In 2020, there were 9,300 store closings across the United States. This year, according to the Brand Disruption 2021 report by the Interactive Advertising Bureau (IAB), 25,000 stores will shut down.
This shift to a storeless environment means companies are increasingly relying on digital channels to reach their audience. Shoppable media—which includes live streams, social commerce, virtual consultations, and shoppable ad formats—is part of this strategy. Facebook is investing in shopping capabilities for WhatsApp, Instagram, and Facebook Shops.
In 2019, shoppable media ads were used by 33% of marketers and that number is expected to reach 40% in 2020. IAB found that the fastest-growing digital channels are paid search and social media—media spending is expected to increase by 26% and 25% respectively in these areas.
These changes can be tied back to the pandemic and though many stores won’t re-open, demand for other pandemic-accelerated services will remain. Whether it’s being able to buy online with store pick-up or get personalized recommendations in Instagram Shop, consumer demand for instant shopping gratification is here to stay.
Source: Marketing Dive
