ClickZ Digital Ad Platform Newsletter - 08.29.2024

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ClickZ
August 29, 2024 • Estimated Reading Time: 5 minutes

Specialty Bites 🍪

Amazon's ad business is thriving despite a slowdown in ecommerce. Key drivers include a large, intent-driven customer base, robust measurement capabilities, and new ad inventory. Amazon's advertising revenue grew 20% YoY in Q2 2024, and the company is investing in content rights to expand its reach.

Aldi and Lidl are shunning ecommerce to maintain their low-cost, efficient models. Aldi recently ended its click-and-collect service, focusing on in-store shopping. Experts argue that online operations add complexity and costs, which contradicts the discounters' streamlined approach. Despite industry trends, Aldi and Lidl prioritize affordability and simplicity.

Netflix's "Emily in Paris" has sparked a global surge in interest for marketing degrees and careers, with searches up significantly since its 2020 premiere. Skyline Social reports an 88.6% increase in U.S. searches for 'marketing degree' and a 75.4% rise globally. The show continues to inspire future marketers.

As the marketing budgeting season kicks off, marketers and media agencies face the crucial task of resource allocation to maximize returns and achieve growth objectives. This process demands more than a simple repetition of last year's budget; it requires a nuanced approach considering media performance, saturation levels, and sales targets.

To maximize ROI, use incrementality-corrected ROI/ROAS metrics, assess channel saturation, ensure budget sufficiency, pace spending wisely, and build realistic scenarios for CFO discussions.

The modern shopping landscape is rapidly evolving, with technology playing an increasingly pivotal role. A recent PYMNTS survey highlights that approximately 40% of consumers are now click-and-mortar enthusiasts, blending online and in-store shopping experiences. This survey reveals that 25% of shoppers use digital tools to enhance their in-store journeys, while 14% prefer to order online and pick up their purchases on-site. I

Click-and-mortar sales are on the rise, with figures jumping from $95.9 billion in 2022 to $113.2 billion in 2023, and projections for 2024 hitting $132.76 billion. The annual growth rate through 2030 is expected to be a staggering 16.8%. Interestingly, Capital One Shopping found that 85% of buy-online, pickup-in-store shoppers made additional in-store purchases when collecting their orders, highlighting the synergy between digital and physical retail.

The survey also sheds light on demographic trends, revealing that young and affluent consumers are leading the charge in online shopping. Twenty-one percent of consumers shop online weekly, a figure that rises to 27% among high-income shoppers and 35% for Generation Z. Additionally, one in four consumers shops from a digital marketplace weekly, with this number increasing to 33% for wealthy consumers and 37% for Gen Z.

Consumers paused discretionary spending in July, maintaining overall retail sales but reducing unit demand by 1%. Despite promotional events, discretionary sales fell 3% in dollars and 2% in units. Consumers prioritized essential purchases, with food and beverage sales rising. Marketers must adapt to shifting consumer behaviors.

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