Anzeige

The Era of Omni-Commerce: New Insights for Dominating the Digital Shelf and Beyond

Catalyst
24. Jun 2020
Anzeige

Más contenido relacionado

Presentaciones para ti(20)

Similar a The Era of Omni-Commerce: New Insights for Dominating the Digital Shelf and Beyond(20)

Anzeige

Más de Catalyst(20)

Último(20)

Anzeige

The Era of Omni-Commerce: New Insights for Dominating the Digital Shelf and Beyond

  1. THE ERA OF OMNICOMMERCE New Insights for Dominating the Digital Shelf & Beyond Meghan Lavin, Partner, Director of Marketing, Catalyst Rachel Dalton, Director Ecommerce & Omnichannel, Kantar
  2. www.CatalystDigital.com About the report The State of Ecommerce 2021 is a landscape study based on two quantitative surveys with 500 online purchasers and 209 marketers, sales professionals and advertising professionals. It is also informed by numerous interviews with industry professionals to help make sense of the rapidly evolving retail landscape in the US. This presentation is a preview of the results. The full whitepaper will be available later this month. Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  3. www.CatalystDigital.com Meet Catalyst Organic Search | Paid Search | Paid Social | Retail Media | Programmatic www.CatalystDigital.com Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  4. www.CatalystDigital.com Meet Kantar Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  5. www.CatalystDigital.com Key insights • Evolving shopper expectations: Prioritize convenience and discovery • Breaking media silos: Eliminate waste and improve effectiveness across platforms • More than conversion: Consumers redefine the value of product detail pages • Going beyond ROAS: Integrate media and KPIs for sustained growth • Open for collaboration: Brands need retailers and retailers need brands • The race is on to own The Third Shelf: The exceptional rise of online grocery and last mile delivery • The New Momentum Mindset: Prioritizing progress over perfection Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  6. EVOLVING SHOPPER EXPECTATIONS: Prioritize convenience and discovery1
  7. www.CatalystDigital.com Cross-platform shopping is the hallmark of today’s consumer, cementing the importance of integrating retail, search, and social 62% of online purchasers search for inspiration on Instagram* 63% of online purchasers do initial product research on Amazon* 63% of online purchasers do product & price comparison on Walmart* 50% of online purchasers discover new brands & products on Google* Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 *Among those who visited these specific sites
  8. www.CatalystDigital.com While retailers lead in terms of site visits, social platforms and traditional search sites are paramount, particularly for inspiration and discovery 38% 39% 30% 46% 50% 49% 35% 44% 44% 26% 55% 60% 51% 64% 62% 54% 50% 54% 55% 52% 63% 62% 63% 51% 45% 48% 53% 46% 44% 57% 60% 48% 63% 39% 33% 34% 43% 34% 37% 36% Amazon.com Target.com Walmart.com Twitter Instagram YouTube Google Yahoo Facebook Costco.com Search for inspiration Discover new products/brands Initial product research Product/price comparisons Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 Read as: 63% of shoppers who visited Amazon in the days leading up to a purchase did so for initial product research
  9. www.CatalystDigital.com Shoppers rely on retailer sites and apps more than any other touchpoint in the days leading up to a purchase 0% 5% 10% 15% 20% 25% 30% 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% %RankedasMostInfluential %EngagedinTouchpoint Preshop Touchpoints Rank #1 Retailer Website/ App Net Internet Search Net Email Ad Net Brand Website/ App Net Social Media Post/Ad Net In-store Net Offline Ad Net Reco Net Blog/ Online Forum Net Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 Read as: Among all online purchasers, 37% visited a retailer website/app in the days or weeks leading up to a purchase
  10. POLL QUESTION: Thinking back to when you last made a purchase on a retailer site (Amazon.com, Walmart.com, Target.com, etc.), what was the reason you chose to buy at that specific retailer? Pick one. - Convenience - Shoppability - Price/Value - Assortment - Service
  11. www.CatalystDigital.com Convenience matters more than price 36% 47% 52% 57% 66% Service Price/Value Assortment Shoppability Convenience Reasons for choosing a retailer for product purchase Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 Read as: 66% of online purchasers say convenience is the main reason they choose to purchase at a specific retailer
  12. www.CatalystDigital.com Advertising is helpful, not a hindrance 36% click on a least one ad* 28% click on at least one sponsored product* 54% say advertising either helps remind them of something they need, or it prompts an idea for something they want* Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 *among those online purchasers who saw an ad or promo while shopping for a product prior to purchase
  13. www.CatalystDigital.com Social commerce gains momentum 59% of online purchasers who are aware of social commerce 61% of those aware are either very, or somewhat, likely to purchase from social sites in the future 15% 24% 35% 26% Not at all likely Not very likely Somewhat likely Very likely Awareness of social commerce Yes 59%No 41% How likely to purchase from social media in future Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  14. BREAKING MEDIA SILOS: Eliminate waste and improve effectiveness across platforms2
  15. www.CatalystDigital.com Importance of a cross-channel, cross-retailer approach If advertisers want to maximize sales and grow their brand, no longer can they look at retail media as a stand-alone channel. They must take a cross-channel retail media approach that is inclusive of traditional retailers as well as search, social, and programmatic. Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  16. www.CatalystDigital.com Navigating and connecting a fragmented landscape Companies are using a wide variety of platforms for digital marketing activities Top 5 platforms for digital marketing activities 72% 67% 61% 50% 49% Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 Read as: 72% of companies use Facebook for digital marketing activities.
  17. www.CatalystDigital.com More than half of industry professionals have increased their budgets across most digital advertising tactics that they had been investing in: 44% say the funds are incremental 67% 67% 66% 66% 63% 60% 57% 57% 56% 54% 53% 51% 50% 49% 47% 44% 24% 24% 24% 23% 28% 30% 36% 32% 37% 26% 24% 41% 27% 46% 35% 38% 9% 9% 10% 11% 9% 11% 7% 11% 8% 19% 24% 8% 23% 6% 18% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Amazon Advertising WMG (Walmart) advertising OTT/CTV YouTube ad Social media ad Podcasts Email marketing Paid search Target advertising/Roundel Audio Digital "out of home" advertising Organic Search Kroger advertising Product listing ads Influencer marketing Display ad 2020 digital ad platforms - ordered by "increasing" Increasing Same Decreasing Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 Read as: 67% of professionals investing in Amazon Advertising plan to increase their budgets for this platform.
  18. www.CatalystDigital.com Lean into experts In a complicated and rapidly changing environment, brands are capitalizing on partners’ specialty skills, tech, and experience on their path to an integrated and comprehensive ecommerce strategy. “You need to find the best agencies leveraging the best tech in order to compete.” John Denny, VP Ecommerce & Digital Marketing, CAVU Venture Partners Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  19. www.CatalystDigital.com Brands and agencies are taking this approach already 61% reported that they manage Amazon both in-house and with an agency 46% reported using both in-house and agency teams to manage advertising on Kroger 36% reported using a hybrid model for managing advertising on Target 34% reported that WMG is managed in-house and another 34% saying that it is managed through an agency Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  20. www.CatalystDigital.com The expectation is for greater collaboration in the future Agencies are reporting an expected increase in opportunities to support brands’ retail media efforts 56% of agency respondents saying that they expect more RFPs in ecommerce and retail media in 2020. When it comes to ecommerce, one reason could be that many brands manage retail media programs through their in-house shopper teams or brand teams instead of digital teams or search teams, relying on their agencies to recommend holistic media plans. Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  21. MORE THAN CONVERSION: Consumers redefine the value of product detail pages3
  22. POLL QUESTION: When scanning through search results (either on traditional search engines like Google or retailer sites like Amazon), do you ever scroll beyond the first page? - Yes - No - Don’t recall / Not Sure
  23. www.CatalystDigital.com The power of the PDP 45% of online purchasers go to PDPs to learn about the product at the time of purchase Contrary to past search engine behavior, consumers are indeed reviewing PDPs beyond page 1, demonstrating the need and opportunity for compelling and helpful PDPs even if they may not be for a priority product. 49% of online purchasers scroll past page 1 to look for what they want 56% of Millennials (ages 24 – 41) 54% of Gen X (ages 42 – 55) For younger generations, this is even higher. Online purchasers scroll past Page 1 when researching products and brands. Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  24. www.CatalystDigital.com PDPs are a critical asset for brands, but can be undervalued of ecommerce professionals say they are focused on optimizing their PDPs for SEO across the online platforms they use for digital marketing. Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 37%
  25. “The search bar and product detail page are the primary places where consumers will interact with your brand…the PDP is your brand marketing – most companies don’t understand this. Millions of dollars are spent on the brand’s website, but only a small fraction on the PDP, but it should be opposite.” Rob Gonzalez, Co-Founder & CMO, Salsify
  26. www.CatalystDigital.com Search’s importance transcends age, platform, and consumer touchpoint When asked what trend is having the greatest impact on their company’s ecommerce marketing strategy in 2020, the majority of respondents ranked the “changing role of search marketing” as the top trend. 53% Millennial online purchasers are search super-users 33% Boomer online purchasers using search at time of purchase 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% Product Detail Page Net Search Bar Net Ads/Promos Net Another website / app Net Chat/Help Net %RankedasMostInfluential %EngagedinTouchpoint Nets Comparison - Ordered by Touchpoint Engagement Online Buying Touchpoint Rank #1 Read as: Among all online purchasers, 45% visited a PDP at the time of purchase
  27. www.CatalystDigital.com Importance of bidding on broader category search terms for optimal findability should not be underscored 31%37% of online purchasers search a specific type of product search for a specific brand Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  28. GOING BEYOND ROAS: Integrate media and KPIs for sustained growth4
  29. www.CatalystDigital.com Looking at the whole picture Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 ROAS can be easy to measure and is not without value, but it is not the be-all end-all of reporting for ecommerce or other performance marketing channels. “If brands aren’t careful, they are going to ROAS themselves into a corner.” Kristina Smith, VP, Digital Marketing, The Riveter
  30. www.CatalystDigital.com Looking at the whole picture Look at a combination of metrics together for a more robust and valuable picture of your ecommerce performance (CPA, SOS, CLV). Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 Share of search “helps us balance ROAS with how advertising is performing and growing relevancy within products.” Trevor Krehel, Channel Marketing Manager, Seagate “Finding and integrating all data sources in the company takes time, but it is the future.” Bob Land, Vice President of Consumer Experience, Dorel Juvenile
  31. www.CatalystDigital.com Most marketers agree that measuring success is achievable across traditional advertising, but less so for emerging options 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Amazon Advertising Target advertising/Roundel WMG (Walmart) advertising Kroger advertising Social media ad Email marketing Display ad Paid search YouTube ad Organic search (SEO) Influencer marketing Digital 'out of home' advertising Product listing ads Audio (e.g. Pandora, Spotify) OTT/CTV (Over-the-top media / Connected TV) Podcasts Very well/moderately well Not very well/Not at all well Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 Read as: Among ecommerce professionals who used Amazon Advertising in the last 12 months, 90% indicated that they were able to measure ROI very well or moderately well, while only 59% say the same for podcasts.
  32. www.CatalystDigital.com Solving for the data dilemma Most organizations agree that having better data analytics is the key to growth. 56% In fact, when asked what activities industry professionals are allocating ecommerce budget for, the highest percentage of respondents (56%) said data and analytics services. Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  33. OPEN FOR COLLABORATION: Brands need retailers and retailers need brands5
  34. www.CatalystDigital.com Sharing responsibility for growth Allowing for branding consistency will bring a more holistic view and clearer communication with the consumer to encourage purchase, a win-win for both brands and retailers. Most industry professionals agree that the biggest opportunity in ecommerce in the next 5 years will be improving the user’s experience. Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  35. www.CatalystDigital.com Elevate partnerships to promote transparency with data and metrics To reach the next level of growth in ecommerce, brands and retailers need to elevate their partnerships, specifically around data sharing and performance measurement. 29% of agency professionals ranked performance tracking, measurement, reporting and analytics as the biggest opportunity for partnering with ecommerce retailers
  36. THE RACE IS ON TO OWN THE THIRD SHELF: The exceptional rise of online grocery and last mile delivery6
  37. www.CatalystDigital.com Last mile providers continue to gain momentum 49% of online purchasers have used Amazon Prime Now and nearly one quarter have used Instacart Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  38. www.CatalystDigital.com Online grocery just isn’t for ‘grocery’ any longer 4% 5% 17% 14% 13% 8% 44% 35% 38% 45% 45% 29% 52% 60% 46% 41% 42% 63% Amazon Prime Now Deliv Postmates Doordash Shipt Instacart More than in the past The same as in the past Less than in the past Planned usage of delivery services in the next year Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020 Read as: Among those online purchasers who used Instacart, 63% plan to use the service more in the future. Note that Shipt, Postmates, and Deliv are small bases: use only directionally.
  39. “Online grocery was primarily a food play in the past, but this has changed massively, and this trend will continue post COVID.” Steve Kinsey, Director of Commerce Marketing, GSK “Instacart can work to ship things like ice cream and cheese, but many brands with these products have not been spoken to from an ecommerce perspective. They’ve been focused on upper funnel, so to talk lower funnel requires some education.” Seth Dallaire, Chief Revenue Officer, Instacart
  40. www.CatalystDigital.com The Instacart story Key trends, opportunities, and challenges for marketing The savviest brands are hard at work figuring out how to win the first basket. Our research reveals that 65% of Baby Boomers that have used Instacart report that they plan to use the service more in the future. Brands will need to reset expectations and adopt a digital mindset to be successful in the online grocery world. Winning the First Basket Expanding Demos Adapting to the Digital Experience Many of our interviewees recognized the promise of Instacart, but also reported growing pains, as is to be expected with any nascent media platform. Optimistic Future Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  41. THE NEW MOMENTUM MINDSET: Prioritizing progress over perfection7
  42. “One way I try to do this is by having an experimentation mindset, like a growth hacker: identifying small, incremental changes that, when compounded over time, can accelerate the rate of growth.” Ricky Busby, Brand Building Leader for New Ventures, Georgia-Pacific
  43. of professionals see their companies as leaders in ecommerce8%
  44. www.CatalystDigital.com Two areas to fuel momentum DTC For many organizations, DTC is a relatively small percentage of sales, but provides access to data and insights and test ‘n learns that fuel greater innovation and success in ecommerce, and other channels. 88% of industry professionals say their company sells DTC 62% of industry professionals say it is a strategic focus to increase DTC sales 3P Companies see the value of 3P to test products and gain more insights on their consumers. Leading brands are evaluating 3P to uncover incremental opportunities across product portfolios or white space. 44% of industry professionals say their company is selling 3P 49% of industry professionals say it is an opportunity Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020
  45. www.CatalystDigital.com Recommendations • Ensure brand presence is equally strong and integrated across all platforms. • Assess all areas where you can raise the level of convenience and ease for shoppers. • Augment PDPs with best-in-class content and invest in search to maximize findability & conversions. • Develop customized retail media strategies and don’t let scalability scare you off. • Explore a variety of KPIs across all functional groups and gain buy-in on their validity. • Schedule consistent time to sit with your retailers so you can improve data sharing without compromising privacy. • Don’t go it alone. Lean into expert partners to capitalize on all opportunities. • Explore online grocery and last mile delivery, even if you aren’t a traditional grocery brand. • Don’t wait until it’s perfect - test ‘n learn now.
  46. THANK YOU FULL REPORT COMING SOON www.CatalystDigital.com
  47. Rachel Dalton rachel.dalton@kantar.com 203 722 0314 Meghan Lavin meghan.lavin@catalystsearchmarketing.com 617 663 1246 Kantar | 501 Boylston St. Boston, MA 02116 | (617) 598-5300 | www.kantar.com Catalyst | 501 Boylston St. Boston, MA 02116 | (617) 663-4100 | www.catalystdigital.com
  48. www.CatalystDigital.com Copyright ©2020 Kantar Consulting LLC. Some rights reserved. ©2020 Catalyst Online LLC Some rights reserved. 501 Boylston St., Suite 6101, Boston, MA 02116 T: +1 (617) 912 2828 Notice No part of these materials may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photography, recording, or any information storage and retrieval system now known or to be invented, without the express written permission of Kantar Consulting LLC. The printing of any copies for backup is also strictly prohibited. Disclaimers The analyses and conclusions presented in these materials represent the opinions of Kantar Consulting LLC. The views expressed do not necessarily reflect the views of the management of the retailer(s) under discussion. These materials are not endorsed or otherwise supported by the management of any of the companies or organizations discussed herein.
Anzeige