retargeting. Now let’ s discuss them in detail;
1. Social Media ads
Social media ads target users based on their interests, behaviors, and demographics, even before they search for your product. For example, if someone is interested in cooking, they may see your ad for cooking utensils. This can attract them to click through, check out your page to explore options, and likely purchase a cooking utensil right away.
According to HubSpot, social media is the 4th most effective sales channel, right behind in-person meetings, email, and phone calls. With over 5.17 billion social media users globally, ignoring this platform means missing out on millions of potential customers.
Here are the popular types of social media ads;
- Facebook Ads: These ads appear in users’ news feeds, sidebars, or on the Facebook Marketplace. They can be images, videos, carousels, or even stories.
- Instagram Ads: Similar to Facebook ads, Instagram ads appear in users’ feeds, stories, or explore sections and can include photos, videos, carousels, or reels.
- TikTok Ads: Full-screen video ads shown to users within TikTok’ s feed, including creative content and influencer partnerships for engagement.
2. Search Engine Advertising
According to Mailmondo, 43% of e-commerce traffic comes from Google search (organic). This shows how important search engine advertising is for driving customers to your store.
When people search for “best laptops under $500,” they already have a clear intent to buy. By investing in search engine ads, your product can appear right before them at the perfect moment, increasing your chances of making sales.
Here are the main types of search engine Ads:
- Google Display Ads: Visual ads on websites, apps, or YouTube are great for boosting brand awareness. See an example from Harry’ s:
- Google Text Ads: Simple ads with text that appear at the top of Google search results, targeting specific keywords. This is a catchy example from HoneyBook:
- Google Shopping Ads: Ads showing product images, prices, and details directly on Google are perfect for showcasing your products. See this example:
- Microsoft search ads: Ads on Microsoft’ s search engine (Bing). You can also show your ads on MSN, Outlook.com, and LinkedIn. For example:
- Amazon sponsored ads: Ads that appear on Amazon’ s search engine
- Pinterest ads: Ads that appear on Pinterest’ s search engine
Read more: Search engine advertising for e-commerce.
Display ads
Display ads are visual ads that appear on websites, apps, or platforms like YouTube. Unlike search ads, which appear when people search for something specific, display ads appear while users browse other content (even if they’ re not actively searching for a product).
They can include images, banners, videos, or interactive content to catch attention and create awareness about your product or brand.
Here are the main types of Display Ads:
- Banner Ads: Rectangular ads placed at the top, bottom, or sides.
- Video Ads: Ads that play before, during, or after video content on platforms like YouTube.
- Interactive Ads: Engaging ads that users can interact with, such as polls or mini-games.
Display ads are perfect for building brand awareness and attracting potential customers who might not be actively looking but could be interested in your product.
3. Retargeting/Remarketing ads
Retargeting (or remarketing) ads follow people who have visited your website or interacted with your brand but have not purchased.
Research shows that only about 2% of users purchase on their first visit to a site or while browsing an item. So, what happens to the remaining 98% of visitors? That’ s where retargeting ads come in.
For example, if someone looks at shoes on your online store but doesn’ t buy them, you might show them an ad offering a discount or special offer, "10% off your next purchase," to encourage them to return.
Retargeting ads are effective because they target people who are familiar with your brand and have shown interest. It’ s a great way to bring back visitors and increase the chances of turning them into customers.
Now that you understand what e-commerce ads are and its different categories, let’ s explore e-commerce ads examples to create better ads
e-commerce Ad Examples to Create Better Campaigns
Here are some e-commerce ad examples you can model after:
- Simple Product Ad (Text + Image)
Nowadays, many businesses try to do too much, stuffing flashy visuals and too much information into a single image, which only confuses the audience.
To be candid, a simple product ad (text + image) is perfect (and effective) for driving conversions. This type focuses on one product, has a clean image, and has a short, clear message, making it easy for your audience to understand “what’ s in it for them” instantly.
Coca-Cola’s “Share a Coke” campaign is a good example of a simple yet effective product ad. This campaign uses personalized bottles featuring popular names alongside straightforward images and text.
This simple, personalized approach made the product feel more relatable, encouraging people to buy bottles with their names or those of friends and family.
The visual simplicity and emotional appeal increased purchases, as customers were inspired to share the experience with their loved ones.
Another successful single product campaign is the Nike 7.11 ultimate sales ads.
Why it Works
These ads are great for promoting single products or special deals and work best on platforms like Facebook, Instagram, and Google Display. To make them effective, here are some tips to follow;
- Use high-resolution images: Ensure your product image is clear, eye-catching, and visually appealing to grab attention instantly.
- Write a Strong Headline: Keep it short and simple. To drive sales, include a special or discounted offer, such as “50% Off Today Only!”
- Include a Clear Call to Action (CTA): Tell customers exactly what to do next, such as “Shop Now” or “Learn More.”
- Focus on One Message: Avoid clutter by sticking to a single product or offer to avoid overwhelming your audience.
- Match the Design to Your Brand: For a polished look, keep the colors, fonts, and tone consistent with your branding.
- Carousel Ad
Conveying your brand message with just one image can be difficult sometimes. Many brands turn to videos but often overlook carousel ads, which are a powerful and flexible ad format.
Carousel ads allow you to combine multiple images or videos into one ad, where users swipe through each slide.
Why it works
Unlike automated website carousels, the user controls the movement of carousel ads, making it more interactive and engaging. Each slide can have its own image, headline, link, and call-to-action (CTA).
A single-image ad might work for a simple deal like "20% off a specific product." But one image won’ t work for a more complex offer, such as a site-wide, tiered discount with a gift for meeting a purchase minimum.
Top brands like Victoria’ s Secret use carousel ads to break down promotions. Each slide shares a part of the offer with images from different collections, ending with the highlight—an additional gift.
Let’ s take a look at The Sill, a plant store. The brand created a carousel ad for plants, showcasing how they fit into different rooms in the house, and on the last slide, they urged customers to “Shop Now.”
These ads work best for e-commerce businesses on platforms like Facebook, Instagram, and LinkedIn.
To create an effective carousel ad:
- Use high-quality visuals,
- Add clear captions for each card, and
- Include a call-to-action like “Swipe to Shop” or “Learn More.”
- Video Ad
If you use a video ad, make sure it counts. Don’ t just tell people about your product or repeat your value proposition—show it in action.
Video ads are one of the most powerful tools for e-commerce businesses because they grab attention, tell a story, and let customers see exactly how a product works or solves a problem.
Industries like beauty, fitness, and tech often use video ads to demonstrate product usage or highlight benefits. For example, a skincare brand might create a video showing how to apply their cream, while a tech company could showcase a gadget’ s features.
Why do they work?
Video ads work because they combine visuals, sound, and storytelling to capture attention and trigger emotions. They are highly engaging and memorable, convey complex messages quickly, hold viewers’ focus, and drive action.
With their dynamic nature, video ads are ideal for building brand awareness and connecting with audiences effectively. Here are some tips to make the most out of them:
- Capture attention within the first few seconds.
- Keep content concise and engaging (your ad shouldn’ t exceed 30 secs.)
- Use strong visuals and clear messaging.
- Add a compelling call to action.
- Tailor ads to your audience and platform.
- Use storytelling to create emotional connections.
- Optimize for mobile viewing.
- Add captions for accessibility and silent viewing (this helps you reach a wider audience.)
Video ads work best on platforms like Instagram, TikTok, Facebook, and YouTube. They’ re also perfect for social media campaigns, Google video ads, or retargeting campaigns.
4. Dynamic Retargeting Ad
Dynamic retargeting ads are personalized ads that show users the exact products they’ ve browsed or interacted with before.
For example, if someone visits your e-commerce store and looks at a pair of shoes but doesn’ t buy them, a dynamic retargeting ad can later show that exact pair of shoes in their social media feed or while browsing other websites.
Why does this work well?
Because people are more likely to buy something they’ ve already considered! These ads remind potential customers of what caught their eye and encourage them to return and complete the purchase.
Dynamic retargeting ads work best on platforms like Google, Facebook, and Instagram.
6. User-Generated Content (UGC) Ad
UGC (User-Generated Content) refers to content created by your customers, such as reviews, photos, or videos showcasing your products. According to a 2024 Consumer Research report, 40% of shoppers consider user-generated content (UGC) to be "extremely" or "very" influential in their purchase decisions.
Unlike polished branded ads, UGC feels real, relatable, and trustworthy because it comes directly from people who’ ve used your product.
UGC campaigns can take many forms, such as:
- Social media challenges: Encouraging users to create content around a specific theme or hashtag.
- Contests and giveaways: Offering prizes for the best UGC submissions.
- Customer testimonials: Collecting UGC reviews and sharing positive feedback from satisfied customers.
- User-generated reviews: Allowing customers to share their experiences with your products or services.
Nike’ s “Just Do It” campaign is an excellent example of a UGC ad campaign. Nike encouraged everyday athletes and fans to share their personal stories or experiences on social media using hashtags like #JustDoIt. This inspired athletes worldwide to connect with the brand and buy Nike shoes to join the movement.
There’ s Calvin Klein’ s #MyCalvins campaign too. The brand asked customers to share photos of themselves wearing Calvin Klein clothes using the hashtag #MyCalvins.
People worldwide joined in, posting pictures of what they were doing while wearing their Calvins. This made the brand feel more personal and connected to its customers, attracting more people to buy from it.
Why does it work?
Because people trust people!
Showcasing real people using and enjoying your products builds trust and makes your brand feel authentic. People love to feel “involved,” and UGC gives them a reason to connect. When they see genuine experiences from real users, it validates their decision-making process and encourages them to give your product a shot.
User-generated content (UGC) can boost your SEO by adding more content and backlinks to your website. It encourages interaction and sharing, helping you reach more people.
7. Social Proof or Influencer Ad
Social Proof or Influencer Ads use the reputation and reach of influencers to promote your product or service. Unlike UGC, which comes from everyday customers, these ads are created by influencers-people with a strong online following trusted by their audience.
Why does it work?
People look up to influencers for recommendations. When an influencer endorses your product, it feels like a trusted friend is giving advice, which makes it more convincing. This builds credibility, especially if the influencer aligns with your brand values.
Social Proof Ads are best for building brand awareness and quickly reaching a highly targeted audience. They’ re particularly effective for fashion, beauty, tech, and lifestyle products. Pairing these ads with social media platforms like Instagram or TikTok allows you to leverage the influencer’ s existing audience, helping you attract new customers and boost your sales.
9. Google Ads
Google ads encompass this list's different formats and are designed to capture user attention and drive conversions. They usually appear on the Search Engine Results Page (SERP) and across Google’ s extensive display network, including YouTube and partner websites, when users search for products with specific keywords.
Shopping Ads are image-based ones that show pictures of trench coats with their prices and store names. They stand out because they look like mini online shop windows.
On the other hand, text Ads are just text links at the top of the page, labeled as "Sponsored" or "Ad." These ads show up before the regular search results.
For instance, if you search Google for "trench coat," the first results you’ ll usually see are Google Shopping Ads and Google Text Ads.
If you want your brand’ s page to show up in these spots, you need to run Google Ads. For Shopping Ads, upload your product details to Google Merchant Center and connect them to your ad account.
For Text Ads, write compelling ad copy, choose keywords like "trench coat for sale," and bid on them. Ensure your website is well-designed, loads quickly, and matches the search terms. A good strategy is to focus on both ad types to catch shoppers’ attention and drive them to your site.
Why Google Ads
With over 8.5 billion daily searches on Google, your products can appear right when people are looking for them. Google Ads works on a pay-per-click system, meaning you only pay when someone clicks your ad.
They also let you target specific audiences based on location, keywords, or behavior. These hyper-targeting options allow you to reach people who are more likely to engage with your brand and purchase your products.
Final Thoughts
E-commerce ads are crucial for driving sales and growing your business. Big brands like Coca-Cola and Nike have succeeded by experimenting with different ad types, such as simple text ads, engaging carousel ads, and eye-catching video campaigns.
The key is understanding your audience, choosing the right ad format, and continuously testing and optimizing your campaigns. Don’ t be afraid to try new ideas—sometimes, a small tweak can make a big difference!
If you want to learn more about how to run effective e-commerce ads or run a profitable e-commerce online store, check out my high ticket accelerator course. Here, I’ ll show you the exact roadmap of how I and over 2000 others created a sustainable high-ticket business from scratch.
This isn’ t the regular crash course. You’ ll learn practical strategies from real experts to drive massive sales online. Not sure? See what Julie Cowan has to say after joining the program:
See another one from Micheal Morris:
