Ecommerce is having a moment in 2020. A steadily-increasing shift to mobile turned into an all-out sprint with the onset of the global pandemic, shifting consumer behavior in unimaginable ways.
While overall US consumer spending is expected to decline this year, ecommerce spending is expected to increase 18% to over $700BN and 14.5% of the total retail commerce pie, according to eMarketer’s US Ecommerce 2020 report. This will represent both the largest slice of the pie and the largest year-over-year growth of the ecommerce channel.
Of total ecommerce spend, 14% is driven by affiliate according to Thesis. We’re excited to share how Button is shaping this marketing channel and the upside our partners are seeing by leveraging our Reach™ product.
Let’s first reflect on what this surge in ecommerce has highlighted:
It pointed out some of the inefficiencies of this channel. Namely, responsiveness to capturing latent demand and transforming it into habituated customer spend.
It has shifted consumer attitudes and normalized online purchases for sectors that hadn’t yet broken into the mainstream, like grocery, health, or beauty sales.
It has catalyzed an environment for invention and optimization—one that’s being filled by companies working on every aspect of consumer engagement.
Since our inception, Button has set out to transform the way businesses transacted in the mobile commerce channel. Importantly, and distinctly, we set out to do so with a concerted effort to ensure the highest level of attribution fidelity and data portability between publishers and brands. Companies from Sam’s Club to Hotels.com to Uber leverage Button to optimize their mobile partnerships.
While no one could anticipate the seismic economic impact in 2020, Button is well-positioned to extend its value. In partnership with networks, MMPs, CDPs, and other ecosystem players, Button has shaped an environment that allows each of those players to create more value on behalf of their retailers in the face of this consumer behavior shift.
It's a simple premise: get consumers to the point of purchase as effectively as possible. Then, get them to come back. Reach is the only mobile-routing technology optimized to deliver on this premise for affiliate, built upon a foundational understanding that mobile linking in this environment is highly complex, and maintaining accurate last-click attribution is paramount. Our latest advancement automatically unpacks this complexity into actionable decisions, at the sacrifice of nobody and the benefit of all.
By embedding the multi-armed bandit algorithm into our machine learning platform, we’ve unlocked the ability to generate real-time routing decisions with tap-level precision. Every tap is more intelligent, more seamless, and more profitable—bringing each consumer to the most performant point of conversion, whether that’s in app or on mobile web.
Over the last three months, we’ve seen a 37% lift (and growing) in conversion rate for one of our partners since their first day using Reach. If your average order value is $50, and you drive 1,000 mobile transactions a day, this improvement would generate an extra $6,752,500 a year in sales.
Our focus is on improving outcomes for brands and their network and publisher partners in affiliate as their success is literally ours as well. We are excited by the results our technology has created this year, and we are equally excited by just how much upside remains in this channel.
To learn how Reach can improve outcomes for your business in affiliate, contact us today.