In eCommerce, increasing the average order value (AOV) is essential for maximizing revenue without constantly spending on attracting new customers. High-quality eCommerce ads can be an effective way to engage customers and encourage them to make larger purchases. But how can you use video ads to strategically increase average order value in your online store?
The Importance of Average Order Value in eCommerce
Average order value measures the average amount customers spend per transaction on your eCommerce website. A higher average order value means that customers are purchasing more items or choosing higher-priced products, significantly impacting profitability. Recent studies show that shoppers who engage with video content on product pages spend 20-30% more than those who don’t. This suggests that eCommerce ads, especially when well-targeted and optimized, can lead to larger purchases, driving up the average order value.
How Video Ads Impact Average Order Value
Video ads combine visuals, audio, and motion to create a compelling and immersive experience. Unlike static images or text, they showcase a product’s features and benefits more dynamically and persuasively. For example, an eCommerce ad for skincare products could demonstrate the benefits of a complete skincare set rather than just a single item, encouraging customers to buy the entire set for a better experience.
An example of this in action can be seen with the brand EcoLux Goods. This retailer experienced a significant 35% boost in average order value during 2024 after implementing engaging eCommerce ads that focused on product bundles and exclusive offers, thereby encouraging customers to add more items to their carts.
Best Practices for Using Video Ads to Increase Average Order Value
1. Showcase Product Bundles
Product bundles encourage customers to purchase multiple related items that complement each other. eCommerce ads can promote these bundles by showing customers how the products work together to enhance the overall value. For instance, a skincare brand might create an ad showing a morning skincare routine incorporating a cleanser, moisturizer, and sunscreen. Highlighting the benefits of purchasing a bundle—and offering a discount—can incentivize customers to buy more, increasing average order value.
Product bundles not only appeal to customers looking for value but also encourage larger orders. A well-crafted ad can quickly demonstrate why the entire set provides better results than any individual product, prompting customers to invest in the full routine.
2. Upsell and Cross-Sell Products
Upselling and cross-selling are powerful strategies to increase average order value, and video ads can be the ideal medium for presenting these offers. Upselling encourages customers to purchase a more expensive version or a larger quantity of a product they’re already interested in. Cross-selling introduces customers to complementary items. For example, if a customer is looking at a laptop, an ad could cross-sell items such as a laptop sleeve, a mouse, or even a software package.
Pippit, a leading AI video maker, offers customizable templates specifically designed for upselling and cross-selling, making it easier for eCommerce businesses to create compelling, high-quality video content that maximizes the potential of every customer interaction.
3. Use Limited-Time Offers
Limited-time offers (LTOs) create urgency, which encourages customers to act quickly rather than deliberating on their purchases. eCommerce ads are ideal for promoting LTOs because they can add elements like countdown timers or bold text with phrases like “Only 24 Hours Left!” to create a sense of immediacy. A well-designed ad might feature an offer like “Buy One, Get One 50% Off” or “Limited Stock Available—Order Now.” This sense of urgency can lead to a quick boost in average order value as customers make larger purchases to maximize the offer.
Pippit includes easy-to-use features that allow eCommerce businesses to add countdowns, dynamic text, and motion graphics to their ads, enhancing the urgency of the offer and improving conversion rates by encouraging larger cart values.
4. Offer Free Shipping Thresholds
Another effective method for increasing average order value is to offer free shipping on orders over a certain amount. A video ad that promotes “Free Shipping on Orders Over $75” is a simple but effective way to encourage customers to add a few more items to their cart. This approach raises the average order value and enhances customer satisfaction by removing a common pain point—shipping fees.
Pippit provides tools to create eCommerce ads that highlight incentives like free shipping, allowing eCommerce businesses to add banners or text overlays that encourage customers to meet a minimum purchase requirement. Free shipping is a major motivator for many shoppers, and an ad emphasizing this offer can lead to larger average order values and more profitable transactions.
Leveraging Pippit for High-Impact Video Ads
Creating impactful eCommerce ads doesn’t require extensive resources. Pippit is an AI video maker that equips businesses with tools to create high-quality video ads that drive up average order values. From templates for upselling and cross-selling to free shipping alerts, Pippit has features designed for effective ad creation.
Key Pippit Features for AOV-Boosting Video Ads
- Upselling and Cross-Selling Templates: Pippit’s range of templates allows for easy integration of upselling and cross-selling prompts in eCommerce ads, giving businesses an effective way to maximize the value of each sale.
- Product Bundling Options: CapCut’s tools allow eCommerce websites to design ads that clearly showcase the value of product bundles, helping to encourage larger transactions.
- Dynamic Countdown and Limited-Time Offer Animations: The platform includes countdown timers and text overlays to create urgency, driving customers to act quickly and increasing both conversion rates and average order values.
- Free Shipping Alerts and Banner Options: With Pippit, you can add eye-catching banners promoting free shipping, encouraging customers to meet minimum purchase requirements.
Video Ads as an Essential Tool for Growth
In the fast-paced world of eCommerce, eCommerce ads have proven to be an effective strategy for boosting both average order values and overall customer engagement. Businesses can improve profitability and build stronger customer relationships by using ads to increase average order value. Using a tool like Pippit simplifies this process by offering the essential features and templates needed to create engaging, high-converting video ads.
In summary, leveraging eCommerce ads to increase average order value can significantly impact your eCommerce website's profitability and growth. By following the best practices outlined here—such as promoting bundles, upselling and cross-selling, offering limited-time deals, and emphasizing free shipping—you can use video ads to attract and retain loyal customers while increasing the value of each sale.
With Pippit, eCommerce businesses can create well-crafted ads that effectively raise average order value and drive meaningful growth in a competitive market.
