It’s easy to get lost in the jargon when you read a phrase like “the Future of Commerce.” But it’s a topic I’ve been thinking a lot about, in part because of how all of our lives changed so dramatically in the last 18 months. We have all lived so differently, and how we shop has changed so quickly as a result. For marketers, new behaviors, new tools and some good old fashioned focus on creativity and innovation have catapulted us into a new world of commerce. Turns out, it’s true what they say: the future truly is happening now.
As part of Yahoo’s presence at Advertising Week New York 2021, I was thrilled to moderate a discussion entitled “The Future of Commerce: New Tools for New Connections” to explore these themes. I was joined by real powerhouses in their spaces, offering unique vantage points on the industry today:?
Kristi Argyilan, SVP of Retail Media at Albertsons,?
Marci Raible, VP of Integrated Marketing at Campbell Soup Company,?
David Paltiel, VP of Digital Commerce at American Express and?
Kari Shimmel, Chief Strategy Officer at Campbell Ewald.
We covered topics from the rapid changes in consumer behavior, to the impact on our work as advertisers and marketers, and some of the innovation that's been accelerated by all of this change. If you are an AdWeek New York participant, I hope you’ll check out the panel discussion, but I wanted to share some highlights here:
- Huge changes in consumer behavior happened very fast: as the pandemic changed how we live, work and play, and we all quickly adapted to new shopping behaviors -- out of necessity. According to IBM’s U.S. Retail Index, the pandemic accelerated the shift away from physical stores to digital platforms by roughly 5 years. In Yahoo’s own research, we’re seeing 63% more shopping in online-channels alone vs. before the pandemic.
- Many of those new behaviors are staying around: In the grocery space, Kristi shared how quickly we evolved from a pre-pandemic desire to consolidate shopping to one-stop to a new expectation for delivery services to do the aggregation for us, as consumers began using delivery services like their own “personal teenager,” as she put it, collecting kids’ lunch materials for the week and freshly cooked Thai dinner for tonight, as well as a clothing item from a 3rd location, for example.
- Changes in consumer behavior have also brought change for advertisers: just six months into the pandemic, already 50% of advertisers had increased their spend on e-commerce ads, according to TechCrunch. And the shifts are working: according to a study Yahoo conducted earlier this year, one-third of shoppers found online advertising more influential compared to 6 months ago.
- It’s not just about platforms, though: innovation is enabling new ways of connecting, many of which are putting the old tricks to shame. Yahoo research shows that 63% of consumers are more likely to pay attention to a product when it's presented in an innovative way and we are seeing 2.5x higher shopper engagement with immersive 3D and AR ads. From AI-driven content feeds to shopping experiences enhanced by augmented reality (AR), we are seeing the power of technology to enable new experiences that better meet consumer needs. In the innovation vein, I loved Marci’s story about how Campbell Soup leaned into NFTs because of the brand’s historical connection with the art world, seizing the opportunity to use the new technology and surrounding cultural phenomenon to bring some interest and intrigue to their redesign of the Campbell Soup label -- talk about the convergence of creative, innovation, culture and commerce!
- As Kari and David pointed out, there have also been some surprising effects, like a resurgence of tech we thought had sunsetted. A great example of this is the QR code: quite suddenly, it has come back in our daily lives, especially in restaurants. Consumer familiarity and integration into our phones’ native camera apps has opened up new opportunities to get an easier experience into our consumers’ hands -- and not just to look at the menu. Now, companion experiences in DOOH and CTV enable consumers to take action where they previously couldn’t, with new paths to purchase opening up for consumers and new data coming to marketers, too. And no one saw this coming pre-pandemic!
- All of these changes are putting pressure on marketers to approach their work in an omnichannel way, especially as commerce happens at the intersection of awareness and activation. It is truly where brand storytelling and performance collide, and some of the most interesting questions in our industry arise: Where does a story begin? How does it end? How do we measure our work in a way that reflects these changes instead of pitting platforms or activations against each other, as David suggested? As Kristi described the flattening of the purchase funnel, the lines between a media buy and a commerce play have blurred, and our strategies and tactics have to take that into account.
These are all issues we spend a lot of time at Yahoo thinking about, guiding the development of our own plans in the commerce space and the shape of our partner programs, using tools like In Flight Sales Analysis within our DSP, among others. I am thrilled to see how this space continues to change, and thank my colleagues Kristi, Marci, David and Kari for sharing their insights. Onward into the future we go!
