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Brands tap ecommerce

News, 01 February 2017

NEW YORK: A growing number of brands are interested in exploring the opportunities presented by ecommerce, according to a new study by the Association of National Advertisers (ANA).

The industry body polled 215 client-side executives from its membership base to gain an impression of how leading brand owners are approaching this channel.

Some 74% of respondents are currently engaged in ecommerce, which was defined as selling products through owned online stores and/or third-party platforms like Amazon.com or Walmart.com.

Looking ahead, more than 80% of participants anticipate being involved in such activities within the next two years.

In terms of business results, fully 73% of contributors agreed ecommerce already drives revenue for their firms, with 43% of these enterprises now deriving at least 10% of sales from this route.

"These results are not surprising, as ecommerce platforms connected to mobile devices have become increasingly prolific," Bob Liodice, the ANA's CEO, said.

"There is every reason to believe that these trends will accelerate, which will dramatically transform how consumers interact with marketers.

"These trends will pressure marketers to adapt quickly and provide consumers with outstanding user experiences."

Among the most popular tactics for businesses active in ecommerce are social media marketing, hosting stores on their websites, tapping mobile payments and working with third-party online retailers.

Behind the scenes, a 59% share of featured firms have dedicated ecommerce departments. In 47% of cases, these units report to the Chief Marketing Officer, with the Head of Sales on 15%.

A further 56% of the panel used agencies to support their ecommerce strategies, and a majority utilise multiple agencies to help design ads, develop strategy and assist with mobile and social commerce.

Data sourced from ANA; additional content by Warc staff