E-commerce platform Shopify, which has powered the rise of d-to-c brands like Quip and PureWow, has announced it's adding the ability to create Facebook Dynamic Ads and Snapchat Stories within the Shopify platform. Facebook Dynamic Ads are already available and Snapchat Stories will be accessible in the coming week.
Michael Perry, Shopify’s director of product for marketing tech, said allowing access to Facebook Dynamic Ads and Snapchat Stories will help Shopify merchants manage their marketing in one place, rather than going through each platform individually.
“Managing marketing and setting up each campaign is cumbersome. It’s heavy lifting for a merchant,” Perry said. “With Facebook Dynamic Ads and Snapchat Stories, they can quickly leverage campaigns with a couple of clicks.”
The introduction of Facebook Dynamic Ads and Snapchat Stories means more money will be flowing into Facebook and Snapchat and, in turn, Shopify. Perry said half of Shopify’s 800,000 merchants currently uses the marketing tools on its platform. Financial terms of the partnerships are not public.
Shopify’s ad marketplace was launched in October 2018 with the goal to help small businesses handle their marketing, alongside managing their store, inventory and sales. At the time of launch, Shopify added integrations with Facebook carousel ads and Google Smart Shopping campaigns, and marketing recommendations tailored for each merchant. Shopify also has a San-Francisco based team that is dedicated to the marketing products of its platform, Perry said.
Through the platform, merchants’ Facebook Dynamic Ads will sync with Shopify to show Facebook users the best products that might appeal to them, and will update based on product availability and pricing. The Snapchat Stories component allows merchants to place a collection of Snaps featuring its products within Snapchat’s Discover section, and track sales through the Snap Pixel.
The further partnerships with Facebook and Snapchat should help Shopify continue to grow its revenue. Another area Shopify is focusing on is hardware. Last week, it brought to market a tap and chip reader, a dock and retail stand for merchants with brick-and-mortar locations. The platform is set to release its 2019 first quarter earnings report on April 30. Last quarter, the company saw a 54 percent, year-over-year revenue increase. In 2018, Shopify brought in $41 billion, with $14 billion coming from the fourth quarter.
Perry said to expect Shopify’s investment in marketing to continue and more ad buying features to come in the near future.
“Building marketing tech takes time, but we’re leaning in very heavily,” said Perry, who would not reveal the amount of Shopify’s investment. “Nothing matters more to a business than their customer base.”
