Retail

Brands Will Dedicate $58.6B To eCommerce Advertising

Brands Will Dedicate $58.6B To eCommerce Advertising

Amid the pandemic and the increase in eCommerce during the health crisis, WARC Data’s Global Advertising Trends report found that brands worldwide will put $58.6 billion toward online shopping advertising.

Marketing on sites such as Rakuten and TikTok is forecasted to rise 18.3 percent globally, surging 30 times quicker than the broader digital advertising market, MediaPost reported.

GfK determined that nearly half — or 44 percent — of almost 1,000 American consumers polled anticipate purchasing only through eCommerce during the holiday season. Approximately two in ten — or 17 percent — indicate they will shop only in physical retail stores.

Approximately 45 percent note that they will purchase products through the web and have them brought to their residences, but 37 percent indicate they will buy holiday products in shops.

Twenty-five percent intended to harness digital ordering with in-store delivery, while 19 percent will use curbside pickup.

Approximately 48 percent of older consumers and 45 percent of young consumers indicated they would use digital ordering with delivery at their residences.

The news comes as eCommerce media is turning into a larger factor in the advertising world at a time when retail revenue is precious and the transition to Digital 3.0 is white-hot. The practice is a trade name for advertising on online shopping websites.

The maker of Oreo and other snacks, Mondelez International, has recently increased its efforts to advertise on online shopping sites. By placing ads that are “very relevant to the moment” for many brands like Cadbury and Oreo, CEO Dirk Van de Put said at RBC Capital Markets’ Consumer & Retail Conference, the company is reflecting changing consumer behavior.

Earlier this year, eCommerce media was receiving something of an upfront event. Night Market and Horizon Media had announced what they dubbed the inaugural eCommerce Upfront scheduled for July 13 to 17. It was to consist of different digital workshops showcasing expansion, best procedures, trends and strategies.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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