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E-Commerce in Latin America is growing in leaps and bounds. To understand the growth implications and provide actionable insights to brand marketers, Portada and ComScore just published the 2022 edition of the Portada Insights Report, “E-commerce marketing in Latin America: data and lessons for brand executives” (Free, registration required).
The report analyzes the behavior of audiences on the web, apps and social media in the three largest markets in Latin America – Brazil, Mexico and Argentina – and in key e-commerce categories. In addition, dozens of brand marketers and e-commerce marketing experts provide intelligence and e-commerce marketing advice to fellow brand marketers.

Top E-Commerce Companies in Latin America

E-Commerce in Latin AmericaThe report also analyzes the expansion of online marketplaces in Latin America, the increased use of apps, particularly delivery and financial apps, and provides advice to brand managers on the best way to manage e-commerce campaigns in the region.
Readers of the report will also gain from the combination of insights obtained by Comscore data and the best practices, perspectives and views of the brand executives that are members of Portada’s brand marketer network ,as well as the viewpoints of marketing experts from Infobip, Latcom, Meltwater, ShowHeroes, and Yahoo.

“E-commerce trends are a reflection of various indicators in the economy in the different countries of Latin America – hence the importance of such a detailed analysis”, said Rodrigo Cerón, Senior Director, Global Marketing at Comscore. “Portada’s editorial vision together with Comscore’s data provide a comprehensive overview that we know will provide considerable support to the industry”.

The report, which can be downloaded here  (free, registration required),  answers crucial questions about e-commerce marketing in Latin America  such as:

  • How did online audiences (web and app) in the Food/Supermarket/Grocery, Department Store Malls, and Fragrances/Cosmetics categories evolve in the three main Latin American markets from 2019 to 2021?
  • What percentage of users of Brazilian Department Store Malls websites and apps use app-only to connect with retailers in this category?
  • Did the audiences of the top 4 online marketplaces in Argentina, Brazil and Mexico increase or decrease in the 2019 to 2021 time period?
  • Does social media marketing have a positive correlation with web/app visits on Latin American e-commerce sites?
  • Does programmatic display or social advertising work better for achieving conversions in online buying?
  • What other initiatives are useful for achieving conversions?
  • What case studies and actionable insights are there on customer service via social networks?
  • Which best practices are recommended for the use of CTV and Digital Out of Home in e-commerce marketing?

DOWNLOAD HERE (free, registration required).

In addition, to Comscore, the following companies partnered with Portada for the report.

Infobip

Latcom

Meltwater

Showheroes

Yahoo

Sedano’s Supermarket, the largest Hispanic-owned supermarket chain in the U.S., recently introduced Nuestra Sazón magazine, the first step in its retail media network launch. The custom publication comes in digital and print versions and is aimed at celebrating Latin cuisine and culture. Portada interviewed Javier Herrán, Chief Marketing Officer, Sedano’s. to learn more about Nuestra Sazón and other projects related to Sedano’s retail marketing strategy.

With headquarters in Miami-Dade County, Sedano’s employs approximately 3,000 associates and operates 34 stores across Florida in Miami-Dade, Broward, Orange, and Osceola counties.

In the digital age custom print publications have perhaps lost some of their allure. Yet Sedano’s recently introduced this bilingual magazine with a circulation of 52,500 mailed directly to homes across Sedano’s primary market in Florida. Nuestra Sazón, launched with the help of Havas House — the global custom media, content and publishing division of Republica Havas — is published three times a year (March, July, November) and has an average readership of 105,000 readers.  “We know and understand that print is still a very important medium with our consumers, and it felt like an appropriate avenue to explore to continue Sedano’s brand growth,” says Javier Herrán, Chief Marketing Officer, Sedano’s. “It has brought new brand partnerships to the table while vitalizing existing partnerships and customer experiences. It also provides the opportunity to speak to customers while they’re at home, as they’re creating their shopping lists and build relationships with them outside of the stores,” he adds.

Using Retail Media as an Extension of Sedano’s Existing Marketing Strategy 

Retail Media
Javier Herrán, Chief Marketing Officer, Sedano’s

“Nuestra Sazón acts as an extension of Sedano’s existing marketing strategy, promoting the brand ethos in a new light that’s more humanized and approachable.” CMO Herran notes. He adds that “the magazine celebrates the richness of the Hispanic cuisine and culture through engaging content, local stories, and comida criolla recipes customers can cook at home using ingredients from featured brands.”

 

We know and understand that print is still a very important medium with our consumers, and it felt like an appropriate avenue to explore to continue Sedano’s brand growth.

Sedano’s further promotes the magazine and its content via social media campaigns and monthly e-newsletters to its more than 32,000 subscribers. Sedano’s Retail Media Network , of which Nuestra Sazón magazine is the first step, will provide supporting brand partners with the opportunity to creatively showcase their products throughout the supermarket chain’s vast reach in Florida.

E-Commerce Offering

Sedano’s comsumer touchpoints are multichannel which is reflected in the above-described multichannel marketing strategy. Herran states that Sedano’s offers its customers a number of ways to shop. “We feel that we need to reach our customers where they want to be and where they want to shop conveniently. Our customers have the ability to shop our stores in person or online through various platforms, including our website, www.sedanos.com, Cornershop by Uber, Shipt, DoorDash, Uber Grocery and on Uber Eats. Our goal is to reach every consumer with our unique product offerings regardless of the platform they choose to use,” Herran concludes.

 

A new study by Accenture found that the US $492 billion global social commerce industry is expected to grow three times as fast as traditional ecommerce to US $1.2 trillion by 2025. Growth is predicted to be driven primarily by Gen Z and Millennial social media users, accounting for 62% of global social commerce spending by 2025.

According to Accenture’s report, “Why Shopping’s Set for a Social Revolution,” social commerce means a person’s entire shopping experience — from product discovery to the check-out process — takes place on a social media platform. Just under two thirds (64%) of social media users surveyed said they made a social commerce purchase in the last year, which Accenture estimates to reflect nearly 2 billion social buyers globally.

“The pandemic showed how much people use social platforms as the entry point for everything they do online — news, entertainment and communication.” said Robin Murdoch, global Software & Platforms industry lead at Accenture. “The steady rise in time spent on social media reflects how essential these platforms are in our daily life. They’re reshaping how people buy and sell, which provides platforms and brands with new opportunities for user experiences and revenue streams.”

Social Commerce

 

While the opportunity is significant for large businesses, individuals and smaller brands also stand to benefit from it. More than half (59%) of social buyers surveyed said they are more likely to support small and medium-sized businesses through social media commerce than when shopping through ecommerce websites. Furthermore, 63% said they are more likely to buy from the same seller again, showing the benefits of social commerce in building loyalty and driving repeat purchases.

“Social commerce is a levelling force that is driven by the creativity, ingenuity and power of people. It empowers smaller brands and individuals and makes big brands reevaluate their relevance for a marketplace of millions of individuals,” said Oliver Wright, global Consumer Goods and Services lead at Accenture. “Getting social commerce right will require creators, resellers and brands to bring their products and services where the consumer is, and will be, rather than the other way around. It means working together within a dynamic ecosystem of platforms, marketplaces, social media and influencers to share data, insights and capabilities to deliver the right incentives and best consumer experience across an integrated digital marketplace.”

Social Commerce

Half of social media users surveyed, however, indicate they are concerned that social commerce purchases will not be protected or refunded properly, making trust the biggest barrier to adoption, as it was for eCommerce at its beginning.

“Those who have yet to use social commerce say one reason they are held back is their lack of trust in the authenticity of social sellers, while active social commerce users point to poor policies on returns, refunds and exchanges as an area for improvement,” said Wright. “Trust is an issue that will take time to overcome, but the sellers who focus on these areas will be better positioned to grow market share.”

Social Commerce: Who is Buying What

Accenture’s report found that by 2025 the highest number of social media commerce purchases globally are expected in clothing (18% of all s-commerce by 2025), consumer electronics (13%) and home décor (7%). Fresh food and snack items also represent a large product category (13%) although sales are nearly exclusive to China. Beauty and personal care, although smaller in terms of total social commerce sales, is predicted to quickly gain ground on eCommerce and capture over 40% of digital spend on average for this category in key markets by 2025.

Among the study’s other findings:

Consumers in developing countries are more likely to use social commerce and do so often. Eight out of ten social media users in China use social commerce to make purchases for a given category, while the majority of social media users in the U.K. and U.S. have yet to make a purchase via social commerce.
Shoppers in China, India, and Brazil care more about features that help them discover and evaluate potential purchases while those in the U.K. and U.S. place more importance on pricing and discounts.
Trust is more important to older generations than younger generations. Older shoppers emphasize security features and value brand familiarity while younger generations are attracted to livestreams and put more faith in buyer reviews.

Research methodology

Accenture Research conducted a series of studies on s-commerce to better understand the nature of this opportunity. We designed and fielded an online survey of 10,053 social media users in China, India, Brazil, the U.S. and the U.K. The online study was conducted August 12th – September 3rd, 2021. We also conducted in-depth interviews with shoppers and sellers from those same five markets between May 26th and June 2nd, 2021.

Accenture’s market forecasts were produced using econometric modelling, considering the optimization of consumers’ preferences to accelerating existing market momentum. The social commerce market includes products or services ordered via social networks, regardless of the method of payment or fulfilment, covering business to consumer (B2C) and consumer to consumer (C2C) transactions.

Marketing Black Friday has been on marketers’ minds for many months. Retailers had online sales of US $8.9 billion last Friday (Black Friday), according to data from Adobe Analytics. This is the first time ever that growth reversed from the prior year. Portada’s editorial team analyzed data and reports and came up with 8 key points to take into account.

“For the first time ever, Black Friday saw a reversal of the growth trend of past years,” Vivek Pandya, lead analyst at Adobe Digital Insights, said in a report on U.S. e-commerce trends. Online spending last year on Black Friday totaled US $9 billion compared to US 8.9 billion this year

Black Friday Marketing Strategies have been on brand marketers’ minds for many months. 4 days of the 5-day holiday shopping event known as ‘Cyber 5’ or the ‘Turkey 5’ are over and Portada’s editorial team analyzed data and read many reports and came up with the following 8 points/trends for brand marketers to take into account:

1. Marketing Black Friday: Holiday Shopping Has Been Stretched Out because of…

Fresh shopping numbers released over the weekend suggest that more Americans stretched out their holiday shopping this year given concerns about COVID-19 and supply chain disruptions. Retailers have also spread out their promotional offers, giving another reason to start shopping earlier. A survey from the National Retail Federation found that 61% of consumers started purchasing holiday gifts before Thanksgiving, and 28% of their holiday shopping was done by early November.

2. …Supply Chain Shocks and Inflation

“There’s no doubt that both supply chain shocks and fears of inflation have disrupted consumers’ typical holiday shopping patterns,” Laura Wronski, senior manager of research science at Momentive wrote in an email to CNBC. “A lot of consumers have intentionally gotten an early start on their holiday shopping because they don’t want to be left empty-handed at the holidays!”. “It’s one thing to wait a few months for a new couch to be delivered; it’s another to try to explain to your kids why Santa isn’t coming until January,” Wronski added.

 

3. …Lower Discounts Also Explain Lower Black Friday Sales

Relatively low Black Friday sales figures can also be explained by less discounting by retailers. According to an analysis by Refinitiv, the average promotional discount across major retailers heading into Black Friday was 33.4%, compared to an average discount of 37% that was offered in October and the early part of November.

 

4. …Brick and Mortar Store Visits Were Significantly Lower than in 2019

Marketing Black Friday Visits to stores and shopping centers climbed 48% from a year ago while trailing 2019 traffic by 28%, retail consulting firm Sensormatic said in a report. Retailers including Best Buy, Dick’s Sporting Goods, Kohl’s, Macy’s, Target and Walmart decided to keep their doors closedon Thanksgiving day this year. Traffic at retail stores also dropped substantially on Black Friday  (28.3% compared with 2019 levels.)

7. Retail Apps Are Clearly on the Rise

This year, retail apps are already approaching peak usage levels from the 2020 holiday season. According to Appsflyer, eCommerce app installs increased 55% on Android and 32% on iOS in 2021. While there is no data yet on the breakdown of e-commerce sales via apps and via websites, it is expected that the share of app usage for online purchases will grow. So far in 2021, consumers have generated 35% more revenue in eCommerce apps compared to 2020. 2021 in-app spend peaked in March, exceeding the previous March by 156%, according to Appsflyer data.

8. Today’s CyberMonday Is Slated to Be the Biggest Online Shopping Day of the Year

The National Retail Federation predicts 62.8 million people will shop today during Cyber Monday, capping off a holiday weekend for retailers that combined for a mixed bag of in-store and online sales compared to last year. Adobe predicted purchases of $10.2 billion to $11.3 billion on Nov. 29, or Cyber Monday, which the firm said is set to be the biggest online shopping day of the year. Adobe reiterated its prediction of US $207 billion in consumer spending during the holiday season as a whole.

 

Check out other Articles from Portada:

CPG Marketing in the Age of E-commerce Advice, Advice from two brand experts

Content for E-Commerce: How Willow Innovations and Primary Arms Do it

 

Adobe released its online shopping forecast for the 2021 holiday season (Nov. 1 – Dec. 31): out-of-stock product messages have risen by 172 percent. Buy Now Pay Later (BNPL) becomes a major consumer trend and discounts come earlier but are smaller — Cyber Monday will remain the biggest day of the year (US $11.3 billion).

Adobe released its online shopping forecast for the 2021 holiday season (Nov. 1 – Dec. 31). As part of the Adobe Digital Economy Index, Adobe provides a comprehensive view into U.S. and global e-commerce by analyzing direct consumer transactions online. Based on Adobe Analytics data, the analysis covers over one trillion visits to U.S. retail sites, 100 million SKUs, and 18 product categories, with global views based on transactions in over 100 countries across three regions — more than any other technology company or research organization.

Adobe expects U.S. holiday sales online to hit US $207 billion from Nov. 1 to Dec. 31, setting a new record. This represents a 10 percent increase from 2020, a strong growth rate after a year where the pandemic made e-commerce an essential service. Globally, online spending is expected to hit US$910 billion this season, 11 percent growth year-over-year (YoY). Adobe expects over US$4 Trillion ($4.1T) to be spent globally in all of 2021 — a new milestone for e-commerce.

Adobe Forecasts

In the U.S., as e-commerce and e-commerce marketing become more ubiquitous, the major shopping days are losing prominence. Cyber Week (Thanksgiving through Cyber Monday) is expected to drive US$36 billion in online spending — 17 percent of the entire holiday season. The growth is slowing however, coming in at just 5 percent YoY for the 5-day period (less than the season overall at 10 percent YoY). Adobe expects Cyber Monday to drive US$11.3 billion (up 4 percent YoY) and remain the biggest day of the season (and year), with Black Friday coming in at US$9.5 billion (up 5 percent YoY) and Thanksgiving at US$5.4 billion (up 6 percent YoY). All three major shopping days are growing less than the season overall.

Supply chain challenges to impact shopping season

Surging consumer demand for online shopping is happening as retailers contend with dire supply chain challenges, from crowded ports and cargo delays to disruptions in overseas manufacturing. Shoppers are feeling the impact: Compared to a pre-pandemic period (Jan 2020), the prevalence of out-of-stock messages has risen a whopping 172 percent going into the holiday season. Adobe expects it to remain at this level, increasing for certain products throughout the season. Of the 18 categories tracked by Adobe, apparel has the highest out-of-stock levels currently, followed by sporting goods, baby products, and electronics.

A weakened supply chain is also driving up prices online. Adobe expects U.S. consumers will pay 9 percent more on average during Cyber Week this year, compared to the last holiday season. This is the result of smaller discounts, on top of e-commerce inflation that has persisted through the year. Adobe forecasts discounts will be in the 5 percent to 25 percent range across categories this season, compared to a historical average of 10 percent to 30 percent.

This is happening as pricing levels have been elevated: Inflation in e-commerce has been observed since June 2020 (16 consecutive months) with online prices up 3.3 percent going into the holiday season (Sept 2021). In past years, online prices were down 5 percent YoY on average prior to the shopping season. E-commerce prices have not risen as quickly as offline prices however, with the latest Consumer Price Index up 5.4 percent YoY (Sept 2021).

“We are entering a second holiday season where the pandemic will dictate the terms,” said Patrick Brown, vice president of growth marketing and insights, Adobe. “Limited product availability, higher prices, and concerns about shipping delays will drive another surge towards e-commerce, as it provides more flexibility in how and when consumers choose to shop.”

Insights on discounts, as well as the best days to shop:

Category Discounts: Adobe expects smaller discounts in all major gifting categories tracked by the Digital Economy Index. Discount levels in electronics for instance, will peak at 22 percent for the season, down from 27 percent in 2020. Other categories include computers at 25 percent (vs 30 percent in 2020), televisions at 15 percent (vs 18 percent), appliances at 16 percent (vs 20 percent), toys at 16 percent (vs 19 percent), sporting goods at 14 percent (vs 20 percent), apparel at 15 percent (vs 20 percent), furniture at 7 percent (vs 9 percent), and tools at 8 percent (vs 11 percent).

Adobe Forecasts

When to Shop: In an Adobe survey of over 1,000 U.S. consumers, 67 percent are concerned about gifts being more expensive this year. While seasonal discounts are expected to start this month (Oct) in the 5 percent to 15 percent range, as retailers look to manage supply chain challenges, the biggest discounts (5 percent to 25 percent range) are still expected to happen around Thanksgiving and Cyber Monday.

Certain categories like electronics for instance, are expected to have the deepest discounts before Cyber Monday. The best days to shop include: Thanksgiving (11/25) for toys, Black Friday (11/26) for furniture/bedding and tools/home improvement, Saturday (11/27) for electronics and appliances, Sunday (11/28) for apparel and sporting goods, Cyber Monday (11/29) for televisions, and Wednesday (12/1) for computers.

Insights on Buy Now Pay Later, top gifts, curbside pickup, and more:

Buy Now Pay Later: Consumers are embracing new payment methods like Buy Now Pay Later (BNPL) as a way to free up cash this holiday season. Online revenue from BNPL this year has been 10 percent higher than 2020 and 45 percent higher than 2019 — based on Adobe Analytics data. Shoppers are also using BNPL for increasingly less expensive orders, with the minimum order value dropping 12 percent YoY to US$225. In the Adobe survey, 25 percent of respondents said they have used BNPL in the last 3 months, with apparel (cited by 43 percent), electronics (33 percent), and groceries (30 percent) as the top categories.

Curbside Retakes Spotlight: In December 2020, curbside pickup was used in 25 percent of all online orders, as consumers looked for safer ways to shop. In this upcoming season, delays are expected to drive even more usage. In Adobe’s survey, 65 percent of shoppers are concerned about shipping delays this year. Adobe expects curbside pickup to peak from 12/22 to 12/23 (right before Christmas Eve) at a record 40 percent of all online orders, while remaining at 25 percent through November 2021.

Most Anticipated Gifts: Based on Adobe data, along with analysis of market trends and social media buzz, the top toys this season are expected to be the Tamagotchi Pix, Pop Fidget, Got2Glow Fairy Finder, Baby Yoda, and Gabby’s Dollhouse — Top gaming devices include the Nintendo Switch OLED, PlayStation 5, Xbox Series S/X, and Stream Deck — Top games are expected to be Metroid Dread, Battlefield 2042, Pokemon Brilliant Diamond & Shining Pearl, Halo Infinite, and FIFA 22 — Other top gifts include Airpods Max, smart mugs, Instant Pot, air fryers, smart water bottles, drones, and record players.

Bigger Screens: As consumers spend more time at home and sit in front of laptops for work, growth of smartphone driven shopping has hit a ceiling. Adobe expects smartphones to account for 42 percent of overall revenue this season (US$86 billion), a modest 5 percent increase from 2020.

More time spent at home has also driven interest in larger TV screens, as people look to replicate the theatre experience at home. TVs in the 70-79 inch range hit 22 percent of sales in 2020, up from 16 percent in 2019 and 9 percent in 2018 — 80-inch (and larger) sets hit 3 percent of sales in 2020, up from 1 percent in 2019 and 1 percent in 2018.

Shopping Frenzy: On average, a consumer in the U.S. will spend 12 full hours shopping online this holiday season. During the “golden hours” of e-commerce (7:00–11:00 pm PT on Cyber Monday), shoppers will spend nearly US$3 billion online ($2.9B) in just 4 hours, 50 percent more than a typical full day in August 2021 (US$1.9B). In the peak hour of Cyber Monday (8:00–9:00 pm PT), consumers will spend over US$12 million every minute.

Gifting an Experience: In the Adobe survey, while over half of respondents (51 percent) plan to purchase physical goods as gifts for others this holiday season, nearly one-fifth (17 percent) plan to gift an experience instead. Top categories include spa treatments (cited by 25 percent), concert tickets (25 percent), sporting event (22 percent), plane tickets (21 percent), and cooking classes (16 percent).

Methodology: The Adobe Digital Economy Index offers the most comprehensive set of insights of its kind, based on analysis through Adobe Analytics that covers over one trillion visits to U.S. retail sites and over 100 million SKUs in 18 product categories — more than any other technology company or research organization. Global views are based on transactions in over 100 countries across Americas, APAC and EMEA. Companion survey findings are based on responses from 1,012 U.S. consumers (over 18) fielded between Sept. 23 and Oct. 1.

CPG Marketing: What do consumer packaged goods companies (CPGs) need to get up and running in direct-to-consumer marketing when they’ve only operated in brick and mortar selling at traditional retailers? Two brand marketers in the Portada network provide useful recommendations.

The shift to e-commerce will drive more than 70% of sales growth across the food and beverage categories through 2022, according to eMarketer. Marketers in these categories face the challenge of selling directly to the consumer (DTC) beyond traditional brick-and-mortar channels. Portada asked two experienced and DTC savvy marketers for advice on how they can best meet this challenge.

CPG Marketing:  Think Consumer First…

Moises Leiferman
Moises Leiferman, Sr. Manager Omni Channel at Perfetti Van Melle

CPG Marketing needs a shift in thinking to “consumer first”,  Moises Leiferman, Sr. Manager Omni Channel at Perfetti Van Melle,  tells Portada.  He recommends CPG marketers to “keep in mind the full path to purchase, with its iterations, and not as a funnel.” Additionally, he says that it is important to balance performance tracking with mid to long-term metrics like ROI. value growth and brand health.”

… and Align Resources with Expectations. 

Leiferman also emphasizes that it is important to set up “digital platforms and resources in line with sales channels and expectations: For example, having a brand website might not be a must-have, if the CPG company is selling through third party websites. Another important point is to periodically review packaging and SKUs development so that it is in line with consumer online purchase; “Make sure the supply chain is adjusting towards a different setup,” Leiferman concludes.

Set up digital platforms and resources in line with sales channels and expectations.

Culture and Talent Ignite DTC…

Emily Jordan, VP of Marketing at Willow Innovations

To Emily Jordan, VP of Marketing at Willow Innovations successful CPG Marketing in the age of e-commerce involves culture and talent:Bring in experts in the space who can ignite a DTC way of thinking. Fuel curiosity:  Create a culture of test and learn which is key in DTC and E-commerce marketing,” Jordan asserts.

Fuel curiosity. Create a culture of test and learn which is key in DTC and E-commerce marketing,”

CPG Marketing: Data Driven and at Scale

According to consulting firm McKinsey, Data-driven marketing at scale can deliver consumer-packaged-goods (CPG) companies 3 to 5 percent growth in net sales and improve marketing efficiency by 10 to 20 percent. “To do it, CPG companies need an AI engine, a 360-degree view of consumers, and a fit-for-purpose marketing technology stack to deliver the right message to the right consumer, at the right moment—all the time,” McKinsey claims. Artificial Intelligence and a very comprehensive view of the consumer requires marketers at CPG companies to get very data-driven and analytical for quick decision-making.Get analytical: DTC and E-Commerce unlock way more analysis about your consumer than traditional and brick and mortar retailers,” says Willow Innovations’ Jordan.
She also advises CPG marketers to get familiar with the lingo; AOV, CPA, Cost per new visitor, returning visitors, basket size, etc.  particularly as it relates to the basics of performance marketing: Facebook, SEO, content marketing, lifecycle/email.

Get analytical: DTC and E-Commerce unlock way more analysis about your consumer than traditional and brick and mortar retailers.

 

 

The “The New Face of Local” report by Uberall & MomentFeed finds that consumers prefer a mix of online and offline experiences with a business, in a hybrid customer journey. Consumers prefer a consumer purchase journey that blends physical and digital experiences in a non-linear fashion.

Uberall, a global leader in ‘Near Me’ Marketing SaaS solutions, and MomentFeed, an Uberall company, released a new report, titled “The New Face of Local.” It explores how COVID-19 driven digital acceleration has given birth to a hybrid customer journey that mixes online and in-person behavior when shopping locally.

“Our report shows that as economies re-open, consumers are much less likely to distinguish between online and offline, and instead prefer a customer journey that blends physical and digital experiences in a non-linear fashion,” said Nick Hedges, Chief Strategy Officer & EVP North America, Uberall.

The report features survey responses from over 1,000 U.S. consumers and analyzes the local online performance of nearly 80,000 business locations.

Customer JourneyGoogle #1 for Local Business Information

The overwhelming majority of consumers (69%) use Google to find local business information, including reviews. However, more than 20% also use Apple Maps, Yelp and/or Yahoo to find information about nearby businesses. Industry-specific websites and apps (e.g. travel, real estate, restaurants) are also important, with one out of five using these platforms.

“Google is the center of gravity for local search but it’s not the only site consumers turn to for local information,” said Greg Sterling, VP of Insights, Uberall. “People use a range of directories, sites and apps, which often change by industry or category.”

Customer Journey: Local Stores Remain Important

Despite the significant growth of e-commerce over the past year, less than 18% of US consumers prefer to research and buy products exclusively online. By comparison, 74% rely on stores at some point during their purchase process, even if the transaction ultimately happens online. Indeed, a little-understood fact is that stores support e-commerce: 66% of consumers are more likely to buy something online if they can return it to a local store.

66% of consumers are more likely to buy something online if they can return it to a local store.

“This is a strong indicator that consumers want a real-life experience in their customer journey – whether to evaluate the physical product in a store and/or the convenience of being able to take it home the same day,” said Hedges. “Though the internet is having a profound impact on consumer decisions, both enterprises and SMBs need to understand the relationship between online and offline behavior to succeed going forward.”

Non-Branded Searches Initiate More Customer Journeys During Covid

Already the majority of searches, Uberall found that non-branded search queries became even more dominant during the pandemic. Non-branded search is the what (“bookshop near me”), before the who (e.g. “Barnes & Noble near me”).

“The increase in non-branded local searches is a complex phenomenon, largely driven by the value consumers place on proximity, immediacy, and convenience,” said Hedges.

Customer Journey

Engagement with Online Business Listings in 2020 was Flat; 2021 Data Indicates Rapid Recovery

COVID disrupted normal consumer activities in 2020 and the customer journey. Safety protocols and related restrictions dramatically reduced or eliminated in-person business visits in the U.S. That led to a 1% decrease in click-to actions on business listings in search (calls, clicks, directions). However, Q1 2021 saw a big uptick in engagement and actions, an upward trend that will likely continue throughout 2021 as businesses reopen.

The data shows that Americans are willing to go out of their way in many cases to support local businesses that they trust.

The data shows that a return to in-person shopping is slowly but surely reaching pre-pandemic numbers,” said Hedges. “Furthermore, the importance of local stores can’t be understated. The data shows that Americans are willing to go out of their way in many cases to support local businesses that they trust.”

Some Industries Fared Better than Others

As consumers reduced or stopped visiting stores and indoor venues in 2020, industries like finance, retail, and government fared better in terms of click-to actions on local listings. They were able to deliver alternative customer experiences over the phone or through their websites.

  • Government saw the biggest increase in local listing engagement, with a 93% overall increase in actions taken from local listings, and a 115% increase in clicks to websites. This suggests citizens were seeking information from government officials on the latest regulations and restrictions, testing and vaccinations, unemployment, and more.
  • Retail saw a 58% increase in clicks to websites, indicating a big e-commerce marketing shift.
  • Financial and leasing services grew by 10% with the largest shift going to click to call.

In the restaurant, entertainment and travel categories, which were heavily impacted in 2020, there was a decrease in listings engagement and online actions across the board. Conversions for many of the companies in these industries depend on in-person experiences that are difficult to directly replicate online.

  • Travel saw the greatest decline in actions at -47% year-over-year, not surprising given extensive travel restrictions in 2020.
  • Social and entertainment industries were also greatly impacted with a -32% year-over-year decrease.
  • Restaurants fared better, given the ability of many to pivot to online ordering, takeout and delivery; however, there was still a decrease in actions of -18%.

Customer Journey

‌As more people incorporate hybrid shopping behaviors into their customer journeys, in an evolving and unpredictable environment it’s critical for businesses to bring more of the in-person experience online and to integrate online and offline assets to deliver consistent customer experiences across channels.

For more information and to download the report, please visit this link.

Online marketers who work on retargeting have seen the pattern. From 95 to 98 percent of online visitors search for something but the search never converts into a purchase. They leave the site without buying. For marketers, this leaves much to speculation and assumptions that can then lead to wasted time and investments in ineffective marketing programs.

Its a key element  of e-commerce marketing. One of the more common ways online marketers attempt to solve this problem is to “retarget,” which is to track those consumers and reconnect with them at some later point by showing display ads when they browse other websites. You’ve probably noticed this when you’ve used Google search to find something like a pair of shoes, and then later when you’re reading separate a news site, you’re exposed to a number of display ads centered on that very thing you were searching for earlier.

But once that marketer gets your attention, what can they do to increase the likelihood that you will make a purchase? That question is at the center of a new study that reveals what may be the best approach to increase conversion rates.

The research study to be published in the April edition of the INFORMS journal Marketing Science is titled Consumer Search and Purchase: An Empirical Investigation of Retargeting Based on Consumer Online Behaviors. It is authored by researchers from The Warton School at the University of Pennsylvania, Washington University in St. Louis, the University of California, and Fudan University in Shanghai, China.

Retargeting

To conduct their research, the study authors analyzed consumer behaviors in response to two distinct marketing strategies. In one approach, they sent out coupons via those retargeted display ads. The coupons would be redeemed upon purchase. In the other approach, the study authors used those display ads to provide seller recommendations that centered on a specific product offering customized to the user, but with no coupon or discount.

We have found that while both strategies help increase the conversion rate, the seller recommendations were more effective than coupons,” said the authors.  “This told us that providing consumers with the sellers’ information that is most relevant to them may be a more effective way to tap the power of retargeting.

To conduct their research, the study authors tapped empirical data from Taobao.com, which is owned by Alibaba and is the largest online retail platform in China. Like other major e-commerce platforms, it collects consumer browsing history and can reach consumers through direct messaging on the platform, either through the website or its mobile app.  The researchers built a consumer search model to establish the relationship between consumer preference and search behaviors. They studied the behavior of 104,189 consumers who searched for a specific product among 20 sellers.

Search Intensity Impacts Retargeting Efficiency

We noticed some predictable patterns,” said the study authors. “Consumers who had a higher search intensity for a specific product were more likely to actually make a purchase. Search intensity was measured in the volume of clicks tied to the same search or search term. What we found was that even where the consumer clicked on multiple possible products, it was the first link they clicked on that had the highest potential of generating a sale. In other words, after a more intense search, the consumer is more likely to go back to that initial seller once a decision to make a purchase is made.

Consumers who had a higher search intensity for a specific product were more likely to actually make a purchase….even where the consumer clicked on multiple possible products, it was the first link they clicked on that had the highest potential of generating a sale.

In addition to the two basic retargeting strategies – discounting or customization – the authors proposed to use the auction as a pricing mechanism to implement the policies. The auction pricing mechanism requires the seller to self-select. This means the seller selects certain criteria for its ideal customer for a specific product at a specific price-point and then bids on how much it will pay to reach that consumer.

“Through our research, we were also able to show that a pricing mechanism, such as an auction, also tends to improve the effectiveness of a retargeting program,” said the authors. “When Taobao used a pricing mechanism such as an auction, the company was able to improve the efficiency of its retargeting campaigns.”

When Taobao used a pricing mechanism such as an auction, the company was able to improve the efficiency of its retargeting campaigns.

We just published the 2021 Portada Insight Report on E-Commerce in Latin America in partnership with ComScore. The report (“El Marketing de Comercio Electrónico en Latinoamérica: Datos y Enseñanzas para Ejecutivos de Marca”) analyzes website traffic in three categories: Department Stores/Malls,  Food/Supermarket/Grocery and Fragrances/Cosmetics in Brazil, Mexico and Argentina.  In addition, website visits and social media marketing of the main Mexican retailers in the Food/Supermarket/Grocery categories are analyzed. Plus insights and best practices from 12 major brand marketers, including Marriott’s Diana Plazas, L’Oreal’s Pablo Sanchez Liste and PepsiCo’s Hernan Tantardini. 

E-Commerce in Latin America

E-Commerce is one of the hottest sectors worldwide and, with it brand marketers need for MarTech, is growing in leaps and bounds.  While penetration over retail sales in Latin America lies at approximately 5% vs. 20% in China and 15% in the U.S, COVID-19 has brought a huge increase in e-commerce and e-commerce marketing in Latin America. We just published the 2021 Portada Insight Report on E-Commerce Marketing in Latin America in partnership with ComScore. The report in Spanish, (“El Marketing de Comercio Electrónico en Latinoamérica: Datos y Enseñanzas para Ejecutivos de Marca”) analyzes website traffic of three key categories (Food/Supermarket/Grocery, Department Stores/Malls and Fragrances/Cosmetics) in Brazil, Mexico and Argentina.

In addition, website visits and social media marketing of the main Mexican retailers in the Food/Supermarketing/Grocery categories are analyzed. Brand Marketers in the Portada Network provide intelligence about the correlation between social media marketing and website visits as well as best practices. They include senior brand marketing executives from PepsiCo, Colgate Palmolive, Best Buy, New York Life, Seguros Monterrey, Walmart Mexico, Nestle, Grupo Exito, L’Oreal, Marriott and Walmart Mexico.

E-Commerce in Latin America

Did you know that unique visitors to websites in the Food/Supermarket/Grocery Category in Brazil, Argentina and Mexico grew by 65% to 63.3 million unique users between March 2019 and September 2020? Find out how social media marketing by major retailers grew and how it impacted website visits. DOWNLOAD the report here.

 

 

 

 

What form will the advertising mix take once COVID-19 is over? How and where should brands advertise to boost E-Commerce? Should they trust Live Sports to come back in a major way?  How can brand marketers best approach Data Privacy Regulations, First Party Data and Personalization?…. Advertisers have many questions as they go into 2021 and beyond. Check out the answers provided by brand executives in the Portada network and our editorial team. A Q&A reflecting the Advertising and Marketing Zeitgeist.

Brand Marketer Question

MY FIRST QUESTION is WTF I can’t plan much in this environment. When will COVID-19 finally be over?
ANSWER: Don’t expect live to resemble anything close to what we had in 2019 until the second half of 2021.
Good to know: Customers are the lifeblood of business and advertising is the main tool to attract new customers and an important way to retain them. In 2020 business conditions changed dramatically due to COVID-19. This substantially impacted advertising with an expected decrease of U.S. advertising revenue of 17% for 2020 (excluding political advertising, Magna Global);a miserable advertising year.

Brand Marketer Question

OK, but EVEN WHEN COVID IS OVER, how will the new normal impact my advertising and marketing?
ANSWER: Whether you are a company that is not directly facing the consumer or a Direct to Consumer firm, E-Commerce marketing and advertising will be much more important for you compared to pre-Covid-19 levels.(e.g. check out how automotive marketer Cadillac has worked proactively to adapt its advertising and marketing.)
Good to know: COVID has brought enormous changes in the way consumers inform themselves and buy products and has accelerated digital transformation and e-commerce. In January 2020, eMarketer forecast total U.S. ecommerce sales would reach US $674.88 billion in 2020, but a revised estimate puts that figure at US $794.50 billion or 17.7% more than expected! E-commerce skyrocketed from 12% to 16% of retail sales in only one year. Note that there is still a lot of room for e-commerce growth!

On the Relentless Ascent of E-Commerce Focused Advertising

Brand Marketer Question

I can see that it makes sense to put more money to work to grow E-COMMERCE, BUT WHERE EXACTLY SHOULD I DO THIS? Should I invest in advertising to attract  buyers to my own website, to a third party marketplace or to direct them to social selling?
ANSWER: Most brand marketers in the Portada knowledge-sharing network see sales channels as complementary and not competing. “The key is to be omnichannel in order to be where customers need us to be,” one brand marketer says.  Another thing to take into account in your advertising is that third party marketplaces (e.g. Amazon, but also Target or Walmart) are impacting brand messaging. It is crucial for brands to be in control of messaging. As social media becomes even more connected with e-commerce, Influencer marketing  is becoming more sales driven.  (According to Statista, global Instagram influencer marketing amounted to US $ $8,08 billion in 2020.)
Good to know: Amazon (37% sales growth in the third quarter of 2020 (Q3), vs Q3 2019) and other online retailers including Best Buy (23% Q3 2020 vs. Q3 2019 ) and Target (21.3% growth) have gained an enormous power as third party marketplaces who provide data and marketing services to brands. So have delivery and pick-up services like Instacart (grocery), Grubhub (restaurants)  and others. All these intermediaries offer marketers opportunities to advertise their products on their apps and websites. In addition, social media properties are playing a crucial role in sending shoppers to company websites and also offer direct sales integrations (e.g. Instagram has just debuted shopping capabilities within its recently launched Reels feature).
Magna estimates that driven by ecommerce and advertisers looking for “lower funnel” attribution, U.S. digital media revenue grew by 10% in 2020, reaching US $140 billion.

2021 Advertising Question

WHAT ABOUT  THE TOP OF THE FUNNEL. Is there no place for branding and awareness anymore?

ANSWER: “While digital media and e-commerce have changed and shortened the customer’s path to purchase, brand awareness continues to be the basis for consideration and purchase. Broadcast TV and other traditional media forms, including Out of Home Advertising, continue to have major reach and appeal for advertisers. 

Good to know:  Magna forecasts that in 2021, with a COVID vaccine and the postponed Olympics, global advertising will rebound. The agency forecasts the global ad spend to increase by 7.6% to US $612 billion. Linear media, which is mostly awareness-top of the funnel oriented, will grow by 3.5%. 

Where is Experiential Marketing Going?

Advertising in 2021
Michael Goldstein, Mastercard

2021 Advertising

Corporate America used to utilize in-person Live Sports events to obtain high reach and engagement. Will that again be the case once COVID is over or will VIRTUAL EVENTS, INCLUDING E-SPORTS, STILL PLAY A MAJOR ROLE?
ANSWER: “You will definitely see more of a mix as the world returns to normal of virtual vs. in-person events relative to how things worked prior to Covid,” Michael Goldstein, VP and Head of sponsorships North America at Mastercard recently told Portada.

Good to know: The pandemic produced a huge drop in live sports ratings (e.g. a decline of 49% in NBA finals and 61% in NHL finals) as the absence or scarcity of fans in the stands may have dulled the excitement around watching events. Approximately US $ 1 billion in advertising expenditures were lost.

Advertising: How can Ad-Tech and MarTech Help?

2021 Advertising Question

DATA PRIVACY REGULATIONS are making it more difficult to target consumers. How can I solve this in 2021 and beyond? 
ANSWER: Contextual targeting  technology provides a data privacy-friendly alternative to behavioral targeting, It can help a brand understand what a consumer might like without needing personally identifiable information. Contextual targeting uses linguistic elements and the advertisements themselves are selected and served by automated systems based on the context of what a user is looking at (e.g. check out Tecate’s new campaign). Contextual targeting can also be useful for performance marketing efforts.
Good to know:  Data privacy regulations and third party cookie phase-outs have digital advertisers scrambling for solutions to maintain campaign efficiency and scale without the regulation compromising behavioral targeting technology.

Brand Marketer Question

Nice to know…but I think my company should also obtain FIRST PARTY DATA as a major way to get customer insights. Don’t you think so?
ANSWER:  Brands can gain a lot by unifying first-party data sources into a single customer view in a Customer Data Platform, CDP, although the platforms may not necessarily do everything a marketer expects them to do.
Good to know:  Marketers will need to shift from reliance on third-party data for audience targeting and campaign measurement to a new model  improving the way they collect, manage, and activate their first-party data. Ogilvy head of experience technology, Jason Davey, sees digital marketing strategies shifting to prioritize first-party data as the looming cookie crisis gets real.  Due to technological advances, multi-channel data collection, attribution, curation, enrichment and decisioning has become more accessible and affordable.

Question

How does this all connect with my increased need to PERSONALIZE CUSTOMER COMMUNICATIONS?

ANSWER:The appropiate use of CDPs will continue to drive the hyper-personalisation trend, with more interest in Artificial Intelligence including predictive data analysis.

Good to know: Recent Salesforce research found customers increasingly anticipate personalized interactions at every stage of their buyer’s journey, from brand awareness through purchase and potentially on to retention and brand advocacy.

 

Question

Sounds interesting. Another question I have is if I should invest more in CONNECTED TV (CTV). While the audience watching CTV is huge why are CTV advertising investment volumes so small?
Darcy Bowe
Darcy Bowe, SVP, Media Director, Starcom USA

ANSWER: CTV is clearly on the rise, as are other forms of video advertising, yet more sophisticated CTV measurement options “are key – and that will allow us to measure viewership and frequency across screens more easily,” Darcy Bowe, SVP, Media Director at Starcom USA tells Portada.

Good to know: CTV household penetration lies at 80% and Pay-TV’s at 62%, yet CTV  advertising is expected in 2021 to amount to only 15% of total US TV ad spending.

 

How can Segment and Purpose Driven Advertising Really Work?

Question

How should I approach marketing toward ETHNIC POPULATION GROUPS in 2021 and beyond? 
Larissa Acosta
Larissa Acosta, Wells Fargo.

ANSWER: “The change that I would like to see for 2021 and beyond is to move away from total market strategies that try to find places of commonalities and a move towards diverse segment lead strategies, that are intentional and focused on the most authentic and relevant messages to build brand affinity and product usage with diverse segments as the designed target”, says Larissa Acosta, Integrated Marketing Consumer + Diverse Segments Team Leader at Wells Fargo.

Good to know: Over the last decade Corporate Americas has used the Total Market approach (TMA). This approach integrates diverse segment considerations and mostly leads to a full cross-cultural approach and campaigns. Critics note that the TMA is not effective for multicultural marketing and that the real reason companies use TMA is that they realize savings in their advertising expense and marketing organizations.

 

Brand Marketer Question

OK. I do want to TARGET THE HISPANIC POPULATION specifically and support media properties that cater to those communities. How can I advertise toward the Hispanic segment in a cost effective way. I mean Facebook and other platforms tend to be cheaper and have a lot of reach?
Advertising in 2021
Alexis Kerr, Cadillac

ANSWER: We have found creative ways to nurture our multicultural media partners to ensure they serve us in various different ways vs just ROI. Media partnerships like Hispanicize and Revolt are great examples of how partners have been able to work with us to meet those goals. We have increased our spend to support diverse communities and partnerships.”, says Alexis Kerr, Head of Multicultural Marketing | Strategy, Content and Execution, at Cadillac.

Good to Know: Brands are often asked to invest in media properties that serve diverse communities. Yet, these media properties may not have enough reach to justify a media spend on ROI terms. (It also has to be said that while the cost of advertising in social media is lower, it not always guarantees brand safety.)

Brand Marketer Question

RACISM AND INEQUITY are major factors behind civic unrest. How should I be mindful of this in my brand’s advertising? 
ANSWER: It is counterproductive for a company to advertise if it does not commit to social and economic change by incorporating diversity, racial justice and social equity mandates and their execution. This should include executive leadership and personnel selection, an ecologically sound production process as well as diversity in vendors.
Good to know: Covid-19 exposed a historic cycle of systematic racism and oppression as civil unrest hit many U.S. cities in 2020. More than 35% of young consumers (aged 19-26) have stopped shopping from a brand who has not spoken out against racism (Oberland Survey, August 2020).

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.

GlobalWebIndex (GWI) published the findings of its extensive research into the global consumer trends that are shaping not just consumer behavior, but also their feelings, motivations, and attitudes now and for the year ahead.

The annual ‘Connecting the dots’ report, compiled from 700,000 interviews across 46 countries, explores how internet users are changing the way they act, think, and feel, in line with events around the world.

Livestreaming commerce is rising as the new medium for online shopping.

global trend 2021
Jason Mander, Chief Research Officer at GWI.

“2020 has spanned a pandemic, global lockdowns, the Black Lives Matter movement, extraordinary wildfires in Australia and the Americas, the rise of TikTok, US elections, to name but a few. The world has changed, and so have consumers. Through Connecting the dots, you won’t just know what the biggest behavioral shifts were in 2020, you’ll see what’s been driving them, and how to take advantage. This, coupled with a harmonized global perspective, can help give confidence that what you’re seeing isn’t just a regional fad. In an era defined by universal change, context is king. Without it, distinguishing between hype and reality is even more difficult” said Jason Mander, Chief Research Officer at GWI.

Connecting the dots 2021: Zero in on what matters

Explaining the report’s scope, Jason Mander said: “We zoomed into consumers around the globe, and connected the dots to identify eight key trends. From new flexible working patterns to livestream digital shopping, ethical consumerism, mental health and coronavirus, one thing is clear; uncertainty rules the day. Against this complexity, this report provides clarity and perspective. We identified both best and worst case scenarios to help us all navigate our way through 2021 to stand out and meet the expectations of the global population.”

One thing is clear; uncertainty rules the day.

These are the key trends to watch out for in 2021:

A green awakening: make sustainability part of the recovery in 2021 

The first wave of lockdowns had an unexpected upside: we began a new chapter in our relationship with the environment. However, any gains look set to be wiped out as normality returns. Cynicism is also set to make a comeback. Consumers have gone from seeing a bright future ahead to feeling pessimistic – and this backlash will ensure green values are a hot topic through 2021 and back on top of the agenda.

Environmental optimism since COVID-19
% of global internet users who say the environment will get better in the next 6 months
Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020
4142415346

The digital storefront: how livestreams will support ecommerce 2.0

The explosive growth of TikTok, the rise of influencers, and the need for brands to distinguish themselves online. Livestreaming commerce is rising as the new medium for online shopping. This will be a new battleground for retailers and may bring community and entertainment to ecommerce – elements it currently lacks, yet consumers state it would encourage them to buy products. As shopping becomes increasingly digitized, livestream commerce is a key way to create a more interactive, entertaining experience that consumers crave. More about ‘the digital storefront’.

It’s a kindness magic: brand purpose will need to shift

As the COVID-19 crisis develops, businesses will need to think through their responses beyond short-term crisis management. This includes building new ways of doing business that bake in kindness and empathy at their core. Serving up PPE and hand sanitizer worked well at the time, but next year will need more focus on individual consumers and how to support them during times of hardship.

New expectations on brands 
% of internet users in 7 countries who want brands to put more focus on the following 
Supporting people during COVID-1956%
Being eco-friendly51%
Supporting/being vocal about social causes (e. g. equal rights, poverty etc)41%

More than lockdown blues: the looming mental health crisis

The effects of the current health crisis will usher in another one in 2021 – the mental health crisis. Businesses will need to take the same proactive approach that they deployed in the early stages of the corona meltdown. When asked what consumers are more concerned about,  almost a third (31%) stated mental health and wellbeing compared to 29% who said a COVID-19 vaccine.

All work, no play: the 9-5 model is sapping productivity

Looking ahead, bosses will be torn between pulling the troops back in or continuing with remote working. The latter may be the smarter decision. Not only can it whip up business performance during an uncertain time, but also boost productivity and employee satisfaction – when combined with flexible working. Office staff are 32% more likely to say they are allowed to work from home since 2019. In comparison, there’s just a 5% increase in those stating that they are now more likely to work flexible hours.  

Coming of age: a generation-defining year for Gen X and boomers

2020 is a “generation-defining” year. This is especially true for the mature age groups. Generation X and baby boomers have increased their reliance on the internet and online shopping, which looks to be permanent. As many populations are aging, the older groups’ market power is soaring. Their decisions and behaviors will be more impactful than you might think. Online grocery shopping alone in the U.S. has grown by 57% among Gen X and baby boomers since Q3 2019.

Data for good: nurturing the new relationship between consumers and online privacy 

The hot topic of data privacy seems to be cooling off as we head into 2021. In the recent past, scandalous exposures have fueled an ever-growing concern among consumers. But with the advent of contact-tracing apps, consumers are more accepting of data as a public good. In 2013, 56% of internet users were concerned about the internet eroding their personal privacy. By 2019, this had climbed to 61%. Fast-forward to 2020, however, and the pattern has muddied. Some privacy concerns have actually declined in the wake of COVID-19. As Google prepares to kill off the cookie, publishers might just have a new way to influence consumers with the value of first-party data.

There’s no place like home: the pandemic is reshaping city life  

Many predicted that COVID-19 would lead to the death of the city. If you can work from home, why not move to the countryside? But actually, research highlights that most countries are still urbanizing, with cities in the west evolving, not dying. Night-time and service economies have been badly hit, but city dwellers will come to value other aspects of their environment, from the local neighborhood stores to their home interiors.

The Big City Appeal
% of urbanites in the following countries who would choose to continue living in the city
IndiaChinaBrazilGermanyUKFranceUSA
90%88%83%79%74%71%70%

Methodology: 

  • GWI’s Connecting the dots 2021 trend report figures are drawn from its online research among internet users aged 16-64*. The figures represent the online population of each market, not its total population. Each year, GWI interviews over 700,000 internet users via an online questionnaire for our core dataset.

*GWI USA is representative of internet users aged 16+

Ecommerce marketing automation platform Omnisend, recently published its Email & SMS Marketing Stats & Trends Report (Q2 2020) . The results of the study provide interesting insights on e-commerce consumer behavior towards email, SMS and push marketing messages during the pandemic. One insight is that consumers gravitated toward trusted channels such as email marketing when doing their online shopping.

Omnisend analyzed email send data for over 2.4 billion emails sent from the Omnisend marketing platform during Q2 2020. They also looked at more than 1.8 million SMS and push messages sent through the Omnisend platform. The data below includes sends, opens, clicks, and conversions from April 1st through June 30th for both 2019 and 2020.

Email Marketing Performance

Email Open Rates:

Email open rates increased year-over-year for both promotional campaigns and automated messages during the second quarter. Promotional campaigns (traditional scheduled messages) registered an overall open rate of 10.85%*, a 29.37% lift compared to the same period in 2019.

This increased performance is not entirely surprising. As we saw in the COVID-19 email marketing metric report, when consumers increased their online shopping they turned to trusted marketing channels like email as a source of product discovery and awareness.

When consumers increased their online shopping they turned to trusted marketing channels like email as a source of product discovery and awareness.

Email Rates

Online DTC brands who don’t send these types of messages because their ecommerce platform isn’t integrated with their email provider are missing a huge growth opportunity.

Type of Automation

Open Rate

Lift Over Campaigns

Product Abandonment

51.64%

375.90%

Cart Abandonment

30.58%

181.84%

Browse Abandonment

26.34%

142.75%

Post-Purchase

24.58%

126.52%

Welcome

23.80%

119.34%

Birthday

23.22%

114.00%

Lapsed-Purchaser

22.11%

103.77%

* List management, send cadence, and the use of Booster sends (remails) on a per-client basis impacts promotional campaign open rates—often resulting in lower overall numbers. For instance, it is common for remailed messages, because they specifically target non-openers, to receive roughly half of the open rate as the initial send—therefore reducing the overall open rate.

Email Click Rates:

While promotional campaigns saw a decrease in click rates, the same cannot be said for automated messages. Automated messages generated a 21.24% click rate, marking a 15.37% YoY lift over automations in 2019.

Email Rates

When comparing click rates in Q2 of this year, automated messages see an improvement of 49.36% over scheduled promotional campaigns, with birthday, cart abandonment, and welcome emails leading the way.

Type of Automation

Click Rate

Lift Over Campaigns

Birthday

24.08%

69.33%

Cart Abandonment

20.85%

46.62%

Welcome

19.74%

38.82%

Product Abandonment

18.83%

32.41%

Post-Purchase

16.33%

14.87%

Browse Abandonment

15.76%

10.85%

Lapsed-Purchaser

15.50%

8.98%

Email Marketing Conversion Rates:

Overall, the conversion rate for promotional email marketing campaigns was 5.37%—an 88% year-over-year lift. Maybe more promising for brands is that the conversion rate increased each month of the quarter, hinting at an increased reliance on not only ecommerce but email marketing as a primary purchase channel.

This behavior is indicative of intent-based shopping. Instead of consumers clicking on an email and casually browsing the website, emails had to ‘earn’ their clicks—but once the subscriber clicked on the email their intent to purchase was higher.

Email Rates

Most importantly, automated messages drove 26% of the email marketing conversions while accounting for less than 2% of the email sends. Online brands should look to automation as a major component for increasing their sales.

Type of Automation

Conversion Rate

Lift Over Campaigns

Welcome

48.35%

799.88%

Cart Abandonment

25.37%

372.28%

Lapsed-Purchaser

20.96%

290.08%

Post-Purchase

17.06%

217.54%

Browse Abandonment

16.06%

198.88%

Product Abandonment

14.22%

164.60%

Birthday

10.45%

94.46%

 

Overall Campaigns and Automation Performance:

Scheduled promotional campaigns made up 98% of the email volume sent during Q2 2020. These campaigns saw YoY increases in open and conversion rates, while click rates slightly decreased.

Campaign Email Performance Q2 2020

The worst-performing automated message, in terms of conversion rate, still saw a rate nearly double that of promotional campaigns.

The numbers don’t lie — automated lifecycle messages are powerful sales enablers for ecommerce businesses. Even though these messages accounted for less than 2% of the email marketing volume sent during Q2, they generated 26% of the conversions. In fact, the worst-performing automated message, in terms of conversion rate, still saw a rate nearly double that of promotional campaigns. Online businesses who fail to utilize automated lifecycle messages are limiting their growth potential.

Automation Message performance Q2 2020

For more insights including Transactional Performance, SMS and Push Message performance as well as E-commerce takeaways, please click here. 

E-Commerce  and iGaming are sky-rocketing in Latin America as the current pandemic  has accelerated digital transformation. This makes the benefits to be reaped from e-commerce investments and e-commerce marketing extremely tantalizing to corporations active in Latin America. To understand why and how the pandemic has catapulted e-commerce in the region, Portada talked to four Latin American brand marketers from Best Buy, Nestlé, Colgate Palmolive, and New York Life who will be participating at our May 19,  Portada Live Americas virtual event.

The current pandemic has accelerated the adoption of e-commerce in Latin America, although in many sectors and countries, the development is still in the early innings. Penetration of e-commerce in Latin America lies at  5% of retail sales, about a quarter of China’s and a third of the U.S.’s. This makes the benefits to be reaped from e-commerce investments and successful e-commerce marketing very attractive to corporations active in Latin America. Actionable insights and intelligence on E-Commerce in Latin America and E-Commerce Marketing and Advertising will play a key role at our upcoming Portada Live Latin America November 19 virtual event. We talked to four Latin American brand marketers of the consumer electronics, CPG and financial sectors who will be participating in this virtual event, to learn how the pandemic has catapulted e-commerce in the region and what’s next.

Latin America E-Commerce: Jose Camargo, Best Buy Mexico
José Camargo Samperio, Ecommerce SubDirector, Best Buy Mexico

To José Camargo Samperio, Ecommerce SubDirector, at Best Buy Mexico, the Covid-19 pandemic has substantially changed consumer behavior. Traffic on Best Buy Mexico’s website increased by 50% as consumption of consoles, musical instruments and even domestic articles multiplied by four. Consumers opted for more entertainment alternatives due to the increase of time they spend at home.

E-Commerce purchases of consoles, musical instruments and even domestic articles multiplied by four.

Latin America E-Commerce Growth Propelled by Increase of Visits in Retail Sites

ComScore reports that during the time period January – May 2020 time spent by consumers on retail sites increased by 38.7% in Argentina and 18.8% in Mexico compared to the same period in 2019. Home Furnishings, Apparel y Flowers/Gifts/Greetings were the retail categories that most grew in Argentina and Brazil. While for Mexico the categories with most growth were in Health Care, Department Stores and Food/Supermarket/Grocery.

According to Best Buy’s Camargo, as many businesses and companies have had to limit the amount of employees they have working in their office, home office and telecommuting became the norm. Thus the availability of smartphones and computers became something indispensable to have to accomplish work objectives. We have seen that servicing clients in everything related to the home office, has brought in sales as a result.” Camargo adds that “customer needs have changed almost totally: health and well-being are the main factors to take into account when it comes to offer a service.”

Latin America E-Commerce: German Villegas, Digital & E-Commerce Manager, Colgate Palmolive Mexico
German Villegas, Digital & E-Commerce Manager, Colgate Palmolive Mexico

German Villegas, Digital & E-Commerce Manager at Colgate Palmolive in Mexico notes that the main lesson of the pandemic has been to not to leave the implementation of platforms and of strategies around high growth (social) media properties until later. Additionally, he adds that the current environment has confirmed that in e-commerce there is no space for rigidity; flexibility and nimbleness are always required.

Villegas commends the rapid reaction of Mexican brick and mortar retailers by adopting and increasing Latin America e-commerce initiatives. “They also have quickly adopted  delivery and pick-up. This has also substantially improved the effectiveness of omnichannel marketing as well as the ability of brand marketers to execute segmented campaigns.”

The Link between iGaming, Social Media and E-Commerce

Since the pandemic, LatAm has seen massive growth of casinos and sports betting operators. According to Best Buy Mexico’s Camargo, the pandemic has also increased the importance of social media platforms. “Websites and user profiles have been connected at a high speed, which has allowed users and brands to develop strong tools to exchange content, and even more importantly, convert to bilateral relationships through which consumers can in a very direct way issue opinions and reviews about their consumer experiences and distribute them to millions of consumers.” “Therefore its crucial for brands to get a clear understanding of where they are in the open internet and on social media.”

Websites and user profiles have been connected at a high speed, which has allowed users and brands to develop strong tools to exchange content, and even more importantly, convert to bilateral relationships.
Gerald Fuchs Torrescano, Content & Digital Marketing Director, Seguros Monterrey/New York Life
Gerald Fuchs Torrescano, Content & Digital Marketing Director, Seguros Monterrey/New York Life

To Gerald Fuchs Torrescano, Content & Digital Marketing Director, Seguros Monterrey/New York Life, what his company does in social is targeted to the primary point in the digital journey of his company’s prospects. “We have granulated and segmented our content in such a way that the lead ends up filling up an online form. The number of completions has increased by 43% since the pandemic started. This is due to a substantial increase in content marketing which is optimized via social listening tools. In other words we ask what do you need, rather than talk about what we offer.” Fuchs Torrescano also stresses that the pandemic has put forward the “need for top notch sites with relevant content and that are adaptable to all target market segments. It’s crucial to obtain high conversion rates.”

 

Carlos Leal, Marketing Director, Ambient Dairy, Nestlé,
Carlos Leal, Marketing Director, Ambient Dairy, Nestlé,

To Carlos Leal, Marketing Director, Ambient Dairy at Nestlé, based in Bogota (Colombia) the best strategy to convert social media users into Latin America e-commerce buyers is to generate “content that is part of the trend.” He adds that “Its not so much about having a link to the purchase site, but about making your offering a routine that is part of the daily live of the consumer. Good content marketing and word of mouth have played a very important role in generating trends. With that base, Influencers then can bring about a behavioral change in the end audiences.”

 

LatAm E-Commerce: Third Party Marketplaces Grow

Latin American third party marketplaces (e.g. Mercado Libre, Amazon), have played an important role in the survival of small and midsized online vendors, says Best Buy’s Camargo says that his company also helped these vendors to provide an excellent customer experience which was reflected in positive consumer reviews.

Nestlé’s Leal stresses the role of deep-linking: “Deep-linking is more important than ever for strategies that send consumers right to the purchase basket, particularly in the case of marketplaces. “They can be a credible reference that generates traffic and it is likely that this traffic ends up with a purchase, generating not only a lead but a sales conversion”, Leal concludes.

Deep-linking is more important than ever for strategies that send consumers right to the purchase basket, particularly in the case of marketplaces.

 

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E-commerce marketing – the practice of converting website traffic into sales – is simple in definition. But shoppers, digital platforms, and algorithms evolve constantly, and so must your strategy. Studies claim that 95% of purchases will be made online by 2040, and online shopping already accounts for 13% of retail sales in the U.S. alone in 2021 with lower ratios and even higher growth potential in other parts of the world. The numbers leave it crystal clear: brands can no longer afford to avoid the digital marketplace. 
For the most part, brands are embracing the opportunity – there are 12-24 million e-commerce sites online, and according to eMarketer, e-commerce sales are expected to hit $27 trillion in 2020. In addition there are a relatively new breed-of e-commerce companies that use apps and multi-vertical approaches to online sales.
COVID-19 impact on consumer behavior has substantially accelerated this trend with brands in the U.S. and other parts of the world rushing towards D2C marketing and e-commerce related technologies. But to succeed, brands must be strategic and consistent about e-commerce marketing, and how they use the tools that the digital era affords them.

E-commerce marketing involves balance of paid, unpaid efforts

In contrast to shopping in person, e-commerce offers customers a far more personalized, convenient experience. It gives shoppers access to almost any type of product from anywhere in the world and, similarly, gives brands access to platforms with a global reach and a myriad of tools to empower their brand. A recent study found that the #1 reason people shop online is that they’re able to shop at all hours of the day.

Putting your products in front of the right audience requires a balance of marketing efforts that can generally be broken down into paid and unpaid efforts. Unpaid strategies involve drawing the right audiences to your brand “organically” through campaigns that generate audiences and sales through offering relevant, captivating content. SEO falls under the unpaid category as well, enabling better search rankings for those willing to navigate search engines’ ever-changing algorithms.

Paid media typically involves buying a space for advertising across different digital platforms. Common formats include display ads, banner ads, and sponsored ads, and they typically live on platforms like search engines (Google, Bing), social media (Twitter, YouTube, Facebook), and typical websites.

Brands must be thoughtful about how they employ a mix of paid and unpaid marketing strategies, responding to their target audiences’ online preferences and behavior.

E-commerce shoppers are global, young, and skew female  

While each brand is responsible for understanding the particularities of its target audience, statistics on global e-commerce shoppers reveals a number of notable trends. E-commerce is increasingly global:cross-border e-commerce now accounts for 20% of total global e-commerce.

E-commerce is also increasingly generational: A recent study found that Millennials and Gen-Xers spend 50% more time shopping online than their older counterparts: 6 hours versus 4 hours, respectfully. And 67% of millennials and 56% of Gen-Xers prefer to shop online versus in a brick-and-mortar store. Breaking e-commerce down by gender reveals another interesting trend: Men spend 28% more than women shopping online.

Social media continues to drive effective e-commerce marketing

It’s no surprise that today’s social media platforms offer brands a myriad of ways to connect with today’s shoppers. While they can be selective about which platforms they use based on their audience and goals, those that forego a social media presence altogether are missing out. A recent study found that brands with a social media presence experience sales that are 32% higher than those that do not. This when considering the results of a study that revealed that 74% of consumers rely on their social media networks to make purchasing decisions.

Luckily, brands can turn to data to inform their decisions surrounding which platforms to invest in. For example, Shopify reported that the average order value for customers referred from Instagram is $65.00, followed by Facebook ($55), Twitter ($46), and YouTube ($38). Brands are already spending big money to promote their products on social media: eMarketer reported that Worldwide ad spending on Facebook and Instagram combined will reach nearly $95 billion annually in 2021. But other platforms are growing, too: The number of marketers sharing video content on LinkedIn is set to rise to 65% in 2021, for example.

Email marketing allows brands to be proactive in reaching audiences

While consumers actively seek compelling content from brands on social media, Report: Automated Email Open Rates and Conversion Skyrocket during Pandemic allows brands to initiate a kind of proactive engagement that keeps them top of mind with their audiences.

E-Commerce Marketing Study
Wolfgang Digital, “Ecommerce KPI Benchmarks 2016”

A recent study found that email marketing contributes to 20% of traffic that drives eCommerce sales, and OptinMonster reported that email marketing yields $44 for each $1 spent for a 4400% ROI.

Smart brands use a number of tactics to take full advantage of email marketing. Segmentation – diving groups of consumers into groups based on common characteristics, traits, or behaviors – is key to ensuring that the content a brand delivers its audiences is relevant. Depending on who they are and what they are looking for, consumers will seek different kinds of information and products during their buying journeys. Campaign Monitor reported that segmented campaigns to email subscribers drive a 760% increase in revenue.

 Shoppers increasingly turn to mobile for online shopping

An essential element of any e-commerce marketing strategy involves recognizing the different devices that shoppers use. 85% of customers start a purchase on one device and finish it on another.

Today, a significant portion of e-commerce activity occurs on mobile devices. This is true for all stages of the journey: 93% of Millennials have compared online deals using a mobile device. Shoppers even turn to their phones while in physical stores: 65% of consumers look up price comparisons on mobile while in a physical store, and 32% of shoppers changed their minds about purchasing items after checking out product information on their mobile devices within a physical store.

E-Commerce Marketing Study
Source: Outerbox

They feel as comfortable making important purchases on mobile as they do on desktop devices: In fact, conversion rates from mobile apps are 3x higher than mobile websites, and 40% of all online purchases made during the holiday season are done on smartphones.

What does this mean for e-commerce marketing strategies? Most importantly, brands must design mobile-friendly websites. 73% of consumers will switch from a poorly designed mobile site to one that makes purchasing easier, and people who have a negative experience in your mobile store are 62% less likely to purchase from you in the future. Brands that want to take it a step further can engage shoppers on brand or company-specific apps. According to a study from Invesp, 53% of smartphone and tablet owners will shop on company-specific apps.

AI set to transform shopping experience

While AI is still a nascent technology, it is quickly becoming a useful tool in e-commerce marketing strategies. It is primarily useful for deriving insight from large volumes of data. This is particularly relevant for e-commerce marketers that want to find patterns in shopping behavior and form a 360-view of customers as they give us clues about their preferences through interactions and engagements with your brand.

AI is also immensely useful in delivering better customer experiences. Chatbots represent one of the most popular applications for AI today. While nothing can fully replace the human touch, shoppers are starting to recognize the value that AI-powered customer service tools offer. A recent study found that almost half of consumers are open to the idea of purchasing an item from a chatbot. 57% are interested in getting information sent to them by a bot when visiting a business’s website.

What not to do: additional fees, complicated checkouts 

Shoppers go online for convenience, and if they can’t find what they want easily, or if it won’t be delivered efficiently, they are likely to abandon their journey with a brand. According to a study by Metapack found that 45% of online shoppers abandon their carts when they are unhappy with delivery options, and 69% feel the same about shipping fees.

Similarly, complicated checkout processes, websites that load slowly, and sites that aren’t optimized for mobile will leave the site without making a purchase. The consequences for this can be drastic: 73% of consumers will leave a site if it isn’t mobile friendly.

But there are ways to bring users who abandon back in. Email recovery strategies allow brands to send emails reminding users to return and complete a purchase. They are surprisingly effective, with a study claiming that almost half of recovery emails are opened, and that almost a third incentivize a sale.

Smart e-commerce marketing means automation, personalization, and convenience

Online shopping habits will continue to evolve as technology enables more and more ways to make e-commerce easier, faster, and more personalized. Smart brands can win in this space by staying attune to the devices and platforms that people are using, using technology to complement (and sometimes replace) the human touch, and building the tools to keep transactions as smooth and seamless as possible.

 

We talked to Yocelin Delgadillo, Media Manager Victoria and Premium Brands at AB InBev during her participation at AdWeek Latam. We discussed new digital strategies for Mexican brands, particularly how marketing for Modelo and other beers has swiatched to digital. In addition, she told us all about partnerships with fairs and festivals, e-commerce, and the company’s plans for streaming entertainment platforms. 

 

E-Commerce and New Digital Strategies

What’s your on and offline media mix?

This year, we’re becoming a digital-first company for the first time ever. This doesn’t mean 100% of our budget goes to digital, but rather that we’re growing in the digital space. For some brands, a digital-first media mix means 60% of their budget goes to digital. This varies throughout our portfolio, but we have many new digital strategies.

For some brands, a digital-first media mix means 60% of their budget goes to digital.
Beer House Caption

Strategies for Stella and Michelob Ultra, brands in our premium portfolio, are very digital and e-commerce-focused. Actually, Stella has a very strong e-commerce perspective. It’s one of the best-selling brands in our e-commerce platform Beer House.

How did you launch and reinforce e-commerce?

The key to enter e-commerce was communication with retailers such as Rappi, Amazon and Mercado Libre. We have entire teams devoted to our relationship with them, designing promotions and creating brand awareness in those platforms. We know we must take awareness as a starting point in order to speed up the funnel. It’s even more efficient in Mercado Libre and Amazon, for instance, because the purchase takes place right there.

Every single piece of digital content of ours contains a call to action. Not all of them are necessarily related to sales, but we redirect users to websites that are mainly devoted to sales. We rarely send any traffic from a branding site to see more content. “If you’ve seen Vicky Chamoy and you’re already interested, you can buy it here.” You click on the CTA and it’ll take you to Beer House or Modelorama to get the product. That’s one of the pros of having our own e-commerce platform in house. We can estimate, optimize, and actually measure sales.

That’s one of the pros of having our own e-commerce platform in house. We can estimate, optimize, and actually measure sales.

Sponsorships of Fairs and Festivals

Tell us a bit about brand presence in festivals like Corona Capital and Flow Fest. 

I’m in charge of four brands: Michelob Ultra, Modelo, Stella Artois and Victoria. Therefore, I need to be very aware of the perspective and muse of each brand. Each brand has a very different target. However, we have them well defined, and that helps us understand what works and what doesn’t, as well as to design new digital strategies for them.

Each brand has a very different target. However, we have them well defined.

Yocelin Delgadillo, Director of Integrated Marketing Communications, AB InBev.

On the other hand, experience marketing has become a platform to showcase all the Modelo brands. Before, you wanted to buy beer at the Corona Capital festival and they only had Corona. Now, Corona is the headliner, but Stella has a VIP bar, or BudLight headlines EDM festivals in the North of the country, but Corona is always there. Now we have full portfolio presence instead of just activating one brand. We’ve been there since 2019. All these experiences have also become perfect sampling occasions (for new products). Fairs are very important sampling points for our new Chamoy line. Victoria is the main brand, but we want to launch the Chamoy variety and that’s where consumers can try it.

How do you manage to get your message across at festivals, which involve so many different sponsors and brands? 

We have an advantage: our experiences team is part of our media area. The name of that whole department is “Connections”, and it’s in charge of all connections with consumers ranging from advertising to events. Because we’re in the same area, we speak the same language and are aware of the same strategies. Actually, at the Experiences team, when we work with OCESA and other organizers of art festivals we try to close deals that are not simply about being another sponsor looking for naming. We want to get involved with the experience, we want to sponsor a stage that receives music that resonates with the brand. 

We want to get involved with the experience.

They know we’re more than just a company that wants its logo on the poster. We want to be a part of the experience. Our advantage is our long relationship with them, they know our message by now.

A Slice of the Streaming Cake

AB InBev e-commerce

What is the marketing team focusing on most intensely at the moment?

Everything related to data. We have a new data expert entering the team who’ll put together campaigns based on first-party data. I think personalization at scale is crucial, it’s one of the area’s KPIs, and a great percentage of our digital impressions are segmented according to affinity instead of just ethnographic information. Also, our business intelligence team sends us daily reports. Together with the agency, we’re constantly monitoring asset performance per audience. We prepare a specific briefing per audience for each campaign.

We have a new data expert entering the team who’ll put together campaigns based on first-party data.

Another new thing is that we have someone dedicated to entertainment, looking at how we take part of series and movies. It’s going beyond product placemant. The question is, are we truly participating in entertainment in an active way? We already have an important relationship with Netflix and Amazon Prime, where our products play an important role in the story.

What changed in the consumer to make you enter those platforms?

People decide what they want to watch. It’s no longer a matter of choosing between open broadcast and cable TV. Many people watch content on Youtube, Hulu, Netflix. If we want our message to reach them, we have to migrate to where they are. Streaming platforms don’t want us there, so it’s interesting how we create a relationship with content creators so that they make us a part of their stories.

If we want our message to reach them, we have to migrate to where they are.

Coronavirus Crisis

In the interview with Delgadillo, we didn’t specifically address the branding difficulties that have resulted from the Coronavirus pandemic. However, other media have discussed the confusion and consequences for the Corona brand.

Even though it could seem obvious that the virus isn’t in any way related to beer, AdWeek reports that between January 26 and February 1, Google Trends registered an important increase in searches such as “beer virus” and “corona beer virus”.

So far, the company behind the Corona brand hasn’t said anything about the subject. On the other hand, social media has created a series of memes to make fun of the confusion. AB InBev has not withdrawn from partnerships with important events such as Corona Capital, scheduled to take place in Guadalajara in May and later on in Mexico City.

The COVID-19 pandemic has started to affect consumer behavior and confidence.Therefore, this week we have prepared a roundup of coronavirus insights. A summary of the most relevant consumer behavior research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.

 

Coronavirus Insights

  • According to recent data by Morning Consult, consumer confidence has drastically fallen in the U.S., Japan, Germany, the U.K., and France. The Morning Consult ICS (Index of Consumer Sentiment) in the U.S. is 108.99 as of March 13, decreasing 0.9% from the day prior and down 4.63% since January 1. This represents the largest single-day drop in over two years. “Consumer confidence drives more than two-thirds of activity in the largest economy, so it can have sweeping effects across sectors,” reports Morning Consult.

 

Online Shopping Behavior

  • Predictive retail analytics platform Quantum Metric has published research about the effect of the new coronavirus on e-commerce in the U.S. Online retailers have reportedly experienced a 52% growth rate in online spending during the fifth-eighth weeks of 2020, compared to the same weeks of 2019. These weeks span Jan. 27 – Feb. 23, 2020, the period when the virus started spreading rapidly from Asia.  In addition, online conversion rates rose 8.8% year-over-year during those same weeks in 2020.

 

  • According to Adobe Analytics‘, which tracks sales of 80 of the top 100 online retailers in the U.S., online sales of items like hand sanitizers, gloves, masks and anti-bacterial sprays soared 817% in January and February compared to the previous year. Consumers are also buying more drugs and non-perishable items: sales of cold, cough and flu products went up 198%, pain relievers jumped 152%, toilet paper grew 186% and non-perishable goods such as canned goods went up 69%, all compared to the same period last year. The same is happening in physical stores; for instance, Walmart will be reducing open hours to be able to restock.

 

General Attitudes and Spending

 

  • Internet media company Travelzoo has conducted a survey among U.S. consumers to learn about their travel intentions. Among the survey’s main findings, Travelzoo announced that astute travelers are still eager to travel both internationally and within the U.S. In spite of current concerns, many of them recognize now is the time to take advantage of remarkable travel deals. In fact, 44% of respondents stated the coronavirus hasn’t changed their interest in international travel. However, 36% of respondents said the coronavirus has impacted their planned international travel. Among those participants,  59% are considering selecting an alternate destination, postponing the trip or canceling the trip.

 

  • Seattle-based payments processing company Gravity Payments notes there has been a dramatic drop in spending around Washington in the past three weeks. “Just this week we started analyzing the data and found an overall 10% drop in business in Washington State (concentrated in the Seattle metro area),” writes Brooke Carey, a company spokesperson. The largest drops have been in hotel spending (down 56%), movie theaters (46% down), liquor stores (-31%) and restaurants (-29%.)

 

  • GlobalWebIndex has shared recent coronavirus insights. Currently, only 20% of survey respondents are concerned about the impact it will have on their personal finances (dropping to 12% among Gen Zs). Almost 90% of Gen Zs have made changes to their daily routine, dropping to 75% among baby boomers. Some 40% are reading the news more frequently in order to stay up-to-date, compared to just over 25% checking social media more frequently. Increased news checking is fairly consistent across generations, while checking social media more frequently drops dramatically among baby boomers. A quarter say they’re now shopping more online in light of the virus. Millennials (39%) are much more likely than any other generation to say this, followed by Gen Xers (29%). Higher-income individuals are also significantly more likely than lower earners to say this (48% vs. 15%, respectively).Check out: How will coronavirus impact marketing? 

Short term it will likely have an impact and it may also  accelerate trends that are already under way. How will the coronavirus impact marketing? Four things to take into account.

1. Short term: Uncertainty and Risk Aversion…

The coronavirus may soon be contained and ultimately not have a major impact on economic activity levels, similarly to the 2003 SARS outbreak and the 2014-2016 Ebola outbreak. In the short term, however, things are likely going to get worse before they stabilize. That’s because virus outbreaks, by definition, initially have a very high growth rate of positive cases.  Uncertainty rules.  “I think the reason we were not specific was just because I think at the moment, it’s really just unknowable,WPP CEO Mark Read, said during the company’s earnings call last Thursday February 27, when asked about the business impact of coronavirus on WPP’s China business. “It’s more unknowable today than probably it was Friday, if we had this meeting Friday of last week, we may [have] given you a different answer then we give you today.” As COVID 19 cases grow outside of China, the uncertainty is also increasing in the rest of the World, including the rest of Asia, North America and Europe (the main marketing hubs).
Not surprisingly, all major agency holding stocks have taken hits along with the broader market last week. With WPP’s shares falling 15%; IPG is down 5%; Omnicom is down nearly 4%; Dentsu Aegis fell 2.5%; and Publicis Groupe down 5.6%. In the real economy,  global tourism and retail have been hit particularly hard, as Chinese tourists provide a major source of income for many markets.

2. Coronavirus Impact on Marketing: More emphasis on Virtual – Digital Marketing

In the short term companies are starting to restrict travel and encouraging remote work (e.g. Amazon told its employees to avoid all non essential travel for now including within the U.S.) Facebook, on its part,  last week cancelled a global marketing conference in San Francisco’s Moscone Center. Activations and sponsorships at live events may be impacted negatively as marketing, including event marketing will become more virtual. This is not good news in a year where analysts were expecting to see an uptick in media investments from marketers eager to capitalize on events like the 2020 Tokyo Olympics.

The virus may also accelerate a trend that was happening anyway. Executive meetings and virtual events over hangouts will increase. For an example check out Portada’s Council System of brand marketers, which conducts 12 brand decision maker virtual workshops a year.

3. Driver for E-Commerce…

In parts of China, major retailers like Starbucks, Uniqlo, Nike and Apple have temporarily shuttered their stores, while small and medium-size retailers are being hit particularly hard as foot traffic dwindles. This may happen in the U.S. in areas that have been particularly negatively affected by the outbreak. Reduced in-store activity will be a driver for increased e-commerce activity and e-commerce marketing. The big caveat here is if the outbreak creates serious supply chain issues (at producers, shipping and overall logistics e.g. Apple and Microsoft warning of supply chain problems last week), therefore limiting the amount of goods that can be purchased by online buyers.

…particularly Online Grocery…

Housebound consumers in China are turning to online groceries for their daily food supply. According to French retailer Carrefour, vegetable deliveries increased by 600% year over year during the Lunar New Year period. Chinese online retailer JD.com reported that its online grocery sales grew 215% year over year to 15,000 tons during a 10-day period between late January and early February. Concerns about food delivery due to possible food contamination have spurred recent innovation in contactless pickup and delivery services by companies such as McDonald’s and Starbucks. McDonald’s has implemented contactless pickup and delivery of Big Macs, fries and other menu items across China as the outbreak has unfolded. Customers order remotely – on mobile phones or by computers in store – and employees seal the meals in bags and put them in a special spot for pickup without human contact, McDonald’s says on its website.

4. Coronavirus Impact on Marketing: Boost to At-Home Entertainment, Video Streaming and Gaming

If employees are forced to stay at home more, it will also impact how consumers spend their leisure time as they may have to avoid public gathering spaces, like movie theatres, concerts and gyms, leaving more time for them to binge on home entertainment and video services. Advertising revenues of companies that heavily bet on video content and advertising ,e.g. Roku, Youtube, Netflix and others should benefit from a public that’s stuck at home.

Disney VS Netflix, consumers’ thoughts about Amazon, and retail marketing insights. A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.

 

  • There doesn’t seem to be a clear winner in the Disney VS Netflix fight yet. According to a new survey by Piplsay, half of Americans surveyed said Disney Plus is “as good as” Netflix. On the other hand, 28% said it’s not as good, while 23% said they think it is better. In addition, 37% of respondents said Disney Plus is better than Amazon Prime Video and Hulu. Also, about 42% said Disney Plus is as good as Hulu. Finally, 40% said Disney Plus is as good as Prime Video.

 

  • A survey by Convey of 2,000 U.S. consumers indicates a good amount of people don’t really like Amazon but shop there any way to get free shipping. The survey found that 24% of those surveyed had negative views of Amazon’s impact on the retail industry. In a similar way, 27% felt “very or somewhat” negative about the company’s effect on the environment. However, 21% of those respondents who worried about Amazon’s impact on the industry still bought half of their goods on its site. About 24% who thought Amazon’s practices are damaging to the environment also bought half their stuff there. 

 

  • According to the “State of Consumer Behavior Report 2020” from Raydiant, 69% of respondents said a good in-store experience is either important or very important to them. Almost two-thirds (62%) find store associates helpful. More than half (57%) of respondents said they would go to physical locations for exclusive discounts, but 23% said they would care for unique experiences. More than 68% of respondents searched for a better price online after finding a product at a physical store.

 

  • A survey of more than 2,200 U.S. adults from Morning Consult and PRWeek found 41% of Millennials like when brands show their commitment to social causes. However, 39% think companies are trying too hard to make it look like they care. About half (46%) of Baby Boomers and Gen X feel (42%) feel that companies “try too hard”. Finally, 35% of Boomers and 33% of Gen X like brands that “show off their commitment.”

 

  • A new report from agency Boston Digital titled ‘How Brands’ Social Media Impacts Consumers’ that surveyed 554 respondents found brands need to be entertaining online. Two thirds (65%) of consumers say they are more likely to purchase from a company they’ve followed for a month. More than half (54%) are ‘very’ or ‘extremely’ likely to look at a company’s social presence while researching a product. However, more than half (51%) said content needs to be relevant to them.

 

 

With nearly 95% of shoppers reading online reviews before making a purchase, reviews have transformed the way consumers make purchase decisions. According to a study by the Bazaarvoice network, one product review can result in a 10% increase in sales and 200 reviews can result in as much as a 44% increase in sales. We talked to two brand marketers whose businesses are mostly e-commerce driven about the way they use and leverage online consumer reviews in their marketing efforts.

 

Review Marketing Basics

Review marketing is a process certain brands use to manage their reputation online. For direct-to-consumer brands, this includes monitoring, encouraging, and responding to consumer reviews across multiple platforms.”We rely on consumer reviews because customers say it better than we can,” says Aireen de Peralta, Chief E-commerce Officer at WaterField Designs, a company that sells custom-fit bags and cases online.

We rely on consumer reviews because customers say it better than we can.
review marketing expert
Michael Montanez

Michael Montanez, Director of Marketing at luxury clothing label August McGregor, notes that “We use yotpo to power reviews for August McGregor as we’re adding to our tech stack to improve KPIs. Reviews are expected these days for RTW (ready to wear clothing). It’s all part of the process. Attribution – we haven’t gotten there yet to determine the impact of reviews.”

 

Trusting Customers, not Apps that Go After Reviews

Waterfield does not provide incentives for customers to write reviews. “We feel it’s more authentic if a customer decided on their own to write a review,” explains de Peralta. “We e-mail customers after a few weeks of shipping their purchase and request for them to write a review. That way, they will have had time to use the product in their daily routine.”

review marketing expert
Aireen de Peralta

Today, there are many apps and vendors that will aggressively go after reviews, offering discounts, points, or loyalty awards. However, de Peralta notes that she doesn’t employ these tactics. “Reviews apps are also complex enough to ask users to rate their experience based on certain criteria. We use just the simple open-ended format because we think this is a better way to capture what our user thinks is the primary reason to give feedback about. Each user has a different experience with a different emotional outcome, and we are more interested in capturing the emotions and understanding what it is important to them, rather than what we think is important to get feedback on.”

We use just the simple open-ended format because we think this is a better way to capture what our user thinks is the primary reason to give feedback about.

 

Attribution

Review marketing is very powerful in driving customers to sales. According to a study of customer restaurant reviews by the Harvard Business Review, “a one-star increase in Yelp rating leads to a 5-9 % increase in revenue.” On the other hand, according to research, if there is an excess of three negative articles within search results, businesses can expect to lose 59.2% of their potential customers.

“We can’t track if a certain review caused a sale, but we do get feedback from customers that reviews have helped them make a decision. This is anecdotal evidence, but it’s enough for us to know that reviews do help sales. We also view reviews as an outlet for our community to express themselves and for product feedback,” de Peralta notes.

 

Boosting SEO and Social and Customer Service

Reviews can also substantially boost SEO rankings since the reviews contain keywords. They are also “proof for social”. In addition, they can also inform customer service as “some reviews answer questions that people have”, de Peralta notes.

 

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