The Era of Omni-Commerce: New Insights for Dominating the Digital Shelf and Beyond

THE ERA OF OMNICOMMERCE
New Insights for Dominating the Digital Shelf & Beyond
Meghan Lavin, Partner, Director of Marketing, Catalyst
Rachel Dalton, Director Ecommerce & Omnichannel, Kantar

www.CatalystDigital.com
About the report
The State of Ecommerce 2021 is a landscape study
based on two quantitative surveys with 500 online
purchasers and 209 marketers, sales professionals
and advertising professionals. It is also informed by
numerous interviews with industry professionals to
help make sense of the rapidly evolving retail
landscape in the US.
This presentation is a preview of the results. The full
whitepaper will be available later this month.
Source: Catalyst & Kantar: The State of Ecommerce Landscape Study, 2020

Meet Catalyst
Organic Search | Paid Search | Paid Social | Retail Media | Programmatic

Meet Kantar

Key insights
• Evolving shopper expectations: Prioritize convenience
and discovery
• Breaking media silos: Eliminate waste and improve
effectiveness across platforms
• More than conversion: Consumers redefine the value
of product detail pages
• Going beyond ROAS: Integrate media and KPIs for
sustained growth
• Open for collaboration: Brands need retailers and
retailers need brands
• The race is on to own The Third Shelf: The exceptional
rise of online grocery and last mile delivery
• The New Momentum Mindset: Prioritizing progress
over perfection

EVOLVING SHOPPER EXPECTATIONS:
Prioritize convenience and discovery1

Cross-platform shopping is the hallmark of today’s consumer, cementing the
importance of integrating retail, search, and social
62%
of online purchasers search
for inspiration on
Instagram*
63%
of online purchasers do
initial product research on
Amazon*
63%
of online purchasers do
product & price
comparison on Walmart*
50%
of online purchasers
discover new brands &
products on Google*
*Among those who visited these specific sites

While retailers lead in terms of site visits, social platforms and traditional search sites are
paramount, particularly for inspiration and discovery
38% 39% 30%
46% 50% 49%
35% 44% 44%
26%
55% 60%
51%
64% 62%
54%
50%
54% 55%
52%
63% 62%
63%
51% 45%
48%
53%
46% 44%
57%
60% 48%
63%
39%
33%
34%
43% 34% 37%
36%
Amazon.com Target.com Walmart.com Twitter Instagram YouTube Google Yahoo Facebook Costco.com
Search for inspiration Discover new products/brands Initial product research Product/price comparisons
Read as: 63% of shoppers who visited Amazon in the days leading up to a purchase did so for initial product research

Shoppers rely on retailer sites and apps more than any other touchpoint in the days
leading up to a purchase
0%
5%
10%
15%
20%
25%
30%
35%
0%
5%
10%
15%
20%
25%
30%
35%
40%
%RankedasMostInfluential
%EngagedinTouchpoint
Preshop Touchpoints Rank #1
Retailer
Website/
App Net
Internet
Search
Net
Email Ad
Net
Brand
Website/
App Net
Social
Media
Post/Ad
Net
In-store
Net
Offline
Ad Net
Reco
Net
Blog/
Online
Forum
Net
Read as: Among all online purchasers, 37% visited a retailer website/app in the days or weeks leading up to a purchase

POLL QUESTION:
Thinking back to when you last made a purchase on a
retailer site (Amazon.com, Walmart.com, Target.com, etc.),
what was the reason you chose to buy at that specific
retailer? Pick one.
- Convenience
- Shoppability
- Price/Value
- Assortment
- Service

Convenience matters more than price
36%
47%
52%
57%
66%
Service
Price/Value
Assortment
Shoppability
Convenience
Reasons for choosing a retailer for product purchase
Read as: 66% of online purchasers say convenience is the main reason they
choose to purchase at a specific retailer

Advertising is helpful, not a hindrance
36%
click on a least one ad*
28%
click on at least one sponsored
product*
54%
say advertising either helps
remind them of something they
need, or it prompts an idea for
something they want*
*among those online purchasers who saw an ad or promo while shopping for a product prior to purchase

Social commerce gains momentum
59%
of online purchasers who are
aware of social commerce
61%
of those aware are either
very, or somewhat, likely to
purchase from social sites in
the future
15%
24%
35%
26%
Not at all likely
Not very likely
Somewhat likely
Very likely
Awareness of social commerce
Yes 59%No 41%
How likely to purchase from social media in future

BREAKING MEDIA SILOS:
Eliminate waste and improve effectiveness across platforms2

Importance of a cross-channel, cross-retailer
approach
If advertisers want to maximize sales and
grow their brand, no longer can they look
at retail media as a stand-alone channel.
They must take a cross-channel retail
media approach that is inclusive of
traditional retailers as well as search, social,
and programmatic.

Navigating and connecting a fragmented landscape
Companies are using a wide variety of platforms for digital marketing activities
Top 5 platforms for digital marketing activities
72% 67% 61% 50% 49%
Read as: 72% of companies use Facebook for digital marketing activities.

More than half of industry professionals have increased their budgets across most digital
advertising tactics that they had been investing in: 44% say the funds are incremental
67%
67%
66%
66%
63%
60%
57%
57%
56%
54%
53%
51%
50%
49%
47%
44%
24%
24%
24%
23%
28%
30%
36%
32%
37%
26%
24%
41%
27%
46%
35%
38%
9%
9%
10%
11%
9%
11%
7%
11%
8%
19%
24%
8%
23%
6%
18%
18%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Amazon Advertising
WMG (Walmart) advertising
OTT/CTV
YouTube ad
Social media ad
Podcasts
Email marketing
Paid search
Target advertising/Roundel
Audio
Digital "out of home" advertising
Organic Search
Kroger advertising
Product listing ads
Influencer marketing
Display ad
2020 digital ad platforms - ordered by "increasing"
Increasing Same Decreasing
Read as: 67% of professionals investing in Amazon Advertising plan to increase their budgets for this platform.

Lean into experts
In a complicated and rapidly
changing environment, brands are
capitalizing on partners’ specialty
skills, tech, and experience on their
path to an integrated and
comprehensive ecommerce strategy.
“You need to find the best agencies
leveraging the best tech in order to
compete.”
John Denny, VP Ecommerce & Digital Marketing, CAVU
Venture Partners

Brands and agencies are taking this approach already
61%
reported that they manage
Amazon both in-house and with
an agency
46%
reported using both in-house
and agency teams to manage
advertising on Kroger
36%
reported using a hybrid model
for managing advertising on
Target
34%
reported that WMG is managed
in-house and another 34%
saying that it is managed
through an agency

The expectation is for greater collaboration in the future
Agencies are reporting an expected
increase in opportunities to support
brands’ retail media efforts
56%
of agency respondents saying that they expect more
RFPs in ecommerce and retail media in 2020.
When it comes to ecommerce, one reason could be
that many brands manage retail media programs
through their in-house shopper teams or brand teams
instead of digital teams or search teams, relying on
their agencies to recommend holistic media plans.

MORE THAN CONVERSION:
Consumers redefine the value of product detail pages3

POLL QUESTION:
When scanning through search results (either on traditional
search engines like Google or retailer sites like Amazon), do
you ever scroll beyond the first page?
- Yes
- No
- Don’t recall / Not Sure

The power of the PDP
45% of online purchasers go to PDPs to learn about the product at the time of purchase
Contrary to past search engine behavior, consumers are indeed
reviewing PDPs beyond page 1, demonstrating the need and
opportunity for compelling and helpful PDPs even if they may
not be for a priority product.
49%
of online purchasers scroll past page 1
to look for what they want
56%
of Millennials (ages 24 – 41)
54%
of Gen X (ages 42 – 55)
For younger generations, this is even higher. Online
purchasers scroll past Page 1 when researching products
and brands.

PDPs are a critical asset for brands, but can be undervalued
of ecommerce professionals say
they are focused on optimizing
their PDPs for SEO across the
online platforms they use for
digital marketing.
37%

“The search bar and product detail page are the primary places where consumers will
interact with your brand…the PDP is your brand marketing – most companies don’t
understand this. Millions of dollars are spent on the brand’s website, but only a small fraction
on the PDP, but it should be opposite.”
Rob Gonzalez, Co-Founder & CMO, Salsify

Search’s importance transcends age, platform, and consumer touchpoint
When asked what trend is having the greatest impact on their
company’s ecommerce marketing strategy in 2020, the majority
of respondents ranked the “changing role
of search marketing” as the top trend.
53%
Millennial online
purchasers are search
super-users
33%
Boomer online purchasers
using search at time of
purchase
0%
10%
20%
30%
40%
50%
0%
10%
20%
30%
40%
50%
Product Detail
Page Net
Search Bar
Net
Ads/Promos
Net
Another
website / app
Net
Chat/Help Net
%RankedasMostInfluential
%EngagedinTouchpoint
Nets Comparison - Ordered by Touchpoint
Engagement
Online Buying Touchpoint Rank #1
Read as: Among all online purchasers, 45% visited a PDP at the time of purchase

Importance of bidding on broader category search terms for optimal findability
should not be underscored
31%37%
of online purchasers
search a specific type
of product
search for a specific
brand

GOING BEYOND ROAS:
Integrate media and KPIs for sustained growth4

Looking at the whole picture
ROAS can be easy to measure
and is not without value, but it is
not the be-all end-all of reporting
for ecommerce or other
performance marketing channels.
“If brands aren’t careful, they are
going to ROAS themselves into
a corner.”
Kristina Smith, VP, Digital Marketing, The Riveter

Looking at the whole picture
Look at a combination of metrics
together for a more robust and
valuable picture of your ecommerce
performance (CPA, SOS, CLV).
Share of search “helps us balance ROAS
with how advertising is performing and
growing relevancy within products.”
Trevor Krehel, Channel Marketing Manager, Seagate
“Finding and integrating all data sources in
the company takes time, but it is the
future.”
Bob Land, Vice President of Consumer Experience, Dorel
Juvenile

Most marketers agree that measuring success is achievable across traditional
advertising, but less so for emerging options
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Amazon Advertising
Target advertising/Roundel
WMG (Walmart) advertising
Kroger advertising
Social media ad
Email marketing
Display ad
Paid search
YouTube ad
Organic search (SEO)
Influencer marketing
Digital 'out of home' advertising
Product listing ads
Audio (e.g. Pandora, Spotify)
OTT/CTV (Over-the-top media / Connected TV)
Podcasts
Very well/moderately well Not very well/Not at all well
Read as: Among ecommerce professionals who used Amazon Advertising in the last 12 months, 90% indicated that they were able to measure ROI very well or moderately well, while only 59% say the same for podcasts.

Solving for the data dilemma
Most organizations agree that having
better data analytics is the key to
growth.
56%
In fact, when asked what activities
industry professionals are allocating
ecommerce budget for, the highest
percentage of respondents (56%) said
data and analytics services.

OPEN FOR COLLABORATION:
Brands need retailers and retailers need brands5

Sharing responsibility for growth
Allowing for branding consistency will bring a
more holistic view and clearer communication
with the consumer to encourage purchase, a
win-win for both brands and retailers. Most
industry professionals agree that the biggest
opportunity in ecommerce in the next 5 years
will be improving the user’s experience.

Elevate partnerships to promote transparency
with data and metrics
To reach the next level of growth in ecommerce,
brands and retailers need to elevate their
partnerships, specifically around data sharing
and performance measurement.
29%
of agency professionals ranked performance
tracking, measurement, reporting and analytics
as the biggest opportunity for partnering with
ecommerce retailers

THE RACE IS ON TO OWN THE THIRD SHELF:
The exceptional rise of online grocery and last mile delivery6

Last mile providers continue to gain
momentum
49%
of online purchasers have used
Amazon Prime Now and nearly
one quarter have used Instacart

Online grocery just isn’t for ‘grocery’ any longer
4%
5%
17%
14%
13%
8%
44%
35%
38%
45%
45%
29%
52%
60%
46%
41%
42%
63%
Amazon Prime Now
Deliv
Postmates
Doordash
Shipt
Instacart
More than in the past The same as in the past Less than in the past
Planned usage of delivery services in the next year
Read as: Among those online purchasers who used Instacart, 63% plan to use the service more in the future.
Note that Shipt, Postmates, and Deliv are small bases: use only directionally.

“Online grocery was primarily a food play in the past, but this has changed massively,
and this trend will continue post COVID.”
Steve Kinsey, Director of Commerce Marketing, GSK
“Instacart can work to ship things like ice cream and cheese, but many brands with
these products have not been spoken to from an ecommerce perspective. They’ve
been focused on upper funnel, so to talk lower funnel requires some education.”
Seth Dallaire, Chief Revenue Officer, Instacart

The Instacart story
Key trends, opportunities, and challenges for marketing
The savviest brands are hard
at work figuring out how to
win the first basket.
Our research reveals that
65% of Baby Boomers
that have used Instacart
report that they plan to use
the service more in the
future.
Brands will need to reset
expectations and adopt a
digital mindset to be
successful in the online
grocery world.
Winning the
First Basket
Expanding
Demos
Adapting to the
Digital Experience
Many of our interviewees
recognized the promise of
Instacart, but also reported
growing pains, as is to be
expected with any nascent
media platform.
Optimistic
Future

THE NEW MOMENTUM MINDSET:
Prioritizing progress over perfection7

“One way I try to do this is by having an experimentation mindset, like a growth hacker:
identifying small, incremental changes that, when compounded over time, can
accelerate the rate of growth.”
Ricky Busby, Brand Building Leader for New Ventures, Georgia-Pacific

of professionals see their companies as leaders
in ecommerce8%

Two areas to fuel momentum
DTC
For many organizations, DTC is a relatively small percentage
of sales, but provides access to data and insights and test ‘n
learns that fuel greater innovation and success in ecommerce,
and other channels.
88% of industry professionals say their company sells
DTC
62% of industry professionals say it is a strategic focus
to increase DTC sales
3P
Companies see the value of 3P to test products and gain more
insights on their consumers. Leading brands are evaluating 3P
to uncover incremental opportunities across product portfolios
or white space.
44% of industry professionals say their company is selling
3P
49% of industry professionals say it is an opportunity

Recommendations
• Ensure brand presence is equally strong and integrated across all platforms.
• Assess all areas where you can raise the level of convenience and ease for
shoppers.
• Augment PDPs with best-in-class content and invest in search to maximize
findability & conversions.
• Develop customized retail media strategies and don’t let scalability scare
you off.
• Explore a variety of KPIs across all functional groups and gain buy-in on
their validity.
• Schedule consistent time to sit with your retailers so you can improve data
sharing without compromising privacy.
• Don’t go it alone. Lean into expert partners to capitalize on all opportunities.
• Explore online grocery and last mile delivery, even if you aren’t a traditional
grocery brand.
• Don’t wait until it’s perfect - test ‘n learn now.

THANK YOU
FULL REPORT
COMING SOON

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Disclaimers
The analyses and conclusions presented in these materials represent the opinions of Kantar
Consulting LLC. The views expressed do not necessarily reflect the views of the management of the retailer(s) under discussion. These materials
are not endorsed or otherwise supported by the management of any of the companies or organizations discussed herein.

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