IAB’s latest report highlights how the pandemic has permanently reshaped the US consumer economy.
Because of the pandemic, many Americans are experimenting with new brands, embracing new omnichannel shopping behaviour – setting the stage for permanently-heightened competition. The pandemic has also accelerated the shift to ecommerce. As a result, the “storeless” economy has accelerated 200-300%.
The study found that established retail brands are wooing disruptor brands with preferential treatment in their retail media networks to fight for the business of Gen Z and millennials – demographics that rarely go to retail to discover brands. Physical retail stores are also shifting to an “Amazon-like-never-ending instant gratification machine” – an “On-Demand Economy” model built around DTC delivery times as short as 15 minutes.
Around eight out of 10 brands are now working with an influencer to reach their prospects, with the most significant growth among nano-influencers. Additionally, due to political and browser pressures over privacy, 95% of brands adjust their data strategies.
Around 84% of advertising buyers are increasing their spending on CTV while quoting consumer privacy as the main reason behind this increase. Advertisers are increasingly investing in data resources or initiatives to win the first-party data race.
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