The age of viral style
There isn’t a more dynamic industry than fashion. Period. Back when the major Paris fashion houses were first established, shifts in style traveled relatively slowly—as slowly as the people wearing those styles—by word of mouth or via the printed page.
In the modern internet-powered world, styles go viral at the speed of light. Spirited by the pace of today’s social media, trends quickly bloom and fade. It’s fashion consumers who are now leading the push, and fashion brands are forced into a reactive posture.
The rise of ecommerce has brought tremendous opportunities for fashion brands to inspire and sell to shoppers as individuals in a convenient and quick way. But it has also brought, in equal measure, challenges that, if not transcended, can prove detrimental to a fashion brand's fortunes, even survival.
Managing stock levels
Let’s start by acknowledging that every fashion brand holds at least some amount of dead stock. This is simply a consequence of the shorter buying cycles dictated by the contemporary fashion ecosystem. That said, no brand enjoys holding onto unmoving inventory. Any is too much, but as it builds up, there can be serious implications for profitability, warehousing costs, and cash flow. The big question is: how can you move deadstock online without sacrificing profitability and brand reputation? This is how.
Dynamic discount banners
Knowing where, when, and how to target shoppers who are primed for deals can be challenging in the online environment. The starting point is having creative that is totally on-brand yet visually distinct. The second step is ensuring that you have an ad type for any possible retargeting scenario. The third, and perhaps most important step, is ensuring you have an AdTech provider with powerful AI to identify users exhibiting genuine buying intent rather than casual interest. This way, you can pounce on the right moment with the optimal ad format that has the highest conversion rate for each user.
Promotional segmentation
There are moments when you want to prioritize high-margin new lines. At other times, your focus might be on deadstock and freeing up warehouse space. Or maybe you want to give equal priority to targeting both shoppers who value the latest lines and users who aim to grab a deal, with separate sub-campaigns. You should therefore deploy algorithms that can pivot with your needs to capture peak demand and deliver exceptional results during critical promo periods.
Personalized promos vs. blanket discounting
Let’s face it, impulse bargain buying in fashion is a double-edged sword. On the one hand, you’re glad of the business; on the other hand, you know there’s a higher risk of a devalued perception and the item heading back your way. There’s an imperative to deliver messaging that reflects what people truly desire and ultimately cherish.
The answer is Deep Learning, the best-suited type of AI for driving results in fashion ecommerce. Why?
Deep Learning performance for promos and beyond
RTB House uses Deep Learning to power 100% of our solutions. We were the first demand-side platform to do so. But we do this for a reason.
Deep Learning is next-generation AI, a step beyond legacy Machine Learning which most providers still use. Its massive computing power excels at identifying non-obvious converters that other systems can’t see, and addressing the complex paths to purchase that increasingly typify fashion.
Large Language Models (LLMs) fuel our Deep Learning engine to make full use of our clients’ first-party signals by connecting users to hyper-targeted publisher web pages. Semantic Intelligence provides a contextual edge, understanding the nuances of webpages to give you more relevant ad placements. In distinguishing intent from interest, we help our clients reach users with precisely personalized ads who are ready to convert.
Read also: https://www.rtbhouse.com/blog/your-fashion-ads-guide
Why personalization drives additive scale
Almost all of us, at some point, have headed to a physical store to peruse and buy clothing and other fashion apparel. Maybe we love it so much that certain shop floor assistants have come to recognize us, to know our tastes. Well, when someone who knows us recommends a fashion item, we are more likely to buy it. We are also more likely to return to the same store in search of the same level of personalized service. It’s the same online. In fact, fashion customers are 76% more likely to purchase from brands offering personalized advertising experiences.
Increased AOV and LTV
Recognizing users as the unique individuals they are and serving them with messaging aligned to their tastes and purchase readiness drives average order volume and customer lifetime value. This is borne out by the retargeting results of one of Europe’s largest ecommerce fashion platforms, Miinto. With the power of Deep Learning, RTB House helped deliver a 18% increase in ROAS, a 66% boost in average order value (AOV), and a 200% increase in revenue.
Shoppable creatives and promo-focused experiences
Fashion is all about look and feel. The best online ads shine a light on your products while also reflecting, like a changing-room mirror, users' tastes. But you need a wide selection of ad types in your remarketing wardrobe—an ad for any occasion, to display at any point on the purchase journey, to drive results for any promo period.
At RTB House, we know how critical promo periods are for fashion brands. We have developed a suite of shoppable creatives with the express purpose of helping our clients stand out during periods by highlighting time-sensitive offers and FOMO. These ad types, along with the crucial next-generation technology that underpins them, have helped us deliver a median 11.86% sales boost to our clients during promo periods.
Just some of the creatives proven to drive results for our clients in fashion ecommerce:
Interactive ads
Dynamic product recommendations
On-sale product creatives
Promo banners
Omnichannel opportunities
As fashion consumers move between mobile, app, and desktop experiences, most fashion brands have duly adopted omnichannel strategies with a strong focus on mobile. And it’s easy to see why—according to Replo, 79% of apparel traffic now comes from smartphones. However, the same source revealed that only 68% of purchases are made there. This means desktop shopping accounts for a higher proportional percentage of sales.
Fashion apps promise to bridge the gap, and there are massive dividends for those who get it right—increased loyalty, AOV, and customer lifetime value. App users have rewarded you with valuable real estate on their smartphones. If you don’t repay their trust with relevant messaging, there’s a strong chance that your app could lie dormant or be uninstalled. It’s essential to leverage first-party data, any brand’s most durable signals, for first-class in-app retargeting that keeps your brand top of mind and app users engaged and spending.
Scale your fashion campaigns with RTB House
Our fashion clients trust us with 1,300+ active campaigns. Why? Our next-generation performance advertising delivers a median conversion rate of 0.94% and a 6.51 ROAS. This means additive revenue at scale, even in a challenging economic and supply chain environment.
Learn more at: https://www.rtbhouse.com/offer/for-industries/fashion
