Advertising spending on eCommerce platforms to increase 18% this year

Anne Freer | September 25, 2020

Mobile Advertising

Ad spend on eCommerce platforms is predicted to rise some 18% in 2020 to $58.5 billion according to research by WARC.

The increase is led by a greater number of brands jumping on the COVID-19 related mobile and online shopping boom.

Dominant shopping platforms such as Amazon, Tmall, Rakuten, Walmart, Carrefour, TikTok, and Pinduoduo are expected to grow 30x faster than in previous years.

The rise comes against a background of an overall drop in ad spend of 8.1% this year.

Alibaba is predicted to generate $23.5 billion from selling its eCommerce ad inventory in 2020 – an increase of 6.6%.

Amazon’s ad income will grow 35.6% to $18.1 billion.

“With ad investment flat or falling across most media in the wake of COVID-19, eCommerce platforms – which have seen penetration balloon – are in a strong position to capture reallocated budgets by using sales data to demonstrate ad performance during a volatile economic climate,” explained James McDonald, Head of Data Content at Warc Data and research author.

eCommerce is to account for 88% of retail spending in 2020 as coronavirus keeps customers from spending in-store.

Global eCommerce sales are pitched at $2.9 trillion this year, up 30.4%.

Live-streaming commerce through platforms such as TikTok, Taobao and Kwai is also helping to double sales to $171 billion, which represents 10.2% of all eCommerce sales.

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