Ecommerce is a booming business. According to Statista, e-retail sales are currently accounting for 14.1% of all retail sales across the globe and it is likely to rise to 22% in a few years. The global market value of ecommerce is around $3.53 trillion worth of products sold and that amount is forecast to nearly double by 2022.
While that is certainly good news for online business owners and the marketing professionals involved in ecommerce, the landscape is shifting with new technologies and methods emerging on a regular basis.
So what are the newest trends and what do they mean for today’s consumers that show up at an online business site? Here are six ecommerce marketing trends and techniques to keep you ahead of the game
1. Video content
Video content is a force to be reckoned with. The growth of platforms like Youtube and Vimeo have created an interactive multimedia opportunity for everyone with a camera. This raises the bar for marketing professionals online.
According to the Aberdeen Group, incorporating video into an ad campaign results in a 34% increase in conversion rates. And a majority of marketers online are already employing the benefits. The Content Marketing Institute found that 60% of B2B and B2C marketers regularly use video for marketing.
Video content in marketing is a proven strategy for increasing sales. With people consuming more video content every year, customers are more likely to buy if the offer is accompanied by an explainer video with legitimate testimonials.
2. Voice Search
People are speaking to their devices more than ever with smart speakers and voice recognition technology embedded in our phones and tablets. Just as consumers ask these digital assistants about the weather and to add a meeting to their schedule, they also search the web for potential purchases though voice search.
Some researchers estimate that by the end of 2021, nearly half of all searches will be done with voice search. This indicates the need for persuasive advertising copy that is optimized for these searches. At this point, the options for accomplishing this are scant, but as time progresses new tools will inevitably become available to aid marketers in this area. One possibility is to determine if people use the same or different keywords when searching by text or voice and how the voice experience might change their search habits. This is an emerging area of online marketing that professionals need to keep their eye on.
3. Affiliate Marketing
Lean startups often have a limited budget for advertising. It is essential to get your product or service in front of potential customers. Ideally, every company would love to have a dedicated sales force actively presenting their product to potential customers who are highly likely to buy. This is affiliate marketing in a nutshell.
Affiliates, or publishers, find the cheapest and most direct way of advertising a company’s product to a highly targeted demographic and when a sale is made though the company’s website, the affiliate earns a commission. It’s never been easier to sell a product in this way with the growth in affiliate networks which act as a marketplace for sellers to attract affiliates to promote their products. For a cut of the profits, you can have an entire sales force actively selling your product and getting your company’s name in front of thousands of potential customers.
While this idea is hardly new, what is new is the extent of affiliate marketing and the reach it has developed. In a period of only one year, search interest in affiliate marketing jumped 44%.
Every year, spending on affiliate marketing grows by over 10% in the United States. 15% of all digital media advertising is now attributed to this method and the total value of the market is estimated at $15 billion globally with $6.8 billion of that in the US alone.
The growth and prevalence of Affiliate marketing means it is here to stay and marketers need to be aware of this trend to leverage their advertising budget accordingly.
4. Hyper-Personalized Shopping
We are all familiar with the dubious role of companies like Facebook in collecting user data. While this is old news to many, the way in which this technology is being applied is changing. This is due in large part to the shifts in consumer preferences and new data validating the role of personalized shopping experiences.
It is estimated that customers can spend up to 48% more when their shopping experience is tailored to their preferences.
Additionally, 57% of online shoppers report being more comfortable sharing personal information with a brand they trust if they believe it will improve their future shopping experiences.
The benefit of this trend cannot be overstated. A company that correctly leverages the data it collects on customers can create an experience that feels like a personal experience rather than a mass campaign aimed at everyone. This inspires trust on the part of the consumer which reinforces brand loyalty. It all points to a new trend in personalizing the customers’ individual experience of shopping.
5. The New Celebrities
While celebrity endorsements are as old as the history of advertising, the new celebrities that people follow are the ones they follow on social media. By one estimate, 65% of companies who currently employ influencer marketing are planning to expand their budgets.
Perhaps most validating of this trend is the fact that 7% of those companies are planning to spend an excess of one million dollars into this new marketing opportunity.
The math is simple. The cost of influencer marketing is more affordable than traditional celebrity endorsements and the reach of this strategy is effectively guaranteed. There are no signs of slowing in this trend and every company, large or small, can take advantage of this new reality.
Conclusion
These marketing methods are the tip of the iceberg when it comes to emerging trends in ecommerce. As the world looks to a time when the pandemic will begin to subside, the ways in which people shop and purchase will continue to evolve. In order to keep up with the world as it shifts, both technologically and socially, marketers and small business owners will need to stay on top of these emerging trends and technologies to ensure that they remain competitive. In a world that is changing as rapidly as the one we see today, we have to maintain promotions that ensure our potential audience is effectively reached. These trends are a first step in keeping your advertising relevant and your sales increasing.