Short dive:
- Digital spending will exceed $1 trillion by 2022, a 21% year-over-year (YoY) increase, according to Comscore’s 2023 State of Digital Commerce Report. The total was a record-breaking year for digital marketing.
- The segment’s growth has been largely driven by mobile, which commands about 40% of retail spending. During Q4, spending on mobile apps outpaced mobile apps, growing 26% and 14% YoY, respectively.
- The business sector also reflects the growing influence within the retail ecosystem. Consumer-sponsored content has seen consumer engagement across Facebook, Instagram and TikTok.
Diving Information:
Less than a decade after it was introduced as the benchmark for digital marketing trends by Comscore, mobile finds itself commanding nearly half of all digital marketing, reports satisfaction is the most important factor in shopping behavior.
Further proof of its power, the mobile segment for digital spending has also grown among the fastest growing digital marketing sectors. For example, event ticket sales grew 75% YoY, with mobile accounting for 88% of the sector’s digital spend in Q4. Mobile also accounted for about 38% of total sales in Q4.
The data shows the influence of the virus on digital marketing as well. In 2020, spending will exceed $705 billion. In 2021, the figure will rise to $904 billion, and in 2022, it will surpass the $1 trillion mark.
“That level of growth took four years to achieve,” said Ian Essling, senior director of research insights at Comscore, in a release.
Online shopping seems to be leading to business income. According to Comscore’s report, engagement with sponsored content and CPG brands grew 153% on Facebook and 175% on Instagram to 27.2 million and 149 million activities, respectively. of Q3 and Q4 2022. In addition, TikTok has seen significant growth, with expectations. of retail and CPG content to reach 12.1 billion views by 2022, up 407% from 2020’s 2.4 billion views.
The question remains, however, whether platforms can turn that interest into action. Although Accenture speculated The business will grow to $1.2 trillion by 2025, most of the platforms and their plans are in the print and go stage. Instagram has announced it recently open the shopping cart from its in-app dashboard this month, instead of adding shortcuts to make it easier to create and use. Similarly, Facebook’s Meta sibling, Instagram, has ended its Live shopping feature last September. On the other hand, TikTok is featured planning to build product fulfillment centers to the US to further develop its social trading capacity.
