According to DHL's 2024 Global Online Buyer Trends Report, sales made through social networks, known as social commerce, are expected to reach $8.5 trillion by 2030. Data like this shows that technological transformation has become essential for retail revenues, which is expected to become the largest advertising platform in the market in the coming years.
According toBruno Belardo, Vice President of Sales atUS Media, the leading media solutions hub in Latin America, entering the digital world represents a great opportunity for retailers. "It's a sector that has a deep understanding of consumer behavior and, if aligned with personalized advertising experiences with proven results, has the chance to be a protagonist," he says.
New investmentsCurrently, many retailers have been investing in big data and artificial intelligence (AI) to process and segment customer data in real time, so they can develop advertising campaigns that reach their target audience. Furthermore, there is a strong movement in the sector to incorporate new technological tools into processes that respect consumer privacy, in compliance with regulations such as the General Data Protection Law (LGPD).
Belardo adds that seasonal dates like Black Friday are also motivating companies to invest in qualified and efficient media strategies, as they have a high potential for traffic volume and transactions. A study conducted by Wake and Opinion Box confirms this scenario, revealing that e-commerce is the preferred channel for 58.2% of shoppers during the period, with marketplaces (47.8%) and apps (44.3%) following closely behind.
"Black Friday is a perfect time to show advertisers the Return on Investment (ROI) that digital advertising can have for retail," the executive highlights. "If retailers measure results and track the entire purchase funnel from start to finish, every user click could be the source of an immediate sale," he adds.
Focus on retail mediaThe rise of retail as an advertising platform is also driving its diversification of advertising channels, which can be mainly seen with the heating up of the retail media field. Omdia indicates that the strategy in question helped global industry representatives achieve $123 billion in revenue between 2019 and 2023, a number that is expected to increase to $293 billion by 2029.
Belardo explains that the growth of the format is due to its ability to engage consumers in various ways, whether on websites and apps or on external channels, such as social media.Out-of-Home (OOH) and on Connected TV (CTV). "Retailers are realizing that the integration between physical and digital can lead to more immersive and disruptive campaigns. The result of these experiences? An increase in the reach, relevance, and precision of their advertising strategies," he concludes.
