The COVID-19 pandemic and subsequent country lockdowns have driven ten years of e-commerce growth in an eight-week period, prompting a rethink of all the marketing fundamentals; a new WARC report looks at the changes taking place and what they mean for marketers.
The WARC Guide to E-commerce and the Future of Effectiveness, released today, highlights five key themes, including the rise of shoppable formats and the associated dangers of short-termism (non-subscribers can download a sample report here).
“Effective marketing in the age of e-commerce may mean new thinking in terms of some of the ‘basics’ – like packaging and pricing. It may mean new media choices, and new internal organisations,” says Lena Roland, Managing Editor, WARC Knowledge.
But brand remains as important as ever, she adds. “In an age of almost limitless choice, brand recognition and trust translates into pricing power. Creative brand-building, therefore, remains key.”
The five themes are:
1. The acceleration of e-commerce
Edge by Ascential, WARC’s sister company, has revised the e-commerce growth outlook for 2020 from +22.2% to +30.4%. Brands in sectors such as FMCG are seeing rapid increases in online orders and have a growing range of options to sell through. Marketplaces such as Amazon and Alibaba have seen exceptional growth, omnichannel retailers like Walmart and Target are expanding their online offering and platforms like Shopify and Instacart have risen in prominence.
Brands that currently don’t sell direct-to-consumer can partner with a combination of traditional omnichannel retailers, major online marketplaces and pure-play operators to drive e-commerce growth.
2. Marketing goes back to basics
Effectiveness in the e-commerce age requires a rethink of all the marketing fundamentals: product, place and price as well as promotion. ...
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