Trends and innovations are taking shape in e-commerce, small business, content consumption, digital currencies and more.
By: Bensimon Byrne
Tags: Digital Marketing, Ecommerce, Marketing, Advertising, Brand Strategy

With 2020 coming to an end, there are opportunities for advertisers and brands alike heading into the new year.

1. Standing up for small businesses

Small businesses are fighting two Goliaths, lockdown restrictions and e-commerce giants, and brands have an opportunity to give them a fighting chance.

THE FACTS:

If you search the headlines for the impact of COVID-19 on small business, the results are disheartening. According to Yelp data, nearly 100,000 small businesses in the US have permanently shut down during the pandemic.¹ In Canada, March and April had the highest number of business closures since Stats Canada began measuring in 2015.² In particular, micro-businesses with fewer than 10 employees have experienced the largest decrease in sales.³ With cities across North America currently experiencing lockdowns due to the second wave of the virus, the headlines are only going to get worse. In Canada, it’s expected that half of small businesses will experience further decreases in sales.⁴ Add to all this the fact that small businesses employ over 66% of the Canadian workforce⁵ and 33% in the United States,⁶ it’s no wonder this has been headline news.

THE OPPORTUNITY:

Small businesses are the backbone of commerce as well as community. People are rallying to support the businesses they love, such as customers at a Toronto bar who bought out their inventory to help the business stay afloat,⁷ and support for a Philadelphia bar’s GoFundMe page far surpassing its $10,000 goal.⁸ On a larger scale, the LCBO paused its partnership with Skip the Dishes in response to community backlash on how it impacts small businesses.⁹ According to a poll of UK citizens, 51% are making an effort to do their holiday shopping from small businesses, with most of them hoping to avoid large corporations entirely.¹⁰ This movement to save local businesses presents an opportunity for brands to connect with community.

OUR RECO:

At first thought one might wonder how a big brand could get involved in a movement that supports local businesses, but for the right brand with the right intention it can. Brands can use their social media channels to highlight local businesses that sell their product and use Facebook and Instagram’s in-built shopping capabilities to drive traffic to their stores. To encourage traffic to these stores, brands can also create rebate programs or discounts for purchases made at independent retailers. Similarly, financial institutions can offer guidance on how to manage their cash flow in these trying times through podcasts or short YouTube videos, and can show acts of solidarity like reducing POS fees or assistance with setting up loyalty programs. Lastly, brands can use tools like Google Maps to help consumers find the closest local retailers that carry their product.

2. The not so distant Bitcoin wave

While cryptocurrency is still in its infant stages, there are forces that are driving its exponential growth.

THE FACTS:

In 2019, cryptocurrency in the global marketplace represented a cumulative market cap of over $230 Billion, up 75% vs previous year. According to the very same report, more than 100,000 retailers now accept Bitcoin worldwide.¹¹ In the US, people can use their cryptocurrency to buy cards through Bakkt, a digital asset manager owned by the NYSE, for a variety of brands such as Starbucks, Home Depot, Best Buy, AirBnB, Nike, WholeFoods and Domino’s.¹² In Canada, luxury retailer Maison Birks has partnered with Bitty to accept cryptocurrencies.¹³ In Ontario, residents of Innisfil and Richmond Hill will soon be able to pay property taxes with cryptocurrency.¹⁴ And most recently, Visa announced a new partnership with cryptocurrency startup BlockFi to offer a credit card that rewards purchases with Bitcoin.¹⁵

THE OPPORTUNITY:

The announcement of a major financial player promoting cryptocurrency will accelerate the adoption of digital currencies. While we have seen some traction in Canadian business, we don’t expect everyday shopping with cryptocurrency to be a reality anytime soon. Not-withstanding, cryptocurrencies offer brands unchartered opportunities that will take time to explore because of the complexity of digital currencies. Brands should use this window of time between early adopters and the early majority to prepare for the opportunities that cryptocurrencies can offer.

OUR RECO:

Engage with startups who act as fund managers and brokers of cryptocurrencies as a way to get a lay of the land. Consider engaging Shopify for insights as they have already integrated Bitcoin as an accepted currency on their platform.¹⁵ In addition to integrating cryptocurrency as a form of payment, brands should explore ways to integrate digital currency into all of their marketing activities. Millenials and Gen Z are the most open-minded when it comes to cryptocurrencies; if you are looking to target these audiences, do so through sales or discounts with Bitcoin payment or incentivize with ‘cash back’ with Bitcoin. Similarly, brands could work with fin-tech startups to integrate digital currency into their reward programs.

3. Product placements set skyrocketing sales

Recently a Netflix show about a chess prodigy sent chess set sales soaring. Could product placements in content on streaming services eventually take over traditional advertising?

THE FACTS:

Netflix’s latest craze, “The Queen’s Gambit”, a story of a chess master excelling in a male-dominated world was watched by 62 million households around the world in its first 28 days of release.¹⁶ The show’s massive success catapulted inquiries for chess sets on eBay by 215%, and sales increased 125% in the U.S. alone¹⁶. The Queen’s Gambit is just one of many success stories of product placement on streaming platforms. As of 2020, Netflix, Hulu and Youtube have accumulated 191.5 million subscribers.¹⁷ And earlier this month, Warner Bros. Films announced that it will distribute its’ 2021 new releases on HBO Max in the US.¹⁸

THE OPPORTUNITY:

Streaming platforms open up many new product placement possibilities. Netflix, Crave, Amazon Prime, and other platforms gather a massive amount of data from users under a vast number of criteria. By collecting data on browsing and scrolling behaviour, they can better understand consumer interests, offering brands better planning capabilities. They track when people pause, rewind, or fast forward through a show, gaining insight into key moments of attention from a user perspective. Brands can leverage these insights to add more value to their advertising and product placement opportunities. These are few of the many possibilities streaming platforms can offer.

OUR RECO:

Product placement through streaming services is a relatively new concept. We recommend engaging platforms like Netflix, Amazon and Hulu to get further insight into how these platforms work and what potential product placement opportunities they can open up for your brand. Also, engage with social media teams and community managers to keep an ear on the ground for the shows and movies that your target audiences are talking about to better inform your product placement strategy. Lastly, if your brand chooses to do a product placement deal with a show, leverage the data to inform your promotion strategy to further enhance the effectiveness of this opportunity.

4. Social media is the new shopping mall

2020 has brought the surge of in-app purchases and a focus on social commerce from brands, influencers and social media scrollers.

THE FACTS:

This year, 42% of all online shopping was done from a smartphone.¹⁹ Estimations are putting e-commerce sales at over $735 billion by 2023.²⁰ As this year provided us with an immense amount of free time, 51% of adults have increased time spent on social media.²¹ Seeing this opportunity to grow revenue, social platforms and brands alike looked to insert themselves in the spaces consumers know and love. In fact, social commerce has sparked a 24% increase in shoppable ads on Facebook and a staggering 43% increase in adoption on Instagram.²² With a massive pool of shoppers already spending time on social media, nearly three out of every ten brands plan to leverage instant social commerce in the next twelve months.²³

THE OPPORTUNITY:

Shoppable ads, product and brand tags, product guides and creative assets that allow brands to display and promote their products in a captivating and personalized way offer brands the opportunity to use social shopping. Some brands have already created new and remarkable shopping experiences. For instance, Air Jordan partnered with Snapchat to create an AR filter of Michael Jordan’s legendary dunk from the free-throw line, while also giving them the exclusive opportunity of buying the AJ III Tinker sneaker through the platform itself.

OUR RECO:

As we enter 2021, brands must prioritize social commerce integration into their marketing strategies by developing social shopping experiences that move beyond social content creation. Brands will benefit from translating physical retail experiences like flagship stores and pop-ups into the digital realm, driving e-comm sales while creating surprise and delight moments. Brands can and should take advantage of test and learn functionalities offered by these platforms to optimize these new shopping experiences. Those brands who are imaginative and push possibilities will be more successful than those who think of social commerce only a place to post links to shop on their website.

5. The cure for the winter blues

As the coldest months of the year arrive, brands have the opportunity to leverage the power of nature to uplift consumer spirits.

THE FACTS:

Urbanization has created a disconnect between people and nature, which has had a negative impact on our mental well-being. Research shows that city dwellers have a 20% higher risk of anxiety disorders and a 40% higher risk of mood disorders.²⁴ COVID-19 restrictions in addition to the winter blues, will make the first 3 months of the year more difficult for people who experience anxiety and depression. However, there’s plenty of research that shows that spending time in nature, bringing nature in, or even watching nature content can positively affect people’s emotional states.²⁵ ²⁶ ²⁷

THE OPPORTUNITY:

Brands and employers have an opportunity to connect people to any type of nature in creative ways at a time when people will need it the most. Whether it is spending time in nature, incorporating nature into your home or experiencing it through digital platforms, research shows that it is all beneficial. With a significant part of the population working and studying at home now, ideas that bring the outdoors inside will help connect the brand on a psychological and emotional level and will contribute to the overall health of the population. This is especially important during the holidays, as people will be spending time away from loved ones this year and COVID-19 can creates even more uncertainty.

OUR RECO:

Flower and garden centres can lean into sales of indoor plants or reposition the use of flower delivery based on the need to connect with nature and also uplift mood and air quality. Even artificial plants can have a positive impact. Brands with big marketing dollars can include more nature in TV, video and audio spots as a way to bring more exposure of nature to the masses. Tech brands could partner with travel brands and lean into virtual nature experiences, as VR shows to be a very strong replacement to authentic nature. We have seen brands create a 24 hour chicken roasting channel; what if an office supplies brand created a 24 hour of nature channel for office workers? Home and bath shops should lean into nature scented candles, soaps, or bath products. Soup brands could use garden seeds or herbs as promotional giveaways. Health and wellness is already a major trend amongst urban dwellers. Health related marketing will be especially poignant and attention grabbing as we continue to navigate through COVID-19 quarantine this winter.