B(r)and Togher. As ecommerce competition continues to rise, brands are collaborating with other brands to reach new audiences. This also gives them more first-party customer data to work with. To keep in mind though, relying solely on traditional advertising tools may not be as effective as it once was, as costs per click are increasing on major platforms. Despite these challenges, the number of online stores is still growing rapidly, with more than 26 million ecommerce sites vying for consumer attention.
This trend originates from the report:
Shopify - Commerce Trends 2032
The number of online stores doubled in 2021 compared to 2020. Competition was the biggest obstacle to achieving growth in 2022, according to the 350 global commerce decision makers we surveyed that year. More than 26 million ecommerce sites compete for their target consumers’ limited time and attention, with more retailers joining the competition daily.
But the advertising tools brands used to rely on are getting less dependable. Since the peak of lockdowns, ROAS has continued its decline as the costs per click on the biggest advertising platforms seem to be in a race for the top. Amazon’s cost per click more than doubled over 2021 while Google’s paid search cost per click rose in every category year over year in Q3 2021.
Cost per click for beauty products rose the most, growing 41% followed by Home & Garden with a 33% increase..