If your ads felt more expensive and less effective this year, you're not imagining it.
CPMs are up, engagement is down, and your go-to tactics from 2023? They’re aging fast. Platforms are changing the rules (again), audiences are more distracted than ever, and the pressure to hit revenue targets hasn’t exactly eased up.
Be a solo founder trying to make every dollar count or a performance marketer reporting to a CMO who wants results yesterday, the truth is the same: what worked last year won’t carry you through this one.
We’ve pulled together a sharp, practical breakdown of what’s actually working in ecommerce advertising right now based on what we’ve tested, seen firsthand, and would bet on again.
You’ll find:
- Advanced tactics that move beyond lazy retargeting and generic lookalikes
- Smarter ways to use automation and first-party data without losing control
- Channel-specific ad plays that actually work with 2025’s algorithms and behavior shifts
- Real-world examples from brands turning ad fatigue into fresh growth
By the end, you’ll have a clearer idea of where to focus, what to test next, and how to make every ad dollar work harder than boomers back in the day (allegedly).
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What’s Changed: Why Your Old Playbook Won’t Cut It
Let’s not pretend the ad landscape didn’t shift under our feet again. 2023 ad tactics aren’t aging well. And 2024 didn’t exactly slow things down. In 2025, ecommerce advertising feels more expensive, less predictable, and somehow less controllable. And yes, it’s not just you.
Here’s what’s different now, and what you need to account for if you want your ads to actually move the needle:
1. CPMs Are Up. Again.
It’s costing more just to stay visible even when your ads are solid. If you’re still running the same evergreen campaigns from last year, chances are your performance has already dipped. The fix isn’t always to spend more. It’s smarter segmentation, sharper timing, and way better creative.
2. The Platforms Want You to “Just Trust the Algorithm”
Google’s PMax, Meta’s Advantage+, TikTok’s Smart+ are all great if you feed them the right stuff. But plug in lazy product images and generic copy, and they’ll burn through your budget faster than you can say “broad match.” AI doesn’t fix a weak strategy, it just automates the fallout.
3. Your Ad Creative Has a Shelf Life of About 6 Minutes
Okay, not literally, but close. Audiences are scroll-hardened. They need novelty, relevance, and actual value. If your best performer from Q4 is still your lead ad, don’t be surprised when it flatlines. You need a process to test and refresh creative without reinventing the wheel every week.
4. If You Don’t Own Your Data, You’re Playing Blindfolded
With third-party cookies on the way out, first-party data is your targeting insurance. The brands doing best right now are the ones syncing their CRM data with ad platforms, excluding the right “wrong people”, and building smarter audiences from what they already know.
5. Nobody Shops in a Straight Line Anymore
Your customer just saw a TikTok, clicked an email, visited your product page, ignored your retargeting ad, then bought after seeing a creator mention you on Instagram. If your ads aren’t working together, across channels and across stages, you’re losing sales you should be closing.
What’s Working Right Now (Tactics + Examples)
This is the stuff that’s working right now. And don’t worry, these strategies are built with teams with constraints in mind: maybe you’ve got one designer, no copywriter, and a ROAS target that doesn’t care about excuses.
Some of these are mindset shifts, others are tactical pivots. All of them are meant to help you get more from the budget you already have.
1. Retargeting 2.0: Segment or Die
In 2025, great retargeting means understanding what someone did and meeting them with the right message at the right moment.
Top brands are segmenting by:
- Intent: Did they browse or bounce? Add to cart or just lurk?
- Context: Where did they come from? TikTok, email, Google?
- Behavior: How long did they stay? What did they click?
When you match your message to what actually happened—whether through timing, intent, or sharper retargeting ideas—performance jumps and wasted spend drops fast.
Try this framework:
- Viewed but didn’t add to cart? Use social proof or a quick product explainer
- Added to cart but ghosted? Hit them with urgency or reassurance (guarantees, reviews)
- Browsed multiple items? Serve a dynamic carousel based on what they viewed
- Came from social? Keep the vibe casual and native, not polished and salesy
Pro tip: Use tools like GA4 or your email service provider to segment by time on page, scroll depth, or UTM. It takes 10 minutes to set up and gives you way more control over ROAS.
2. AI Campaigns That Don’t Waste Budget
AI is running the show now, PMax, Advantage+, TikTok Smart+, but just flipping the switch won’t fix bad inputs. These campaigns can scale performance fast, but only if you feed them the right data, structure, and creative.
The most common mistake we see? Brands dumping their entire catalog into one catch-all campaign and hoping the algorithm figures it out. Spoiler: it doesn’t.
Here’s how we’ve made AI work smarter for our clients:
- Segment your catalog: Separate high-margin SKUs, bundles, and bestsellers. Group them by AOV or customer type. Don’t let the algorithm blend everything together.
- Test creative manually first: Run new video or UGC ads in controlled campaigns before feeding them into your AI setups. Let you decide what works, then give the AI your winners.
- Set up exclusions: Past purchasers, recent unsubscribers, low-converting countries, get them out of your default targeting. If you don’t, the platform won’t either.
- Use signals the AI actually understands: High-quality images, short-form video, clean product titles, and strong conversion data (that means fixing your product pages too).
One of our wellness clients was struggling with rising CPAs in their Google PMax campaigns. We restructured their entire account, breaking products into LTV tiers, excluding deadweight SKUs, and feeding in only high-intent traffic. Within 30 days, their CPA dropped 42%, and their ROAS jumped to 2.4× on their top-tier bundle.
AI never replaces strategy. It just makes the difference between good and sloppy a lot more obvious.
3. Build a Repeatable Creative System (Not Viral One-Offs)
Creative is the biggest performance driver in 2025. The problem? Most teams still treat it like a one-time event, brainstorm a concept, run the ad, hope it lands.
But the brands scaling right now aren’t chasing one perfect ad. They’re building systems that consistently generate and test new angles without burning the team out.
Here’s a structure to turn one video into 10+ testable creatives, without restarting every week:
Start with a single strong creative base, like a UGC-style product demo or testimonial. Then remix:
- 3 hooks: one emotional (“This changed my routine”), one problem/solution (“Struggling with X?”), one feature-led (“Built for people who want Y”)
- 2 CTAs: direct (“Shop now”), and soft (“See how it works”)
- 2 formats: one square, one vertical
That’s 12 combinations from one asset ready for TikTok, Meta, YouTube Shorts, and even email headers.
Bonus tip: Creative fatigue is brutal. We refresh hooks every 2–3 weeks, even if performance is strong. You don’t need to reshoot, just change the first 3 seconds, swap the headline, or overlay a trending sound.
Tools we like: CapCut, Canva Pro, Meta’s Creative Hub templates, and CreatorKit for scaling visual UGC.
4. Match Your Creative to Funnel Stage, Not Platform
One of the biggest ad mistakes we see in 2025? Running the same creative across your whole funnel and expecting it to convert at every touchpoint.
Platforms don’t buy, people do. And where someone is in their decision process should dictate what they see, not whether they came from Meta or TikTok.
Here’s how we structure creative by funnel stage:
Top of Funnel (Cold Audiences)
Goal: Stop the scroll and spark curiosity
Your ads here have one job: earn attention.
Focus on:
- Relatable UGC with a clear hook in the first 2 seconds
- Problem/solution setups (“Struggling with X? Here’s what worked for me.”)
- No pressure: save pricing and specs for later
Example format: Talking-head videos, “before/after” montages, or day-in-the-life demos that casually introduce your product without the hard sell.
Mid-Funnel (Warm Audiences)
Goal: Build trust and answer unspoken objections
Now that they know who you are, give them a reason to believe:
- Feature-focused cutdowns from longer videos
- Side-by-side comparisons (“Why we’re different from X”)
- Unboxing videos that show what customers actually get
- Customer testimonials that feel natural, not scripted
What works: Run “proof-focused” carousels or retarget with reviews pulled from real customer feedback. Bonus points for including photos/screenshots.
Bottom of Funnel (Hot Audiences)
Goal: Convert with clarity, urgency, or both
These people are on the fence. Don’t waste time, get to the point:
- Offer-led creative (“Ends tonight,” “Free gift with purchase”, “Limited-time coupon codes”)
- Guarantee ads that reduce perceived risk
- Dynamic product ads that reflect what they viewed or added to cart
Pro tip: Overlay testimonials directly onto the product image or video. It reinforces trust without needing another scroll.
5. Shrink the Click Gap: Optimize for In-App Purchases
In 2025, fewer shoppers want to leave the platform they’re already on. The more steps you ask them to take, click, wait, land, load, browse, the more sales you lose.
That’s why the smartest ecommerce brands right now are cutting down the gap between seeing the ad and buying by selling directly inside the platforms.
Here’s how that looks:
Instagram & Facebook Shops
If you’re running ads on Meta and not tagging products in your posts or using Shops, you’re leaving easy sales on the table. Especially for lower-ticket items, people convert faster when they can buy without clicking through a slow mobile site.
TikTok Shop
If it's available in your region, TikTok Shop is a no-brainer. We’ve seen brands get 2–3× better ROAS on Spark Ads that link directly to in-feed purchase pages, especially when paired with creator content.
Pinterest Shopping
Shoppable Pins and in-app catalogs on Pinterest turn browsing into buying with almost no friction. Pair this with visual search or “Shop the Look” collections for seasonal products, gift guides, or bundles.
6. Launch Mini Campaigns Around Offers
Too many ecommerce brands are running always-on product ads and calling it a strategy. But in 2025, what cuts through isn’t what you sell, it’s why you’re selling it right now.
The brands seeing standout performance are building mini, time-bound campaigns around specific offers, moments, or angles and running them like product drops.
Here’s how that works:
Offer-Led Campaigns (Built for Conversion)
Launch a paid campaign around:
- A bundle or kit designed to solve a specific problem
- A “buy X, get Y” deal and treat it like a launch
- A first-time buyer incentive that runs for 7–10 days only
These campaigns should feel like events. Update the creative, change your headline, include urgency (“limited stock,” “this week only”), and run them across multiple platforms.
Calendar-Based Mini Drops
Instead of big seasonal promos, run micro promos tied to:
- Niche holidays (e.g., National Skincare Day, Back-to-School for Moms, Earth Month for sustainable brands)
- Product restocks (“Our best-selling mascara is finally back”)
- Customer moments (“Treat yourself” after Valentine’s Day, “Reset kits” post-summer)
Even better? Pre-schedule one every 4–6 weeks. It keeps your ads fresh and gives your list (and pixel) something to respond to regularly.
7. Pick Fewer Channels, But Go Deeper
If your ad budget is spread thin across every major platform, Meta, TikTok, Google, Pinterest, maybe even Snapchat, you’re probably not scaling. You’re scrambling.
The best-performing brands we’re seeing in 2025 are deep in 1–2 channels: testing faster, optimizing smarter, and converting better because they understand the nuances.
Here’s how to rethink your media mix:
Stop diversifying for the sake of it
Just because a channel works for someone else doesn’t mean it’s right for you. If you’re not consistently getting results on Meta, launching a TikTok ad account won’t solve it, it just gives you more variables to manage.
Match your channel to your product type + content strength
- Highly visual, impulse-friendly product? Meta and TikTok
- Search-heavy category or high-intent buyers? Google and Shopping
- Home, beauty, or lifestyle vertical with strong visuals? Pinterest might punch above its weight
- Marketplace-first brand? Focus on Amazon DSP + external traffic that drives there
Focus on 2×2 mastery:
Two platforms. Two funnel stages. Get great at:
- Prospecting + retargeting on Meta
- Brand search + shopping on Google
Or - Creator Spark Ads + TikTok Shop retargeting
- Lead gen + email close
Once you’ve nailed those, then explore expansion.
Channel Deep-Dives: What to Focus On and Why
If you’re still deciding where to go deep, this will help you make the call.
Each platform has strengths and blind spots. In this section, we’ll break down what the major channels actually do best, where they shine in the funnel, and what’s working right now on each.
Because picking the right platform is half the battle. The other half is knowing how to use it.
Let’s start with Google.
Google Ads
What it does best: Google ads still captures demand better than most platforms—shoppers land there when they already know what they want or are actively comparing options. It’s not about creating interest, it’s about showing up when intent is high.
Where it shines in the funnel:
- Bottom of funnel: Branded search and Shopping Ads for ready-to-buy users
- Mid-funnel: Category-level search terms and comparison queries
What’s working in 2025:
- Segmenting Performance Max campaigns by AOV, product type, or margin to avoid wasted budget on low-return items
- Clean, optimized product feeds with keyword-rich titles, high-quality images, and short-form videos, Google’s AI relies heavily on these inputs
- Custom labels for seasonality, promos, and profitability, allowing faster bidding adjustments without restructuring your feed
- Separating branded vs. non-branded search so you can protect your own name while focusing spend on acquisition
- Leveraging YouTube placements within PMax using short videos to capture interest visually and reinforce product credibility
If you’ve got a product people are already searching for or a competitor people are comparing you to, Google is where you close the deal.
Meta (Facebook + Instagram)
What it does best: Meta is still the best platform for reaching broad, interest-based audiences at scale, especially for visually-driven products and impulse-friendly categories. With powerful AI tools and native shopping features, it’s your go-to for building demand and converting cold traffic.
Where it shines in the funnel:
- Top of funnel: Prospecting with UGC, Reels, and Advantage+ campaigns
- Bottom of funnel: Retargeting with dynamic product ads, testimonials, and bundles
What’s working in 2025:
- A+ Sales campaigns for automated prospecting, but only when fed high-quality creative and tightly grouped products
- Short-form video as your default creative format (Reels, Stories, square video ads) static still works, but video outperforms in attention and click-through
- Dynamic product ads (DPAs) for personalized retargeting, especially when paired with reviews, urgency copy, or bundle incentives
- Click-to-Message ads (Messenger or WhatsApp) for high-ticket items, customized offers, or product education
- Product tagging + Instagram Shop integration to reduce friction and drive in-app conversions
Meta’s strength lies in storytelling—and when your Facebook ads strategy pairs scroll-stopping creative with smart targeting, that’s when discovery turns into scale.
TikTok Ads
What it does best: TikTok drives discovery like no other platform. It’s where users go to be entertained and where products go viral when they tap into trends, authenticity, and fast-moving creative. If your product is highly visual, demo-friendly, or appeals to a younger demographic, TikTok belongs in your mix.
Where it shines in the funnel:
- Top of funnel: Mass discovery through native-feeling UGC and creator content
- Mid-funnel: Retargeting with Spark Ads or TikTok Shop integrations to turn interest into intent
What’s working in 2025:
- Spark Ads (boosted creator posts) for authentic top-performer reach, especially when they’re product demos, storytimes, or “TikTok made me buy it” moments
- Short, fast-paced UGC that matches native content: real people, first-person voice, casual edits
- TikTok Shop for frictionless in-feed purchasing: fewer clicks, faster conversions
- Creator collaborations with micro-influencers for both reach and trust
- Smart+ campaigns (TikTok’s AI bidding) that work best when paired with strong video hooks and well-structured product feeds
If you can make your product part of the scroll, TikTok can turn interest into action fast.
Pinterest Ads
What it does best: Pinterest is where people plan. Users come with purchase intent, even if they’re not ready to buy that second. It’s ideal for visual-first products in lifestyle, beauty, home, fashion, food, and gifting. If your brand helps people imagine a future version of themselves, Pinterest helps you sell it.
Where it shines in the funnel:
- Mid to top of funnel: Inspires discovery while capturing soft intent
- Bottom of funnel: Shopping campaigns and dynamic retargeting for re-engagement
What’s working in 2025:
- Shopping Ads + Product Catalogs: Auto-generate ads based on saved Pins, previous views, or search behavior
- Idea Pins + Video: Pinterest prioritizes short-form content and how-to visual storytelling (e.g. tutorials, transformations, step-by-step demos)
- “Shop the Look” Pins for multi-product bundles or lifestyle setups
- Trend targeting using Pinterest Predicts and seasonal content planning: smart brands align ads with upcoming search spikes
- Low-CPC retargeting for users who’ve pinned or saved your products, especially effective for high consideration cycles
Pinterest is a high-intent, slow-burn channel that quietly delivers excellent ROAS when used right.
Amazon Ads
What it does best: Amazon is built for conversion. Shoppers here are looking to buy. If your product lives on Amazon, it’s essential to support it with ads that increase visibility, win the buy box, and defend your space from competitors.
Where it shines in the funnel:
- Bottom of funnel: High-intent buyers searching exact products or categories
- Mid-funnel: Shoppers browsing similar or competitor listings
What’s working in 2025:
- Sponsored Products for core revenue drivers. They show up directly in search and product pages, and should be your always-on baseline
- Sponsored Brands to build awareness for new lines or drive store visits
- Sponsored Display to retarget shoppers both on and off Amazon including competitors’ pages
- Amazon DSP for programmatic reach beyond the platform, using Amazon’s shopping data to target buyers elsewhere
- Listing optimization is still critical: strong visuals, A+ content, and social proof impact ad efficiency as much as bid strategy
Amazon’s ad system favors brands who support their listings with tight PPC management and a conversion-focused strategy. If you’re selling there, ads are how you win visibility, conversions, and category share.
Conclusion
There’s no shortage of ad tactics out there. But most of them fall apart without the right foundation: knowing your channel, understanding your funnel, and building campaigns that actually reflect how people buy.
In 2025, performance comes from depth, not from trying to be everywhere. The brands seeing real growth are tightening up their media mix, leaning into creative that speaks directly to their customers, and running ads that feel built for the moment they’re in.
If your strategy hasn’t changed in a year, this is your cue. Pick your channels with intention. Structure your campaigns to learn fast. And stop running ads that try to do everything all at once.
Focus wins. Consistency scales. The rest is noise.
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