66% reported that retailers have increased their digital marketing budgets in 20222 by 66%

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66% of retailers have increased their digital marketing budgets in 20222

Digital Commerce 360 Survey of 73 Online Shoppers was done between April 2022 – May 2022. This survey provides insight into digital marketing strategies, budgets and tactics, as well customer acquisition strategies. The increasing popularity of social media marketing and the influence of influential people is also discussed. Lastly, the retailer’s ability to analyze data and the technology that underpins all marketing efforts is also covered.

It is possible to spend a lot of money on digital marketing. They are impacted by the retailer’s size, and You can have them digitally or in stores.. Because experiences are constantly changing and digital is able to assume a dynamic role in their sales, it might be worth considering how long the seller has been online. This is the result of combining these numbers.

Digital Marketing: % of overall marketing

  • 1-10%: 16%
  • 11-50%: 32%
  • >50%: 44%
  • None: 8%

Knowing the status of current customers allows us to see how their digital marketing budgets have evolved over time. It’s there that we see 66% of retailers’ digital marketing budgets have increased in 2022, though 23% remain unchanged.

72% of retailers anticipate digital advertising growth next year. They’re also following the same growth pattern.

Digital marketing is a popular strategy for marketing.

Let’s start by taking a look at what strategies retailers are employing. Seven out of 10 top digital marketers employ search engine marketing and email marketing as part of their strategy. YouTube and Instagram can be used for 60 percent. 58% give credit to influencer marketing. Mobility, which represents 60% of all retail sales, is important too. Examples of how marketplaces are playing an increasing role in ecommerce include Amazon ads (49%) and marketplace ads that are not associated with Amazon (51%).

This breakdown of spending shows that those who spend more than 11% on one tactic are the most likely to be successful. Paid search rank at 41% Third is search engine optimization at 38% Email ranks third at 36%

These are where you will get the most results Marketing techniquesThe most used channels for content marketing are email, search engine and paid search. Facebook (39%), Instagram (21%), YouTube (2%) & TikTok (18%) are just a few examples of the many outcomes retailers can achieve. Amazon ads have 38% market share. Only 26% of the other marketplace ads are effective.

Retail needs to have the ability to rev its engine. Retailers invest more than half of their revenue on customer acquisition. Only 29% retailers invest less than 20% in customer acquisition. It is the right time to optimize and maximize existing strategies to ensure a steady flow of customers.

Paid search (45%), Search Engine Optimization (41%) or Content Marketing (34%) are three of the best ways to draw new customers.

Advertising via social media

We will now move on to social media marketing. We wanted to find out how social media advertising worked for all of the retailers we surveyed. This survey shows that more than half of the respondents use social media advertising to drive brand awareness and sales.

Taking a look from a “successful” standpoint, Facebook delivers ROI for 52% of online retailers. Close behind Instagram (42%), YouTube (38%), LinkedIn (32%).

Retailers use different strategies to optimize social media. Retailers take different approaches to optimizing their social media marketing. Only 44% respondents said they had just one person in their business, with 21% referring to multiple workers. Third of respondents depend on agencies for their social media optimization. Further insights from the survey were: 26% of respondents struggled to quantify their results while 25% are always in catch-up mode. Only 12% cited relying on technology to drive programs, surprising particularly as a subsequent question’s answers suggest otherwise.

Influencers

Online marketing surveys are incomplete without the inclusion of influencers. The influencer’s role is multi-faceted, helping retailers build brand awareness (40%), drive traffic to websites (30%) and generate sales (26%). It’s challenging for some retailers, as 25% are concerned influencers might be too expensive. 21% find them interesting but aren’t seeing the desired ROI. And then there’s the fit factor, as 23% have found that it is hard to find the right influencers. 14% don’t find influencers to be a good fit for their company, and 10% are still figuring it out, spending time to understand if their businesses should use influencers at all. How do they go about it?

To assist in marketing, retailers can make use of multiple platforms. There may be many technologies that can serve multiple purposes.

28% will use AI to enhance their marketing campaigns.

 

 

The problem is that retailers are not all able to analyze marketing data. These results show that 61% think they are above average (6-10). 39% of those who self-assess their inadequacies reported scores between average and lower (1-3). To ensure success, retailers must have the right tools and training.

It isn’t easy to market successfully. 41% cited the greatest challenge as analyzing marketing campaigns. 33% mentioned accurately analysing data. It may be more challenging for retailers to adjust marketing strategies or diversify customer bases. These are three major marketing issues. Although respondents acknowledge that a range of marketing tactics is possible, it can be difficult to choose the best. There’s also profitability. Although spending can be easy to do, many people don’t consider the financial implications. The cost of marketing campaigns was mentioned by 30%.

Marketing trends

An estimated third of online sellers remain unconvinced about how to delete data from third-parties.

Retailers face another problem: removing third party data. The jury is out. Our survey revealed that 32% marketers are still looking for help in solving these problems. 27% respondents don’t think they have modified their strategy. This contrasts with 21% of respondents who say they’ve made changes. 26% are looking for new ways to encourage signups. First-party information should be a top priority (25%).

In a number of ways, retailers use value-based strategies for marketing.

Retailers increasingly embrace their values. We were interested in this trend. 33% of retailers don’t have a strategy while 33% disagree on the way they tackle this problem. Positively, 33% incorporate cause-based marketing into their ecommerce offerings (33%). It was used by 32% of those who had it included in social media marketing campaigns. 25% also use it to convey the value of events, and 25% regularly do it. It is being tested by another faction (14%), which is also building it in preparation for its deployment in 2022 (11%).

 

As ecommerce slows, digital marketing budgets will likely be in a crossroads. It is crucial to focus on the right tactics and measure their effectiveness. It’s worth leveraging the traditional, including email, and the continually evolving social options. Online retailers can use technology to optimize websites for optimal performance.

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