A solid digital marketing strategy for e-commerce is fundamental for generating benefits on both online and physical platforms. From 2023 onward, e-commerce won't be part of consumption — it will be an essential element of its structure. More and more brands and companies are betting on incorporating e-commerce into their organizational structure, rather than treating it as a separate section of their business.
According to Gregory Grudzinski, Head of Content for digital commerce at WARC, in recent years, and as a post-COVID-19 consequence, "the retail world has been transformed, changing the way consumers shop and becoming an essential part of the retail ecosystem."
Retail Media positions itself as the fourth-largest advertising medium. Advertising investment is forecast to rise to $121.9 billion worldwide in 2023. According to the WARC report, it will become a fundamental part of digital marketing strategies.
In this context, brand owners need to shift from traditional models to reflect the knowledge, experience, and flexibility they need to win in the digital commerce space.
Retail media will be one of the most important trends in the coming years
Retail media's growth is forecast to be as relevant in the 2020s as social media was in the 2010s. If this channel keeps that growth, it could deliver more value to advertisers than linear television by 2025.
So the challenge in 2023 for brands will be understanding how these platforms work and how they can use them to connect with consumers.
Social commerce will reach $660 billion globally by 2025
Brands are increasing investment in digital marketing on platforms like TikTok, Amazon, and Instagram. 76% of participants in the WARC survey say they'll increase their investment budget on the platform in 2023; for its part, only 44% plan to increase their investment on Amazon.
Conny Braams, Chief Digital and Commercial Officer at Unilever, says the influencer landscape has matured. "Social commerce keeps growing driven by influencers. With consumers' growing comfort in shopping online, brands can leverage these platforms to obtain data on their consumers' interests and tastes, and use those conversions to measure return on investment more easily."
The high penetration rate of mobile devices and users' affinity for social media has pushed social commerce forecasts to $660 billion by 2025.
It's estimated that in Latin America and North America, social commerce will grow more than 5%, with sales of nearly $80 billion by 2025. But in the case of Southeast Asia, where social media is the main channel for product discovery and consideration, it's estimated that social commerce will be responsible for nearly half of online purchases.
The expected growth in the use of these platforms to position and sell products is the spearhead that many brands should leverage to claim their niche in the digital market. A good digital marketing strategy can make your brand number one in digital sales and the most sought-after by internet users.
