E-commerce and Digital Investment Insights

A new report on retail media and its impact on marketing structures by WARC and The Digital Shelf Institute underscores the role of digital commerce in reshaping traditional marketing approaches. The report outlines 6 fundamental pillars of digital commerce and offers insights into sales-led and marketing-led strategies and retail media funding challenges Gregory Grudzinski & Lauren (Livak) Gilbert, thank you for including me in developing this research and contributing to the report. 💡It provides two different perspectives and approaches; sales-led and marketing-led. 💡 The report makes a strong case for holistic measurement around consistency, accuracy, resource allocation, and decision-making 💡It discusses retail media funding challenges and shows where retail media investments are coming from. ++ Highlights from the Report ++ 💡Global retail media ad spend is forecast to grow 10.1% to $122 billion in 2023. 💡Retail media investment is forecast to become more valuable than linear TV by 2025. 💡Amazon is forecast to account for 35.7% of global #retailmedia ad spend in 2023. 💡Paid search is set to defy the economic headwinds and grow faster than social and online display. 💡Advertising Cost of Sales and Return on Ad Spend, tied for the top spot (84% of respondents), were listed as the most important KPIs to measure retail media success. 💡Efficiency metrics appear further down the list at #4 Cost per Acquisition (CPA) with 43% of respondents and #6 Average Cost per Click (CPC) named by 25% of respondents.  ++ Key Takeaways ++ 📍1. Embrace the hybrid role resulting from the collision of sales and marketing. Creating a Center of Excellence is a proven way to unify teams, particularly in sales and marketing. They accomplish this by driving operational efficiencies, standardizing full-funnel metrics, and adopting the best practices needed to win in an omnichannel world. 📍2. Begin with the end in mind. The goal of digital transformation is not simply to build skilled digital teams; it’s to build skilled teams that deliver improved business results. Make sure accountability and responsibility are assigned. The goal of the Center of Excellence should ultimately be to eliminate the company’s need for one. 📍3. Expand the organization’s understanding of digital marketing fundamentals. E-commerce is not a class of trade; it’s an overlay to virtually every class of trade. Understanding how it works must be institutionalized and made accessible throughout the organization. 📍 4. Create a holistic commerce measurement program. Success in e-commerce, particularly with retail media networks, requires tight alignment across all departments, especially sales and #marketing. Avoid sub-optimization with the adoption of unified metrics deployed across the full funnel. The link for the sample report is in the comments. 👇 Follow #ecommert to track insights about #ecommerce #strategy and #sales #growth.

The Q1 2024 e-commerce supplement for retail trade just released, which incorporates new benchmarking from the 2022 Annual Retail Trade Survey. As such, I wanted to share some insights we can glean from this document. Two charts. Thoughts: •Top chart shows e-commerce sales as a percentage of total sales for retail trade excluding (i) motor vehicles & parts dealers and (ii) gasoline stations. I’ve seasonally adjusted the data using the 2018-2019 period. Q1 2023, assuming it holds, is specially as this is now the largest seasonally adjusted reading ever, even bypassing Q2 2020 during COVID-19 lockdowns. It’s also interesting to see that the e-commerce percentage seemed to restart an upward climb in Q1 2023 after having been neutral for an extended period. We are still 1.5 percentage points above where the pre-COVID trendline would have placed things. •Bottom chart shows e-commerce sales for (i) nonstore retailers (e.g., pure-play e-commerce firms) and (ii) brick-and-mortar retailers excluding motor vehicle & parts dealers. On a percentage basis, both series have grown almost perfectly in unison (relative to Q1 2018, nonstore e-commerce is up 113%, whereas brick-and-mortar e-commerce is up 99%). •I do wonder if continued penetration of Chinese e-commerce firms such as Temu will start to chip away at growth of domestic e-commerce, especially for nonstore retailers (e.g., is that Q1 2024 seasonally adjusted drop in the bottom chart a harbinger of things to come?). Implication: e-commerce continues its slow upward penetration in the retail space. Yet, brick-and-mortar retailers continue to account for more than 75% of retail trade excluding (i) motor vehicles & parts dealers and (ii) gasoline stations. #supplychain #supplychainmanagement #ecommerce #retail #freight #trucking

In today's fast-paced digital marketplace, standing out is not just an option—it's a necessity. Traditional photography and 2D imagery, while effective in the past, now face stiff competition from a groundbreaking approach: 3D modeling and immersive product visualizations. This innovative method is revolutionizing e-commerce, transforming how businesses showcase their products and how consumers interact with online shopping platforms. Why 3D Modeling and Immersive Visualizations? Enhanced Customer Engagement: 3D models offer customers an interactive experience, allowing them to view products from every angle and in various scenarios. This level of interaction not only keeps customers on your page longer but significantly boosts their engagement, leading to a deeper connection with your product. Improved Conversion Rates: Studies have shown that products displayed in 3D see a substantial increase in conversion rates. The reason? Customers can better understand the product, leading to increased confidence in their purchase decision and, consequently, fewer returns. Cost-Effective Marketing: Initially, creating 3D models might seem like a costly investment. However, when compared to traditional photography's logistics, staging, and reshooting costs, 3D modeling is a one-time investment that can be reused across multiple platforms and marketing campaigns. Stand Out from the Competition: In a sea of standard product presentations, offering an immersive visualization experience can set your brand apart. It's a clear statement that you're committed to innovation and customer satisfaction, which can significantly enhance your brand's perception. Future-Proof Your Business: As augmented reality (AR) and virtual reality (VR) technologies become more mainstream, having 3D models of your products positions your business at the forefront of the next digital revolution. It ensures you're ready to integrate with the next wave of e-commerce innovations, such as virtual showrooms and AR-based try-ons. The Bottom Line Investing in 3D modeling and immersive visualizations is not merely jumping on a new trend—it's about strategically positioning your e-commerce business for increased sales, enhanced customer satisfaction, and long-term growth. The digital age demands that we not only meet but exceed customer expectations. By embracing 3D technology, you're not just selling a product; you're offering a unique and memorable shopping experience. As we move forward, the question for e-commerce businesses is not if they will adopt 3D modeling and immersive visualizations, but when. The time to innovate is now. Are you ready to transform your e-commerce experience and take your business to new heights?

Despite stiff competition, Amazon is well on its way to capturing over 40% of the US eCommerce market. 📊 Key Stat: According to a February 2024 forecast, Amazon will account for 40.4% of US retail e-commerce sales, totaling $491.65 billion this year. 💡 Insights from the article 1️⃣ Amazon will make up just 6.6% of US retail sales despite its eCommerce dominance. This share is expected to grow to 7.0% in 2025 as more spending shifts to eCommerce. 2️⃣ Over the next two years, Amazon’s market share will increase in 8 out of 10 product categories. The exceptions are home improvement (due to established retailers) and auto (due to Tesla and Carvana). 3️⃣ Among major US retailers, Walmart is growing its eCommerce sales faster than Amazon, with a growth rate of 13.6% compared to Amazon’s 10.5%. Walmart's lead in digital grocery could pose an increasing threat to Amazon as the category matures.