Tag: media buy

Ecommerce Sales Growth as % of Retail United States 2020

U.S. E-commerce sales as a percentage of total Retail sales have experienced a hockey stick growth in 2020. This comes as the U.S. government urged everyone to stay at home due to the pandemic outbreak, moving most of the consumption online. 

The ecommerce sales growth trend has been upwards since 2009, growing by ~1.5% each year, reaching 16% in 2019. However, the change since the start of 2020, in just 8 weeks has been +11% absolute ecommerce growth, bringing the U.S. e-commerce sales penetration up to a whopping 27% compared to total retail sales!  (Bank of America U.S. Department of Commerce, ShawSpring Research, 2020).

Young daughter with smartphone smiling and showing in laptop to elderly lady with credit card while shopping online at home together

Such significant ecommerce sales growth is expected to have a lasting impact even after the end of the pandemic as it is a shift in consumer habits and thus behavior. As the lockdown in many states has lasted for an extended period, spanning over several weeks and continuing, that according to several behavioral scientists, is enough time for consumers to form new shopping habits. Even if one traditionally has been shopping in physical retail stores, a new habit is being formed of ecommerce shopping. Once the initial hurdle of overcoming the digital barrier has passed, accounts set up, online payment connected. Then, what’s left in many repeat purchase cases is simply to click a button and repeat purchase or order anew. Thus, the initial barrier to entry is passed and what’s left to enjoy is the convenience of shopping without waiting in ques, carrying bags, and 24/7 opening hours. 


What this means for your business

If your business is in the U.S., that means that now more of the business takes place online and ecommerce sales are booming. It is now more than ever it is important to capture the attention and eyes of the target audience of your business. The excellent news is that due to the advancements in technology, especially, AI, digital advertising is now more precise, cost-efficient, and effective than before. The key digital channels that offer online advertising, like Google(incl. Youtube and 90% of the Internet through GDN), Facebook/Instagram and Amazon, have had massive amounts of data going through their machine learning algorithms that have allowed their algorithms to become more sophisticated in predicting users interests, behavior, and likely purchases. 

Plus, every campaign and interaction is fully traceable, making it easier to understand what works and what doesn’t. Once data has been collected, remarketing allows you to spend the advertising dollar on those who have shown interest and action. 
As consumption habits change and more and more consumers move online, businesses have the opportunity to engage with their target audiences online in a measurable and cost-effective way. 

If you are interested in increasing the ecommerce performance of your website, get in touch with us now!


How Instagram’s New Ads Format Update is Helping and Challenging Advertisers on Better Engagement with Instagram Users


What is new on Instagram advertising? 

Over the summer, Facebook has announced its initial change in advertising ad formats on platforms Facebook and Instagram. By doing so, Facebook aims at making the mobile feed of ads more compressed, delivering a higher consistency through mobile feeds and story advertisements. The main changes include the ability to display less text on the mobile newsfeed to a limit of 3 lines, making it easier to digest information for mobile users who consume content through their smartphone screens. In addition, the maximum height for photos and videos is adjusted to 4:5 for mobile newsfeed. 

What does this mean for advertisers? 

This affects brands in ways to adhere to new standards set by Facebook across both Instagram and Facebook, following users’ digital consumption on these platforms. A key benefit for advertisers is creating ads that are almost full screen to the mobile user, creating momentum with consumers to engage with your ad with little to no distraction. Yet, such changes challenge marketers and content creators to be more creative with their images, videos as well as short, relevant and engaging copies that remain to create value for your potential customers. However, when executed properly, using high creativity and strong visual content, advertisers can benefit from high performing Instagram ads and gain more and betterqualified leads.


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