Online shopping may be propping up the economy but it is also providing a crutch for the beleaguered marketing industry too, with brands set to spend nearly $59bn (£46bn) on advertising across ecommerce platforms this year alone.
According to figures published by Warc, adspend across ecommerce sites, omnichannel retailers, and social commerce is growing at 30 times the rate of other online ad channels.
While Covid-19 has torn a hole in ad budgets this year, which are set to plummet by about 8.1%, spend on the likes of Amazon, Walmart, Carrefour and TikTok, is set to rocket by 18.3%.
Warc cites the rapid increase in online purchasing, and the “shifting complexion of sales” during the pandemic that has caused many retailers to move their adspend online.
The study reveals that more than 8% of Unilever’s business is now done online, with the company making 71% — €2.2bn (£2bn) — of its total 2019 ecommerce sales in just the first six months of 2020.
The report said: “Brands are flocking to leverage targeted advertising across e-commerce platforms as a means of getting closer to the consumer at the point of purchase.”
Meanwhile, according to a separate study, Brits have become so obsessed with online shopping since the pandemic erupted that close to a quarter confess to being “practically addicted” to it, and cannot wait for the doorbell to ring.
The research, conducted by Argos and OnePoll, found that one in ten online shoppers order so often that they know their delivery driver by name, while nearly three-fifths (57%) would favour online delivery over instore purchasing for the latest products.
In fact, more than half of UK adults say they look forward to their parcel more than calls with friends and family, or even the end of the working day.
According to Argos, which quizzed 2,000 people, 52% of those surveyed say they have already had far more home deliveries in 2020 compared to any previous year.
Argos head of toy buying Juliet Ward said: “It’s interesting to see how in this digital age, it’s the doorbell ringing and getting that delivery which really excites the nation. People are choosing online shopping as their preferred experience more than ever before.”
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