Brands are set to spend $59 billion on e-commerce advertising in 2020, indicated WARC Data. This represents an annual rise of 18.3% at a time when the global advertising industry is expected to decline by 8.1%. Ad investments across e-commerce sites, omnichannel retailers and social commerce are growing 30 times faster than the wider online ad market, as brands intensify lower-funnel tactics in response to COVID-19. This growth has coincided with a sharp fall in spending across major media.
“Our research shows that the ad industry will take a $49.6 billion hit from COVID-19 this year, but the impact is not being felt equally across the media landscape, as the explosive growth in e-commerce has drawn brands to shoppable media,” stated James McDonald, head of data content, WARC.
Some of WARC’s research findings indicate that Amazon’s ad business is growing 4.5 times faster than Facebook’s and 63 times faster than Alphabet’s. And COVID-19 will result in an additional $183 billion being spent online by consumers in 2020. Taken together, e-commerce sales are set to rise by 30.4% – $677 billion – to $2.9 trillion this year, with consumer-packaged-goods the primary benefactors. FMCG ad money is also shifting online in response to buying patterns.
As brands are set to spend $59 billion on e-commerce advertising in 2020, WARC Data also elaborated that with digital advertising spend plateauing in the wake of COVID-19, e-commerce platforms – which have seen penetration balloon – are in a strong position to capture reallocated budgets by using sales data to demonstrate ad performance and return on investment during a volatile economic climate.
Read the report
Words by Farimah Moeini, Snapchat Head of Industry – Retail and Travel TheJuly 5, 2021 | By RetailME Bureau
Snapchat has been betting big on Augmented Reality’s (AR) retail future consideringJune 22, 2021 | By Jibran Chouguley
Union Coop has opened its 23rd branch within the UAE in Jumeirah
Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and
UAE-based Al Maya Group announced that it will be boosting import of
UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu
UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand
Locally owned supermarket Spinneys celebrates 60 years of doing business in the
UAE-based Carrefour will become the first retailer in the region to offer new levels
The Organic Farmers’ Market is back in Bay Avenue for its 12th
UAE-based Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah,
Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones
UAE-based Al Maya Supermarkets is hosting a two-week food festival at select
E-commerce giant Amazon’s founder Jeff Bezos has stepped down as CEO, handing
American clothing retailer, PVH has increased the number of active job advertisements
Extravagant, conceptual, great food and views are some of the ways that
As the UK begins to return to normality, Father’s Day shoppers are
Abu Dhabi’s state investment company ADQ is in talks to invest about $500 million
Netflix has announced the launch of its e-commerce platform where show merchandise
Global e-commerce giant Amazon has announced that it has struck a deal
French luxury conglomerate LVHM’s chairman, Bernard Arnault on Monday replaced Jeff Bezos
Amazon.com Inc. will supplant Walmart Inc. as the biggest U.S. retailer by 2025, according to
The once powerful department stores that anchored malls and streets around the
Who isn’t a sucker for discounts? Customers today are spoiled for choice
The various e-commerce and virtual retail stores that cater to different product