How the Media and Commerce Industries Overlap and What it Means for Advertisers
In 2020, the growth of e-commerce was accelerated by more than five years. Before then, brands and advertisers had the flexibility to choose which platforms to leverage in their strategy. It was once relatively simple to identify which channel was best for driving awareness, consideration, and conversions. However, this changed when the traditional consumer journey and marketing funnel were disrupted. In this blog post, we explain how a brand's media and commerce efforts are now essentially one and the same. We also highlight Walmart and how the retailer has lead by example showing what it takes to win in today's landscape.
Shifts in Consumer Behavior are Changing the Function of Social Media
Due to the pandemic, many effective forms of advertising became obsolete as stay-at-home orders were put in place. To clarify, any out-of-home advertisements weren’t worth the investment. A few examples include billboards, newspapers, magazines, and even radio. Now, more than ever before, social media platforms have become the ideal destination for brands to engage with their customers.
Because of this, brands and advertisers had to adapt and lean into social to connect with customers in a meaningful way and drive sales. Over the last year, major social platforms have responded and offered creative and innovative ways to do this. These platforms also have built-in audiences that are engaged and have a high purchase intent due to the shift to online shopping.
Reliance on Online Shopping has Expanded the Definition of E-Commerce
As we've touched on, buying online has become standard over the last year. Out of necessity, consumers turn to the internet more than they visit a physical retail location. This goes for essential and non-essential products as many categories have seen e-commerce growth.
Online marketplaces like Amazon, Walmart.com, and Instacart were at the forefront of the progression during 2020. However, social media and digital media platforms have also become destinations for people to shop. To name a few, Pinterest, Facebook, Instagram, TikTok, and Snapchat continue to invest in shopping features. With this, driving awareness, consideration, and conversions can all be done on any of these platforms and marketplaces.
Walmart’s Use of TikTok is a Look into the Present and Future
A recent example of this in action is Walmart's use of TikTok's shoppable live stream capabilities. This shows recognition from major players that conversions are no longer exclusive to a marketplace or D2C site. And rather than viewing TikTok as competition, Walmart tapped into its ready-to-buy audience. The campaign featured TikTok's influential creators that promoted Walmart's products. Then, viewers of the live stream were then able to buy via Walmart without having to click away from TikTok's app.
We expect to see more examples like this between not only Walmart and TikTok but other marketplaces and social platforms. If anything, this reinforces the importance to brands that a presence on every major channel is key to success. Otherwise, absence on just one marketplace or social platform will result in lost sales to a competitor.
For years, we've spoken with clients about the benefits of leveraging social media to fuel their Amazon performance. Now, these conversations are happening more often and have taken on a new life. As we work closely with our parent company, Code3, clients have the option to tap into best-in-class expertise in both arenas of media and commerce.
If you could use the support of a strategic partner for your brand's media and commerce efforts, schedule a free consultation. And, as always, we’re here to answer any questions about your brand’s presence on Amazon and other marketplaces. Finally, if you’re interested in learning more about the results our clients experience through a partnership with MPS, check out these additional resources.
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