eBay Ads sponsors roundtable series
Towards the end of 2021 eBay Ads sponsored a series of roundtables hosted by Marketing Week, which brought together a whole host of marketers to discuss trends that emerged in 2020 and 2021, predictions for 2022, and advice for brands.
The five part series produced many fascinating takeaways – and here we will explore some of the marketing insights and tips gleaned from the roundtables that span a wide range of sectors. Read on to find out about how brands must react to consumers’ changing shopping habits, and the need to be flexible in today’s unpredictable landscape.
Shifting shopping habits mean direct-to-consumer sales could be a boon for brands
Many behaviours that arose during the pandemic look set to stay, with online shopping behind one of these. Our own GM Advertising eBay UK, Harmony Murphy, commented that the pandemic caused lapsed users to return to eBay’s marketplace, and attracted new customers who may have not shopped this way before. And since lockdowns ended many people have continued to research their purchases via the platform, highlighting that online shopping behaviours formed during this period have stuck for many consumers.
But with more people shopping online, the direct-to-consumer (DTC) opportunity has boomed. DTC sales provide a huge potential opportunity for a wide range of brands. In fact, while Unilever’s brands have historically only been found on supermarket and pharmacy shelves, the company’s ecommerce sales grew 61% in 2020, and now account for 9% of its overall business. [1]
Brands are sitting up and taking note, with growing DTC sales a key focus for many in 2022. This will likely be a priority for challenger brands in particular – for although they don’t have the budgets of their category leaders, they have agility on their side, which can enable them to make changes quicker and disrupt their sector. At the roundtable, the panel discussed that the key to getting DTC right is to ensure that the online shopping experience is easy to use and accessible.
Meanwhile, one FMCG marketer commented that brands need to persuade consumers to bulk buy so that the process is economically viable for the manufacturer. One example of an area where this is already happening organically is pet food, because owners like to stock up on products.
By growing DTC operations both via marketplaces and their own channels, brands can develop a much better understanding of their consumers, and simultaneously diversify their business as they respond to the demand for new ways to buy. However, brands must be careful that they approach DTC in a way that grows their sales, rather than simply moving them from one channel to another.
Flexibility is the way forward
The peaks and troughs of the coronavirus pandemic and the fluctuating restrictions we have experienced for the last two years have certainly taught us to expect the unexpected. With this in mind, another key insight highlighted during the roundtables was the need for brands to be flexible with their strategies, and adjust to what is happening in the wider world (whatever that may be!).
One marketer gave the example of brands being more flexible in the final quarter of 2021, as many companies brought their Black Friday promotions forward in the hopes of getting ahead of competitors and seeing strong sales for peak season.
The panel agreed that in 2022 it will be important for brands to take a test and learn mindset, and experiment with their promotions to see what works in the current landscape – which has shifted greatly since the pandemic started in 2020. One suggestion for brands was to hire retention specialists to work out what is missing for consumers, and how to engage or re-engage with their customer base.
To access the full series of roundtables on the Marketing Week website please click here – and keep your eyes peeled for our next blog focusing on tips for fashion, home and garden and finance brands!
[1] https://internetretailing.net/brands/brands/unilever-focuses-strategy-on-ecommerce-as-online-sales-grow-by-61-during-covid-19-lockdown–but-overall-turnover-falls-22659