In the competitive landscape of Shopee's marketplace, advertising serves as a crucial tool for sellers to gain visibility and drive traffic. However, many novice sellers face the challenge of high expenditure with low returns. This analysis examines Shopee's primary advertising formats—search ads and discovery ads—providing sellers with actionable strategies to optimize their campaigns.
Search Ads: Precision Targeting for Higher Conversions
The effectiveness of search advertising hinges on keyword selection. When buyers search for specific terms, promoted products appear prominently at the top of search results, yielding higher click-through and conversion rates. Shopee offers both automatic and manual search ad options, each serving distinct purposes in product promotion.
Automatic Campaigns: Simplified Launch for New Products
Automatic promotion streamlines campaign setup by allowing Shopee's algorithm to match products with relevant search queries. This approach proves particularly valuable for new product launches, enabling sellers to gather initial performance data and understand customer search patterns within 3-7 days.
Key performance indicators include Return on Investment (ROI) and Cost-to-Income Ratio (CIR). Higher ROI signifies greater advertising profitability, while lower CIR indicates better cost control. Sellers should monitor these metrics closely to determine campaign viability.
Manual Campaigns: Strategic Keyword Optimization
Manual campaigns provide granular control over keyword targeting. Sellers can select from system-recommended terms or create custom keywords aligned with product attributes such as style, color, size, or target audience.
To evaluate keyword effectiveness, sellers should test terms in Shopee's search interface, analyzing competitor presence and result page depth. This competitive analysis helps assess keyword viability and traffic potential before committing advertising budget.
Discovery Ads: Expanding Product Visibility
Discovery advertising positions products across relevant browsing contexts, increasing exposure to potential customers. Shopee's discovery network includes three primary placement types:
- Similar Products: Appears within product detail pages, showcasing alternatives to shoppers viewing comparable items
- Recommended For You: Features in the personalized recommendation section based on user browsing history
- Daily Discover: Appears in Shopee's discovery feed tailored to individual user preferences
Discovery Campaign Optimization
New sellers should initiate 20-40 discovery campaigns simultaneously, prioritizing products with:
- Competitive pricing advantages
- Recent promotional participation
- Strong existing sales performance
- Lower cost-per-click from search campaigns
Initial budgets should allow for at least 50 clicks per ad within three days. After one week of performance observation, sellers can strategically increase budgets for high-performing placements. Premium bidding should be reserved for established campaigns with proven conversion metrics.
Shop Ads: Building Brand Equity
Exclusive to Shopee Mall and selected sellers with 12+ weeks of platform tenure, shop ads enhance brand recognition and customer acquisition. These placements appear atop search results, directing traffic to storefronts or product collections.
Shop ad performance correlates strongly with store relevance. Sellers should optimize store quality and select category-appropriate keywords to maximize visibility. This format proves particularly effective for establishing brand identity and cultivating customer loyalty.
Effective Shopee advertising requires strategic selection of formats, continuous performance monitoring, and data-driven optimization. By mastering these advertising fundamentals, sellers can navigate the platform's competitive environment and achieve sustainable sales growth.