It is without a doubt that the pandemic has created a grim setup for the retail industry. However, amidst this grim setup, e-commerce occupies an extremely bright spot, especially in the US market. We explore the stats including sales breakdown of various product categories and the implications of the data in the following lines.
Data from e-marketer shows that almost a quarter of retail ecommerce sales is occupied by computer and consumer electronics and that this category is expected to grow by almost 20% this in 2020. More surprisingly, almost 50% of total sales in that category are done online. Consequently, computing products and consumer electronics industry accounts for the bulk of digital ad spending by tech companies e.g., Apple, Dell, Samsung, Sony, Cisco, IBM etc.
To set these numbers into perspective, the food and beverage industry, an industry that has also seen a large increase in sales in 2020 (more than 50% increase) only occupies roughly 6% of total ecommerce purchases and the sales online consist of less than 4% of total sales.
In fact, the pandemic has led people to spend more time indoors and a big share of this time was done online. This caused those online or seeking to be online to invest further in devices and services that enable them to be online more effectively - either faster, longer or more consistently.
But what does this mean for the ads industry? The impact of this boom ultimately leads to computing products and consumer electronics companies to spend ~12 USD billion on digital ads in 2020, up 18.0% from 2019. This represents the fastest growth in digital ad spend across all industries in 2020. By contrast, total US digital ad spend will grow just 1.7% this year.
It is without a doubt that the computer and consumer electronics is one of the first industries that has experienced a remarkable digital transformation towards the ecommerce push - but many will follow as consumers get more comfortable with shopping online.
Source: https://www.emarketer.com/content/consumer-electronics-sales-powered-by-ecommerce
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