Clicksco’s Digital Monthly – November 2018

Singles’ day generates more than the total UK holiday ecommerce, Cyber Monday breaks US records, talk of media collaboration, and more in November’s Digital Monthly!

Singles’ Day vs Black Friday – both winners!

November sees the start of the most significant time of the year for retailers – both online and offline.  Starting in the East; Alibaba set a new Single’s Day record with $31bn GMV sold within 24 hours, with the first $1bn coming in 85 seconds, and $10bn after just over 1 hour. Western brands should keep close eye on the event as it becomes increasingly international with over 18,000 brands from over 74 countries involved in this year alone.  The international element is also encouraging global CMOs to increase adspend in China e.g. 62% of top marketers see China as a key focus for campaigns in 2019.

 

 

Records were also broken in the US as Cyber Monday was the highest online selling day in US ecommerce history, with Amazon also seeing its biggest shopping day in its history.  Mcommerce continues to grow too, accounting for 54.4% of traffic and 36.7% of sales on Thanksgiving; 33.5% of sales on Black Friday; and 36% of Cyber Monday.  Some other interesting holiday ecommerce stats include:

GDPR complaints and Data breaches continue to rack up

In the 6 months since GDPR came into play, it seems to have became a regular occurrence for data breaches to appear.  For instance, at the end of October enforcement action was taken against French start-up, Vectaury, by the French Data Protection Authority, the Commission Nationale de l’Informatique et des Libertés (CNIL). However, the big players aren’t immune either as Google faces GDPR complaint over location tracking of millions of users across Europe for ad targeting purposes.

The latest in a line of data breaches was seen at the end of November as Marriot reported exposed data of 500m guests.

 

David Snocken, Head of Data & Strategy @ Clicksco

Facing these pressures head on Clicksco has always maintained its “ethical-by-design” mantra having gained ISO 9001 and 27001.  We also recently announced joining the Network Advertising Initiative (NAI) and IAB Transparency and Consent Framework, as part of our responsible data management pledge and avoid such risks.

“When it comes to data we always practice what we preach by considering at every stage of the handling process, whether what we are doing with a person’s data is both moral and appropriate.” David Snocken, head of data and strategy at Clicksco

Digital, innovation and collaboration key for publishers

Whilst digital media grows at the expense of print media, innovation must be sought. Sitting at the intersection of the digital AND print, MailOnline saw digital ad revenues overtake print for the first time – £122m vs £117m for the year ending 30-Sep-2018, referencing the importance of their “long-term approach to investment and increased focus on innovative technologies”.

As well as innovation, the idea of media alliances is also picking up pace. Whilst Buzzfeed chief believes media mergers strengthen their position to negotiate with the duopoly, Digiday reports that some believe it’s more about exploring new business models on what the duopoly can’t do.  Meanwhile GroupM’s latest “This year, Next year” report suggests a focus on “collaboration and measurements” is key.

The duopoly are also looking to help publishers too. For instance; to combat one of the biggest accusations against them – spread of fake news & damaging news publishing – Facebook is launching a new scheme investing £4.5m into UK local journalism.  Meanwhile; Google is also looking to help publishers with its ‘Google News Initiative’ which it recently expanded to Asia where it will grant up to $300k to pulbishers developing news business models & revenue streams.

Marketing tech investments continue into 2019

Whilst Gartner expects rising martech investments in UK and US, Forrester similarly estimates that US marketers will up martech investments by 27% over the next 4 years with data, adtech and marketing automation being key areas.  The aforementioned GDPR complaints & data breaches, and publisher struggles have clearly placed more focus on data and marketing tech.

For instance; relaying on data – programmatic will account for 65% of Global adspend in 2019 – $84bn – rising to 68%/$98bn by 2020; with US firmly dominating followed by China then the UK.  One of the latest entrants into the ad space chasing marketing budgets is Amazon who have recently released 2 data related tools – ‘Amazon Shopping Insight’ to help them tailor content to each individual, and ‘Direct Deals’ to sell more (higher value) reserved inventory.

An increasingly Chinese look to Digital Ad dominance?

Digital adspend will rise 17.1% in 2019 to reach $327.3bn led by the duopoly, followed by a Chinese contingent (BAT), Amazon and Oath,

 

IAB also released a number of adspend reports recently as US digital ad revenue reach $49.5bn for H1’18 with mobile accounting for 62.5%; and Europe digital ad revenue reach €25.7bn for H1’18 with mobile accounting for 40%.