Shopee Ads

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Edited: 24/09/2020

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Gain a deeper understanding of the do’s and
don’ts of Shopee Ads and adopt a personalised
strategy to maximise your Shopee Ads

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1. The Essential Guide to Shopee Ads
2. Identify Your Goals & Objectives
3. Ads Budget & Duration
4. My Ads Metrics
5. Best Practices

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1. The Essential Guide to
Shopee Ads

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 ● To advertise your products in high traffic
areas on Shopee such as the homepage,
search results page, and product details
page

● Boost your product or shop visibility to

relevant customers who are more likely to
make a purchase

● Free impression! Pay when they click on

your ad

To login successfully into Ads, please make sure

the ad blocker on your web browser is turned off.

Click HERE to learn more about My Ads

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Setup your ads with your buyers in mind
Before ads setup, think about what matters to your buyers
and what they’d like to see.

Some aspects to consider:

● Who is your ideal customer or audience?
● Why might they be visiting your store?
● How can you provide value to them?

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One of the many questions is “When to run Ads on Shopee, and why?”
While the final decision depends on you, it is worth taking note of 2 factors.

Organic Reach
When you list your products, any buyer coming across your store or browsing through direct search can see your
product listing. It is then up to the buyer to make a purchase if the product suits their requirements. This type of reach
is identified as organic reach, which is another way to say that it’s free. You list products and it is then seen and
purchased organically. Though it is free, it may not grow your audience as quickly as you’d like.

Paid Reach
By leveraging ads, your product listings can be boosted to locations where it is easy to capture the eyeballs and
interest of your potential buyers, directly increasing the opportunity for conversion.

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● Expand Your Reach
Promote your store or product listings to reach more people and boost engagement

● Promote Your Shop

If you have invested in promotions and interesting deals, use Shopee Ads to increase traffic to it

● Drive Customers to Your Shop

Make it easier for buyers browsing the Shopee app or website to find your electronic storefront

● Increasing Opportunity for Conversion

While your products are showcased to potential buyers through an expanded reach, this in turn directly
raises the opportunities to convert them into your customers

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Types of Ads:

1. Keyword Ads - Generate sales from

search results

2. Discovery Ads - Capture shoppers

interested in products like yours

3. Shop Ads - Increase visibility of your

shop and build your brand

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Keyword Ads appear on the search results page when shoppers search
using keywords that match your ads

Why use Keyword Ads?

1. Boost exposure: Push your product to the top of the search

results page
2. Increase sales: Reach shoppers searching using keywords
relevant to your product
3. Have full control: Set your budget and how much you pay per
click

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Discovery Ads appear in Shopee homepage’s Daily Discover
section to shoppers who have shown interest in similar products
in the past 30 days.

Discovery Ads also appear in the product detail pages of similar

or complementary products (Similar Products & You May Also
Like) to capture a highly relevant audience.

Why use Discovery Ads?

1. Enhance exposure: Show your product in Shopee’s

recommendation sections
2. Increase sales: Reach shoppers with interest in your
products
3. Have full control: Set your budget and how much you pay
per click

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Shop Ads, showcasing your shop name and logo, will appear at the top
of the search results page when shoppers search using keywords that
match your ads.

Why use Shop Ads?

1. Increase sales: Direct shoppers to your shop for purchase after

clicking your ad
2. Grow awareness: Show your shop at the top of the search results
page
3. Have full control: Set your budget and how much you pay per
click

Note: Open only to selected Mall sellers, Preferred sellers, and selected
sellers with good track record in sales and shop ratings

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 ● Shop Ads to push your shop profile to
Grow your product top of the search results
awareness and brand Awareness ● Discovery Ads to suggest your
presence best-performing or new listings while
buyers browses for recommendations

Attract potential buyers ● Keyword Ads to push specific product

listings such as your store's unique or
with attractive &
competitive product Consideration top-selling product to the top of search
results
listings

● Keyword Ads to promote your desired

product through search results
Capture & secure ● Discovery Ads to suggest your
best-performing and new listings as
additional buyers at all Conversion alternatives in listings of similar
level of funnel products
● Shop Ads to drive your buyers to your
store
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2. Identify Your Goals &
Objectives

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Reach the right people
The main goal of advertising is to reach people who are
more likely to become your customers. With Shopee Ads,
you can get your message out to just those people who
may have an interest in your product. You can spend as
little or as much as you like, depending on your goals and
budget.

Now that you've learned how advertising on Shopee can

help you reach more people than you do through organic
listing, let's look in more depth at the types of ads you can
run to reach different business goals.

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Now that you've thought about what your business goal is, you're better equipped to determine the right Ads objective.
Depending on the ad objective you choose, your approach to set up your different type of Ads in terms of bid price,
budget and duration will vary. Thereafter, your Ads optimisation method will vary accordingly too. Below are some
examples of how ads vary depending on the ad objective you choose.

Business Goal Ad Objective

To increase exposure ● Higher Impression

To increase sales of specific products ● Promote your new products

To increase shop traffic ● Get a higher ROI

To increase brand awareness ● Boost your top skus

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 Business Goal Ad Type Ad Objective Ad Strategic Tips

You decide which keywords will show your

Show your ad on the search ad by bidding for them. Of all the ad types,
Keyword Ads
results page keyword ads will give you the most
exposure.
To increase exposure or
sales of specific products Show your products in multiple
sections of the Shopee platform Use this together with Keyword Ads to gain
Discovery Ads to shoppers interested in products even more exposure of your product in
similar or complementary to more high traffic areas on Shopee
yours.

If your shop sells hair care products, you

may wish to bid for "shampoo", so that
shoppers searching for "shampoo" they see
To increase shop traffic Show your shop at the top of the your Shop Ad and are directed to your shop
Shop Ads
and/or brand awareness search results page after clicking your ad.

Currently, you can customise the design of

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your Shop Ads! 18
2.1 Keyword Ads Strategy

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Your ad ranking is determined by your ad rank score. A higher rank score means a better ad ranking (i.e. closer to the
top of the search results page). Your rank score is influenced by 2 factors:

1. Cost-per-click bid price is the highest price you are willing to pay when a shopper clicks on your ad.
a. The higher the bid price, the higher the rank score
b. The actual price charged is often less than your bid price, as the system calculates and charges the
minimum amount you need to pay to hold your ad position
2. Quality score is determined by:
a. Relevance of your chosen keywords to your product
b. Your ad's click-through-rate: the percentage of times users clicked on your ad after viewing it. It’s higher
for ads with attractive pictures, relevant titles and good product ratings
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Business Goal Optimisation Strategy

To increase - For products that have not met the desired impressions level,
exposure - Switch to broad match if you are using exact match
- Add new keywords with broad match
- Increase bid price for keywords with both good impressions and CTR, if there is room to improve their
ad rankings
- If you are on a limited budget, stop or lower bid price for keywords with both low impressions and CTR

To increase - Increase bid price for keywords with good GMV if there is room to improve their ad rankings
sales - Switch from exact to broad match for keywords with good GMV
- If you are on a limited budget, stop keywords with low ROI which bring less revenue per advertising
ringgit spent

To increase - For keywords with lower CIR

profit - Consider increasing bid price for these keywords if there is room to improve their ad rankings
- For keywords with higher CIR
- Lower bid price carefully to reduce cost-per-click while monitoring impression and clicks to make
sure that they remain stable
- Consider switching from broad to exact match for keywords, while lowering bid price

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2.2 Discovery Ads Strategy

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Your ad exposure is determined by 2 factors:

1. Cost-per-click bid price refers to the highest price you are willing to pay when a shopper clicks on your ad.
○ The higher your bid price, the higher your ad exposure.
○ The actual price charged is often less than your bid price. Shopee ads' auction system calculates the
minimum amount required to show your ad.

2. Product relevance measures how relevant your product is to the shopper. The higher your product relevance,
the higher your ad exposure.
○ Your ad will have high relevance in Similar Products if your product is very similar to the product in the
product detail page. To assess similarity, Shopee system analyses your product category, title and
description to see how closely it matches other products.
○ Your ad will have high relevance in You May Also Like if your product is highly related or complementary
to the product in the product detail page.
○ Your ad will have high relevance in Daily Discover if a shopper has viewed, added to cart, liked or rated a
product similar to yours in the past 30 days.

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As a rule of thumb, these products work best for Discovery Ads:
● Product with a lower price but equal quality, compared to similar products by competitors.
● Product with more and higher ratings, compared to similar products by competitors.

How should I review and optimise my Discovery Ads?

● Run your ads for at least 2 weeks to ensure that you have enough data for analysis.
○ If your ad has 50-100 clicks but no orders, consider improving the product detail page with more attractive
pictures, title and description, while ensuring a competitive price. If your ad still does not have any order after
these changes, consider stopping the ad.
○ If your ad has orders, you can increase the bid price if you want more traffic. If you are aiming to maximise
profit, make sure your Cost Income Ratio (CIR) does not exceed your product profit margin.
■ CIR measures the percentage of your ad spend relative to the revenue generated by your ad
■ Check that your advertised product's CIR is lower than your product's profit margin to ensure that you
are profiting from ads
■ For example, if product A is sold at RM10 and your product cost is RM4, your profit margin is 60%,
your product's CIR should be lower than 60%
● Lower your bid price if your CIR has exceeded your product profit margin.
● Find your product's CIR in the Product Statistics section of the Discovery Ads homepage.
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2.3 Shop Ads Strategy

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 Business Goal Strategy

- If you have low Shop Impressions, if you have less than 10 active keywords, add more keywords with
high search volume and high relevance to your shop. Switch keyword match type to Broad Match to
show on more search results
- Identify keywords with no Shop Impressions, increase the bid price by increments and monitor if the
keyword's Shop Impressions improve
To increase exposure
- If Shop Clicks are low for all or most of the keywords, review your shop ad's picture and tagline. Make
sure that they are relevant to the keywords you’ve bid for
- If only a few keywords have low Shop Clicks, they may be irrelevant to your shop ad; consider deleting
the keywords or lowering your bid price by increments, especially if the keywords also bring low Shop
Impressions

- Keywords with high ROI, maintain competitive bid price. If your Shop Ads isn't showing, increase bid
price and monitor if impressions improve
- Keywords with low ROI, switch keyword match type to Exact Match. Lower the bid price by increments
to decrease your costs
To increase profit
- Keywords with no ROI, check their ad display rate by looking at the trend of Shop Impressions over the
last 7 days. If there are no Shop Impressions, your Shop Ad is likely not displaying in search results. If
there are Shop Impressions but no Shop Clicks, consider deleting the keyword to save cost
- If ROI is low across all or most of your keywords, review your landing page

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3. Ads Budget & Duration

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1. How will I be charged?
You only pay when shoppers click on your ads. Exposure is free.
2. I have a small advertising budget, can I use Shopee Ads?
Absolutely. Prioritise your advertising spend on selected products that have great
conversion potential (e.g. your best sellers, products with competitive price and
great ratings) to see the best results.
3. How much should I invest in Shopee Ads when I first start?
We recommend that you set advertising budget of at least RM25 per advertised
product.
4. Will I be charged for persistent manual clicks by the same user or automated
clicking tools?
Shopee's system filters out such invalid clicks, which you will not be charged for.

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Budget indicates the maximum ad expense you are willing to
pay. Once the budget amount is reached, your ad will stop
showing.

You can choose not to set a budget limit, or to set a

daily budget or total budget.
1. Set No Limit if you want your ad to have sustained
exposure, or if you are not sure how many clicks you must
get to yield an order.
2. Set Daily Budget or Total Budget if you want to cap your
ad expenses.

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Time Length indicates the length of time your ad is active. Once the
end date is reached, your ad will not show anymore.

You can choose no time limit or impose a start and end date.
1. Set No Time Limit if you would like your ad to have sustained
exposure.
2. Set a time schedule if you only want to push your listings on
certain days of the year, e.g. sale periods.

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You can manage your ad spend in two ways:

1. Setting your Ad's Cost-Per-Click (CPC) bid price Bid price refers to the highest amount
● Use the minimum bid price if you're unsure how that you are willing to pay for each click.
well your advertised products will sell.
● Check your ad's ROI (return on investment) and
rank after a week. If the rank is poor (the higher
the number, the poorer the rank) and the ROI is
good, increase your bid price.
● Use the suggested bid price when you want to
maximise ad exposure.

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You can manage your ad spend in two ways:

2. Setting Ad Budget
● Set No Limit for your ad budget to maximise your ad exposure, but if you’re concerned with ad
cost when your first start using Shopee Ads, you can set a daily or total budget cap.
● Your ad spend will never exceed your set budget.
○ e.g. RM5 Daily Budget means the ad stops once RM5 has been spent within a day
○ e.g. RM10 Total Budget means the ad stops once RM10 has been spent within your ad
campaign period

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 Expenses / GMV = Gross Margin (CIR)
RM 10 / RM 100 = 10%
Profit margin 50% - 10% = 40%

If your profit margin is higher than gross margin, you are profiting (net profit) from My Ads

For example, if product A is sold at RM10 and your product cost is RM4, your profit margin is 60%, your
product's CIR should be lower than 60%

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Shopee Ads works on a prepaid basis.
● Top up your ads credit before you
start advertising
● Your ads will not be shown if
your ads credit is zero
● You can view the charges debited
from your ads credit in the
Transaction Details section of
Ads (in the Shopee Seller Centre)

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4. My Ads Metrics

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Shopee has provided 10 different ad metrics for you to manage your Ads performance:

1. Impression (a.k.a. Shop Impression for Shop Ads)

a. Measures the number of times your ads are seen by logged-in shoppers
b. The higher the impression, the wider the reach of your ads to potential shoppers

2. Clicks (a.k.a. Shop Clicks for Shop Ads) - Measure the number of times logged-in shoppers click on your ads
after seeing them. For Shop Ads, this metric is also called Shop Clicks

3. Click-Through-Rate (CTR; a.k.a. Shop CTR for Shop Ads)

a. Measures the percentage of times shoppers click on your ads after seeing them. For Shop Ads, this
metric is also called Shop CTR
b. For example, if there are 100 impressions for your ads and 20 clicks, your CTR is 20%. A higher CTR
reflects higher shopper's interest in your ad

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Shopee has provided 10 different ad metrics for you to manage your Ads performance:

4. Orders - Number of orders made by shoppers within 7 days of clicking on your ad

5. Items Sold
a. Measures the total quantity purchased by shoppers within 7 days of clicking on your ad
b. For example, if you are advertising a shirt and a shopper buys 3 shirts at once, the Order will be 1 and
Items Sold will be 3

6. Gross Merchandise Value (GMV) - Measures the total amount of money generated by shopper's purchase
within 7 days of clicking on your ad

7. Expense
a. Measures the total amount of money spent on your ads
b. Make sure your expense is within your advertising budget

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Shopee has provided 10 different ad metrics for you to manage your Ads performance:

8. Return on Investment (ROI)

a. indicates the return from your ad spend, by measuring the revenue generated from your ads against
every dollar spent on the ads
b. ROI = GMV ÷ Expense
c. For example, if the GMV brought in by your ads is RM3000 and your ads' expense is RM600, your ROI is 5

9. Cost-Income-Ratio (CIR)
a. CIR measures the percentage of your ad spend relative to the revenue generated by your ads. The lower
the CIR, the more profit your ads are making
b. CIR = Expense ÷ GMV x 100%
c. For example, if your ad expense is RM600 and the GMV brought in by your ads is RM3000, your CIR is 20%

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Shopee has provided 10 different ad metrics for you to manage your Ads performance:

10. Average Ranking

a. Refers to the average ad ranking amongst other ads for the chosen keyword in the search results page,
not the average ranking amongst all search results
b. If your ad ranking is 8, your ad will appear at the 8th ad position from the top of the search results page,
not at the 8th search result position
c. A smaller number ranking means that your ad will get better placement, closer to the top of the search
results. For example, ranking of 1 is better than ranking of 2, 3 and so on

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Business Goal Important Metrics

To increase - Impressions and Clicks rather than actual orders from shoppers
exposure - Click-Through-Rate (CTR) which measures your ads' effectiveness in driving shoppers to click
on your ads and view your product detail pages
- Keyword/Ads with high CTR are more likely to have a higher ad quality score and better
ad ranking which can enhance impressions
- Keywords that are relevant to the advertised product tend to have higher CTR

To increase - GMV to see the sales revenue from your ads

sales - ROI to understand which keywords are bringing revenue effectively per ringgit spent on
advertising

To increase - Cost-Income-Ratio (CIR) at keyword level to understand the percentage of cost that comes
profit from advertising for each keyword
- Check that your CIR is lower than your product's profit margin to ensure that you are
profiting from advertising
- For example, if product A is sold at RM10 and your product cost is RM4, your profit
margin is 60%, your CIR should be lower than 60%

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5. Best Practices

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Best practices for managing your Shopee Ads:
1. Review your bid price consistently
2. Review your ROI
3. Review your CIR

When and how often should I review my ad data?

1. When running your ads for the first time, wait for at least 2 weeks before downloading the report to get
sufficient and robust data. Minimal adjustment is advised for the first 2 weeks for new ads.
2. Check your ad performance at least once a day after 2 weeks. You can check more frequently if your ads are
not performing to your expectations and optimise your ads.
3. Download and save your data regularly. The Export Data function allows you to access data up to the last 90
days.

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If your advertising goal is to increase sales, follow the tips below to maximise your ads conversion.

1. Optimise your product page

Improve your product detail pages to maximise ad conversion, read the articles below for tips:
Improve your product's images and description
Improve your product's naming and category

2. Improve your shop page

If you're using Shop Ads, showcase your best selling products prominently in your shop page using high-quality and
relevant images.

3. Keep price competitive

Check and update the prices of your products to make sure they are competitive.

4. Stay in stock
Stock up your best-sellers as well as popular seasonal items to accommodate the increased demand during peak
shopping periods. For example, during the Christmas season, clothing items in red, green or white tend to sell better.
If you're a fashion shop, make sure you increase stocks of these items.
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