In the past two decades, the marketing landscape has witnessed three distinct stages of disruption. First came the era of Google search, followed by the rise of social media. Now, as we step into 2024, we find ourselves in the age of commerce media, where the spotlight shines brightly on the significance of retail media and e-commerce.
This year offers marketers a unique opportunity: to view e-commerce not merely as a transactional platform but as a transformative brand-enhancing avenue. E-commerce, encompassing the sale of goods and services over the internet, currently claims nearly 20% of the global retail sales share, and projections indicate it will reach 23% by 2027.
The imminent transition from traditional media to the realms of retail media and e-commerce media promises a seismic shift in the years ahead. What truly sets this trend apart is its impact, not solely on the conversion ecosystem but also on the strategic allocation of marketing budgets.
AI Revolutionizes Personalization and Retail Media
AI and emerging technologies are reshaping the shopping experience in 2024. AI is set to revolutionize ad targeting, offering personalized experiences. A 2023 Bolt study found that 62% of shoppers (and 80% of Gen Zers) prefer using technology like AR and AI to virtually select and visualize beauty products. Additionally, 43% of shoppers now choose online AI tools over in-store testing for finding the perfect foundation shade.
Retail media products like Microsoft's PromoteIQ automate message selection and image choice, with AI expanding into video and deeper personalization.
User-generated content is on the rise, especially in beauty brands like Jergens and JLo Beauty, where real-life experiences shared by consumers and influencers often outperform studio content. AI and user-generated content are driving marketing innovation, creating personalized and authentic consumer experiences.
Performance Marketing Helps Focus Investment
Navigating the diverse data sources and attribution methods is crucial for understanding channels and achieving holistic brand growth. Measurement lacks standardization across channels and retail media networks, emphasizing the need to grasp how attribution varies per channel for effective spending allocation.
This is where a knowledgeable partner in the e-commerce ecosystem, such as Front Row, becomes invaluable. For Front Row, a commerce accelerator, the interconnected nuances of each channel are well-understood. Our expertise ensures not only accurate resource allocation but also strategic alignment with broader e-commerce objectives. This comprehensive understanding is the cornerstone for navigating the intricacies of the e-commerce landscape, making our partnership an essential ally for brands pursuing thoughtful and impactful growth strategies.
Hypothetically, as the CMO of Glow Recipe, a Front Row client, one would inquire about additional investment needed to drive sales from customers. Insights into how a customer's Amazon shopping behavior is influenced by their exposure to products at Sephora or on Glow Recipe's website are also of interest.
The next phase involves understanding the incremental benefits of running ad campaigns. Retailers are now providing greater data visibility, building brand trust, and demonstrating the impact of their efforts. Measurement tools are shifting from simple click-based attribution to a closed-loop attribution cycle, offering a more valuable understanding across all brand ad touchpoints.
While maintaining consistency in content messaging across channels, particularly for brand-building, brands must remain adaptable. Storytelling and brand perception are increasingly shaped by consumers and influencers, with emerging brands often breaking free from conventional brand guidelines. A brand targeting a mature audience might unexpectedly gain attention from a TikTok influencer, thereby reshaping the product's image.
And Now a Prediction: Content Creators Rise
In the past, marketers would typically assume a target group and tailor their content accordingly. However, with the advent of retail media, we now have access to invaluable shopper data, purchase insights, and conversion analytics. This wealth of information allows us to discover new, untapped audiences. For example, through Front Row’s strategic collaborations with industry giants like Unilever, we unearthed a surprising core audience—gamers—for some of the food assortment brands we represent. This revelation prompted a strategic shift, focusing our efforts on better serving the gaming community. Today's marketers enjoy the advantage of identifying multiple niche target groups, and the precision of high-precision targeting makes connecting with them more accessible than ever.
Front Row positions itself as a strategic partner, dedicated to helping brands unlock their full potential within the dynamic commerce landscape. We seamlessly integrate data from various retail sources to measure and optimize campaigns, ensuring our clients remain at the forefront of industry trends. In partnership with companies like Bosch, we analyze pricing strategies and media touchpoints across different platforms, providing valuable insights for enhancing sales through adjustments in promotion tactics and media allocation.
The complexity of the modern marketing landscape continues to grow, with retail media adding a new layer atop traditional advertising channels. This evolution enables marketers to convey emotionally resonant messages to multiple niche audiences with remarkable precision, all without an excessive manual effort. By crafting memorable, creative narratives and engaging with the right influencers, marketers have the power to create compelling experiences that genuinely motivate consumers.
Executive Summary
- Commerce media is reshaping the marketing landscape in 2024, emphasizing the importance of retail media and e-commerce as transformative brand-enhancing avenues.
- E-commerce currently accounts for nearly 20% of global retail sales, projected to reach 23% by 2027, highlighting its growing significance.
- AI and emerging technologies are revolutionizing personalization and retail media, with 62% of shoppers preferring tech-driven selection and visualization of products, while user-generated content enhances authenticity.
- Effective performance marketing demands a grasp of diverse data sources and attribution methods, with Front Row as a valuable partner offering expertise in resource allocation and strategic alignment.
- The rise of content creators is fueled by access to shopper data, enabling the discovery of untapped audiences, and the complexity of the modern marketing landscape requires emotionally resonant messaging and precision targeting.
