Brands that earlier allocated budgets to secure physical shelf space are now spending on display and search ads on retailer websites.
According to a Newman report, publishers are looking to maintain a diversified revenue mix this year, with their focus on three or four different revenue streams. They are also prioritising ecommerce – one of the future-facing business models that have been amplified by the pandemic. Similarly, Zenith predicts that ecommerce will bring incremental revenues to the ad market, driving 13% growth in social media and 12% growth in search.
By 2024, retail-focused ecommerce is projected to reach $7 trillion in annual sales activity or 25% of retail sales. If ecommerce growth maintains a low double-digit pace through the years, global ecommerce sales are expected to reach $10 trillion by 2027.
The additional revenue to the ad market is expected to come from small businesses that had to adopt ecommerce to navigate the lockdowns. The pandemic pushed consumers to make more purchases online, accelerating the adoption of ecommerce. As a result, even traditional publishers like Forbes stepped into online shopping, offering branded products and apparel.
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