According to the latest report from WARC Data, brands will spend $59bn on e-commerce advertising to drive online shopping this year. Although the overall advertising is expected to fall 8.1% this year, e-commerce advertising is the bright spot set to grow 18.3% worldwide. Platforms such as Amazon, Tmall, Rakuten, Walmart TikTok will benefit and help e-commerce ad spend grow 30 times faster than overall online ad market.
This trend is consistent with consumers spending an additional $183bn online due to COVID-19 and e-commerce sales are expected to rise by 30% to $2.9trn worldwide. According to the report, reason why brands are spending on targeted advertising on e-commerce is to get closer to the consumer at the point of purchase. James McDonald, Head of Data Content at WARC also notes that e-commerce is in a strong position to capture pre-allocated ad budget to other media channels because of COVID-19 by being able to provide sales data to back ad performance.
You can see the dramatic shift in advertising spend from newspapers and TV that dominated 1980's to TV, search, social media, e-commerce, and online video which dominate in 2020 through this video WARC Global Ad Spend 1980-2020.
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