As we approach this new decade, it’s helpful to take a moment to briefly review the digital commerce path behind us. Let’s not forget that many digital hopes were dashed when the dot com bubble burst twenty years ago.
As it turns out, the true promise of digital wasn’t foolish, it would just take some time. The rise of digital commerce required the transformation of legacy business models and distribution channels. Over the last two decades, we’ve experienced just that. The story of digital is the story of slow and steady growth which just wouldn’t let up.
Between 2000 and 2010, digital’s share of overall retail commerce experienced 5x growth, going from less than 1% to nearly 5%. And from 2010 until today, for forty straight quarters, the YoY growth of digital commerce hasn’t fallen below 10% a single time. The share of digital commerce is now at roughly 15%… and growing.
The pace of digital growth has been picking up. Q3 2019 had a YoY growth rate of 17.3%, the highest since Q4 2011. Q4 2019 looks to be even stronger. According to Adobe Analytics, revenue on Cyber Monday 2019 grew 19.7% from the year prior.
Needless to say, brands with a strong digital strategy tend to experience even stronger growth. Here’s a sampling of YoY Cyber 5 wins we were able to drive for clients:
- Home Improvement Client: +42% revenue via paid search
- Fashion Client: +41% revenue via paid search
- Sporting Goods Client: +66% revenue via paid search and paid social; +76% revenue via Amazon advertising
- Home Furnishing Client: +59% revenue via paid search
Digital commerce is now on the verge of crossing another major threshold. According to Forrester Research, 2020 will be the year when the overall investment in digital advertising finally surpasses traditional advertising mediums. The advertising spread in favor of digital is expected to rise to nearly 60/40 over the next three years.
Smart digital advertising is definitely the rocket fuel of growing brands. Success favors those committed to a cohesive cross-channel digital strategy. The potency of advertising’s digital rocket fuel increases when strategy is able to flow freely between channels.
The strongest results listed above across paid search, paid social, and Amazon advertising, demonstrate the power of such leverage. This particular client benefits from a fully activated cross-channel relationship, utilizing ROI Revolution for paid search & Google Shopping, Facebook & social media advertising, product feed management, Amazon advertising, SEO, and conversion optimization.
I can’t wait to help create even greater wins for your brand in 2020!