Digital Marketing Revolution: Mastering Successful Strategies
A [r]evolution is coming soon…
In the rapidly evolving landscape of digital commerce, mastering digital marketing has become a critical factor for success. The Internet Retailer Digital Marketing Report shared by by Digital Commerce 360 in 2019 offers valuable insights into the strategies and tools that top online merchants are using to drive sales, engage shoppers, and stay competitive. Let’s outline key insights learned from it.
The Shifting Sands of Digital Marketing
The report underscores the importance of embracing new technologies and integrating marketing channels to achieve greater efficiency. Jim Okumura, partner at retailer research firm McMillanDoolittle, notes a growing acceptance of artificial intelligence (AI) and machine learning tools among retailers. This shift is driven by the need to diversify ad spend and keep pace with digitally mature competitors who are reaping the benefits of prior investments in these technologies.
One of the most significant trends is the rise of mobile commerce. The report reveals that 41% of online shoppers made more than half of their purchases on mobile devices in the past year, and 57% made at least 25% of their purchases on mobile. This trajectory is expected to continue, with 62% of shoppers planning to use their smartphones more often for shopping in the coming year. These statistics underscore the importance of mobile-optimized marketing strategies.
Email Marketing: The Cornerstone of Digital Outreach
Despite the emergence of new channels, email marketing remains a cornerstone of digital outreach. In the survey, 83.7% of merchants use email for digital marketing, and 37.8% plan to increase their email marketing spend next year.
The report highlights how Lenovo Group Ltd. revamped its email strategy, resulting in a 36% year-over-year increase in page views from organic search and a 106% increase in transactions.
For example, the key to Lenovo’s success was redesigning its JavaScript-heavy site with HTML coding, making it easier for Google’s search bot to crawl and index pages.
This change, coupled with strategic use of keywords in titles, meta descriptions, and product descriptions, significantly improved its search rankings and traffic.
Social Media and Influencer Marketing: Embracing New Frontiers
The report also delves into the growing importance of social media and influencer marketing. Facebook remains the dominant platform, with 91.3% of merchants advertising there.
However, Instagram is rapidly gaining ground, with 71.3% of respondents using it for ads, up from 53.3% in 2018.
Influencer marketing, in particular, is becoming a key strategy. The report cites estimates that this industry could reach $10 billion by next year. B
rands are increasingly working with micro- and nano-influencers, who have smaller but highly engaged followings. While 45.5% of respondents don’t currently allocate budget to Amazon ads, 47.9% plan to use them in 2020, and 37.8% plan to increase their Amazon ad spend.
Artificial Intelligence: The Game-Changer
Artificial intelligence (AI) is transforming digital marketing and a revolution is expected soon.
The report highlights that 36.4% of merchants surveyed are leveraging AI to target ads, up from 26.5% in 2018. Lingerie brand Adore Me is a prime example, using AI-powered algorithms to personalize email campaigns based on customer behavior and product data.
This strategy led to a 15% year-over-year revenue jump in its first year of implementation.
The Conslidated Power of Google and Amazon
The report also emphasizes the dominance of Google and Amazon in digital marketing. Amazon’s massive marketing budget ($13.81 billion in 2018) allows it to dominate natural and paid search.
Similarly, Google’s Product Listing Ads are a key tool for many retailers, with 61.16% of respondents planning to use them next year.
Adapting to the Mobile-First Consumer
The shift towards mobile commerce is a recurring theme. The report states that 25% of website traffic now comes from organic search, up from 10-15% previously.
This increase is attributed to mobile optimization efforts. For example, Solstice Sunglasses saw a 36% increase in page views and a 106% increase in transactions from organic search after optimizing its site for mobile.
Embrace Technology, Diversify Channels, and Stay Adaptive
The 2019 Internet Retailer Digital Marketing Report paints a picture of an industry in flux.
Traditional channels like email remain vital, but they’re being complemented by emerging strategies in social media, influencer marketing, and AI-driven personalization.
The key takeaways for senior business leaders are:
- Embrace new technologies, especially AI and machine learning, to personalize marketing efforts and optimize ROI.
- Diversify your ad spend across channels, including email, social media, and search, to reach consumers where they are.
- Prioritize mobile optimization, as more consumers are using their smartphones for shopping.
- Consider micro- and nano-influencers for cost-effective, high-engagement marketing.
- Leverage Google’s and Amazon’s advertising platforms to maximize visibility.
By adopting these strategies, you can position your company at the forefront of digital marketing, driving sales, engaging customers, and staying competitive in the ever-evolving digital commerce landscape.
The most successful retailers are those who are willing to adapt, experiment, and embrace the power of data-driven, technology-enabled marketing.
