Retail brands will devote $58.6 billion to e-commerce advertising

Amid the pandemic and the increase in e-commerce during the health crisis, WARC Data's Global Advertising Trends Report found that brands worldwide will devote $58.6 billion to online shopping ads. MediaPost reports that marketing on sites like Rakuten and TikTok is expected to rise 18.3% globally, 30 times faster than the broader digital advertising market. The latest reports also indicated that nearly half - or 44 percent - of about 1,000 US consumers surveyed expect to purchase only through e-commerce during the holiday season, and nearly two in ten - or 17 percent - indicate that they will only shop in physical retail stores.

Nearly 45 percent indicate they will purchase products online and have them brought to their residences, but 37 percent indicate they will purchase holiday products in stores. Twenty-five percent intended to harness digital ordering through in-store delivery. Nearly 48 percent of older consumers and 45 percent of younger consumers indicated they would use digital ordering with delivery to their residence.

The news comes as e-commerce media becomes a bigger factor in the advertising world at a time when retail revenue is precious. Mondelez International, the maker of Oreo and other snacks, has recently increased its efforts to advertise on online shopping sites, and CEO Dirk van de Put said at the RBC Capital Markets Consumer and Retail Conference that by placing “relevant of the moment” ads for many brands like Cadbury and Oreo the company is reflecting changing consumer behavior. #E-commerce