Top industry news for the ecommerce world brought to you in a weekly update every Monday, with Ideoclick’s VP of Strategy, Andrea Leigh.
Hot Topic 1: Prime Day 2021 spending projected to reach record amounts; continued strength of e-commerce
Forbes, June 16, Prime Day Spending Expected To Top $11 Billion, Adobe Predicts, by Joan Verdon
Amazon’s Prime Day sale next week is expected to drive record amounts of online spending and rival Black Friday and Cyber Monday as the biggest e-commerce sales event of the year, according to an Adobe Digital Economy Index forecast. While online spending in May declined from the pandemic-driven surge of Spring 2020, the continuing strength of the e-commerce economy, and consumer enthusiasm for the Amazon-invented annual sales event are expected to push Prime Day spending past last year’s $10.4 billion to over $11 billion.
Hot Topic 2: Amazon and Walmart adding new online shopping experiences and ad capabilities; retailer e-commerce investments
Progressive Grocer, June 16, Amazon Fresh and Walmart Unveil New Online Shopping Capabilities, by Bridget Goldshmidt
Amazon Fresh and Walmart have revealed new capabilities from e-commerce management platform provider CommerceIQ that will help grocery brands carried by the online retailers succeed in one of the fastest-growing segments of e-commerce, which is projected to reach $100 billion this year. In the wake of launching omnichannel coverage for all major online retailers, CommerceIQ now provides real-time, retail-aware advertising for Walmart and Amazon, with additional ZIP code-level precision to ensure localized availability for Amazon Fresh customers.
Hot Topic 3: Shopify expanding e-commerce platform; the rise of social commerce
Bloomberg, June 15, Shopify Expands E-Commerce Pact With Google and Facebook, by Danielle Bochove
Shopify Inc. will open up its e-commerce checkout system to all retailers selling through Google and Facebook Inc., expanding an existing collaboration with the two U.S. giants and marking the first time the Canadian technology company has offered a product to merchants that don’t use its platform. Retailers who sell products through Facebook or Google properties such as Instagram, YouTube or Google Maps will be able to offer shoppers the chance to pay for their purchase using Shop Pay, starting in July for Facebook and later in 2021 for Alphabet Inc.’s Google. Shop Pay is a checkout product that stores users’ information, speeding up online transactions.
Hot Topic 4: Amazon’s explosive growth; to pass Walmart as largest U.S. retailer in 2022
CNBC, June 15, JPMorgan says buy Amazon as it’s set to pass Walmart as the largest U.S. retailer next year, by Jesse Pound
The dramatic growth of e-commerce over the past 18 months has accelerated Amazon’s rise to dominance, and even the largest traditional retailer may soon fall behind, according to JPMorgan. Analyst Doug Anmuth reiterated in a note to clients that Amazon is one of the firm’s top picks and said that the company could cross a major milestone next year. Anmuth estimated that e-commerce penetration in the retail market was pulled forward three years by the coronavirus pandemic, bringing Amazon neck and neck with Walmart.
Hot Topic: U.S. media ad revenue to grow to record heights; strongest ad revenue acceleration in 40 years
AdAge, June 14 MAGNA FORECASTS 15% GROWTH IN U.S. MEDIA AD REVENUE, by Brian Bonilla
Interpublic Group’s Magna forecasts a 15.1% increase in 2021 U.S. media ad revenue, now expected to reach a record $259 billion. Magna says this represents the strongest ad revenue acceleration in 40 years. The new forecast, an all-in tally including cyclical events (U.S. elections, Olympics), is significantly higher than Magna’s March forecast that predicted ad revenue growth of 6.4%. The change is due to a better-than-expected start of the year and an increasingly strong economic outlook for the coming months, according to the report. Excluding cyclical events, Magna forecasts that U.S. ad revenue will rise 17.4%.