53% of retailers are decreasing marketing budgets amid COVID-19 as the ecommerce landscape changes

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 04, 2020, 2:38 AM UTC

CommerceNext’s recent report reveals how marketers are making ecommerce pivots, as the pandemic disrupts retail.

The report states, with rapid ecommerce growth during the pandemic, 53% of retailers are cutting marketing spends to catch up with the increased demands for ecommerce. This effect is more pronounced among traditional retailers with 63% of them slashing marketing budgets compared to digital-first retailers (37%).

Further, since June 2020, 34% of marketers have planned to amp up brand marketing investments. Of those polled, 37% report shifting budgets into retention and acquisition marketing.

Additionally, retailers were relying more on “tried-and-true media outlets”, as paid search rose 94% in June compared to 92% in January. Investments in mobile optimisation, augmented/virtual reality, and AI also increased 60%, 21%, and 56% respectively.

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