Apple Ads

Marketing expenses, according to several ad agencies and researchers, are rising, which could signify a change in how firms find clients.

To drive customer acquisition, ecommerce retailers and direct-to-consumer brands have come to rely on advertising that targets shopper behavior.

This advertising was frequently delivered through Facebook and Instagram ads. The Meta ads channel grew so powerful that some sellers allocated their entire budget to it. So why not? A marketing team should double down on a channel that yields a high return on advertising spend. This was true of the Meta Ads platform.

Shopify announced Collabs on August 16, 2022, a two-sided influencer marketing platform that connects ecommerce brands with social media influencers.

Influencers can make money by promoting products for ecommerce businesses that use Shopify. The companies gain access to a new marketing channel. Collabs assists Shopify in entering the creator space. Shopify is almost certainly interested in increasing its own revenue and shareholder value.

Amazon is the best example of a new advertising channel in the ecommerce industry. Amazon's ad revenue is expected to surpass $31 billion in August 2022, making it the third-largest digital ad platform behind Google and Meta. Retail media advertising is Amazon's primary promotional product. This is an alternative to social media and Google searches for ecommerce brands or consumer packaged goods in general.

According to a February 2022 CMO Survey (in collaboration with Duke University and Deloitte) and several large ad agencies, marketing expenditures will rise in 2022 and 2023. On the surface, this does not appear to be unusual. Marketing investments have been steadily increasing for decades. However, some of that expansion may be attributed to Apple's iOS 14-induced tracking signal loss and the need to find alternatives to behavioral targeting. The CMO Survey is conducted twice a year and polls approximately 2,500 marketers at leading for-profit companies in the United States. In February 2022, respondents projected growth in 2022 and 2023, indicating the highest sustained marketing spend in years.

One could make the argument that it is a response to pre-Covid levels rather than true growth, but this does not illustrate the attraction to traditional media. However, less appropriate behavioral targeting could explain the growth.