2019: eCommerce retailers become ad companies & personalised stories are key to reach consumers

Anne Freier | December 17, 2018

Mobile Advertising

Advertising technology has been part of a major developmental shift over the last 10 years and now Criteo has released its State of the Ad Tech report to highlight dominant trends for 2019.

One such trend is that more eCommerce companies are now becoming advertising companies. Amazon is just one example of having successfully expanded into digital ads and is expected to grow 55% in 2019. Chinese eCommerce group Alibaba already generates 60% of its revenue from ads. These companies have realised that product placements and brand partnerships work well together in boosting impressions.

Meanwhile, marketers and advertisers continue to worry about ad transparency. After all, understanding how much revenue an ad contributes to is vital in assessing campaign success.

Thirdly, the report highlights storytelling as another key trend for 2019. Consumers are no longer happy to just view ads, but instead want to be told personalised stories.

When it comes to fulfilling some of these goals, marketers are now spending the majority of their ad budgets on paid display, followed by social media and traditional marketing.

However, the top four channels for conversion are social media marketing (53%), paid display (43%), email marketing (41%) and SEO (38%).

And although marketers don’t have a go-to single measure of conversion, the top five include new revenue (35%), new customer rates (33%), cost per action (30%), total revenue (29%) and cost per qualified visit (29%).

When it comes to reengaging consumers, mobile advertisers have found app re-engagement and re-activation strategies to be particularly successful. The US leads in targeted re-engagement strategies followed by APAC.

The report also found that existing retail consumers tend to spend more than the average shopper (51%), whilst shopping app users tend to have a higher loyality (41%). Discounts, personalisation and innovation in advertising formats wer among the most successful strategies for reengagement.