2018 Holiday Shopper Insights Infographic – Part 2

At Digilant we are getting into the holiday spirit, and want everyone else to join us.  We have put together an infographic and report that gives predictions and highlights trends around consumer behavior for the 2018 holiday shopping season. This report will help advertisers and media buyers gain additional insights for their digital marketing strategies.
Every year it seems as though the holiday sales and promotions start earlier, spending increases and people shift their purchase locations and behavior. All these changes at such an essential part of the year can become overwhelming. Digilant has outlined all the 2018 holiday shopping predictions – from when people are shopping, how to reach them on mobile and how Ecommerce powerhouse Amazon is going to affect this year’s sales and advertising for other retails.

Download the infographic here.

Online Shopping Habits

Online shopping has completely changed everyone’s perception of the purchasing process. Online shopping continues to evolve making it essential for advertisers and marketers to understand the latest trends for each holiday season.  In 2017, between the months of November and December consumers spent $108.15 billion online alone. Consumers also spent more than $1 billion online within the 58 days of these two months; a significant increase from the year before. This year, there is the most days possible between Thanksgiving and Christmas, 33 days, making it essential for advertisers to effectively use everyday of the holiday season.

According to digialcommerce360, advertisers should focus their efforts on the “Cyber 5 stretch”, the days from Thanksgiving to Cyber Monday. These days are key to driving incremental holiday dollars. They also stated that 12% of online visits and 14% of transactions for the entire holiday season occurred the week before Christmas. This makes it essential for advertisers to continue their advertising and messaging throughout the entire season as well as make sure that they are targeting the right person in the right place, when they are ready to buy.  

Amazon is a DSP platform to consider when planning your holiday media spend. Last year, the online marketplace accounted to 37.53% of total U.S. e-retail sales from November-December. They have dominated online shopping during the holiday season, with expected increases this year – Amazon signs up approximately 200,000 new Prime members per month.

Amazon has not only been successful in dominating the online shopping space, but has also taken attention away from search engines. About half of all product searches now start on Amazon. Their success is not expected to slow down anytime soon; in fact, Amazon is expected to generate 50% of all ecommerce sales by 2021. Sellers on Amazon also benefit from the tools put in place by the marketplace to stand out in the clutter of purchasing possibilities.
If their domination over the holiday season was not impressive enough, this year, Amazon is expanding their product offerings to include full-size fir trees – of course, delivered right to your door. They are not the first brand to start doing so, but such a large scale company selling trees is sure to get consumer attention. This leap by Amazon will elevate their potential for even more growth during the holiday season.

Beyond having product offerings on Amazon, gaining consumer attention through their advertising is essential.  Digilant offers Amazon marketing solutions to help clients optimize digital advertising ROI and capitalize on new opportunities that the rapidly growing Amazon advertising platform affords. Reach out to us here to learn more about our Amazon offering.

Want more? Check out part 3 of our Holiday Shopping Insights series here.

Amazon Advertising – $1 Trillion Valuation Is Just the Beginning

On September 4, 2018, Amazon became the second publicly traded company in the United States to reach a $1 trillion valuation. Just before noon, Amazon shares reached $2,050.49, before falling slightly to $2,037, ending the day just shy of the 13-figure number. Hitting this milestone in a short month after Apple became the first company to hit this valuation leaves many to speculate which of these 2 players will reach the $2 trillion number first.

Apple, which hit the $1 trillion revenue mark on August 2, 2018, brought in $48 billion in profits last year. Amazon, on the other hand, only saw one tenth of that profit number. But, interestingly, The New York Times reported that in a Facebook poll run by a group of young Wall Street Investors, which posed the question of which company would reach $2 trillion first, the vote overwhelmingly favored Amazon. With lower revenue numbers, what makes people so confident that a company making less money will have a more profitable future?
With a very diversified plan for the future, there are a few different aspects of Amazon’s strategy that give people confidence in the company – for example its breakout into health and pharmaceuticals, AI advancements and physical stores. But the one offering that most feel will propel Amazon into their successful future is advertising. Back in January, we wrote about how Amazon took 4th place for display ad buying in 2017 and is keeping its eyes on 3rd place. This growth has not slowed down with their ad business recently surpassing $2 billion in quarterly sales. This number might seem small when compared to digital ad giants, Google – who brought in $35 billion in digital ad dollars in 2017 – and Facebook – $17.37 billion. However, Amazon has not come anywhere close to capping the advertising capabilities on their different platforms.

Before making any major additions to its advertising, Amazon just announced that they are rebranding themselves. To avoid any confusion. Amazon Advertising will now encompass Amazon Media Group, Amazon Marketing Services and Amazon Ad Platform.

  • Amazon Media Group: This group handled customized ads that required special collaboration from Amazon.
  • Amazon Marketing Services: This is where brands and agencies could participate in ad auctions and buy display, search and video ads
  • Amazon Ad Platform: This is where advertisers were able to target ads outside of Amazon

As Amazon Advertising now encompasses all of these areas, Amazon Marketing Services will be referred to ad “advertising console” and Amazon Ad Platform will now be known as Amazon DSP. Senior VP of Amazon Advertising stated, “This is another step towards our goal of providing advertising solutions that are simple and intuitive for the hundreds of thousands of advertisers who use our products.” This simple brand change will enable the company to push further into digital advertising.

Most of Amazon’s current advertising dollars come from product search results and sellers sponsor product slots. They are at a huge advantage as they collect data from consumers actual shopping habits, rather than just interests and searches. When ads are placed on Amazon, advertisers have a great opportunity to reach consumers at the critical moment when they are about to make a purchase.

Beyond this, Amazon has great opportunities to build advertising products on top of its existing properties, giving them a larger market share of the $88 billion digital ad industry. There is talk that they will soon sell ad space on their Thursday night football stream Twitch, a live streaming video platform. Twitch users could soon see ads if they opted out of the $9/month premium subscription. And, Amazon has yet to run ads on Amazon Prime Video. These are a few of the tactics that Amazon might introduce to reach $22 billion in digital ad revenue by 2020, making them the third largest digital advertiser.

Now is a great opportunity to take advantage of Amazon’s Advertising and DSP platform. If you want to learn more about Amazon’s capabilities and how it can add value to your media plan, or ask questions about Amazon’s Advertising capabilities, Digilant can help. Reach out to us here.

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