Online Retailers Upped Their Ad Spend +77%

Q1 eCom ad spend is up 767 over Q1 2020 the last quarter mostly unaffected by COVID But the increase is not uniform across media typesIn Q1 2020 TV was the dominant media type for online retail with a 702 share of total ad spending Digital was second largest eCom media type with 229 But the cultural shift to digital triggered by COVID news streaming and especially inbound consumer desire to order home deliveries prompted a shift in focus to digital which became 407 of ad spend in this category in Q1 2021 leaving TV still No 1 with 572However because of the overall stupendous ad budget increase TV grew YOY 44 while digital more than tripled at 214 growthInterestingly local TV whose use by eCom had been decreasing down 354 2018 vs 2017 827 2019 vs 2018 and 811 2020 vs 2019 increased 2923 in Q1 2021 vs Q1 2020Like the insurance category I analyzed here last week this is another very datadriven vertical Any media type that is seeing increasing usage by categories like these is probably worth a heavyup test or simply a test if you have not been spending a dime in the media type in any product categoryIn the case of local TV where insurance is also increasing share of ad spend in 2021 I have worked in that field and spent time studying whether there are any brands in any categories whose sales are absolutely flat across geographies in the US and I never found a single brand that had anywhere near zero geo varianceThe other thing happening in local TV now is that it is becoming quite targetable and data driven Streamers are for the most part selling local inventory as well as national The stations are all in that game ATSC 30 is rolling out in the marketplace and having the same rapid consumer adoption as streamingAnd of course local markets today differ mightily in terms of the mood in the market where it is with COVID reopening fast or slow This might be the best opportunity we see for a long time for why spend in local TV right nowWhich brings me to radio eCom increased its radio ad spend 2090 Q1 2021 vs Q1 2020 Keep an eye on your SMI data If it increases again it must be workingThree media that have been diminished are newspapers which eCom vacated in 2019 and has not returned magazines which was vacated in Q1 2021 and out of home which decreased 93 in Q1 2021We advise these shrunken media types to go back to their former eCom clients with their own printout of home DOOH digital inventory Make deals that can39t be refused in order to get fast usable case study proofs in eComWiO is a company that can make DOOH hard copy magazines hard copy newspapers radio and television interactive without having to download any apps or anything WiO leverages the smartphone voice command and text as the upstream interactivity path so the consumer doesn39t have to learn any new things to respond to an ad in any medium even a radio commercial you hear or outofhome ad you see while driving That39s when voice command adds the most valueThe losers in Q1 can be the winners in Q3 and Q4 Do what digital does do it better and beat your sales bogiesClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Online Retailers Upped Their Ad Spend +77%

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Bill Harvey

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Online Retailers Upped Their Ad Spend +77%

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