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BizReport : Ecommerce archives : May 27, 2019

Study: Businesses focused on ecommerce, pushing social for engagement

In a new report, indicators show that more businesses are focused on revenue growth through ecommerce sales, and to get that growth brands are increasing their digital ad spend. Specifically, they're increasing their investment in digital channels.

by Kristina Knight

Researchers with Yotpo and Magento teamed up for the 2019 State of D2C Marketing report and among the more interesting findings are these: half (52%) of businesses are increasing their spend on Facebook; this investment is coming as brands report ecommerce growth as a key priority for them (60%). Other priorities include customer acquisition (54%) and conversion rates (53%).

Researchers further found the focus on Facebook-specific ad investment is more than double what businesses are spending on Amazon ads, despite the face the some research suggests about half of all ecommerce visits begin at Amazon.

"In the D2C approach, the website is both the brand and the store: story, mission, style, products, transaction, and service," said Tomer Tagrin, CEO & Cofounder, Yotpo. "Unlike the limitations of physical stores, eCommerce can give businesses access to a wider and global base of potential customers. Additionally, the lower overhead can provide the resources for businesses to persist amidst changing market conditions."

Additionally, the State of D2C Marketing report found:

▪ 61% of customer acquisitions derive from social media, 51% from SEO, and 50% from direct-nav traffic
▪ Mid-size brands are more likely to use UGC - 36% implement customer photos and 43% customer videos
▪ 63% report referrals give them equal or greater ROI than digital ads, 37% say digital ads give better ROI than referrals

Additional data from the Yotpo report can be accessed here.

Tags: advertising, ecommerce, ecommerce trends, Magento, social ads, social marketing, Yotpo

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