Commentary

Advertisers Will Spend $58.6 Billion On Ecommerce Ads To Reach Millions Of Consumers

GfK’s study Consumer Pulse found that 44% of the 999 U.S. consumers surveyed expect to buy exclusively online this holiday season, while just 17% say they will shop solely in brick-and-mortar outlets.

Some 45% report they will buy items online and have them delivered to their home, while 37% say they will purchase holiday items in stores.

One-quarter plan to use online ordering with in-store delivery, and 19% will take advantage of curbside pickup.

The two age groups, however, were nearly identical when it came to embracing online ordering with at-home delivery. About 48% of older consumers and 45% of young adults reported they would use this option.

Perhaps that why globally, brands will spend $58.6 billion on ecommerce advertising, according to the Global Advertising Trends report from WARC Data, which attributed the increase to COVID-19 and the rise in online shopping during the COVID-19 pandemic.

Advertising on platforms from Amazon to Rakuten and Walmart to TikTok is set to increase 18.3% worldwide, growing 30 times faster than the "wider" online ad market. WARC’s report suggests ecommerce sales will rise 30.4%, reaching between $677 billion and $2.9 trillion worldwide.

Online sales are set to rise 30.4% to $2.9 trillion worldwide in 2020, according to WARC, citing data from Edge by Ascential.

The report suggests consumers will spend an extra $183 billion online this year as a result of the pandemic, but it’s not clear whether online sales will cannibalize in-store sales.

Domestic growth rates range from 19% in the UK to 22% in the U.S. and 37.6% in China.

Ecommerce sales will account for 88% of global retail growth in 2020.

The top five platforms are expected to lead growth: Alibaba (+$221bn), Pinduoduo (+$122bn) and Amazon (+$92bn) are expected to lead absolute growth.

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