Marketing Transformation in 2023; as we move into a new and exciting year in the marketing discipline, e-commerce marketing will continue to transform marketing, according to the brand marketers in the Portada network.They share insights related to advertising attribution, content, influencer marketing, and social commerce.
Audience, Assets, Access, Attribution and Automatization are the five pillars of marketing transformation, according to Lizard Global. By developing an approach around each pillar, companies can become digital transformation champions, delivering enriched customer experiences and improved business performance. The e-commerce explosion and e-commerce marketing continue to drive Marketing Transformation.
Marketing Transformation: E-Commerce Will Continue to Transform the Marketing Discipline…
E-commerce continues to be a key growth driver of the marketing and advertising ecosystem. It is bringing about changes in marketing which many experts liken to the advent of the Internet in the nineties. Worldwide e-commerce sales are forecast to grow from US $5.2 trillion in 2021 to over US $8 trillion by 2026, according to Statista. In the U.S. , after years of very high growth rates, for 2023 Insider Intelligence expects Amazon’s e-commerce sales to cool significantly following pandemic highs (42.0% growth in 2020 compared to 2022’s 10.3%). However, a steadily expanding online retail marketplace should propel Amazon’s advertising and other retail media companies advertising businesses to even greater heights. Third-party merchants are responsible for nearly 60% of the transactions on Amazon’s e-commerce sites.
Digital Marketing Transformation Challenges: Understanding the Role Multichannel Advertising and Content Marketing Play in Driving E-Commerce
Capturing the opportunities related to the shortening of the consumer purchase journey brought about by e-commerce is crucial. Challenges include understanding better the role of multichannel marketing and advertising in fostering e-commerce. Brand marketers need to have thorough advertising attribution methodologies for D2C e-commerce and online marketplaces.
How to best do it? Check out the answer provided to us by Guillermo Rivera, until recently VP of Marketing Merama and now Head of Engagement Marketing and CRM, BBVA Mexico: “My experience with advertising attribution models is that it is better to use multipoint attribution models and not last point or last-click attribution. That said, we like to use seven days for more consumer impulse-driven products and a 14-day lag for hardware, electronics, kitchen appliances, etc. We also organize our attribution models by paid media vs. non-paid media and analyze many affiliate programs that can provide rich data. We mix this with the interactions that the customer has with paid media, including sponsored products.”
For sales attribution, we use seven days for more consumer impulse-driven products and a 14-day lag for hardware, electronics, kitchen appliances, etc.
Understanding the role content marketing plays in fostering e-commerce through awareness (upper funnel) and conversion is another subject marketers struggle with. At one of our recent Portada Live events, Moises Leiferman, Sr. Manager Omni Channel Perfetti Van Melle, noted that content marketing is a handy tool for him, particularly regarding brand health metrics: “we are including brand health metrics in our content marketing initiatives to assess the overall picture. So perhaps a particular media has not been that strong in ROI terms but did substantially reinforce brand attribute X or Y. Content marketing drives differentiation for consumers to be in a better position to convert later on,” Leiferman maintained.
Content marketing drives differentiation for consumers to be in a better position to convert later on.
Influencer Marketing Driving Social Commerce
Influencer marketing also has become a driver for e-commerce. Yet the effectiveness of influencer marketing may be declining, at least as it relates to dating app marketing.: “we have seen the impact on direct conversion soften over the last year or so, where it’s forced us to reevaluate and pivot our strategies,” Julia Estacolchic Sr. Director, Brand Marketing at Match, told Portada.
We have seen the impact on direct conversion soften over the last year or so, where it’s forced us to reevaluate and pivot our strategies.
However, influencer marketing is destined to be a key growth driver for social commerce, which has become a very high growth channel. Social commerce, defined as e-commerce transactions driven directly through social media properties, e.g. through live shopping events, companies organize on a wide array of social media properties. According to Pixlee TurnTo’s 2022 Influencer Trend Report, 93% of social media influencers post content across multiple social media platforms. This content should resonate with the online audiences they cultivate. Today’s consumers expect a personalized shopping experience that showcases how a brand’s products can positively impact their day-to-day lives. Because of this, leading brands are crafting eCommerce experiences that treat influencer marketing as a content engine to fuel their marketing efforts both on and off of social media, Influencer Marketing Hub reports.