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1、202125%OFF!ADD TO CARTSHOP50%OFF!BUY NOW6kgGlobal Social Media Advertising TrendsAmong Retailers in 2021How Retail Brands Are Adapting to Disruption and Changing Consumer Habits in the Next YearCopyright 2020 WBR Insights|All Rights ReservedThe non-branded editorial content that appears in this repo
2、rt is owned and distributed by WBR Insights.Distribution of this content is restricted to only WBR Insights and any sponsors of this report represented herein.Social Media Advertising Trends Among Global Retailers in 2021 How Retail Organizations are Adapting to Disruption and Changing Consumer Habi
3、ts in the Next YearResearch Contact:Chris Rand Digital Content&Research Manager Chris.R3Table of Contents4 Executive Summary5 Key Findings6 Facebook Remains the Most Popular Advertising Platform,But Instagram Provides the Best ROAS9 Retail Organizations Still Struggle with Manual Processes and Lack
4、of Automation12 In 2021,Retailers Will Foster More Effective Collaboration Between Teams14 Conclusion:Retailers Have Opportunities to Improve Collaboration and ROAS in 202115 Key Suggestions16 Appendices23 About the Authors4Executive SummaryAmid the COVID-19 pandemic,consumers shifted rapidly to dig
5、ital channels as brick and mortar stores closed their doors for safety purposes.This signaled a massive deployment of digital assets by retail companies,including spending on advertising.However,the shift to online selling and advertising among retailers has already been accelerating.Retailers have
6、had several years to refine their social media advertising strategies and adapt to changes in the market.Some industries and regions have matured their media advertising strategies to the point that they are already highly effective.Still,plenty of opportunities remain to improve return on ad spend(
7、ROAS)and build connections in almost every industry.According to the Interactive Advertising Bureau(IAB),digital ad spending for 2020 is expected to end with a 6%increase versus 2019.1 Deloitte also notes that shoppers have been using a mix of digital touchpoints to make purchases,with 14%of shopper
8、s making purchases through social media.2 In 2019,Smartly.io and the eTail conference series launched a study to determine how retail organizations were spending their marketing dollars on social media advertising.This year,the study highlights more specific verticals and regions,including responden
9、ts from every corner of the world.The study also emphasizes whats changed over the past year with retail organizations social media advertising initiatives.In this report,well explore what those differences mean for the retail industry and how they can help your organization plan its social media ad
10、vertising strategy in the future.1 https:/ https:/ Most companies(66%)have an annual marketing budget of USD$20 million or more.Most companies(74%)allocate one third or more of their marketing budget to social media advertising of which 12%allocate at least half or more.Most companies are buying soc
11、ial media ads on Facebook(93%),Instagram(90%),Twitter(83%),and LinkedIn(63%).Among the platforms,over one-third of companies in the study(36%)spend more on Facebook than other platforms;over one-quarter(29%)spend more on Instagram,the two highest-grossing platforms in the study.Instagram yields the
12、best ROAS among the platforms for 42%of companies.Most companies will increase social advertising spend on Facebook(76%),nearly half(44%)will increase spend on Twitter,and over one-third(38%)will increase spend on Instagram in 2021.Most respondents(72%)agree their social media advertising creation a
13、nd delivery involves manual processes that are often time-consuming.Similarly,81%of brands in the study do not use automation technology for their social media advertising creation and delivery,but they are interested in automating at least part of this process.Most respondents(85%)are not strugglin
14、g with personalization on social media advertising.They are optimizing ad delivery with first-or third-party data(56%)or integrating personalization in their campaign concepts(55%)instead.Over one-quarter of respondents(29%)claim their social media advertising and creative teams do not collaborate e
15、ffectively at all stages of the marketing process.Similarly,56%of respondents claim having social media advertising and creative teams work together more closely is among their plans for 2021the only majority among six initiatives listed.Key Findings6Social Advertising is Important for Most Retail B
16、randsSocial advertising is still an important marketing strategy for most retail organizations,whether they are based in the U.S,Europe,Asia,or elsewhere.However,not every organization devotes as much of its marketing spend to social media advertising as others.Social Advertising Budgets Increase fr
17、om Last Year At 62%,most organizations spend between 31%and 50%of their overall marketing budget on social media advertising.These results represent a slight increase from last years study,which found that 53%of organizations spend between 26%and 50%of their overall marketing budgets on social media
18、 advertising.Most of the European respondents say they invest 40%or less of their marketing spend on social media advertisingthats compared to last years data,in which most respondents said they invested more than 40%.Exhibit A Americans use social media more than other countries,including countries
19、 in Europe.For example,a Pew Research Center study found that consumers in France,Greece,Hungary,Italy,and Germany use social media less often than their American counterparts.3 Some of these numbers have changed due to the pandemic,but consumers in most Eastern European countries still only use soc
20、ial media occasionally.4Many organizations have likely matured their social media advertising strategies since last years study,but some areas still require refinement.3%11%-20%23%21%-30%30%31%-40%32%41%-50%11%51%-75%1%76%-100%This study also includes a wider sampling of respondents from around the
21、world than the one previous,and this could contribute to the slight increase in ad spend among respondents.Of course,the COVID-19 pandemic could have also played a role.As consumers switched to digital shopping channels to protect themselves from the virus,social media advertising became more import
22、ant for many retail organizations as a tool for engagement.What percentage of your overall marketing budget is currently dedicated to social media advertising?Facebook Remains the Most Popular Advertising Platform,But Instagram Provides the Best ROAS7Facebook Still Dominates But Instagram Shows Prom
23、ise Facebook is still the most popular platform among retailers worldwide,with 93%of retailers currently buying social media ads on the platform.Not surprisingly,a plurality of respondents(36%)say they spend most of their social media advertising dollars on Facebook.Exhibit B In 2019,96%were buying
24、ads on the platform and 36%said they spent the most money on it.InstagramFacebookLinkedInTwitterTikTokPinterestSnapchatIn addition,Instagram is gaining popularity among retailers.Although only 56%of last years respondents said they buy ads on the platform,90%of the retailers surveyed this year use i
25、t.As we will see,Instagram is also becoming popular due to its significant return as well.3 https:/www.pewresearch.org/fact-tank/2017/04/20/not-everyone-in-advanced-economies-is-using-social-media/4 https:/www.pewresearch.org/fact-tank/2020/04/02/8-charts-on-internet-use-around-the-world-as-countrie
26、s-grapple-with-covid-19On which platforms are you currently buying social media ads?93%90%83%63%34%21%17%Almost half of the respondents to this years survey(42%)say they see the best return on ad spend(ROAS)from Instagram.Thats compared to just 21%in 2019.Organizations in both Europe and the United
27、States spend heavily on Instagram ads.However,organizations in Asiaincluding Japanspend far less.Although about 25%of Asian organizations prioritize Instagram,most others prioritize Facebook and LinkedIn for their ad budget.Exhibit CAccording to Statista,Indonesia is the Asian nation with the larges
28、t population of Instagram users,at 73 million.5 Although significant numbers of users are on the platform in other parts of Asia,their numbers still pale in comparison to those of the United States and Europe.China,one of the largest markets on the continent,is still closed off to many outside socia
29、l media platformsInstagram is blocked in the country.8Brands will Increase Spending on Facebook and Twitter Advertising Not surprisingly,76%of the respondents say their organizations will increase their ad spending on Facebook.Even when segmented by region and retail segment,organizations are determ
30、ined to pursue Facebook advertising.InstagramInstagramFacebookFacebookLinkedInLinkedInTwitterTwitterTikTokTikTokPinterestPinterestSnapchatSnapchatHowever,only 38%of organizations plan to increase spending on Instagram while 24%plan to decrease spending,despite it being the most stated platform for R
31、OAS.Notably,almost half of apparel retailers plan to increase their spending on Instagram in 2021as an image-centric social media platform,apparel retailers may have an edge on Instagram that other types of retailers dont.Exhibit DFrom which single platform are you seeing the best return on ad spend
32、(ROAS)from your social media advertising?On which of the following platforms do you plan to increase or decrease your advertising spend in 2021?42%24%15%14%3%76%8%16%32%24%24%18%12%8%44%38%38%44%78%84%87%38%10%8%8%5%2%0%5 https:/ will increase spending We will decrease spending We will do neither/Do
33、es not apply9Retail Brands Still Struggle with Manual Processes and Lack of AutomationStruggling with Manual Processes in 2019 vs.2020 In 2019,researchers asked whether retail organizations were still struggling with manual processes in the creation and delivery of their social media advertising cam
34、paigns.At the time,61%said they struggled with such processes.Unfortunately,at 72%,most organizations still struggle with manual processes in social media advertising.Exhibit E The increase could be attributable to the fact that this study has a larger sample size,but its also indicative of the incr
35、easing complexity of social media advertising.Retailers can use more channels to advertise than ever,and social media ads face a significant amount of scrutiny by consumers once they go live.Most Content Requires Some Scrutiny In written responses,respondents note that most content requires at least
36、 some scrutiny from a human before it can go live.One Vice President of Digital Advertising at a bank says candidly:“Original content is a pain point.”A Director of Brand&Category Marketing at an art supply retailer says,“Some content comes from customers,but the content that is developed by us need
37、s a lot of attention to detail.That is a pain point because social media is more of a platform where most of the publications are scrutinized and criticized.”Content Creation is Challenging Several other respondents say they are bogged down by manual processes because the creation of advertising con
38、tent itself is challenging.“Creation of organic and engaging content is one of the most time-consuming acts,”says a Head of Brand Marketing at an Australian Supermarket chain.Other Manual Challenges Other manual challenges include differentiating ads from competitors,creating a cohesive ad strategy,
39、generating ideas,and sourcing effective content.Indeed,most original content cant be created without some manual processes.However,solutions do exist that can automatically create ads and videos from product images,automate targeting and budget allocation,and even select when and on what platform or
40、ganizations should buy advertisements.10Does your team currently use automation technology for its social media advertising creation and delivery?Yes we automate this process sufficiently and successfullyYes we automate at least part of this process,but it needs improvementNo but we are interested i
41、n automating at least part of this processNo and we are not interested in automating any part of this process6%6%81%7%Brands Are More Open to Automation in 2020 And although 87%of respondents dont currently use automation technology for social media advertising creation and delivery,81%of respondent
42、s are interested in such a solution.This is a significant increase from last years study,which indicated that 65%of organizations were interested in such a solution.Automation Can Reduce Manual Processes and Save Time Automating the creation and delivery of advertising content can reduce manual proc
43、esses in the advertising process and save teams significant amounts of time.Researchers asked the respondents what theyd do with their extra time if they successfully deployed a solution that automated at least part of their advertising process.Most respondents say they wouldnt be able to fully auto
44、mate their social media advertising process,but they recognize that their team members could play a significant role in tracking their campaigns.Several respondents also say that their teams could engage more directly with customers on social media.“Once the content has been delivered,there will be
45、specific tasks left to monitor the response and track performance over a period of time.Teams can be involved in organizing and managing customer relationships through social media,”says a Director of Global Media at a Canadian Financial Service firm.Engaging customers on social media with personali
46、zed messages is one of the most effective ways to improve the customer experience,but it does require a significant time investment.Similarly,a Vice President of eCommerce at a Thai grocery retailer says their team could improve their campaigns in real-time if their marketers werent burdened by manu
47、al processes:“Tracking the success of our social media campaigns is a continuous process.Teams will be constantly engaged in re-modeling content that does not generate enough leads for us.”Other respondents would conduct more“strategy and trend analysis,”engage in more story creation,develop more ro
48、bust advertising strategies,and generate “more personalized content.”11How is your team using personalization on social media advertising?Optimizing ad delivery with first-or third-party dataIntegrating personalization in our campaign conceptsWe are struggling with personalization56%55%15%Personaliz
49、ationOnly 15%of organizations say they struggle with personalization.This is likely due to the overabundance of consumer data on the market,in part thanks to data collection activities by social media platforms themselves.Most organizations plan to optimize ad delivery with first-or third-party data
50、(56%)and integrate personalization into their campaign concepts(55%).What Brands Can Do When They Free Up Resources with Automation Still,by freeing up resources with automation,retailers could improve their ROAS by delivering hand-tailored messages to key customer segments.They could allocate more
51、time to strategic work,enabling them to create more personalized ads at scale.They could also take the time to pursue creative testing.Brands need the ability to see which concepts and creatives resonate with consumers.By finding the best creatives,brands can connect with consumers more effectively
52、while theyre on their shopping journeys.Automation Can Break Silos Automation also breaks silos and thus enables better collaboration between marketing and creative teams.At present,71%of respondents say these two teams collaborate effectively in all stages of the marketing process.This is a stark i
53、ncrease from the results of last year,in which about half of respondents(52%)said this was true.Regionally,respondents from Asia are the least likely to have social media advertising and creative teams that collaborate effectively in all stages of the marketing process40%of Asian organizations are s
54、truggling in this area.Exhibit F 71%Yes 29%NoDo you feel your social media advertising and creative teams collaborate effectively in all stages of the marketing process?12Our social media advertising and creative teams will work together more closelyWe will spend more on social media advertising in
55、general than we did in 2020We will expand our marketing team to better manage social media advertisingWe will manage social media advertising in-houseOur marketing teams KPIs will changeWe will invest in more robust social media advertising toolsIn 2021,Retailers Will Foster More Effective Collabora
56、tion Between TeamsOpportunities to Improve Collaboration Between Advertising and Creative Teams As we have learned,retailers around the world are interested in exploring new opportunities for their social media advertising.Automation,personalization,and improving the ROAS on Facebook are among the k
57、ey goals for retailers in the coming year.But fostering collaboration between social media advertising and creative teams is still going to be an essential strategy moving forward.By bringing these two teams together,retailers have the potential to generate social media advertisements that speak to
58、their customer segments on a personal level,improving ROAS and generating more opportunities to optimize social as a channel.Please indicate which of the following statements are true in terms of your plans for 2021.56%39%33%30%40%45%13At 56%,most organizations plan to encourage their social media a
59、dvertising and creative teams to work together more closely in the future.This is the only plan that a majority of respondents are dedicated to.Last year,51%of respondents said they were prioritizing collaboration.Although this increase is small,it is still significant.Retailers are discovering that
60、 linking these two teams is paramount to deploying a successful advertising strategy.At many companies,these teams may be separated by departments or even by entire companiesits not uncommon for retailers to outsource ad creative to an agency.Retailers may need to onboard more collaborative tools to
61、 link their teams together.Regional Differences Between Spending and Collaboration At 45%,fewer respondents say they will increase their ad spend next year compared to 2020.Fewer respondents plan to expand their marketing teams(40%),manage social media advertising in-house(39%),change their marketin
62、g KPIs(33%),or invest in more robust social media advertising tools(30%).Regionally,there are some outliers in organizations plans for 2021.In the United States,for example,over 62%of U.S.respondents say they will increase their spend on social media advertising.Exhibit G Fewer than half of European
63、 retailers plan to improve collaboration between their teamsthe European respondents were also the most likely to say that their social media advertising and creative teams collaborate effectively.Exhibit H Brands Still Prioritize Static Creative Assets Finally,retail organizations will focus on a m
64、ixture of media types for their social media advertisements.At 54%,most organizations will increase their use of static creative assets,such as photos and images.Meanwhile,44%will increase their use of dynamic creative assets,including animations and videos.Exhibit I These results are close to those
65、 of last year,although more respondents in 2019 said they would increase their use of dynamic creative at the time.It appears that static images are still a powerful advertising tool on most platforms.Given most of the respondents affinity for photo-heavy Instagrams return on investment,this finding
66、 aligns with previous results.14Conclusion:Retailers Have Opportunities to Improve Collaboration and ROAS in 2021Regional Differences Exist in Social Media Advertising Across the world,retailers share many of the same social media advertising goals,but they do deviate in some areas.Although Facebook
67、 still maintains its dominance as an essential consumer advertising platform,Instagram has shown significant promise in the U.S.and European markets,even though most retailers dont plan to increase their spending on it.Ad Spending to Increase by a Significant AmountAlthough most respondents say they
68、 wont increase their spending on social media advertising next year,a significant number of U.S.brands plan to increase their budgets.Advertisers in the U.S.will also increase their spending on platforms like LinkedIn and Twitter.Most Brands Are Interested in Automation and WorkflowsMost respondents
69、 also demonstrated a willingness to introduce automation and workflows into their social media advertising process.Although most organizations believe its impossible to break free from manual processes when generating ad creative,they are also open to the idea of automated technologies both creating
70、 and delivering their ads.Automated ad delivery has the potential to free up a significant number of work hours per year.This would allow teams to collaborate more effectively and focus more on strategic planning.As a result,marketers could engage their customers on a person-to-person basis,deliveri
71、ng advertisements that speak directly to specific types of customers on their favorite platforms.Brands Pursue Better Collaboration for Better ResultsGiven the dramatic impact of the COVID-19 crisis on global work habits,retail marketing teams of all stripes may be physically separated for the fores
72、eeable future,especially considering the cost savings of work-from-home operational models and outsourcing.In the coming year,retailers will need to align their social media advertising and creative development teams to maintain dominance on social media.This may require them to implement new proces
73、ses or onboard new tools,especially if both teams are far removed.Evolving in a New EconomyIn the coming months,retailers must adapt their strategies to the realities of the COVID-19 economy.Even as in-person shopping beings to trickle back into consumers daily lives,social media will still play a s
74、ignificant role in how they find,follow,and shop for their favorite brands.15Diversify your social media advertising channels.Facebook remains the biggest platform by far,but Instagram is delivering significant returns in the United States and Europe.Whether they intend to increase their ad budget a
75、s a whole,most retailers will increase their spending on Facebook ads in 2021.If Facebook is a competitive environment for your organization,it may be wise to follow suit.Most retailers still struggle with manual processes as part of their social media advertising strategy.Developing more efficient
76、processes for creating and deploying ads could give you an edge in the marketplace.Adding automation could also provide your teams with more time to collaborate,develop personalized creative assets,and engage customers socially.Most respondents are optimizing their ad delivery with first-or third-pa
77、rty data and integrating personalization into their campaign concepts.If possible,leverage consumer data tools beyond whats provided by social media companies to target your ads more effectively and integrate more personalized messages.If your social media advertising and creative teams arent collab
78、orating effectively,fixing this problem could help deliver a much higher ROAS.Most organizations are prioritizing this in 2021.Key Suggestions16To generate data for this report,researchers polled 300 leaders from retail organizations around the world.Exactly half of the respondents are in the United
79、 States(28%),the United Kingdom(13%),and India(9%).Meanwhile,8%of respondents are in Australia and 5%are in Indonesia.The remaining respondents represent various other countries in Europe,Asia,and North America(Mexico and Canada).At 49%,about half of the respondents represent the financial services
80、industry.Another 19%represents the apparel industry.Significant numbers of respondents also represent specialty retail(8%),department stores(6%),home furnishing(5%),and supermarkets(4%).Most respondents occupy a role in brand marketing(41%),eCommerce(25%),or media(12%).At 65%,most respondents repres
81、ent an organization with over$20 million in annual marketing spend.Another 16%are from an organization that spends between$5 million and$10 million each year on marketing.Appendix A:About the Respondents 28%United States 13%United Kingdom 9%India 8%Australia 5%Indonesia 3%Canada 34%OtherIn which cou
82、ntry are you located?17 1%C-Suite/Executive 41%Brand Marketing 25%eCommerce 12%Media 9%Digital Advertising 9%Performance Marketing 3%Social AdvertisingWhat is your role?Less than$1 milltion$1 million-$5 million$5 million-$10 millionMore than$20 millionWhat is your annual marketing budget in USD?7%12
83、%16%65%18Appendix B:Other Data Referenced in This Report 3%11%-20%23%21%-30%36%31%-40%25%41%-50%12%51%-75%Europe What percentage of your overall marketing budget is currently dedicated to social media advertising?EXHIBIT AEXHIBIT BInstagramFacebookLinkedInTwitterTikTokOn which single platform are yo
84、u spending the most on social media ads?36%29%19%13%3%19EXHIBIT CEXHIBIT DInstagramFacebookLinkedInTwitterAsia On which single platform are you spending the most on social media ads?32%29%14%25%InstagramFacebookLinkedInTwitterTikTokPinterestSnapchatApparel On which of the following platforms do you
85、plan to increase or decrease your advertising spend in 2021?80%10%10%44%14%21%12%10%16%42%44%35%79%81%32%70%9%9%49%19%14%We will increase spending We will decrease spending We will do neither/Does not apply20 72%Yes 28%No 60%Yes 40%NoDo you agree with the following statement?“Our social media advert
86、ising creation and delivery involves manual processes that are often time consuming.”Asia Do you feel your social media advertising and creative teams collaborate effectively in all stages of the marketing process?EXHIBIT EEXHIBIT F21United States Please indicate which the following statements are t
87、rue in terms of your plans for 2021.Europe Please indicate which the following statements are true in terms of your plans for 2021.Our social media advertising and creative teams will work together more closelyWe will spend more on social media advertising in general than we did in 2020Our marketing
88、 teams KPIs will changeWe will expand our marketing team to better manage social media advertisingWe will manage social media advertising in-houseWe will invest in more robust social media advertising toolsOur social media advertising and creative teams will work together more closelyWe will spend m
89、ore on social media advertising in general than we did in 2020Our marketing teams KPIs will changeWe will expand our marketing team to better manage social media advertisingWe will manage social media advertising in-houseWe will invest in more robust social media advertising tools64%45%42%42%41%36%2
90、7%27%35%34%62%42%EXHIBIT GEXHIBIT H22Which type of visual asset does your social media advertising team plan to increase usage on THE MOST in 2021?EXHIBIT IStatic creative(e.g.photos,images)Dynamic creative(e.g.animations,videos)Neither/Does not apply54%2%44%23About the AuthorsWe launched eTail in 1
91、999,and have been dedicated to supporting the growth of the retail industry ever since.What started off as 100 people in a room discussing where this sector is headed,has led to 2,000 senior-level eCommerce executives being inspired whilst learning and developing their company as well as their caree
92、rs.For more information,please visit https:/ Our co-founders Tuomo Riekki and Kristo Ovaska are serial entrepreneurs who,back in 2013,noticed how advanced marketers were starting to ramp up their Facebook advertising,and started building automation software to help brands launch and optimize campaig
93、ns faster and easier.By the time Smartly.io was up and running,e-commerce brands had discovered Facebook their complex needs and setups were the perfect fit for Smartly.io.Today,we work with over 600 brands from various industries:e-commerce,retail,travel,WBR Insights is the custom research division
94、 of Worldwide Business Research(WBR),the world leader in industry-driven thought-leadership conferences.Our mission is to help inform and educate key stakeholders with research-based whitepapers,webinars,digital summits,and other thought-leadership assets while achieving our clients strategic goals.
95、For more information,please visit .agencies,and many more.From coding custom solutions during client meetings to inviting our customers to our strategy offsites,we stay close to our customers to influence the product we are building.We are on the mission to unlock greater performance and creativity.For more information,please visit smartly.io.