3 Things You Need to Know About E-Commerce in 2013
Here are the three key findings you need to know.
1. Online display advertising is booming, but the rules have changed.
The study found that the number of display ad impressions--impressions generated by things like web banners--delivered in 2012 hit 5.3 trillion, up 6 percent from 2011.
Despite the increase, the number of advertisers that delivered over 1 billion of these display impressions stayed relatively level over the course of 2012. According to the report, this means that small and medium-sized advertisers fueled this growth.
The methods and practices of web-based marketing also changed over the course of 2012, as advertisers opted for quality over quantity and made significant expansions into the video advertising.
According to the report: "With an average of 3 in 10 ads never actually seen by their target audiences, it is more important than ever for advertisers to evaluate campaign viewability to improve optimization and maximize the return on their media spend."
2. E-commerce is growing thanks to "showrooming."
Total U.S. e-commerce spending grew by 13 percent in 2012, reaching just under $290 billion. The report estimated that 11 percent of e-commerce spending in 2012 was done through smartphones, now known as mobile-commerce or m-commerce.
The report explained that this is likely a result of "showrooming"--when consumers trek to brick-and-mortar shops to check out new products and then buy them from a cheaper vendor online.
The report said: "Smartphones have become consumers’ most valued shopping companion as showrooming quickly becomes standard practice for in-store shoppers."
It warned that 2013 could mean trouble for companies who are unable to maintain presence multiple channels such as physical, online, and mobile stores.
3. VCs and angels want results, not ideas.
The report added: “Such renewed sobriety is an indication that 2012 promises to be the year of ‘show me the money.’”