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In Latin America, online shoppers, who became first-time online buyers during the global pandemic, are expected to continue their online shopping habits despite the reopening of offline stores. The global B2C market is expected to grow by 13.10% on an annual basis to reach US$6,398.1 billion in 2022. 

The medium to long-term growth story of the global B2C Ecommerce industry promises to be attractive. The B2C Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 11.21% during 2022-2026. Globally, B2C Ecommerce Gross Merchandise Value will increase from US$5,657.2 billion in 2021 to US$9,785.3 billion by 2026. The data is from the “Global B2C Ecommerce Market Opportunities Databook – 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics – Q2 2022 Update” report has been added to ResearchAndMarkets.com’s offering.

An increase in disposable income, per capita income worldwide, and internet penetration contribute to the growth of this industry and is now more accessible because of technological development and the widespread use of smartphones. The growing use of social networks further fuels the desire to purchase various goods and services online. The global market is anticipated to grow rapidly over the forecast period, mostly due to increased digital dependency and the convenience of online platforms for buying.

Latin American Online Shoppers

In Latin America, the e-commerce industry remains on an upward trend amid the pandemic frenzy, which resulted in an increasing number of shoppers flocking to online sales channels to complete their purchases, including daily essentials. Consumers, who became first-time online buyers during the global pandemic, are expected to continue their online shopping habits despite the reopening of offline stores.

Brazil is leading the regional e-commerce growth in Latin America. While the global pandemic outbreak has accelerated the adoption of e-commerce marketplaces, the increased smartphone and internet penetration rate also supports the industry growth in Brazil.

Brazil is leading the regional e-commerce growth in Latin America.

DOWNLOAD Portada’s E-Commerce Marketing in Latin America Report!

Across Europe, Germany is one of the fastest-growing economies and has a dynamic startup-up ecosystem. Moreover, along with the United Kingdom and France, Germany is among the top European performers in the e-commerce industry. These countries together generate 60% of the total e-commerce revenue in Europe.

Over the last two years, the e-commerce industry has recorded strong growth across European product categories. While fashion continues to dominate the online shopping trend with more consumers buying clothing and accessories, the lockdown also resulted in the growth of food and medicine delivery services in the country, together with an increasing number of consumers ordering food and medicines from online platforms.

An increase in disposable income, per capita income worldwide, and internet penetration contribute to the growth of this industry.

With various stores stepping up their online services before the global pandemic outbreak in 2021, B2C e-commerce in the Middle East and North Africa (MENA) region is swiftly catching up to global superpowers like the United States and China. One of the major contributors to the MENA region’s e-commerce market is the United Arab Emirates (UAE) e-commerce sector.

The rising internet penetration rates largely drive the expansion of the e-commerce industry in the UAE. This, coupled with growing incomes, high possessions of smartphone devices, increasing presence of global players, and enhanced supply chain solutions, has supported the market growth over the last two years. While the country has been a cash-dominant society in the past, the global pandemic outbreak has forced consumers to quickly adopt digital payment methods

 

online shoppers

Asian Online Shoppers

Similarly, the e-commerce industry in the Asia Pacific region was experiencing a year-on-year growth even before the global pandemic, and the Covid-19 outbreak accelerated the consumer shift to online channels in the country. For instance, the Chinese B2C e-commerce market has a very competitive landscape with a complex web of partners and competitors. In China, the share of independent websites, including brand-own websites and e-commerce marketplaces, doubled in 2021.

While the competition is growing in the segment, most of the market share is held by players such as Alibaba Group, Pinduoduo, Xiaohongshu, and JD.com. One of the trends which gained widespread adoption in the Asia Pacific region was the preference to shop online in the wake of the pandemic outbreak, which affected the livelihood of many people.

Scope

B2C Ecommerce Market Size and Future Growth Dynamics

  • Gross Merchandise Value Trend Analysis
  • Average Value Per Transaction Trend Analysis
  • Gross Merchandise Volume Trend Analysis

B2C Ecommerce Market Share by Key Players

  • Retail Shopping Ecommerce Market Share by Key Players (40+ Players)
  • Travel Ecommerce Market Share by Key Players (40+ Players)
  • Food Service Ecommerce Market Share by Key Players (40+ Players)

B2C Ecommerce Market Size and Forecast by B2C Ecommerce Segments (Gross Merchandise Value Trend Analysis, 2017-2026)

  • Retail Shopping ( breakdown by clothing, footwear & accessories, health, beauty and personal care, food & beverage, appliances and electronics, home improvement, books, music & video, toys & hobby, auto)
  • Travel and Hospitality (breakdown by air travel, train & bus, taxi service, hotels & resorts)
  • Online Food Service (breakdown by aggregators, direct to consumer)
  • Media and Entertainment (breakdown by streaming services, movies & events, theme parks & gaming)
  • Healthcare and Wellness
  • Technology Products and Services
  • Other segments

B2C Ecommerce Market Size and Forecast by Retail Shopping Sales Channel

  • Platform to Consumer
  • Direct to Consumer
  • Consumer to Consumer

B2C Ecommerce Market Share by Travel and Hospitality Sales Channel

  • Market Share by Travel and Hospitality Sales Channel
  • Aggregator App – Gross Merchandise Value Trend Analysis
  • Direct to Consumer – Gross Merchandise Value Trend Analysis

B2C Ecommerce Market Size and Forecast by Online Food Service Sales Channel

  • Aggregator App
  • Direct to Consumer

B2C Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2017-2026)

  • Website Based
  • Live Streaming

B2C Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis, 2017-2026)

  • Cross Border
  • Domestic

B2C Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis, 2017-2026)

  • Mobile
  • Desktop

B2C Ecommerce Market Size and Forecast by Operating System

  • iOS/macOS
  • Android
  • Other Operating Systems

B2C Ecommerce Market Size and Forecast by City

  • Tier 1
  • Tier 2
  • Tier 3

B2C Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2017-2026)

  • Credit Card
  • Debit Card
  • Bank Transfer
  • Prepaid Card
  • Digital & Mobile Wallet
  • Cash
  • Other Digital Payment

For more information about this report visit https://www.researchandmarkets.com/reports/5648293/global-b2c-ecommerce-market-opportunities?utm_source=BW&utm_medium=PressRelease&utm_code=35vvll&utm_campaign=1765253+-+Global+B2C+Ecommerce+Market+Opportunities+Databook+Report+2022%3a+Market+is+Expected+to+Grow+by+13.10%25+to+Reach+%246%2c398.1+Billion+in+2022+-+Forecasts+to+2026&utm_exec=chdo54prd

Balance is the Top Solution for B2B eCommerce Businesses and Marketplaces

NEW YORK–(BUSINESS WIRE)–Balance, the leader in B2B payments, specializing in financing and ecommerce, today announced the hiring of fintech executive Kim Loftis, the company’s VP of Customer Growth.

Loftis joins Balance with over 20 years of customer management and executive experience within fintech and financial services. From her role as VP, Investment Specialist at JP Morgan to leading the Global Customer Experience at Marqeta, she is bringing a wealth of expertise to Balance. As VP of Global Customer Experience at Marqeta, she designed and led the execution of major corporate change initiatives, including the customer segmentation strategy, global product and services menu creation and pricing strategy overhaul.

“At Marqeta, I was focused on improving the experience across the entire customer base, and amplifying the voice of the customer throughout the company. The customer must be at the heart of everything you do. A business won’t succeed if its customers aren’t successful,” Loftis said. “What excites me about the opportunity at Balance is the white space–the freedom to take the challenges of B2B payments, apply solutions, see where you get traction and iterate. The Balance product is transformative, and I look forward to helping our customers’ businesses experience that transformation.”

Loftis will be responsible for driving growth opportunities for Balance’s customer base, which has grown by 10x since February 2021. She will be working with marketplace and ecommerce merchants to drive and support the robust growth of Balance’s products and services within customers’ business ecosystems. She will also focus on building customer partnerships and advocating for their needs throughout the company.

Loftis joins Balance on the heels of announcing a $56M Series B fundraise to help merchants and marketplaces scale ecommerce payments with instant financing and a B2B checkout.

“With the adoption of digital commerce over the past few years, accelerating B2B payment experiences for businesses is more important than ever,” said Bar Geron, CEO & co-founder of Balance. “Kim’s strong experience leading the growth of Marqeta’s customers will prove invaluable and help Balance stay a step ahead as we build long-term success for our customers.”

Loftis is also a member of Chief, a private network focused on connecting and supporting women executive leaders. Chief is specifically designed for the most powerful women executives to strengthen their leadership, magnify their influence, and pave the way to bring others with them.

“My own career has been shaped by the key women in positions of leadership who mentored me, whom I witnessed bringing their full selves to the workplace,” said Loftis. “The best decisions are made with diverse perspectives. That means more women and people of color and varied backgrounds in positions of power, and I’m looking forward to influencing Balance’s already supportive and welcoming culture.”

About Balance

Founded in 2020 by PayPal alums Bar Geron and Yoni Shuster, Balance is the top B2B eCommerce payments company offering the first online checkout with omni-channel support built for businesses. With Balance, companies can process any payment method, offer flexible terms, and get paid instantly — all in one place. With offices in Tel Aviv and New York City, Balance has partnered with dozens of B2B marketplaces to shift traditionally offline industries like food, steel, chemicals and apparel to an eCommerce model that resembles B2C. Balance has over 300 merchants, marketplaces and customers combined, including notch, Everywhere Apparel, Bryzos, Felux, Vallourec and more, as well as partnerships with Shopify Plus, Fabric and Magento.

Contacts

Media Contact
Bevel

balance@bevelpr.com

Brands can more easily integrate data and inventory to global marketplaces while expanding profits and accelerating cross-border commerce into new markets

DENVER–(BUSINESS WIRE)–Mamenta, Inc., a leader in global ecommerce, and ESW, a leading global direct-to-consumer (DTC) ecommerce company, announced today that the two ecommerce leaders have partnered together to improve the ecommerce experience. ESW will be integrated with Mamenta, a technology platform that makes it easy for brands like Harman International, Nestle, McAfee, and others to seamlessly connect data and inventory positions to Global Marketplaces. Moreover, apparel, beauty, luxury and technology brands on ESW’s solutions will gain access to the Mamenta network of 600+ online marketplaces in 70+ countries, which are supported by 75+ distribution centers. The integration enables brands utilizing ESW to more easily expand revenue by accelerating cross-border commerce into new markets, and/or test a product’s viability in markets under consideration.

Patrick Bousquet-Chavonne, President & CEO, ESW Americas, commented, “This partnership provides a game-changing advantage for global direct-to-consumer ecommerce brands. Through a single integration, Mamenta and ESW will offer brands a powerful combined solution to accelerate and exponentially expand reach and revenue through a direct channel or on global marketplaces. Both options enable brands to enter new markets more quickly and efficiently and begin generating revenue without significant capital expenditures.”

Shopping across borders has become much more acceptable to a wide range of consumers. A recent “Global Voices Q2 2022” survey of 14,000 shoppers globally by ESW reveals approximately 30% of consumers across all demographics purchase apparel, luxury or beauty products across borders because they are unable to find what they are looking for in their home country.

Mamenta’s Global Trade Platform links disparate infrastructures with centralized marketplace listing management, inventory and supply chain transparency, and messaging between sellers and marketplaces. Its unified sales and performance data delivers critical intelligence across global commerce markets.

Mamenta Founder and CEO Chad Epling said, “Consumers shop in different ways around the world. The combined ESW and Mamenta offering enables us to capture sales in all the ways a buyer wants to shop online. We look forward to a long and impactful relationship.”

ABOUT ESW

ESW is the leading global and domestic direct-to-consumer (DTC) ecommerce company, empowering the world’s best-loved brands and retailers to expand their DTC channel. ESW acquired Scalefast in June 2022, and the combined organization offers brands and retailers a complete portfolio of technology and services that cost-effectively support any stage of a company’s development. From compliance, data security, fraud protection, taxes and tariffs to demand generation, checkout, delivery, returns and customer service, our powerful combination of technology and human ingenuity covers the entire shopper journey across 200 markets, with 100% carbon neutral shipping to consumers. Headquartered in Dublin, Ireland, ESW has global offices in the US, UK, Spain, France, Italy, Japan, Hong Kong and Singapore. ESW is an Asendia Group company, a joint venture between La Poste and Swiss Post.

ABOUT MAMENTA

Mamenta makes it easy for brands to drive revenue through new global channels. Brands need to be in multiple marketplaces around the world. Each marketplace has unique attributes and incredibly complex logistics that requires significant integration and investment. The cloud-based Mamenta Global Trade Platform empowers our clients to launch and manage their marketplace presence on more than 600+ online marketplaces in 70+ countries and is supported by 75+ distribution centers. Mamenta unifies global data flows and management of Catalog, Inventory, Orders, Price, Shipping, and Messaging between sellers and marketplaces. Mamenta is trusted by brands including Harman International, Nestle, McAfee, and many others. Headquartered in Colorado, Mamenta additionally has global offices in India and Japan. For more information visit www.mamenta.com

Contacts

Contact information:
Cue Orr VP of Marketing

cue.orr@mamenta.com

Online auto parts dealer achieves blazing fast indexing for its vast product catalog of 1.5M parts and increases conversion and click-through rates

SAN FRANCISCO–(BUSINESS WIRE)–Algolia, the leading API-First Platform for Search & Discovery, today announced the integration of its modern search technology by Mister Auto, an international eCommerce company that sells auto parts. Algolia’s blazing fast product indexing capabilities, and its AI Synonyms, Search, and A/B Testing capabilities both personalized and dramatically transformed the user experience for Mister Auto’s three million monthly unique visitors. Customers can now quickly find the parts they need from Mister Auto’s catalog of 1.5 million unique products, all of which has led to a 12% boost in conversion rates.

“Since launching the Mister Auto eCommerce website in 2008, we’ve grown rapidly and now operate in over 20 countries, offering over 1.5 million products across our websites and mobile apps,” said Coralie Sanchez, website product owner for Mister Auto. “Enabling millions of customers to sift through an extensive, highly specific product catalog requires serious search speed, scale and relevance. Luckily, having Algolia in place has been critical to tackling this challenge and boosting customer satisfaction.”

In 2022, consumers have high expectations for browsing experiences. In fact, AWS finds that 88% of consumers say they have abandoned a website due to inadequate user experience. Though many retailers prioritize the visual elements of their websites over advanced search and discovery capabilities, relevant search is responsible for influencing nearly 40% of buyouts. Therefore, eCommerce businesses must understand that enabling better search will improve website navigation. For companies like Mister Auto that attract millions of visitors and boast large product catalogs, in addition to relevance, speed and scalability are vital search factors for delivering on the last mile of customer service.

Algolia Search is a fully-hosted, powerful search API that creates fast search and discovery. Together with Algolia’s built-in A/B testing that provides business users with the agility to iterate on search relevances, and Algolia’s dynamic, AI-generated synonym suggestions based on user queries, Mister Auto has successfully reduced the return of “no results” pages by 65% to 80% across its multiple websites. Mister Auto can now effectively index its 1.5+ million products and prices in seconds and adapt its search experience to match ever-evolving user behavior. This powerful combination of Algolia technologies is now being used across all of Mister Auto’s 21 parts websites, 12 white label auto accessories websites and mobile applications in over 20 countries.

“With a business like Mister Auto’s, it’s imperative that products can be found quickly and easily using a variety of search attributes, otherwise customers become frustrated and bounce quickly to the next potential vendor,” said Michelle Adams, Chief Revenue Officer for Algolia. “As the Mister Auto team continues to expand its superior selection of auto parts, our search and discovery capabilities will ensure consumers can find the parts almost instantaneously. Whether they search on a part number, name or description, the most relevant results for products in stock at their nearest location will show up.”

To learn more about how Algolia helps Mister Auto provide a fast, flexible and relevant search experience, explore our case study. To schedule a demo of Algolia’s platform, visit algolia.com/demorequest.

About Algolia

Algolia is revolutionizing search and discovery by providing the world’s most powerful API-First Search and Discovery Platform with its unique hybrid search engine, which is a combination of keyword and vector-based semantic search via NeuralSearch technology, in a single API. Algolia empowers both builders and business users with a better way to build unique and engaging end user experiences at Internet scale to predict what customers want with blazing fast speed and the best application browse experience leading to more remarkable Discovery. Algolia is your guide to the world’s content powering discovery where you live, work, and play. Discovery, as a result, is reinvented as the right content finds each user to inform, enrich and surprise. More than 17,000+ companies including Under Armour, Birchbox, Stripe, Slack, Medium, and Zendesk rely on Algolia to manage over 1.5 trillion search queries a year. Algolia is headquartered in San Francisco with offices in New York, Atlanta, Austin, Paris, London, Bucharest, and Sydney. To learn more, visit www.algolia.com.

About Mister Auto: https://www.mister-auto.com/

Contacts

Sean Welch, PAN Communications, algolia@pancomm.com

TORONTO–(BUSINESS WIRE)–#carbon6–Carbon6 (Carbon6 Technologies, Inc.), a leading software suite for the Amazon marketplace that simplifies operational success for online entrepreneurs, has raised a $66M financing round, including a mixture of equity and venture debt. Carbon6’s Series A equity financing round was led by global multi-stage technology venture capital firm White Star Capital, with participation from Kale Investment Fund, Benevolent Capital and MidCap Financial. MidCap Financial, which is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, Inc., pursuant to an investment management agreement, also provided Carbon6’s venture debt financing.


Most marketplace business owners utilize between eight and 15 disparate tools to complete day-to-day operations, with varying levels of support and education.

To simplify the online selling process, Carbon6 has acquired 16 software companies in 16 months (between May 2021 and September 2022). Founded by Justin Cobb, Kazi Ahmed, and Naseem Saloojee, the company is building a comprehensive and integrated set of tools that streamline ecommerce business management, including business intelligence, inventory management, and advertising solutions.

“Our vision is to become the ecosystem for marketplace entrepreneurs,” says Justin Cobb, CEO of Carbon6. “The Carbon6 experience goes beyond software. We’re developing the connective tissue that millions of sellers need to automate and accelerate their businesses, with the support of a broader network of entrepreneurs. We are thrilled to announce this investment and look forward to expanding our platform to serve the Amazon community.”

“The ecommerce marketplace is growing quickly but highly fragmented,” says Eddie Lee of White Star Capital. “We recognized that participating in this space would be an incredible opportunity, but that the next technology leader would need a veteran leadership team, the support of the Amazon seller community, and sufficient capital. Carbon6 undeniably had the first two, and we knew we could support the latter.”

Carbon6 intends to leverage this investment to build on its international customer base by opening offices in Europe and Asia. The company will also expand to marketplaces beyond Amazon, continuing to provide seamless omnichannel expansion opportunities to online businesses.

“It’s no secret that it’s getting harder and harder to sell online with constant supply chain challenges and marketplace platform changes,” says Carbon6 Co-Founder Naseem Saloojee. “Sellers need access to timely and accurate data, and connected software that translates insights into actionable results. Developed by the brightest Amazon experts, our innovative tools and education programs enable sellers to succeed at every stage in the entrepreneurial journey.”

Carbon6, which will have 20+ products by Q1 of 2023, is creating an integrated seller experience. With a global network of founders, employees, advisors, and acquired companies, Carbon6 is well positioned to serve the seller wherever they sell.

About Carbon6

Carbon6 simplifies the success of marketplace entrepreneurs with a connected ecosystem of tools and expertise. Developed by the brightest minds in the Amazon seller marketplace, Carbon6 helps businesses streamline everyday operations and maximize profit to turn opportunity into freedom.

About MidCap Financial

MidCap Financial is a middle-market focused, specialty finance firm that provides senior debt solutions to companies across all industries. As of December 2021, MidCap Financial provides administrative or other services for over $39.6 billion of commitments. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, Inc, pursuant to an investment management agreement. Apollo had assets under management of approximately $497.6 billion as of December 31, 2021 in credit, private equity and real assets funds.

For more information about MidCap Financial, please visit http://www.midcapfinancial.com.

For more information about Apollo, please visit http://www.apollo.com.

About White Star Capital

White Star Capital is a global multi-stage technology investment platform that invests in exceptional entrepreneurs building ambitious, international businesses. Operating out of Guernsey, New York, London, Paris, Montreal, Toronto, Tokyo, Singapore and Hong Kong, our presence, perspective, and people enable us to partner closely with our Founders to help them scale internationally from Series A onwards.

For more information about White Star Capital, please visit https://whitestarcapital.com/.

Contacts

For press: press@carbon6.io

Content for eCommerce is where it’s at. Having an efficient content strategy for eCommerce is an indispensable requirement for marketing departments in Corporate America. We talked to Emilly Jordan, VP Marketing, Willow Innovations and to Wilson Calil, Director of Inbound Marketing, Primary Arms to gain an understanding of how their companies position content for eCommerce.

The shift to e-commerce will drive more than 70% of sales growth across food and beverage categories through 2022, according to Boston Consulting Group. The same consultancy adds that E-Commerce channel advertising (advertising that is integrated within an online marketplace like Amazon, Target, Walmart) grew by 38.8% to US $17.37 billion in 2020 and is expected to grow by 29.8% to US $22.54 billion in 2021. With this rush to convert users into buyers, it is no wonder that strategies for efficient content for e-commerce have become crucial. It’s all about converting online audiences on third-party marketplaces or on companies’ own e-commerce sites.  We asked two executives in the Portada network of brand marketers to share insights and recommendations.

Perfect Marriage: SEO and Content

Confent for eCommerce
VP of Marketing, Willow Innovations, Inc.

SEO and Content are a perfect marriage, says Emily Jordan, VP of Marketing at  Willow Innovations, Inc. a FemTech company that markets wearable breast pumps.

“Whatever content you are putting out there you want to make sure that you are optimizing it for search and especially for Amazon. So we definitely use similar content across our DTC channel and Amazon and then look at what content resonates in the upper funnel vs. lower funnel and then adjust our search accordingly.”

“Whatever content you are putting out there you want to make sure that you are optimizing it for search and especially for Amazon.

Content for eCommerce is the material that is created to attract potential customers and can include eCommerce content includes tutorials, social media, user-made posts, product descriptions, and blog posts.

 

Content for Ecommerce: Direct vs. Third Party

Wilson Calil
Wilson Calil, Director Inbound Marketing, Primary Arms

But what content should be pushed more? The content that drives traffic to a company’s own eCommerce site or the one that directs users to a third party-marketplace? “Due to the lack of inventory in the whole industry, Amazon hasn’t been a priority lately since we’re driving much more sales through our own eCommerce, ” explains Wilson Calil – Director of Inbound Marketing at Primary Arms. Primary Arms was founded to provide firearms enthusiasts, professional shooters, servicemen and women the highest quality optics at affordable prices.

“The idea is to optimize our profitability”, says Callil. “To make our Amazon Ads more efficient, we have just started using a new AI system called Sellics to reduce ACoS (Advertising Costs of Sales). We are increasing the budget on campaign keywords that are lower ACoS and reducing it where we have higher ACoS. The AI system is helping us find the best bid combination. We also started investing more in demo videos.”

We are increasing the budget on campaign keywords that are lower ACoS and reducing it where we have higher ACoS. The AI system is helping us find the best bid combination. We also started investing more in demo videos.

Content for Ecommerce: Top vs. Bottom of Funnel

Creating an efficient content strategy for E-Commerce is an indispensable requirement for marketing departments in Corporate America. Willow Innovation’s Jordan notes that “content is king on Amazon. You have to be very distinctive about the top of the funnel for someone who is just learning about your category vs. bottom-funnel for someone who is ready to convert.”
“Unlike for example companies in the confectionery or chewing gum sector,  who are more in the impulse category, we have an extremely long purchase cycle, moms are looking for a breast pump for a very long time. They do a ton of research and we need to understand what the key pieces of content are for them to include them in the brand positioning and put it before her at the right time.”

Moms are looking for a breast pump for a very long time. They do a ton of research and we need to understand what the key pieces of content are for them to include them in the brand positioning and put it before her at the right time.

 

MarTech  investments are a key driver of the communications industry, both for entrepreneurs and investors.  Recently created NUMATEC comprehends more than 300 employees in 22 countries, and is led by a team of entrepreneurs who have successfully founded and exited multiple ventures, and now pool their resources and companies under one umbrella. We interviewed Giuliano Stiglitz, CEO of NUMATEC, to better understand his innovative company and learn about the MarTech (Marketing Technologies) sectors he sees the most potential for growth in. Numatec particularly seeks to grow in.


Corporate MarTech budgets will continue to grow globally. This is one of the main reasons why industry veteran Giuliano Stiglitz recently founded NUMATEC. According to Stiglitz the following four MarTech subsectors are particularly primed for growth:”First, AI-If you go beyond the fact that it is perhaps the most misused word in the industry, in its truest meaning, AI is the driving force behind automation and evolution of many of the platforms used today.” Second Stiglitz sees eCommerce as eCommerce is playing an important role “and its growth was accelerated by the pandemic and there is a growing demand for services that help eCommerce businesses succeed.” The third major growth sector for MarTech Investments is Customer Data: “Everything that has to do with capturing, understanding and harnessing the power of user specific data is key. Lots of growth here as we are just at the beginning of this trend.”. Finally, Stiglitz expects substantial growth in CTV and “generally speaking TV converting to Digital, still a lot more to go (hence lots of growth) to bring TV 100% to the ‘other side’”.

AI is the driving force behind automation and evolution of many of the platforms used today.

NUMATEC’s MarTech Investments

NUMATEC’s current portfolio of companies is focused on the growth trends described above as its subsidiary companies including Si Señor agency, Cookie Lab and The Tech Partners offer many of these services.
NUMATEC has allotted a war chest to continue its rapid expansion investing in MarTech, seeking other like-minded founders who wish to join the group and fuel growth. The main criteria for M&A will be whether companies complement the current stack, integration and over-arching strategy.
Geographically, Stiglitz sees a huge potential in Latin America: “Despite the fact that our origins are in LatAm and some of our businesses have been operating for quite some time in the region, there are still a few markets where we haven’t entered yet, notably Brazil, and we intend to cover the entire region. We are also very excited about expansion in the U.S. and Europe, where we see a huge potential for our services.”

We still see a huge potential in Latin America, where some of our business have been operating for some time.

NumatecStiglitz tells Portada that NUMATEC typically takes a majority stake of between 51% and 100% in the companies it invests in. “Sometimes we buy a stake in an existing company, sometimes we fund an entrepreneur who wants to start his or her own business and sometimes we incubate the business in-house. We provide guidance from Miami, but we incubate globally including Europe and LatAm.” Stiglitz says NUMATEC “typically is able to achieve profitability very quickly, and expects returns within a one to two-year timeframe.” NUMATEC generates revenue through its investments and the services it provides to its portfolio companies.

We typically are able to achieve profitability very quickly, and we expect returns within the first two years.

Stiglitz prefers not to limit or discourage potential partners by sharing a specific number to describe the maximum or minimum NUMATEC will invest in: “I will tell you though that we have invested as little as US $100,000  to launch a business and as much as US $1,000,000. The range is really quite broad.”

MarTech Investments: Holding Company and Investor

Giuliano Stiglitz
Giuliano Stiglitz, CEO, NUMATEC

Asked about the ultimate goal of NUMATEC (e.g. selling its portfolio companies, increase in size etc.), Stiglitz answers that he likes to say that NUMATEC has two or perhaps three souls. “On one hand, we are a holding company and an investor so our ultimate goal here is to maximize shareholders returns. We do that through acquisitions, through funding exceptional entrepreneurs and by incubating new companies in-house. We have a well-oiled and proven methodology, and we won’t stop doing that. This relentless activity has resulted in quite a diversification: by having different lines of businesses (within the digital marketing space) and by operating in such a diverse group of countries. We can clearly see some buyers interested in what we have built, but that said, we are not currently looking for buyers. We do see a lot of growth ahead for several years and we will keep our options open to other avenues, including an IPO. “We are also the perfect partner for Martech companies eager to attain more market share and accelerate their growth in the markets where we operate. We want to be seen as the market leader in channel partnerships and distribution for top-tier AdTech and Martech companies; this is one of our ultimate goals that goes hand in hand with the first one. Last but not least, we want to be seen as the ideal investor for the most talented entrepreneurs in our industry. By helping a new generation of founders achieve success, we’ll be able to achieve our goal and we’ ll have accomplished something meaningful in the process.”

We want to be seen as the market leader in channel partnerships and distribution for top-tier AdTech and MarTech companies.

Providing Brands with a Wide Array of Marketing Services

By undertaking MarTech investments, NUMATEC intends to build the world’s premier network of service providers for today’s global brands. Stiglitz emphasizes that NUMATEC’S objective is to provide brands (corporations) a wide array of marketing services through different NUMATEC portfolio companies. “Our objective is two-fold: the first, strategically investing in technology enabled service companies in the Martech ecosystem, and the second, partnering with the best available technologies to accelerate growth and distribution. By doing this we will be able to provide, as a group, the most complete set of services that compete with industry leaders,” he concludes.

What: Ecommerce marketing strategy is revealed by retailers Walmart and Soriana. It shows how they’re capturing the e-commerce home delivery grocery market in Mexico with alternative digital payment strategies.
Why it matters: Fear of fraud stops many Mexico consumers from making online purchases with a credit card. As a result, Walmart and Soriana are on it. Consequently, they’re deploying cash on delivery, branded digital cash cards, mobile phone loyalty programs, and PayPal options.

The race is on as grocers deploy ecommerce marketing strategy in Mexico. Grocery and general merchandise retailer Walmart has taken the lead. But in Mexico, its competitors, including Soriana, are racing to build their online-delivery businesses.

How customers pay for their online purchases could make all the difference.

High credit card commissions and fear of fraud pose a significant barrier to online sales in Mexico. Digital purchases make up only 3 percent of all consumer goods sales nationwide. As a result, that’s way below the average seen in other countries, according to branding expert Vilma Vale-Brennan. She is deputy general manager of Vale Network in Mexico.

The new President of Mexico, Andres Manuel Lopez Obrador, has promised to get banks to lower credit card commissions. But grocery retailers like Walmart don’t have time to lose.

Ecommerce Marketing Strategy with Digital Payment App

Last year, Walmart launched its own digital application. As a result, it allows customers to pay for goods at stores with the Walmart digital application “Cashi.”

After downloading the app to their mobile phones, customers can recharge it with cash at any Walmart-owned store. It’s a fast and easy way to convert cash into a secure digital payment option. As a result, customers use it for purchases at Walmart, Superama, Sam’s Club, and Bodega Aurrera stores.

Cashi can be used to pay electric bills and services including Netflix, Spotify, and Uber.

The idea here is to make purchasing with Walmart easier, and to give people more options.

But perhaps more importantly, Walmart tells Portada it expects to extend the Cashi digital payment system later this year to allow its online customers to use Cashi for online grocery purchases, according to Gabriela Buenrostro, assistant director of corporate communications. “The idea here is to make purchasing with Walmart easier, and to give people more options,” she said.

Walmart’s ecommerce marketing strategy outpaces the online market with 4.5 million e-commerce shoppers in Mexico, followed by grocers Soriana at 1.1 million, according to a study by the American media measurement and analytics company Comscore as reported by Portada.

Cash, PayPal Options Offered

Walmart offers online customers the option to use PayPal, and Soriana added the PayPal payment option to its online shopping site this year.

Soriana also allows its online customers to pay cash to the home delivery person, or use their credit card on the delivery person’s portable card reader, Director of Electronic Commerce Rafael Castelltort told Portada.

Most of Soriana’s online grocery customers shop online using Soriana’s branded mobile application on their cell phones. A Soriana loyalty card program has more than 9,000 users, and to build loyalty even more, Soriana, deploying its own ecommerce marketing strategy launched its own mobile phone service “Soriana Movil” in 2017, which earns users loyalty points that can be exchanged for free products, Castelltort said.

The trends are very clear. Mexicans prefer to use a mobile phone when visiting grocery stores’ online sites.

Soriana’s decision to launch its own mobile phone service in Mexico might appear tangential to an effort to build online purchases, however, it could be spot-on in terms of getting more online shoppers.

“The trends are very clear,” comScore’s Alejandra Ibarra, manager of comScore’s Latin America Services, told Portada when asked about ecommerce marketing strategies among grocers in Mexico. “Mexicans prefer to use a mobile phone when visiting grocery stores’ online sites.”

And as time goes by, mobile applications are becoming more and more important for grocery ecommerce market leaders like Soriana and Walmart.

Just last year, Walmart announced its acquisition of the online marketplace Cornershop. Users download the Cornershop application to make online purchases using their mobile phones at supermarkets, specialty food stores and pharmacies in Mexico and Chile, according to Forbes.

“The Cornershop acquisition by Walmart shows the focus that applications have for the company and the performance it must deliver to maintain its leadership,” Ibarra told Portada.

What: The market for online grocery sales and home delivery is in its infancy in Mexico but offers huge potential given the 65 million Mexicans who now have access to the internet.
Why it matters: Grocery and general merchandise retailer Walmart has 4.5 million e-commerce customers in Mexico, and its competitors, like E-commerce Director Rafael Castelltort at Soriana, tell Portada how they are racing to sell groceries online, building new digital infrastructure, deploying machine learning, creating alternatives to credit card payments and launching websites highly customized for e-commerce and home deliveries.

Mexico may offer the perfect storm for selling groceries online. A rapidly growing urban middle class, internet penetration that now reaches 65 million, and grocery retail chains building sophisticated online payment and delivery infrastructures combine to make a bright future with huge potential, according to analysts.

“Supermarket chains in Mexico can grow tremendously in the future,” concludes a new study by the American media measurement and analytics company comScore. “The sector has huge potential for growth.”

Walmart leads the online grocery market with 4.5 million ecommerce shoppers in Mexico. Grocery chain Soriana comes next at 1.1 million, followed by Superama with 992,000. But while most Mexicans shop online using their mobile phones, online grocery shoppers still tend to use PCs more than any other device.

Many retailers now offer their own mobile applications, but the majority of online grocery shoppers in Mexico use a cell phone and rely on the cell phone’s internet browser instead of the retailer’s mobile application.

“Consumption by applications is still very incipient,” the study notes. Walmart’s online shoppers use its application only 25% of the time, while Soriana shoppers use Soriana’s application 15% of the time, according to the study shared by comScore with Portada.

Surprisingly, when it comes to time spent shopping online for groceries, the PC is king, with the exception of Walmart and Chedraui. More ecommerce shoppers at Walmart and Chedraui use their mobile devices than the PC.


Source: comScore

In Search of Younger Online Grocery Shoppers

All of the grocery chains chasing the ecommerce market face the challenge of winning over younger shoppers.

Adults over the age of 35 are more likely to shop for food online than any other age group. La Comer, however, has the largest group of online shoppers ages 25 to 34, compared to all grocery retailers, the comScore study found.

Women make up the majority of online grocery shoppers at Soriana, La Comer and Superama, while men dominate at Walmart, Costco and Chedraui.

The majority of our clients are women who value their time and value home delivery.

“The majority of our clients are women who value their time and value home delivery,” Rafael Castelltort, Director of Electronic Commerce at Soriana, tells Portada.

E-commerce shoppers have the option to pick their orders up at the stores, but home delivery is more popular.

Excellence in service is a pillar of Soriana’s strategy for winning over e-commerce customers. “We focus on the customer, deliver what they request, and in the time promised,” says Castelltort.

Soriana does not offer lower prices online than in stores to win over new ecommerce customers. The average weekly order is between 50-60 items and customers can pay for the delivery using PayPal, by paying cash to the delivery person or swiping a credit card on a mobile terminal the delivery person brings with the order. Customers don’t have to pay online with a credit card to make a purchase.

Service, Service, Service

A totally seamless purchasing process, from order to payment and delivery is Walmart’s mantra for winning the battle of online sales.

“We understand that customers aren’t only looking to save money, but are also looking to save time,” Roberto Villalobos, Director of Web Operations at Walmart and Superama tells Portada.

“We are constantly improving the online shopping experience for our customers and have implemented significant changes for grocery shopping on our internet site, including our own mobile application.”

We understand that customers aren’t only looking to save money, but are also looking to save time.

Walmart’s mobile application received the Best App award at eShow Mexico last year, Villalobos notes.

Challenges Ahead

Online grocery revenue in the U.S. reached $17.5 billion in 2018 and is expected to reach $30 billion by 2021.

In Mexico, however, the comScore study found uneven growth over the past few years, and a slight downward trend for 2019. Long delivery times may explain both factors, the study said.

And while the online grocery sale market has “huge potential” in Mexico, the comScore study finds significant challenges remain on the horizon, including the need to incorporate machine learning, big data, and logistics which have proven key factors for success in other parts of the world.

“With sophisticated technology and offers oriented to the user, Mexican grocery chains can grow greatly in the future,” the comScore study concludes.

In Part Two of our series on e-commerce grocery sales in Mexico, we explore specific marketing innovation, payment, and technology strategies being used to win the battle to increase market share.

What: WPP’S agencies POSSIBLE and Mindshare have partnered to help brands leverage their media and ecommerce investments across the Amazon ecosystem.
Why it matters: It’s a first-of-its-kind combination of the media planning and buying, data analysis and strategy expertise of Mindshare with the ecommerce, data analysis and creative expertise of Possible.

WPP’S agencies POSSIBLE and Mindshare are launching a new offering to help brands leverage their media and ecommerce investments across the Amazon ecosystem. To continue to meet the needs of clients on such a vast platform, POSSIBLE and Mindshare have teamed up to create the first comprehensive solution for brands across Amazon.

This combined offering will leverage the full media and ecommerce capabilities of both agencies and the wider WPP ecosystem. Pairing the media planning and buying, data analysis, and strategy expertise from Mindshare with the ecommerce, data analysis, and creative expertise of POSSIBLE, both agencies will unify sales, brand marketing, and shopper and ecommerce efforts for greater efficiency and impact.

55 percent of US consumers now begin an online product search on Amazon, and 64 percent of US households are now Amazon Prime members

Together the companies  will offer:

  • Channel strategy, assortment optimization, content development and optimization, and shelf management
  • Media planning, buying, and optimization on Amazon
  • Innovation services focused on building new brand experiences (Dash, Alexa, etc.)
  • Measurement, reporting and analytics that provide a holistic understanding of a brand’s presence and performance within the Amazon ecosystem
  • A centralized source of knowledge and insight focused on Amazon Prime members

“Our clients consistently ask POSSIBLE to be their one-stop-shop for Amazon,” says Frank Kochenash, global SVP of commerce at POSSIBLE. “This partnership allows us to bring brands the deepest expertise across all the levers they need to pull. Mindshare are media experts and we are thrilled to partner with Joe Migliozzi and his Shop+ team.”

Further bolstering this offering, POSSIBLE’s recent acquisition of Marketplace Ignition deepens POSSIBLE’s expertise and experience in all aspects of the Amazon ecosystem, from supply chain and operations, to assortment planning, operational marketing, content optimization, and search management.

Mindshare will bring its Shop+ media and commerce capability, which is already an established Amazon Media Group (AMG) partner and which includes: SEO/SEM, content development, analytics and reporting as well as its status as one of a handful of approved Amazon Alexa developers – allowing Mindshare to create Skills for Amazon’s voice activated AI assistant. Mindshare will also leverage GroupM’s mPlatform capability for programmatic services and will bring this full-service solution to GroupM clients globally.

The offering will be available through POSSIBLE and Mindshare in Seattle, New York, Cincinnati, San Francisco, Los Angeles, Atlanta, London and Singapore.

Amazon has become central to the lives of both consumers and brands. In fact, 55 percent of US consumers now begin an online product search on Amazon, and 64 percent of US households are now Amazon Prime members. This makes Amazon not just a retail giant, but one of the world’s largest media owners.

Join us at PORTADA Mexico!

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Shoppers Spending More Despite Higher Prices and Economic Anxiety

SAN JOSE, Calif.–(BUSINESS WIRE)–#blackfriday–Inflation and fear of recession were no match for Black Friday tradition as online shoppers spent enthusiastically into the early afternoon with no sign of letting up. With 43 percent of projected spending completed on Friday, ecommerce sales were 8 percent ahead of Black Friday 2021, according to Signifyd’s Holiday Season Pulse Tracker.

Signifyd’s data team predicts that the higher sale volumes will persist throughout the rest of the day and that Black Friday ecommerce sales will finish Black Friday 2022 up between 6 and 8 percent over a year ago. Following is a look at Black Friday data collected today:

Black Friday 2022 year-over-year comparison with Black Friday 2021

Online sales (projected)

+6% to 8%

Average order value as of early p.m.

+1.3%

Fraud pressure*

+5%

*Fraud pressure is defined by the fluctuation in the number of transactions that Signifyd models deem very risky.

Consumers’ use of discounts 2022 vs. 2021

Thanksgiving

+17%

Black Friday

+15%

Predicted year-over-year growth for Cyber Week 2022

Cyber Week sales

+5%

Volume of products sold

+8%

Predicted year-over-year growth for entire holiday season 2022

Holiday sales

+8%

Volume of products sold

+5%

Holiday season is defined as November and December

Percentage of all holiday season sales attributable to Cyber Week

2021 actual

21%

2022 predicted

19%

About Signifyd

Signifyd provides an end-to-end Commerce Protection Platform that leverages its Commerce Network to maximize conversion, automate customer experience and eliminate fraud and consumer abuse risk for retailers. Its solutions provide the transparency and control that brands need to succeed in the rapidly changing world of commerce. Signifyd, which is the leading provider of payment security and fraud prevention for the Top 1000 Retailers for 2022, is headquartered in San Jose, CA, with locations in Denver, New York, Mexico City, São Paulo, Belfast and London.

Contacts

Mike Cassidy, Signifyd

Head of PR & Storytelling

mike.cassidy@signifyd.com
or

Dan Branley, Big Valley Marketing

dbranley@bigvalley.co

The Retail Marketing Platform Reports that Repeat Shoppers Account for More Purchases (63%) Than First-Time Buyers (37%) as Retailers Focus on Bringing Back Shoppers They Identified and Engaged Earlier in the Year

NEW YORK–(BUSINESS WIRE)–Despite Black Friday promotions beginning earlier than ever this year, retailers saw an 11% increase in day-of Black Friday site traffic, 5% increase in number of orders, and a 1% increase in average order values compared to last year, according to new insights from Bluecore. The retail marketing platform reports that of all shoppers who made their first purchase from a brand in 2022, an average of 5% returned to make a second purchase with that brand on Black Friday. The complete report is available here.

For the fifth year in a row, Bluecore looked at shoppers’ real-time and historical Black Friday shopping patterns, as well as their interactions with products (including purchases), across 138 retail brands and eight retail categories: Apparel (57), Sporting Goods & Outdoor (19), Home Goods (16), Footwear (11), Consumer Electronics (10), Gifts & Floral (9), Jewelry & Luxury (9) and Health & Beauty (7). The result is a comprehensive look at this year’s day-of Black Friday behaviors, as well as a comparative look at Black Friday 2021.

Bluecore analyzed 729 million shopper events on brands’ ecommerce sites, including shoppers viewing products and completing sales transactions. The resulting data was derived from 91 million first-party cookies and represents interactions with 4 million unique products, 3.2 million orders and $388 million in total sales.

Among the findings from Bluecore’s Black Friday 2022 Report:

  • Site traffic was up by 11% compared to Black Friday 2021. Traffic increased for every retail vertical with the exception of consumer electronics and footwear. By category: Apparel (+10%), Consumer Electronics (-17%) Footwear (+/- 0%), Gifts & Floral (+15%), Health & Beauty (+26%), Home Goods (+8%), Jewelry & Luxury (+23%) and Sporting Goods & Outdoor (+6%).
  • More shoppers researched products before they purchased. Six percent (6%) more shoppers researched their purchases in advance of Black Friday compared to last year. Shoppers additionally viewed an average of 6 products, 12 times each before purchasing on Black Friday.
  • An average of 37% of brands’ total Black Friday shoppers were first time buyers, but first-time buyers decreased by 5% compared to last year.
  • The number of shoppers buying for the fifth time or more increased by 17%. Fifth-time buyers and beyond made up the second highest group of shoppers, accounting for 31% of Black Friday purchases. Gifts and floral (44%), apparel (32%) and health and beauty (50%) brands saw the highest percentage of fifth-time buyers and beyond.
  • Seventy-four percent (74%) of Black Friday ecommerce shoppers were unidentified by brands. Brands were only able to identify an average of 2% of the total new shoppers they encountered.
  • Retailers focused on driving repeat purchases, not just attracting first-time shoppers. Of all shoppers who made a first purchase from a brand in 2022, an average of 5% returned to make another purchase on Black Friday. Brands were also able to entice 2.3% of shoppers who made a November purchase to make another purchase on Black Friday. Health & Beauty (6.6%), Gifts & Floral (6.5%) and Apparel (5.9%) brands experienced higher than average repurchases on Black Friday.

Average order values remained relatively consistent among first-time and repeat buyers. First time orders averaged a value of $128 while second-time shoppers and beyond spend an average of $118.

“Consumers started their holiday shopping earlier than ever this year and are navigating higher product costs due to inflation. These trends, paired with retailers’ efforts to bring back their existing shoppers — rather than simply attract new ones — resulted in more loyal shoppers buying from brands they already trust,” said Fayez Mohamood, CEO of Bluecore. “The sheer volume of shoppers who made repeat purchases during Black Friday speaks to the massive opportunity for retailers to grow through identifying anonymous shoppers and focusing on engagement to drive more purchases and long-term growth.”

Bluecore’s platform combines a deep understanding of shoppers’ always-shifting behaviors with a comprehensive view of retailers’ live product catalogs. The result is the ability to deliver precision messages to shoppers when they are most likely to buy, no matter where they are.

###

About Bluecore

Bluecore is a retail marketing technology that transforms casual shoppers into lifetime customers for the world’s largest retail brands — and enables retailers to quickly turn data into revenue-generating campaigns. Through its patented shopper-and-product matching and the release of Bluecore Communicate™, Bluecore Site™ and Bluecore Advertise™, brands can easily personalize 100% of communications delivered to consumers through their email, mobile, ecommerce, and paid media shopping experiences. Bluecore replaces manual processes with intelligent workflows and advanced predictive models, allowing brands to manage these communications through a single interface. In 2019, the company bet big on itself when it introduced the industry’s first shared-success pricing model. It’s now credited with doubling email revenue and increasing customer retention, lifetime value, and overall speed to market for more than 400 brands — including Express, NOBULL, The North Face, Teleflora, and Bass Pro Shops.

Contacts

Kieran Powell

kieran.powell@channelvmedia.com

PespisCo Holds On To Top Manufacturer Spot for Seventh Year

NEW YORK–(BUSINESS WIRE)–Kantar released its annual industry benchmarking report PoweRanking®, which identifies retailers and suppliers that set the standard of performance, ranked by their trading partners, with WalMart again in the number one spot for the 26th consecutive year, a testament to the retailer’s strength, scale, and focus over time.

PepsiCo once again stood out as leading the retailer- manufacturer relationship, strengthening its PoweRanking metrics in 2022 and is number one for the seventh consecutive year. The company has been number one in all nine metrics for the last six years.

“Pepsi, CocaCola and P&G continued an unprecedented string of partnership characteristics and Walmart, Target and Kroger set the pace on ecosystem service to their shoppers on the retailer side of the study,” said Patrick Fellen, Head of Consulting, Analytics and Applications at Kantar Retail.

PoweRanking is the industry’s leading assessment of best-in-class manufacturers and retailers. Chosen by their peers, leaders are ranked on a range of factors from strategic metrics to business fundamentals. Now in its 26th edition, Kantar looks at how retailers and manufacturers can best innovate and serve consumers in food, drug, mass merchandise, dollar, convenience, specialty, ecommerce and club channels, as well as for manufacturers in food, household products, general merchandise, and health and beauty care categories.

The results of the 2022 survey were compared with the previous past two years to determine the causes behind shifts in the rankings. This year’s PoweRanking sustainability performance metric showed both retailers and manufacturers eager to move past slogans and buzzwords and instead focus on Environmental, Social and Governance (ESG) that is both pragmatic and makes a difference in shoppers’ lives.

Among retailers, Target continued its elevated performance over the past few years to hold its position in the number two overall spot, primarily supported by its number one rankings in both Innovative Marketing and Best Store Branding. Outside of WalMart, the Retail industry’s overall top five is rounded out by the expected giants leading once again – Kroger, Amazon and Costco – showing stability across the board for this category.

The manufacturer’s side for the report outlines a top five consisting of household names recognized for their exceptional performance in the sustainability metric. These brands include: Coca-Cola, P&G, Nestle, and Unilever, with both Nestle and Unilever jumping three spots each from last year’s rankings. Other notables rounding out the list include Tyson and AB InBev, as it is each company’s first year included within the top ten.

“This is a truly outstanding achievement for all brands within the top ten. Walmart remaining strong in the number one spot for over a quarter of a century is an impressive feat given the drastic landscape change brought upon by Amazon in recent years. PepsiCo has doubled-down, facing retail realities across their entire retail-partnership base, providing clear strategy, bringing insights that matter, thinking category-first with retail partners,” added Fellen.

To download the 2022 PoweRanking® Executive Summary, visit here.

Barry Thomas, Senior Retail Thought Leader, Kantar, and Rachel Dalton, Head of Retail Insights, Kantar discuss the latest edition of Kantar PoweRanking 2022 with Patrick Fellen, Head of Consulting, Analytics and Applications at Kantar Retail in Kantar’s Retail Sound Bites Podcast.

Contacts

Media:
Hollis Guerra, SVP

DBC Brand Communications

hguerra@daddibrand.com
805-403-0705

The organizers of Cosmoprof North America join the Premiere Beauty Group to bring collective expertise to a growing portfolio of U.S. beauty shows

MIAMI–(BUSINESS WIRE)–Today, Informa Markets, BolognaFiere Group and PBA – Professional Beauty Association have announced closing on a monumental joint venture to deliver the largest and most impressive series of beauty events in the U.S. beauty market.

Beginning in January 2023, the three beauty industry leaders will combine their extensive knowledge and network to create a best-in-class event format with unrivalled reach, leveraging the power of the two industry leading brands, Cosmoprof North America and Premiere Beauty, to deliver extraordinary value, more robust digital offerings, better educational and enrichment opportunities to a level never before achieved in the beauty industry across the U.S.

Premiere Beauty Orlando, the largest beauty show in the U.S., announced the launch of two new shows in the emerging Anaheim and San Antonio markets earlier this year, signaling the evolution of the group’s fast-growing portfolio of industry-leading beauty events. Premiere Beauty continues to make a name for itself as the leading voice in the U.S. beauty industry, with its recent 2022 Orlando a resounding success, with 47% growth YOY, and hundreds of top-name exhibitors. 82% of visitors attended the over 650 free classes that were offered during the show, allowing them to develop skills and strengthen their expertise. This show is the first since Informa Markets’ early 2022 acquisition of Premiere, and its success sets the stage for Premiere’s new joint venture and upward growth.

“Our beauty portfolio has expanded substantially in the past few years, and it is thrilling to be a part of its continued growth and success,” said Ed McNeill, SVP of Premiere Group. “This joint venture is just the next step in our goal to be the country’s leading network of beauty industry events—connecting beauty industry professionals, educators, students, and top brands together in a way that hasn’t been done before.”

“The joint venture we established with our partners will reinforce the offer of performing and committing b2b beauty trade shows in the US market,” highlights Antonio Bruzzone. “Today it is fundamental to provide a high-lever business experience to operators working in our industry, and creating synergies is the best way to offer all the necessary tools to facilitate the growth of the industry.”

“The expanded line-up of beauty industry shows allows PBA the ability to provide more educational and experiential opportunities to our members nationwide. This partnership will help foster new products, brand expansions and further education in the beauty space,” said Nina Daily, PBA Executive Director.

BolognaFiere and PBA, who currently partner on the Cosmoprof North America show held in Las Vegas, announced a resoundingly successful 2022 edition, with retailers, distributors, investors, beauty brands, suppliers from around the globe.

This joint venture will unite Premiere Beauty’s Orlando, Columbus, San Antonio, and Anaheim shows with Cosmoprof North America in Las Vegas, and a newly announced Cosmoprof North America in Miami which will launch in 2024. PBA’s ISSE show in Long Beach will evolve to be part of the Premiere Anaheim brand as part of this new partnership, which will be the first show the joint venture partners launch in 2023. Premiere Anaheim, set to take place April 2-3, is expected to draw a large crowd of diverse beauty representatives from different facets of the community. The show will also host the PBA’s North American Hairstyling Awards (NAHA), allowing attendees increased networking and growth opportunities by combining two leading industry events in one place.1

“This is a revolutionary partnership that will help to grow the U.S. beauty industry exponentially and deliver best-in-class customer experience,” said Ken McAvoy, President of Informa Markets’ South Florida Ventures portfolio. “The finalization of this deal is the result of careful planning and coordination, and we are excited to grow this talented team, and create meaningful growth for the industry across the Cosmoprof and Premiere brands, focusing on event experience, education, data opportunities, and more, to not only meet, but exceed, the expectations of the community.”

The joint venture, USA Beauty LLC, will be led by industry veteran Ed McNeill from Informa Markets’ Premiere Group, alongside Meredith Loza, Marco Labbate, and in cooperation with the Sales and Marketing teams from BolognaFiere Cosmoprof. The team will be headquartered in Orlando, FL, where an expanded call center is also planned to launch next year.

The beauty community can expect dramatically expanded marketing and sponsorship opportunities, the ability to easily participate in multiple shows through multi-show contracts opportunities, better support through the expanded call center, additional educational opportunities, and access to global markets.

This partnership is a landmark one for the U.S. beauty industry, increased sales 16% in 20212, and is expected to exceed $716 Billion by 20253, and is expected to bring the best business opportunities, education, connection, and innovation to cities across the country, under a single umbrella.

About Informa Markets

Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow. We provide marketplace participants around the globe with opportunities to engage, experience and do business through face-to-face exhibitions, targeted digital services, and actionable data solutions. We connect buyers and sellers across more than a dozen global verticals, including Boating, Pharmaceuticals, Food, Fashion, and Infrastructure. As the world’s leading market-making company, we bring a diverse range of specialist markets to life, unlocking opportunities and helping them to thrive 365 days of the year. For more information, please visit www.informamarkets.com.

_______________________________

1 https://newyorkstyleguide.com/2023-north-american-hairstyling-awards-naha/
2 https://nielseniq.com/global/en/insights/report/2022/2022-state-of-the-beauty-industry/
3 https://commonthreadco.com/blogs/coachs-corner/beauty-industry-cosmetics-marketing-ecommerce

Contacts

Casey Clemenza

casey.clemenza@informa.com

Martech and Adtech continue to be high-growth sectors. Entrepreneurs can substantially increase their companies’ values if they know how to navigate the ins and outs of technological innovation and rapidly changing consumer behavior.  Portada spoke to Giuliano Stiglitz, CEO of NUMATEC, to understand how he is planning to grow his company to the US $100 million sales threshold.

Spending and investment in MarTech continues to grow: the latest figures show an expected 14.3% annual growth rate in 2022 in the U.S. NUMATEC  is the holding company for more than 10 international advertising and marketing services companies. Launched in November 2020, NUMATEC companies include EKN, a data-driven multichannel buy-side media company,  programmatic buying firm Eikon Tech, Influencer marketing agency Kanvas, and growth marketing agency Si Señor.

CEO Giuliano Stiglitz notes that, in addition to the above-described services, NUMATEC companies also play an important role in international marketing technology distribution such as for Demand Side Platforms (DSPs) and other marketing technology providers. “We represent DSPs in many markets in Europe and Latin America,” Stiglitz states.  Technology leaders NUMATEC represents include data-driven ad management and analytics technology company Flashtalking, social creative platform Spaceback, and Dataglobal, a provider of enterprise information management services. NUMATEC serves both the big media buying holding companies, like Publicis, Dentsu and GroupM, and Havas, as well as brands directly. In the U.S., the brand direct business is thriving with large healthcare organizations and food distribution companies in the client roster.

According to Stiglitz, NUMATEC currently has a US $50 million dollar sales run rate. “We are extremely profitable and not for sale”, he adds. His goal is to double the sales figure by the end of 2024. The sales expansion will be a combination of organic growth and acquisitions.  In a prior interview Stiglitz told Portada that NUMATEC typically takes a majority stake of between 51% and 100% in the companies it invests in.

There is a high growth potential in keeping integrating companies into our own ecosystem and helping them streamline products.

How NUMATEC Plans to Reach the US $100 million Sales Mark

NUMATECin which business units of NUMATEC does Stiglitz see a particularly high growth potential? “Growth will be in tech distribution and consulting. Adopting the right technology for executions is crucial for media agencies and brands.”  Typically when the technology company NUMATEC represents is U.S. based, it will distribute its technology in Latin American and/or European markets.  “We also see lots of growth on the trading desk side. We are expanding into many countries as we speak,” Stiglitz claims.  Omnichannel marketing is another segment with high growth potential, he adds. Geographically NUMATEC is looking to expand into Africa, the Middle East, and additional Latin American countries.
Asked about whether he plans any imminent acquisitions, Stiglitz asserts: “We are working on a target pipeline. There are huge opportunities for consolidation because there are many companies in Latin America, Europe, and the U.S. which are small and extremely successful with a good client base and good entrepreneurs. Particularly, in omnichannel, media-buying optimization, and technology distribution. We are looking to cherry-pick.”

There are huge opportunities for consolidation because there are many companies in Latin America, Europe, and the U.S. which are small and extremely successful with a good client base and good entrepreneurs.

“There is a high growth potential in keeping integrating companies into our own ecosystem and helping them streamline products.”

NUMATEC: Investment in Top-Level Talent

Another key area of growth is talent and human resources, Stiglitz says:”We have made key talent hires over the last 12 months. We are actually on a hiring spree.” As examples, he mentions the recent hires of a senior Finance Team, a  VP of Tech partnerships, as well as a  VP for the holding company in Europe. NUMATEC is headquartered in Miami and has more than 300 employees in the United States, Latin America and Europe.

There are huge opportunities for consolidation because there are many companies in Latin America, Europe, and the U.S. which are small and extremely successful with a good client base and good entrepreneurs.

Trends in Martech

Looking at the wider advertising and marketing technologies space, Stiglitz notes that it is not new that digital giants can lose some relevance as new platforms emerge. As an example, he mentions the emergence of TikTok as a major social media player. A major trend, Stiglitz sees continuing in the medium term are the growth of marketing clouds and omnichannel market, as well as app marketing. “The market has shifted from programmatic DSP to much more omnichannel sophistication,” he adds.

The market has shifted from programmatic DSPs to much more omnichannel sophistication.

E-Commerce Marketing Growth

According to Portada’s annual Brand Marketer Needs for Marketing Technologies report, marketers intend to continue investing at a particularly high rate in Martech solutions to foster e-commerce. Stiglitz mentions that NUMATEC companies help their clients with the Amazon marketplace. “We help our clients be more profitable in Amazon and also with their own D2C efforts.  In addition, we now have the opportunity to buy retail media for our clients.  This adds a lot of interesting inventory to the system,” he concludes.

 

 

A company’s website is often the first point of contact between them and their customers, so having a credible and functional site is critical, and choosing the best features for ecommerce websites is key.

According to research undertaken by Missouri University of Science and Technology, website viewers form their first impressions of a site within milliseconds, usually based on layout, colours, ease of navigation, and font size.

As people become more selective about how they spend their time online, businesses must incorporate exciting features without sacrificing usability. Having said that, what are the website features that most discourage us from purchasing?

In order to find out, Bespoke Software Development Company asked 2,267 people in the U.K, aged from 18 to 70 to determine what the main reasons for not purchasing from a website are.

The website features that are most likely to put people off buying

Rank

Poor website feature

Amount of people that would be put off buying (%)

1

Feels insecure/non trustworthy

80

2

Poor reviews

75

=3

Too many pop ups

68

=3

Complicated sign up process

68

4

Payment method issues

67

5

Slow load time

63

6

No contact/FAQ page

58

7

Poor quality photos

54

8

Grammar mistakes

47

=9

Layout

36

=9

Lack of videos of product

36

10

No search function

32

According to Bespoke Software Development Company, the website feature that is most likely to put us off buying is the site feeling insecure or untrustworthy, with 80% of survey respondents ranking this as the most important factor. A further 87% said it would put them off because it felt unsafe or could be fraudulent. If your website appears untrustworthy, you will have a difficult time convincing customers to buy from you. There are numerous things you can do to build trust with your customers, such as keeping your content up to date and ensuring your website has a professional design.

The website feature that is most likely to put us off buying is the site feeling insecure or untrustworthy.

Poor reviews come in second, with 75% of participants saying that this factor will deter them from purchasing from a website. A further 74% said they would be put off by this because they would be concerned about the quality of the product they are purchasing. According to research, 93% of consumers say online reviews influence their purchasing decisions, so having negative reviews about your business will undoubtedly influence buyer behaviour and raise concerns about your products.

best features for ecommerce websites

Too many pop-ups on the site and a complicated sign-up process ties for third place with 68% of the vote. Constantly having to close pop ups on a site can irritate a consumer, and having a long drawn out sign up process will turn people off because consumers want to get things done quickly.

Payment method issues rank fourth, with 67% of respondents saying they would avoid purchasing from a website because of this, and slow loading times rank fifth, with 63% saying they would avoid purchasing from a website if they encountered this.

Why does this put you off buying?

Rank

Why does this put you off buying?

Amount of people that would be put off buying (%)

1

Felt unsafe/fraudulent

87

2

Worried about the quality of purchase

74

=3

Too time consuming/frustrating

33

=3

Feel overwhelmed

33

Jignesh Vaducha from Bespoke Software Development Company offered their thoughts on how you can improve your overall website experience, and the best features for ecommerce websites.

best features for ecommerce websites
Jignesh Vaducha from Bespoke Software Development Company

“Your website is one of the most important assets to your business, regardless of whether you are in the personal services sector such as hairdressing or in the tech sector selling goods.

As you can see from the survey results above, customers will judge your website almost instantaneously due to several different factors, so knowing when your website needs to be updated will only help your business become more successful.

The most obvious place to start is with customer reviews. If you have received numerous complaints from potential customers regarding your website’s loading speed and overall user experience, it is time to redesign it. Examine your own website; does it accurately represent you as a brand and provide the first impression you seek?

Another thing to consider is your website’s bounce rate, which you can check by integrating Google Analytics with your site. Your bounce rate is the percentage of visitors to your site who leave after only viewing one page and not browsing any further, so if your bounce rate is high, say 80%, it means that potential customers are leaving your site as soon as they click on it. What we recommend is that you test your website to see if it is responsive. Do the pages load quickly? Is the text understandable? Is your website’s call to action clear enough?

You should always be looking for ways to improve your website, and combining these factors will provide you with the best chance of success for you and your business, as well as a higher return on investment.”

Methodology

  1. Bespoke Software Development Company sought to determine the website features that are most likely to put us off buying.
  2. To accomplish this, they conducted a survey in which they asked what website features are most likely to deter people from purchasing from the website, followed by why.
  3. The survey had 2,267 participants, all of whom were from the United Kingdom and ranged in age from 18 to 70.
  4. Following the collection of survey results, the team was able to rank the factors most likely to put us off buying from a website from least to most, resulting in a list of the website features that most discourage us from purchasing.
  5. The data was collected on 20/10/2022 and is accurate as of then.

 

DUBLIN–(BUSINESS WIRE)–The “The US Digital Advertising Market (By Format, Devices and Industry): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)” report has been added to ResearchAndMarkets.com’s offering.

The US digital advertising market inclined to US$232.3 billion in 2026, at a CAGR of 6.90%, for the duration spanning 2022-2026

The market experienced growth due to the several factors such as extensive adoption of smartphones, increased internet penetration, proliferation of social media, popularity of video streaming platforms and upsurge in ecommerce sales. Artificial intelligence and increased involvement of big data market are expected to act as a major key trend for the market.

However, increased advertising frauds and use of ad blockers are likely to impose certain challenges on the US digital advertising market.

The US digital advertising market by format can be segmented as follows: display, search, lead generation, classifieds and directories, email and mobile messaging. In 2021, the dominant share of the market was held by display, followed by search and rest of the other formats.

The US digital advertising market by industry can be segmented into the following divisions: retail, financial services, CPG & consumer products, telecom, computing products & consumer electronics, automotive, healthcare & pharma, entertainment, media, travel and others. In 2021, the highest share of the market was held by retail followed by CPG & consumer products, financial services and rest of the industries.

The US digital advertising market by device can be segmented as follows: mobile, desktop/ laptop and connected TV. The dominant share of the market in 2021 was procured by mobile. This was followed by desktop/ laptop and connected TV

Scope of the report

  • The report provides a comprehensive analysis of the US digital advertising market with potential impact of COVID-19.
  • The US digital advertising market has been analyzed. Additionally, market by industries, devices and formats have also been analyzed.
  • The market dynamics such as growth drivers, market trends and challenges are analyzed in-depth.
  • The competitive landscape of the market, along with the company profiles of leading players (Google LLC, Facebook, Inc., Microsoft, Amazon, Verizon and Hulu) are also presented in detail.

 

Key Topics Covered:

 

1. Overview

1.1 Digital Advertising

1.1.1 Digital Advertising – Introduction

1.2 Types of Digital Advertising

1.2.1 Mobile Advertising

1.2.2 Display Advertising

1.2.3 Video Advertising

1.2.4 Search Advertising

1.2.5 Native Advertising

1.2.6 Remarketing Advertising

1.2.7 Social Media Advertising

1.3 Advantages of Digital Advertising

1.4 Disadvantages of Digital Advertising

 

2. Impact of COVID-19

2.1 Impact of COVID-19 on the US Digital Advertising

2.2 Impact of COVID-19 on the US Media Advertising Spend

2.3 Growth in the US Advertising Mediums

2.4 New Business Creations

 

3. Market Analysis

3.1 The US Total Media Advertisement Market Forecast by Value

3.2 The US Total Media Advertisement Market by Segment

3.3 The US Digital Advertisement Market Forecast by Value

3.4 The US Digital Advertisement Market by Format

3.4.1 The US Digital Display Advertisement Market Forecast by Value

3.4.2 The US Digital Display Advertisement Market by Sub Format

3.4.3 The US Digital Display Advertisement Sub Format Market Forecast by Value

3.4.4 The US Digital Search Advertisement Forecast Market by Value

3.4.5 The US Digital Lead Generation Advertisement Market Forecast by Value

3.4.6 The US Digital Classifieds & Directories Advertisement Market Forecast by Value

3.4.7 The US Digital Email Advertisement Market Forecast by Value

3.4.8 The US Mobile Messaging Digital Advertisement Market Forecast by Value

3.5 The US Digital Advertisement Market by Device

3.5.1 The US Digital Advertisement Market Forecast by Device

3.6 The US Digital Advertisement Market by Industry

3.6.1 The US Retail Digital Advertisement Market Forecast by Value

3.6.2 The US Financial Services Digital Advertisement Market Forecast by Value

3.6.3 The US CPG & Consumer Products Digital Advertisement Market Forecast by Value

3.6.4 The US Telecom Digital Advertisement Market Forecast by Value

3.6.5 The US Automotive Digital Advertisement Market Forecast by Value

3.6.6 The US Computing Products & Consumer Electronics Digital Advertisement Market Forecast by Value

3.6.7 The US Healthcare & Pharma Digital Advertisement Market Forecast by Value

3.6.8 The US Entertainment Digital Advertisement Market Forecast by Value

3.6.9 The US Travel Digital Advertisement Market Forecast by Value

3.6.10 The US Media Digital Advertisement Market Forecast by Value

 

4. Market Dynamics

4.1 Growth Drivers

4.1.1 Extensive Adoption of Smartphones

4.1.2 Increasing Internet Penetration

4.1.3 Proliferation of Social Media

4.1.4 Popularization of Pay Per Click (PPC) Model

4.1.5 Rising Popularity of Video Streaming Platforms

4.1.6 Swelling E-commerce Platforms

4.2 Key Trends & Developments

4.2.1 Artificial Intelligence

4.2.2 Programmatic Ads

4.2.3 Involvement of Big Data

4.3 Challenges

4.3.1 Advertising Frauds

4.3.2 Increasing Use of Ad blocker

 

5. Competitive Landscape

5.1 The US Market

5.1.1 The US digital advertising Market Share – Key Players

 

6. Company Profiles

  • Alphabet Inc(Google LLC)
  • Facebook, Inc.
  • Amazon
  • Microsoft
  • Verizon
  • Walt Disney Company (Hulu)

 

For more information about this report visit https://www.researchandmarkets.com/r/ne8bp.

Contacts

ResearchAndMarkets.com

Laura Wood, Senior Press Manager

press@researchandmarkets.com

For E.S.T Office Hours Call 1-917-300-0470

For U.S./ CAN Toll Free Call 1-800-526-8630

For GMT Office Hours Call +353-1-416-8900

SAN FRANCISCO–(BUSINESS WIRE)–Marin Software Incorporated (NASDAQ: MRIN), a leading provider of digital marketing software for performance-driven advertisers and agencies, today announced financial results for the third quarter ended September 30, 2022.

“As marketers face rising economic uncertainty, there is a greater need to be able to measure, manage, and optimize each marketing dollar,” said Chris Lien, Marin Software’s Chairman and CEO. “MarinOne is well positioned to meet these needs, providing visibility, time savings, and financial lift across search, social, and ecommerce channels.”

Third Quarter 2022 Product Highlights:

  • Launched support for managing Snapchat Ads in MarinOne, giving advertisers the ability to connect with over 300 million daily active users with immersive content that inspires action.
  • Added support for Pinterest bidding, enabling Pinterest advertisers to leverage MarinOne’s state of the art optimization.
  • Introduced one-click support for nearly 20 Insights, allowing users to implement changes with the click of a button to quickly improve the performance of their accounts, rather than having to work through bulksheets.
  • Added three new Insights, including automated alerts for RSA Coverage, First Page Minimum Bid, and KPI Performance.
  • Introduced three new ways to segment data in the Dimensions tab, giving users a deeper understanding of performance based on device, publisher, and match type.
  • Expanded Dynamic Actions to allow changes to additional objects, including Product Targets and Dynamic Targets.
  • Introduced sync support for Amazon Portfolios.
  • Introduced new ‘Jump To’ filters within Strategies for faster navigation. Users can filter for campaigns, groups, keywords, product groups, and dynamic targets.
  • Introduced Responsive Bidding, which allows MarinOne Bidding to sync with publishers more often and with more intelligence. If Responsive Bidding detects a change to rules, boosts, or Strategy assignments, bids will immediately be recalculated.
  • Expanded support for Google Smart Bidding settings, giving users more flexibility in selecting the bidding tools that best meet their needs across Google and Marin.

Third Quarter 2022 Financial Updates:

  • Net revenues totaled $5.0 million, a year-over-year decrease of 19% when compared to $6.2 million in the third quarter of 2021.
  • GAAP loss from operations was ($5.8) million, resulting in a GAAP operating margin of (117%), as compared to a GAAP loss from operations of ($3.3) million and a GAAP operating margin of (53%) for the third quarter of 2021.
  • Non-GAAP loss from operations was ($4.5) million, resulting in a non-GAAP operating margin of (91%), as compared to a non-GAAP loss from operations of ($2.9) million and a non-GAAP operating margin of (47%) for the third quarter of 2021.

Reconciliations of GAAP to non-GAAP financial measures have been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “Non-GAAP Financial Measures.”

Financial Outlook:

Marin is providing guidance for its fourth quarter of 2022 as follows:

Forward-Looking Guidance

In millions

 

 

 

 

 

 

 

 

 

 

Range of Estimate

 

 

 

 

From

 

 

To

 

 

Three Months Ending December 31, 2022

 

 

 

 

 

 

 

Revenues, net

 

$

4.6

 

 

$

5.1

 

 

Non-GAAP loss from operations

 

 

(4.9

)

 

 

(4.5

)

 

Non-GAAP loss from operations excludes the effects of stock-based compensation, amortization of internally developed software, impairment of long-lived assets, capitalization of internally developed software, non-recurring costs associated with restructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related to governmental investigations of Google and Facebook.

Additionally, the Company does not reconcile its forward-looking non-GAAP loss from operations, due to variability between revenues and non-cash items such as stock-based compensation. The GAAP loss from operations includes stock-based compensation expense, which is affected by hiring and retention needs, as well as the future price of Marin’s stock. As a result, a reconciliation of the forward-looking non-GAAP financial measures to the corresponding GAAP measures cannot be made without unreasonable effort.

Quarterly Results Conference Call

Marin Software will host a conference call today at 2:00 PM Pacific Time (5:00 PM Eastern Time) to review the Company’s financial results for the quarter ended September 30, 2022, and its outlook for the future. To access the call, please dial (855) 327-6837 in the United States or (631) 891-4304 internationally with reference to conference ID 10020237. A live webcast of the conference call will be accessible at https://viavid.webcasts.com/starthere.jsp?ei=1569936&tp_key=afea24f81c. Following the completion of the call through 11:59 p.m. Eastern Time on November 10, 2022, a recorded replay will be available on the Company’s website at http://investor.marinsoftware.com/ and a telephone replay will be available by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally with the recording access code 10020237.

About Marin Software

Marin Software Incorporated’s (NASDAQ: MRIN) mission is to give advertisers the power to drive higher efficiency and transparency in their paid marketing programs that run on the world’s largest publishers. Marin Software provides enterprise marketing software for advertisers and agencies to integrate, align, and amplify their digital advertising spend across the web and mobile devices. Marin Software offers a unified SaaS advertising management platform for search, social, and eCommerce advertising. The Company helps digital marketers convert precise audiences, improve financial performance, and make better decisions. Headquartered in San Francisco with offices worldwide, Marin Software’s technology powers marketing campaigns around the globe. For more information about Marin Software, please visit www.marinsoftware.com.

Non-GAAP Financial Measures

Marin uses certain non-GAAP financial measures in this release. Marin uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance. Marin believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures that Marin uses may differ from measures that other companies may use.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

Non-GAAP expenses, measures and net loss per share. Marin defines non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP gross profit, non-GAAP operating loss and non-GAAP net loss as the respective GAAP balances, adjusted for stock-based compensation, amortization of internally developed software and intangible assets, impairment of goodwill and long-lived assets, non-cash expenses related to debt agreements, capitalization of internally developed software, CARES Act employee retention credit, non-recurring costs associated with restructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related to governmental investigations of Google and Facebook. Non-GAAP net loss per share is calculated as non-GAAP net loss divided by the weighted average shares outstanding.

Adjusted EBITDA. Marin defines Adjusted EBITDA as net loss, adjusted for stock-based compensation expense, depreciation, amortization of internally developed software and intangible assets, capitalization of internally developed software, impairment of goodwill and long-lived assets, benefit from or provision for income taxes, CARES Act employee retention credit, other income, net, non-recurring costs associated with restructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related to governmental investigations of Google and Facebook. These amounts are often excluded by other companies to help investors understand the operational performance of their business. The Company uses Adjusted EBITDA as a measurement of its operating performance because it assists in comparing the operating performance on a consistent basis by removing the impact of certain non-cash and non-operating items. Adjusted EBITDA reflects an additional way of viewing aspects of the operations that Marin believes, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting its business.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding Marin’s business, impact of investments in product and technology on future operating results, progress on product development efforts, product capabilities, advertiser and customer behavior, effects of the COVID-19 pandemic, and future financial results, including its outlook for the fourth quarter of 2022. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to any lingering effects of the global outbreak of COVID-19 on demand for our products and services; the amount of digital advertising spend managed by our customers using our products; the extent of customer acceptance and adoption of our MarinOne platform; the productivity of our personnel and other aspects of our business; our ability to maintain or grow sales to new and existing customers; any adverse changes in our relationships with and access to publishers and advertising agencies and strategic business partners, including any adverse changes in our revenue sharing agreement with Google; our ability to raise additional capital; our ability to manage expenses; the success of any increased investments that we may make in our engineering and sales and marketing teams; our ability to retain and attract qualified management, technical and sales and marketing personnel; any delays in the release of updates to our product platform or new features or delays in customer deployment of any such updates or features; competitive factors, including but not limited to pricing pressures, entry of new competitors and new applications; quarterly fluctuations in our operating results due to a number of factors; inability to adequately forecast our future revenues, expenses, Adjusted EBITDA, cash flows or other financial metrics; delays, reductions or slower growth in the amount spent on online and mobile advertising and the development of the market for cloud-based software; progress in our efforts to update our software platform; level of usage and advertising spend managed on our platform; our ability to maintain or expand sales of our solutions in channels other than search advertising; any slow-down in the search advertising market generally; any shift in customer digital advertising budgets from search to segments in which we are not as deeply penetrated; the development of the market for digital advertising; acceptance and continued usage of our platform and services by customers and our ability to provide high-quality technical support to our customers; material defects in our platform including those resulting from any updates we introduce to our platform, service interruptions at our single third-party data center or breaches in our security measures; our ability to develop enhancements to our platform; our ability to protect our intellectual property; our ability to manage risks associated with international operations; the impact of fluctuations in currency exchange rates, particularly an increase in the value of the dollar; near term changes in sales of our software services or spend under management may not be immediately reflected in our results due to our subscription business model; and adverse changes in general economic or market conditions. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent report on Form 10-K, recent reports on Form 10-Q and current reports on Form 8-K, which we may file from time to time, and all of which are available free of charge at the SEC’s website at www.sec.gov. Any of these risks could cause actual results to differ materially from expectations set forth in the forward-looking statements. All forward-looking statements in this press release reflect Marin’s expectations as of November 3, 2022. Marin assumes no obligation to, and expressly disclaims any obligation to update any such forward-looking statements after the date of this release.

Marin Software Incorporated

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

(On a GAAP basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

(Unaudited; in thousands, except par value)

 

2022

 

 

2021

 

Assets:

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

31,476

 

 

$

46,842

 

Restricted cash

 

 

215

 

 

 

215

 

Accounts receivable, net

 

 

4,241

 

 

 

4,633

 

Prepaid expenses and other current assets

 

 

2,052

 

 

 

2,324

 

Total current assets

 

 

37,984

 

 

 

54,014

 

Property and equipment, net

 

 

3,205

 

 

 

3,622

 

Right-of-use assets, operating leases

 

 

4,240

 

 

 

1,660

 

Other non-current assets

 

 

583

 

 

 

535

 

Total assets

 

$

46,012

 

 

$

59,831

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

710

 

 

$

975

 

Accrued expenses and other current liabilities

 

 

4,574

 

 

 

6,176

 

Note payable, current

 

 

 

 

 

2,226

 

Operating lease liabilities

 

 

1,620

 

 

 

2,006

 

Total current liabilities

 

 

6,904

 

 

 

11,383

 

Note payable, net of current

 

 

 

 

 

1,094

 

Operating lease liabilities, non-current

 

 

2,620

 

 

 

 

Other long-term liabilities

 

 

947

 

 

 

1,096

 

Total liabilities

 

 

10,471

 

 

 

13,573

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, $0.001 par value

 

 

16

 

 

 

15

 

Additional paid-in capital

 

 

353,702

 

 

 

351,394

 

Accumulated deficit

 

 

(317,216

)

 

 

(304,107

)

Accumulated other comprehensive loss

 

 

(961

)

 

 

(1,044

)

Total stockholders’ equity

 

 

35,541

 

 

 

46,258

 

Total liabilities and stockholders’ equity

 

$

46,012

 

 

$

59,831

 

 

 

 

 

 

 

 

 

Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

(On a GAAP basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Unaudited; in thousands, except per share data)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues, net

 

$

4,977

 

 

$

6,155

 

 

$

14,858

 

 

$

18,557

 

Cost of revenues

 

 

3,181

 

 

 

3,175

 

 

 

9,712

 

 

 

9,591

 

Gross profit

 

 

1,796

 

 

 

2,980

 

 

 

5,146

 

 

 

8,966

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

1,660

 

 

 

1,266

 

 

 

5,035

 

 

 

3,780

 

Research and development

 

 

3,034

 

 

 

2,677

 

 

 

8,931

 

 

 

7,743

 

General and administrative

 

 

2,923

 

 

 

2,312

 

 

 

7,937

 

 

 

6,176

 

Total operating expenses

 

 

7,617

 

 

 

6,255

 

 

 

21,903

 

 

 

17,699

 

Loss from operations

 

 

(5,821

)

 

 

(3,275

)

 

 

(16,757

)

 

 

(8,733

)

Other income, net

 

 

190

 

 

 

298

 

 

 

3,889

 

 

 

846

 

Loss before income taxes

 

 

(5,631

)

 

 

(2,977

)

 

 

(12,868

)

 

 

(7,887

)

Income tax provision (benefit)

 

 

105

 

 

 

153

 

 

 

241

 

 

 

(44

)

Net loss

 

$

(5,736

)

 

$

(3,130

)

 

$

(13,109

)

 

$

(7,843

)

Net loss per common share, basic and diluted

 

$

(0.36

)

 

$

(0.22

)

 

$

(0.83

)

 

$

(0.66

)

Weighted-average shares outstanding, basic and diluted

 

 

16,030

 

 

 

14,500

 

 

 

15,741

 

 

 

11,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marin Software Incorporated

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

 

 

 

 

 

(On a GAAP basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

(Unaudited; in thousands)

 

2022

 

 

2021

 

Operating activities:

 

 

 

 

 

 

Net loss

 

$

(13,109

)

 

$

(7,843

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

Depreciation

 

 

435

 

 

 

670

 

Amortization of internally developed software

 

 

1,392

 

 

 

1,806

 

Amortization of deferred costs to obtain and fulfill contracts

 

 

260

 

 

 

364

 

Forgiveness of Paycheck Protection Program loan

 

 

(3,117

)

 

 

 

Interest expense

 

 

 

 

 

6

 

Loss on disposals of property and equipment and right-of-use assets

 

 

29

 

 

 

30

 

Unrealized foreign currency losses

 

 

111

 

 

 

43

 

Stock-based compensation related to equity awards

 

 

2,612

 

 

 

1,273

 

Provision for bad debts

 

 

(50

)

 

 

(102

)

Net change in operating leases

 

 

(346

)

 

 

(396

)

Deferred income tax benefits

 

 

(72

)

 

 

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

486

 

 

 

551

 

Prepaid expenses and other assets

 

 

55

 

 

 

(173

)

Accounts payable

 

 

(257

)

 

 

(137

)

Accrued expenses and other liabilities

 

 

(1,717

)

 

 

(1,351

)

Net cash used in operating activities

 

 

(13,288

)

 

 

(5,259

)

Investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(17

)

 

 

(6

)

Capitalization of internally developed software

 

 

(1,343

)

 

 

(971

)

Net cash used in investing activities

 

 

(1,360

)

 

 

(977

)

Financing activities:

 

 

 

 

 

 

Proceeds from issuance of common shares through at-the-market offering, net of offering costs

 

 

 

 

 

41,888

 

Payment of principal on finance lease liabilities

 

 

 

 

 

(15

)

Repayment of Paycheck Protection Program loan

 

 

(203

)

 

 

 

Employee taxes paid for withheld shares upon equity award settlement

 

 

(394

)

 

 

(280

)

Proceeds from employee stock purchase plan, net

 

 

37

 

 

 

29

 

Net cash (used in) provided by financing activities

 

 

(560

)

 

 

41,622

 

Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash

 

 

(158

)

 

 

(48

)

Net (decrease) increase in cash and cash equivalents and restricted cash

 

 

(15,366

)

 

 

35,338

 

Cash and cash equivalents and restricted cash:

 

 

 

 

 

 

Beginning of period

 

 

47,057

 

 

 

14,820

 

End of the period

 

$

31,691

 

 

$

50,158

 

 

 

 

 

 

 

 

 

Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP to Non-GAAP Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Year Ended

 

 

 

Three Months Ended

 

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

Dec 31,

 

 

 

Dec 31,

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

(Unaudited; in thousands)

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

 

2021

 

 

 

2022

 

 

2022

 

 

2022

 

 

Sales and Marketing (GAAP)

 

$

1,246

 

 

$

1,268

 

 

$

1,266

 

 

$

1,702

 

 

 

$

5,482

 

 

 

$

1,787

 

 

$

1,588

 

 

$

1,660

 

 

Less Stock-based compensation

 

 

(66

)

 

 

(70

)

 

 

(122

)

 

 

(150

)

 

 

 

(408

)

 

 

 

(175

)

 

 

(157

)

 

 

(99

)

 

Less Restructuring related expenses

 

 

2

 

 

 

 

 

 

 

 

 

(136

)

 

 

 

(134

)

 

 

 

 

 

 

 

 

 

 

 

Plus CARES Act employee retention credit

 

 

42

 

 

 

42

 

 

 

60

 

 

 

 

 

 

 

144

 

 

 

 

 

 

 

 

 

 

 

 

Sales and Marketing (Non-GAAP)

 

$

1,224

 

 

$

1,240

 

 

$

1,204

 

 

$

1,416

 

 

 

$

5,084

 

 

 

$

1,612

 

 

$

1,431

 

 

$

1,561

 

 

Research and Development (GAAP)

 

$

2,399

 

 

$

2,667

 

 

$

2,677

 

 

$

3,045

 

 

 

$

10,788

 

 

 

$

2,917

 

 

$

2,980

 

 

$

3,034

 

 

Less Stock-based compensation

 

 

(98

)

 

 

(133

)

 

 

(159

)

 

 

(204

)

 

 

 

(594

)

 

 

 

(224

)

 

 

(213

)

 

 

(303

)

 

Less Restructuring related expenses

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

(36

)

 

 

(59

)

 

 

(76

)

 

Plus CARES Act employee retention credit

 

 

252

 

 

 

238

 

 

 

245

 

 

 

 

 

 

 

735

 

 

 

 

 

 

 

 

 

 

 

 

Plus Capitalization of internally developed software

 

 

434

 

 

 

238

 

 

 

362

 

 

 

343

 

 

 

 

1,377

 

 

 

 

512

 

 

 

408

 

 

 

449

 

 

Research and Development (Non-GAAP)

 

$

2,985

 

 

$

3,010

 

 

$

3,125

 

 

$

3,184

 

 

 

$

12,304

 

 

 

$

3,169

 

 

$

3,116

 

 

$

3,104

 

 

General and Administrative (GAAP)

 

$

1,869

 

 

$

1,995

 

 

$

2,312

 

 

$

3,151

 

 

 

$

9,327

 

 

 

$

2,469

 

 

$

2,545

 

 

$

2,923

 

 

Less Stock-based compensation

 

 

(63

)

 

 

(130

)

 

 

(248

)

 

 

(287

)

 

 

 

(728

)

 

 

 

(334

)

 

 

(340

)

 

 

(405

)

 

Less Restructuring related expenses

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

(78

)

 

Plus CARES Act employee retention credit

 

 

70

 

 

 

66

 

 

 

67

 

 

 

 

 

 

 

203

 

 

 

 

 

 

 

 

 

 

 

 

Less Third-party subpoena-related expenses

 

 

 

 

 

 

 

 

(87

)

 

 

(405

)

 

 

 

(492

)

 

 

 

(72

)

 

 

(99

)

 

 

(198

)

 

General and Administrative (Non-GAAP)

 

$

1,874

 

 

$

1,931

 

 

$

2,044

 

 

$

2,459

 

 

 

$

8,308

 

 

 

$

2,063

 

 

$

2,106

 

 

$

2,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP to Non-GAAP Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Year Ended

 

 

 

Three Months Ended

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

Dec 31,

 

 

 

Dec 31,

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

(Unaudited; in thousands)

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

 

2021

 

 

 

2022

 

 

2022

 

 

2022

 

Gross Profit (GAAP)

 

$

3,067

 

 

$

2,919

 

 

$

2,980

 

 

$

2,569

 

 

 

$

11,535

 

 

 

$

1,833

 

 

$

1,517

 

 

$

1,796

 

Plus Stock-based compensation

 

 

35

 

 

 

46

 

 

 

103

 

 

 

107

 

 

 

 

291

 

 

 

 

124

 

 

 

90

 

 

 

148

 

Plus Amortization of internally developed software

 

 

624

 

 

 

596

 

 

 

586

 

 

 

550

 

 

 

 

2,356

 

 

 

 

542

 

 

 

431

 

 

 

419

 

Plus Restructuring related expenses

 

 

1

 

 

 

 

 

 

 

 

 

42

 

 

 

 

43

 

 

 

 

17

 

 

 

 

 

 

 

Less CARES Act employee retention credit

 

 

(175

)

 

 

(179

)

 

 

(174

)

 

 

 

 

 

 

(528

)

 

 

 

 

 

 

 

 

 

 

Gross Profit (Non-GAAP)

 

$

3,552

 

 

$

3,382

 

 

$

3,495

 

 

$

3,268

 

 

 

$

13,697

 

 

 

$

2,516

 

 

$

2,038

 

 

$

2,363

 

Operating Loss (GAAP)

 

$

(2,447

)

 

$

(3,011

)

 

$

(3,275

)

 

$

(5,329

)

 

 

$

(14,062

)

 

 

$

(5,340

)

 

$

(5,596

)

 

$

(5,821

)

Plus Stock-based compensation

 

 

262

 

 

 

379

 

 

 

632

 

 

 

748

 

 

 

 

2,021

 

 

 

 

857

 

 

 

800

 

 

 

955

 

Plus Amortization of internally developed software

 

 

624

 

 

 

596

 

 

 

586

 

 

 

550

 

 

 

 

2,356

 

 

 

 

542

 

 

 

431

 

 

 

419

 

Plus Restructuring related expenses

 

 

3

 

 

 

 

 

 

 

 

 

178

 

 

 

 

181

 

 

 

 

53

 

 

 

59

 

 

 

154

 

Less CARES Act employee retention credit

 

 

(539

)

 

 

(525

)

 

 

(546

)

 

 

 

 

 

 

(1,610

)

 

 

 

 

 

 

 

 

 

 

Less Capitalization of internally developed software

 

 

(434

)

 

 

(238

)

 

 

(362

)

 

 

(343

)

 

 

 

(1,377

)

 

 

 

(512

)

 

 

(408

)

 

 

(449

)

Plus Third-party subpoena-related expenses

 

 

 

 

 

 

 

 

87

 

 

 

405

 

 

 

 

492

 

 

 

 

72

 

 

 

99

 

 

 

198

 

Operating Loss (Non-GAAP)

 

$

(2,531

)

 

$

(2,799

)

 

$

(2,878

)

 

$

(3,791

)

 

 

$

(11,999

)

 

 

$

(4,328

)

 

$

(4,615

)

 

$

(4,544

)

Net Loss (GAAP)

 

$

(2,212

)

 

$

(2,501

)

 

$

(3,130

)

 

$

(5,101

)

 

 

$

(12,944

)

 

 

$

(1,999

)

 

$

(5,374

)

 

$

(5,736

)

Plus Stock-based compensation

 

 

262

 

 

 

379

 

 

 

632

 

 

 

748

 

 

 

 

2,021

 

 

 

 

857

 

 

 

800

 

 

 

955

 

Plus Amortization of internally developed software

 

 

624

 

 

 

596

 

 

 

586

 

 

 

550

 

 

 

 

2,356

 

 

 

 

542

 

 

 

431

 

 

 

419

 

Plus Restructuring related expenses

 

 

3

 

 

 

 

 

 

 

 

 

178

 

 

 

 

181

 

 

 

 

53

 

 

 

59

 

 

 

154

 

Less CARES Act employee retention credit

 

 

(539

)

 

 

(525

)

 

 

(546

)

 

 

 

 

 

 

(1,610

)

 

 

 

 

 

 

 

 

 

 

Less Capitalization of internally developed software

 

 

(434

)

 

 

(238

)

 

 

(362

)

 

 

(343

)

 

 

 

(1,377

)

 

 

 

(512

)

 

 

(408

)

 

 

(449

)

Plus Third-party subpoena-related expenses

 

 

 

 

 

 

 

 

87

 

 

 

405

 

 

 

 

492

 

 

 

 

72

 

 

 

99

 

 

 

198

 

Less Forgiveness and repayment of Paycheck Protection Program loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,320

)

 

 

 

 

 

 

Net Loss (Non-GAAP)

 

$

(2,296

)

 

$

(2,289

)

 

$

(2,733

)

 

$

(3,563

)

 

 

$

(10,881

)

 

 

$

(4,307

)

 

$

(4,393

)

 

$

(4,459

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contacts

Investor Relations, Marin Software
ir@marinsoftware.com

Media Contact
Wesley MacLaggan

Marketing, Marin Software

(415) 399-2580

press@marinsoftware.com

Read full story here

SimplicityDX Research Finds Gen Z Shoppers Think First About Social Media for Holiday Shopping, but 74% Plan To Check Out on Brand Websites

SAN DIEGO & LONDON–(BUSINESS WIRE)–#CXSimplicityDX, the edge experience company, today announced its latest research report “What Gen Z Thinks About Holiday Season Shopping 2022,” which highlights significant discoveries in how U.S. Generation Z shop and their use of social media this holiday season.

An infographic is available at www.simplicitydx.com/what-gen-z-thinks-about-holiday-season-shopping-2022-infographic, and a brief video explainer is available at www.youtube.com/watch?v=_wg7AP1Pq9k.

Eighty percent plan to use social media to find gifts this year, with 41% planning to use it for most or all of their holiday shopping. This echoes a statement by a Google executive at Fortune Brainstorm Tech 2022 that studies show approximately 40% of Gen Z search for a place to eat first on TikTok or Instagram.

This new research was conducted in early October among 1,000 U.S. online shoppers, including 500 Gen Z shoppers (under 25s). It shows that social media is now a mainstream shopping destination for Gen Z shoppers:

  • 93% use social media as part of their buying process.
  • 51% think social media is a great place to learn about new products, while 22% think it’s a great place to buy new products.
  • 74% prefer to check out on the brand site and not buy on the social platform itself.
  • 60% of the shopping activity is covered by two platforms, Instagram and TikTok.

This reinforces the pattern of using social for product discovery, potentially with influencers, but buying directly on the brand site.

“The majority of the next generation of consumers start their shopping at the edge and finish by checking out on the brand site,” said Charles Nicholls, co-founder and chief strategy officer at SimplicityDX. “Their preference for using social media for shopping should be a wake-up call to all brands targeting Gen Z — and an early warning that the way consumers buy is changing.”

Promotions and Experience: Key Holiday Purchasing Triggers

Unsurprisingly, the most important factor triggering a potential holiday purchase for Gen Z is the availability of promotions. However, Gen Z shoppers place a lot more emphasis on customer experience than older consumers.

  • 28% of Gen Z shoppers consider getting a great bargain with a discount code or a promotional offer to be the most important factor.
  • 26% of Gen Z shoppers consider customer experience to be the most important factor, compared with only 14% for other age groups.

SimplicityDX’s Social Commerce Returns research shows that returning products is a major friction point, and only 17% of shoppers that bought and returned a product through a social media platform would be willing to shop on social again in the future.

“The prevalence of scams, fake news, and inauthentic influencer endorsements has conditioned Gen Z to be wary and to seek out authenticity,” Nicholls continued. “The strong preference to buy on the brand site is driven by several factors: 1) trust in the brand is important, 2) product availability and assortment frequently differ on social, 3) returns, and 4) critically over the holiday period, promotions on the brand’s site are frequently not reflected in social media product catalogs.”

Gen Z – Tech Savvy, but Untrusting

Trust remains a big issue with 61% of Gen Z stating that either 1) they don’t trust social networks, or 2) they think that social networks are abusing their personal data.

Trust is a much bigger issue for Gen Z than just trusting the social network. The research also highlights skepticism among Gen Z about influencers. Almost two-thirds think that influencers are most useful for finding out about new products, while nearly half think that influencers are most useful for recommendations.

But when it comes to buying, 36% consider influencers to be less trustworthy, and 59% prefer to buy directly from the brand site, not from the influencer.

Survey Methodology

SimplicityDX surveyed 1,000 U.S. online shoppers in October 2022. The online research was split into two groups for comparison: online shoppers for all age groups, sample size of 500, and Generation Z (under 25s) only, with an additional sample of 500.

About SimplicityDX

SimplicityDX makes social commerce work. Its SimplicityDX Edge Experience Platform enables brands to optimize social commerce experiences by simplifying the buying process between journeys started at the edge and the brand’s e-commerce site. Founded by a team of industry veterans in May 2021 and privately funded, SimplicityDX operates in the U.S. and U.K. markets. For more information, visit www.SimplicityDX.com or connect on LinkedIn.

SimplicityDX and SimplicityDX Edge Experience Platform are trademarks of SimplicityDX Inc. All other brand names and product names are trademarks or registered trademarks of their respective companies.

Tags: SimplicityDX, SimplicityDX Edge Experience Platform, shopping at the edge, commerce experience, customer experience, CX, digital experience, social commerce, social shopping, online shopping, shopping experience, composable commerce, headless commerce, e-commerce, ecommerce, e-marketing, retail, martech, marketing technology

Contacts

Dottie O’Rourke

TECHMarket Communications

(650) 344-1260

SimplicityDX@techmarket.com

Pack’s eCommerce Trends Report Finds Nearly One-Half of Consumers Prefer Speed to Variety When Shopping Online, Crave One-Click Experiences Bred by Social Media

SAN DIEGO–(BUSINESS WIRE)–As post-pandemic consumer expectations continue to skyrocket, so too does their need for digital shopping speed. Nearly one-half of U.S. online shoppers now say it’s more important for them to be able to buy something quickly than it is to have a large selection of items to choose from, according to the inaugural eCommerce Trends Report released by headless commerce solution, Pack. The report also illustrates the impact website speed and ease of use have on consumers’ path to purchase and brand loyalty, with many shoppers saying they’ll turn to competitors if they can’t find what they need after one (fruitless) search, or if a site takes too long to load. Perhaps most surprising, almost one third of shoppers said they’d be willing to wait up to three days longer to receive an item if they had an easier and faster shopping experience.

“It’s important that brands understand what drives shoppers to the cart and keeps them coming back. Consumers shouldn’t have to make sacrifices for speed, just as retailers shouldn’t have to surrender the sale due to slow loading times on their site,” said Cory Cummings, CEO and Co-Founder of Pack. “Our findings show that the seamless, one-click experience consumers expect when shopping on social media is quickly becoming the norm for online purchases overall—making eCommerce brands that prioritize efficiency and speed well-positioned to win out in the busy holiday season, and beyond.”

Converging with changing consumer behaviors amid surging eCommerce adoption during the pandemic is the abandonment of brand loyalty. McKinsey data shows more U.S. consumers are switching retailers and brands now than in 2020 and 2021, citing convenience and value. With the majority of Americans (65%) saying their online shopping expectations are greater now than they were pre-pandemic, findings also show that demand for experiences resembling the simplicity of social media shopping are on the rise, particularly for those aged 18-34. Findings include:

Speed Over Sparkle

  • A Quick Buy is a Shopping High: 47% of online shoppers prefer speed over selection of items.
    • This is especially true for Gen Z and Millennials, with 57% of both 18-34 and 35-44 year olds agreeing that the ability to buy quickly is more important than having a variety of items to choose from.
    • 66% of Americans would be willing to make sacrifices for a speedy purchase process, with almost one third (32%) willing to wait at least three days longer on shipping to receive the item.
    • Overall, 65% of Americans say their expectations for shopping online are higher than they were three years ago. This percentage spikes to 77% for shoppers ages 35-44.
  • Searcher Beware: Two-thirds of shoppers will look for an item on a competitor’s website if they can’t find what they are looking for after one search.
    • If a website takes too long to load, 55% of shoppers will look to make a purchase elsewhere—a figure that jumps to 62% for ages 18-34 and 63% for 35-44 year olds.

Social-Savvy Shoppers’ Purchasing Preferences

  • A third (34%) prefer shopping experiences that remind them of social media experiences, which increases to 55% for those aged 18-34.
    • Almost half of Americans (43%) believe buying items online straight from social media is easy; more digitally-native generations agree (54% of those 18-34, 56% of those 35-44).
  • Modern direct to consumer businesses that prioritize speed and efficiency are benefiting from the social shopping trend and seeing increased sales and customer loyalty from key demographics:
    • 30% of shoppers aged 18-34 would actually forgo buying items from a big box retailer in favor of ecommerce sites with a quicker path to purchase. One quarter of both 35-44 and 45-54 year olds agree.
    • 44% of both 18-34 and 35-44 year olds say they have bought more from independent brands this year than last.
      • Within the same age ranges, 40% of men are buying more from independent retailers in 2022 than 2021, compared to 22% of women.

Buyer Behavior: Cart Caching, “Spirited” Shopping, and More

  • While adding items to an online shopping cart typically signals intent to buy, it could also indicate a lack of functionality that consumers crave from eCommerce sites:
    • Two-thirds (64%) of Americans say they actually use the shopping cart as a bookmark to save items for the future.
  • Roughly one quarter of Americans (23%) have bought something online between midnight and 5 A.M.
    • 15% of Americans say they’ve made a purchase while in bed with their significant other.
      • While more women than men fess up to this (16% v. 14%), more men than women admit to making an online purchase under the influence of alcohol (10% v. 8%). Parents with children at home admitted to all of these online shopping behaviors more than any other demographic.

For more information, visit PackDigital.com.

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Pack from Oct 4-6, 2022 among 2,068 U.S. adults ages 18+. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.8 percentage points using a 95% confidence level.

About Pack

Pack is the headless commerce platform that enables store owners to offer the best and fastest shopping experience for their customers and accelerate sales. Headquartered in San Diego, Pack is a team of technology experts, strategists, and eCommerce innovators with a partially remote team across the US. Built as a low-code platform, Pack is on a mission to accelerate commerce by enabling teams to build the best shopping experiences without extensive coding.

Contacts

Margie Sernik

Margie@dottedlinecomm.com
786.200.2516

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