Dec 02, 2019 17:00 JST
Source: Warc
|
|
|
Brands will increasingly rely on platforms that combine advertising and e-commerce
WARC Marketer's Toolkit 2020: Building brands in the walled gardens -- a focus on Industry
LONDON, Dec 02, 2019 - (ACN Newswire) - Digital platforms are growing ever-more influential and marketers are increasingly tasked with building their brands within ecosystems over which they have little or no control.
Building brands in the 'walled gardens' is the main theme highlighted in the Industry chapter of WARC's Marketer's Toolkit 2020 an annual report that assesses the influences on marketing strategies for the year ahead.
David Tiltman, VP Content, WARC, comments: "For the Industry chapter, we've taken a close look at the drivers dictating the competitive environment.
"Customer experience (CX) will remain a priority for marketers' time and investment and will continue to drive the digital transformation agenda, and in-housing of adtech will continue as brands take charge of their data. However, we see the major story for next year being the growing reliance of advertisers on 'walled gardens', the digital platforms that combine paid advertising and payment tech or e-commerce fulfilment."
- Walled gardens combine advertising with payment
Amazon is chipping away at Google's supremacy of the search advertising market and is projected to earn $13.9bn from advertising in 2019. Advertising accounts for a fifth of Tencent's global revenues, worth over $8bn, while Alibaba and JD.com dominate the retail landscape in Asia, with combined annual revenues of nearly $450bn.
These 'walled gardens' increasingly combine paid advertising with payment and e-commerce fulfilment, with the promise to marketers of much more visible links between marketing investment and sales performance. However, as those platforms grow ever-more influential, marketers are increasingly tasked with building their brands within ecosystems over which they have little or no control.
Xian Wang, Global Content Director, Edge by Ascential, notes: "Digital ecosystems become the primary place to engage with consumers... The reach of digital marketplaces offers convenient comparisons for shoppers meaning suppliers will have an increasingly difficult time differentiating from the high volume of other vendors."
35% of total respondents and 23% of brand respondents to WARC's Toolkit survey said they plan to increase advertising spend with Amazon in 2020.
- Facebook moves into payment as retailers move into media
Ease of payment is a key pillar to platforms' success. The mass adoption of apps such as Alibaba's Alipay and Tencent's WeChat Pay in China has inspired Facebook's attempts to launch a cryptocurrency, the Libra Association, and accompanying digital wallet, Calibra.
Sanjib Kalita, Editor-in-Chief, Money 20/20, says: "Digital platforms have redefined convenience. By eliminating the time between item selection and payment, digital platforms have maximised the opportunity for impulse purchases."
While digital companies possess rich user data, including all-important signals of intent from previous search behaviour, physical retailers have an additional advantage in the form of in-store purchase insights and are now copying platform business models.
Jill Baskin, Chief Marketing Officer, The Hershey Company, says: "The bigger ecosystem coming online is that retailers [like Walmart and Target] are starting to sell media. They'll have closed ecosystems, so we should be able to see immediately who's buying, what they're buying and whether it's working. That could be huge if it works."
- Amazon is focused on winning brand advertising dollars in 2020
Most spend on Amazon is currently linked to performance outcomes. But, as Amazon sets its sights on the brand dollars still being spent on TV media, the platform must decide the extent of compromising user experience to allow brands to engage consumers in more immersive and potentially less efficient ways.
20% of respondents (up from 17% last year) cite the dominance of Google/Facebook/Amazon as the biggest cause for concern when drawing up marketing plans for 2020.
WARC's Marketer's Toolkit 2020, the definitive, evidenced-based and practical guide for marketers to plan for 2020, is based on a survey of almost 800 client and agency-side practitioners around the world, combined with insight from a series of interviews with Chief Marketing Officers, backed by evidence from WARC Data, case studies and expert opinion.
The report, available to download from http://lp.warc.com/marketers_toolkit_2020.html, covers five key drivers of change: society, tech, economy, industry and policy. A deep-dive into each of the five chapters including more on Industry, for which WARC has collaborated with sister Ascential brands Edge by Ascential (www.ascentialedge.com/) and Money 20/20 (www.money2020.com/) is available to WARC subscribers.
A free-to-attend event to discuss trends from the Marketer's Toolkit will take place in New York on 12 December. View on http://lp.warc.com/register-for-trends-from-the-marketers-toolkit-event-nyc.html for more information on the event, speakers and register to attend.
Contact:Amanda Benfell
Head of PR & Press
+44 20 7467 8125
amanda.benfell@warc.com
Source: Warc
Sectors: Media & Marketing, Advertising
Copyright ©2025 ACN Newswire. All rights reserved. A division of Asia Corporate News Network. |
Latest Release
TOYOTA GAZOO Racing Set for Spa spectacle
May 02, 2025 19:29 JST
|
Toyota Mobility Foundation, Bangkok Metropolitan Administration, UN-Habitat, Asian Institute of Technology and Toyota Motor Thailand Sign a Letter of Intent (LOI) to Launch the TRUST Project for Road Safety in Thailand
May 01, 2025 17:48 JST
| 
Katalon Officially Launches TrueTest(TM) - The First AI-Native Testing System That Thinks Like a Tester and Learns from Users
Apr 30, 2025 17:20 JST
| 
Eisai Representative Corporate Officer and CEO Haruo Naito Awarded the Order of the Rising Sun, Gold and Silver Star
Apr 30, 2025 14:17 JST
| 
Mitsubishi Shipbuilding Holds Christening and Launch Ceremony of Large Car Ferry KEYAKI in Shimonoseki
Apr 29, 2025 17:24 JST
| 
NEC DGDF Headquarters relocates to Zurich to accelerate growth and enhance management globally
Apr 28, 2025 16:03 JST
|
NEC achieves Japan's longest terrestrial wireless optical communication over 10 km
Apr 25, 2025 17:50 JST
| 
Olympus Appoints New CEO
Apr 25, 2025 15:30 JST
| 
DENSO Announces Year-End Financial Results
Apr 25, 2025 12:17 JST
|
DENSO and DELPHY Sign Memorandum of Understanding to Develop Data-Driven Smart Horticulture
Apr 24, 2025 18:43 JST
| 
MyJCB App Wins "iF DESIGN AWARD 2025"
Apr 24, 2025 17:00 JST
| 
Fujitsu launches new company 1FINITY to strengthen network products business
Apr 24, 2025 16:24 JST
|
MHIEC Completes Renovation of Core Facilities for Arita Municipal Recycle Plaza in Saga Prefecture
Apr 24, 2025 15:01 JST
|
NEC invests in U.S.-based "Geodesic Alliance Fund" aiming to strengthen economic security business
Apr 24, 2025 10:23 JST
|
MHI Thermal Systems Wins German Red Dot Design Award 2025
Apr 24, 2025 10:11 JST
| 
ULVAC Develops Dilution Refrigerator for Quantum Computers
Apr 24, 2025 09:30 JST
|
Fujitsu expands strategic collaboration with Supermicro to offer total generative AI platform
Apr 23, 2025 11:55 JST
| 
Furuya Metal and Asahi Kasei Embark on Demonstration Trial Regarding Recycling of Metals for Chlor-alkali Electrolysis Cells and Electrodes
Apr 23, 2025 11:00 JST
|
A Decade of Olympus India's Commitment to Community Welfare
Apr 22, 2025 13:00 JST
|
Fujitsu and RIKEN develop world-leading 256-qubit superconducting quantum computer
Apr 22, 2025 11:37 JST
|
More Latest Release >>
|