Email teams better be ready to fight for
their budgets. Ecommerce brands expect to spend 63 cents of every new marketing dollar on artificial intelligence and cashback apps, according to a study by Northwestern University’s Retail
Analytics Council and Minty.
This shift from more traditional marketing channels is being driven by consumers themselves. Pressed by inflation, shoppers are using AI for the
following activities:
- Finding lower prices—49%
- Discovering promotions and deals—46%
- Comparing
alternatives—41%
- Building personalized recommendations—33%
- Identifying substitute
products—25%
- Finding cashback opportunities—24%
- Determining whether a deal is really a deal—21%
- Managing budgets—19%
- Optimizing purchase timing—18%
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These behaviors are reflected in the investments being made on the marketing
side. This holiday, for instance, brands plan to increase the budget share for these channels:
- Cashback and savings apps—57%
- Loyalty
programs—51%
- AI commerce optimization—45%
- Paid social—35%
- Retail media—29%
- Paid
search—28%
- Creator marketing—19%
- Connected TV—13%
In short, “Channels that help consumers save are taking
share from channels that only help brands speak,” the study says.
This is bad news for creators. In 2027, marketers believe that:
- AI and savings ecosystems will
become the primary shopping gateway—43%
- AI becomes the primary shopping gateway—23%
- Search remains the primary shopping
gateway—18%
- Social remains the primary shopping gateway—13%
- Creators become the primary shopping gateway—4%
Email
specialists may well thrive, especially on the loyalty side. But that is not yet clear.
"This isn't marketers tweaking a line item," said Frank Dudley, associate director of the Retail
Analytics Council at Northwestern University. "They're responding to a fundamental shift in how products are discovered and chosen. As consumers increasingly rely on AI to compare prices, evaluate
alternatives, and maximize value, brands are reallocating investment toward the channels and capabilities that influence those decisions."
The research was presented at an eMarketers's event,
"The Future Of Digital Summit," on Tuesday.