Marketing executives from Procter & Gamble and Under Armour talked SEO, customer experience, and the influence of D2C.
SAN JOSE – The rise of digital commerce is causing a sort of “renaissance” in today’s largest digital marketplaces, Search Engine Land Editor-in-Chief Ginny Marvin said Wednesday during her keynote at SMX West.
This rebirth is driven by retailers that, seeing the monumental growth of Amazon, are seeking out richer ways to integrate and monetize their own first-party shopper data. Walmart Marketplace is one example, as is Microsoft’s acquisition of PromoteIQ which powers sponsored product ads that can be attributed to in-store and online sales among other capabilities for retailers like Kroger. First-party data is powerful – and is enabling brands to own direct, one-on-one relationships with consumers.
Marvin also highlighted how social commerce and shoppable media are changing how we market and think about channel strategies. Ad formats (including Story ads and YouTube video ads) are increasingly becoming shoppable, allowing users to click to shop. Direct-to-consumer (D2C) brands, Marvin noted, helped prove the value of these formats.
The SMX West event, which is programmed by Marvin and other Search Engine Land experts, this year paid special attention to digital commerce marketing, a growing marketing discipline given the rise of e-commerce.
Marvin shared new data from a Marketing Land survey of Amazon advertisers found that 81% plan to increase spend on Amazon ads this year. More than half (53%) said they plan to use incremental budget to fund those increases. But while Amazon’s ad business is growing rapidly – up 40% year-over-year, reaching $14 billion at the end of 2019 – we can’t forget that Google’s ad revenues during the same period were 10 times larger than Amazon’s.
Still, Google is losing out to Amazon in terms of how consumers begin their product searches. Survey data over time consistently shows that a majority of initial product searches begin on Amazon: