2022 was dominated by the effects of global events such as the cost of living crisis, war in Ukraine, and recession, leading consumers to tighten their spending. Now more than ever, marketers need to know what the defining eCommerce trends of 2023 will be and how those trends will impact consumer behavior.
Wunderkind research indicates brands are expected to double down on digital and tech investments to arm themselves for higher stakes and saturation. While 50% of organizations plan to tighten belts, only 6% will be cutting back on tech and digital, which continues to remain a high priority. Read on to find out what trends eCommerce marketers should consider when budgeting and planning for 2023.
#1: Choice is in the Consumers’ Hands
The COVID-19 pandemic resulted in an unparalleled rise of eCommerce, both for consumers and organizations. In the two years since, eCommerce has slowed upon the re-opening of brick-and-mortar stores. Now, in the face of a recession, pursestrings are tightening.
While winners and losers will certainly emerge from a tough economic outlook, digitization and online shopping will continue to be a consumer favorite. Globally, online shopping maintains relative stability, but consumers are looking to prioritize where their hard-earned cash is spent. For example, 43% of consumers said they take a brand’s position on sustainability into consideration when purchasing, so brands must ensure they capture a portion of that wallet share through meaningful messaging and morality.
#2:The Big Tech Shake-Up
After over a decade of Meta running the show in the social media landscape, new data shows dramatic shifts in the past year.
In September, TikTok hit a major social media milestone, reaching one billion users. TikTok was the top grossing app of 2022 (when combined with its Chinese market twin) across iOS and Android, as well as the most popular app for both millennials and Gen Z in the United States.
Nothing says change like consumers moving away from long-standing tech giants like Meta. Brands should take this as a sign to reevaluate their marketing budget mix, and find ways to own their paid channels in the new year.
#3: The Importance of Privacy
8 in 10 Americans are troubled by companies’ usage of their personal data, yet nearly an equivalent amount (73%) expect tailored communications based on their unique needs and preferences. Email marketing remains the most dominant channel by far, even as other channels such as SMS marketing grows.
In light of the imminent depreciation of third-party cookies and the broader move toward first-party data, eCommerce marketers are predicting a continued rise in the number of customer data sources.
#4: Discoverability Amidst Low Attention Spans
Try this on for size: 94% of consumers report receiving irrelevant results on retailer websites. Brands seem to be aware of this issue, with 88% of retailers noting that search abandonment is an issue they contend with, costing them customer loyalty.
So, how can you win? Prioritize your channels and your data. Owned channels and first-party data work together to ensure customers find product pages that are most relevant to them and allow retailers to connect with their needs.
#5: The Future of Advertising
Despite a rocky year for some, the future looks bright, with research indicating that digital ad spending will reach $249 billion in the US this year—up 13% from 2021.
As ad growth booms, make the most of your ad strategy by diversifying how and when you reach your target audience. For brands who get in early, retail media solutions offer an opportunity to reach a highly-engaged audience of customers. For advertisers looking to target consumers without using third-party cookies, contextual ads allow you to reach users in relevant environments, at a time when they’re most likely to engage. Winners will focus on finding the right customers and engaging with them at the right times.
Start optimizing with Wunderkind
These eCommerce marketing trends indicate 2023 will be a crucial year for making the most of your marketing dollars. Our advice?
- Supercharge your website experience: With the unparalleled scale of our Identity Network, Wunderkind can help you power list growth strategies that deliver more opt-ins than other leading solutions.
- Drive better performance and returns with Email + Text: Not only do Wunderkind channels drive revenue with efficiency, they’re also far more secure than traditional social media platforms, placing the ownership of your customer data in your hands.
- Invest in non-intrusive ads that perform: With ad budgets set to increase, differentiate your digital ads from the rest by leveraging WunderKIND Ads. Our contextual ads product uniquely benefits advertisers, publishers, and users by being rooted in respect for the user experience. Reach customers that care, without relying on third-party data.
Want to learn more about these marketing trends and what they mean for your brand? Download our 2023 predictions report here.