3. Media and commerce converge
The combination of media and commerce truly began with live shopping in the 1980s, when live TV networks like QVC revolutionised the combination of entertainment and shopping by airing channels that specialised in selling home goods among other products. These shows were often hosted by entertaining and well-known TV personalities or celebrities – the ‘influencers’ of their time.
Fast forward to 2022 and this well-known way of shopping has been digitised and migrated across to social media platforms. This trend is known as ‘streaming ecommerce’ or ‘live selling’ and brings celebrities/influencers, social media and live streaming together for a shopping experience.
Continued advancements in 5G technology mean customers can stream live selling on their phone through platforms like Instagram Live in the US and Taobao and Douyin in China. While streaming ecommerce is still relatively nascent in the United States, it has become a key part of ecommerce in China and is expected to grow to 22 per cent of total ecommerce by 2024, up from 9 per cent in 2020, according to iResearch.5 Gartner estimates that streaming ecommerce was a $US60 billion market globally in 2019, with just $US1 billion from the US.
4. Ad tech and advertising agencies change pace
Ecommerce provides a positive and important area of growth for ad agencies and ad tech firms – so much so that we believe it can help agencies return to annual GDP-level growth, or better.
With the industry growing in revenue, opportunities for a change of pace arise in new realms of activity – these include business transformation consulting, software implementation, dynamic content creation, behavioural economic strategies and much more. Due to this, advertising agencies have more scope to be creative and rethink their offering, in turn evolving the industry and helping drive further innovation in the way advertising. And ad tech firms that help retailers and brands use data to deliver targeted ads can continue to grow at +25 per cent rates.
These themes will dictate the future experience of ecommerce and shopping experiences. Not only are we in an empowering time for consumers, who have more choice and agency than before, there’s never been a more opportune or promising time in retail and customer experience. As long as brands market in an authentic, engaging way, public trust will continue to rise across retail, resulting in strong performance for years to come.