In just two months, the pandemic has caused a dramatic growth in e-commerce. WARC concludes the industry needs to rethink marketing fundamentals.
Here are three of WARC’s five E-Commerce themes:
- The acceleration of e-commerce: Edge by Ascential, WARC’s sister company, has revised the e-commerce growth outlook for 2020 from +22.2% to +30.4%. Brands in sectors such as FMCG are seeing rapid increases in online orders and have a growing range of options to sell through.
- Marketing goes back to basics: Effectiveness in the e-commerce age requires a rethink of all the marketing fundamentals: product, place and price as well as promotion.
Brands are offering bigger packs and multi-buy options, at different price points, as they look to boost profitability out of online retail. Delivery is a new ‘moment of truth’ for online brands, with packaging a key touchpoint. Unboxing is a key brand opportunity to stand out.
- The dangers of short-termism: The rise of shoppable formats and e-commerce media is likely to accelerate the shift toward short-termism, identified by researchers Les Binet and Peter Field. And that will only be compounded by recession.
Yet, there is evidence that a strong brand is key to driving traffic boosting performance of direct-response ads and maintaining price premiums online. Balance is key – it’s not a question of investment in either brand or activation, but a smart blend of both. Trust is vital in e-commerce, not just in the brand but in the entire end-to-end experience.
In sum, Lena Roland, Managing Editor of WARC Knowledge, says, “… brand remains as important as ever. In an age of almost limitless choice, brand recognition and trust translates into pricing power. Creative brand-building, therefore, remains key.”
Source: WARC. (2020, August 4). Five e-commerce themes marketers should know. WARC.