Ideoclick, Inc., the provider of the industry’s leading e-commerce optimization platform, today announced it will present findings from its Q2 2021 Pulse Insights Report at ECRM’s 2021 Global Food & Beverage conference from June 28 – July 2, 2021.
A key finding from the report, which includes client data from more than 350 consumer brands, indicates Cost of Goods Sold (COGS) year-over-year growth is slowing compared with last year’s early pandemic stock up activity. Advertising Cost of Sale has risen approximately five points year-over-year as increasing advertiser competition drives up keyword bids (Cost per Click, or CPCs).
“We are seeing what we believe to be the new normal e-commerce demand levels,” said Andrea Leigh, VP of Strategy, Ideoclick. “We are also seeing a larger-than-normal gap between what Amazon is ordering and what vendors are able to fill—Purchase Order Confirmation rates (the percentage of Amazon’s order that vendors can fill) is still trending well below pre-pandemic levels. Lastly, deliveries are taking a long time to be received by Amazon. These data points suggest Amazon is reducing orders to meet slower demand and may be somewhat overstocked. It may also indicate there are still significant supply chain bottlenecks in both inventory supply–and likely Amazon’s warehouse labor.”
“Advertising costs for our clients on Amazon have also risen year-over-year,” says Leigh. “To win, we recommend vendors of all sizes make Amazon’s Demand Side Platform (DSP) a core part of their strategy as a means to avoid competition for high-velocity keywords, and finite traffic on Amazon’s site, through Sponsored Ads.”
“As retailers scramble to monetize their e-commerce traffic and offset direct-to-consumer shipping costs, I expect innovations in advertising types, targeting, and ways to reach consumers,” said Leigh. “The reduction of third-party cookies only makes retailer advertising platforms more attractive amid growing consumer privacy concerns. Now more than ever, brands need to unify their e-commerce advertising and campaign management.”
Andrea Leigh, VP of Strategy at Ideoclick, will explore the latest client-level data and analysis from the Pulse Insights Report in her “E-Commerce Trends & Predictions” presentation at ECRM on June 30 from 2:00 – 3:00 p.m. EST. The presentation will provide an overview of key e-commerce trends, what they mean for manufacturers and how they can plan for it.
To download the full Pulse Insights Report, click here. For more information on Ideoclick’s digital advertising solutions and to stay updated on future launches, visit our website.
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