DTC’s Amazon pivot, Black Friday wins & influencer ROI 📦

It’s December!

OpenAI is eyeing ads as a new revenue stream, with top talent from Google and Meta joining its ranks. For brands, this could mean first-mover access to ad products built on AI-driven insights.

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Updates ☕️

📈 Black Friday online sales in the U.S. hit a record $10.8 billion, a 10.2% increase from last year, with mobile purchases making up 55% of transactions.

💼 Google and the DOJ concluded their ad tech antitrust trial, with the DOJ labeling Google a "three times monopolist," while Google defended its market practices.

🛍️ Retailers recognize the need to upgrade technology, with many combining Google Cloud and AWS to enhance e-commerce experiences, according to Commercetools' CSO.

🇺🇸 President-elect Trump plans to impose 25% tariffs on imports from Canada and Mexico, and an additional 10% on Chinese goods, aiming to address issues like illegal immigration and drug trafficking.

DTC brands turn to Amazon for holiday hustle

With fewer shopping days between Thanksgiving and Christmas, direct-to-consumer (DTC) brands are leaning on Amazon’s Prime shipping to meet last-minute gift deadlines. From skincare to grooming products, here’s how brands are adapting to the crunch.

Amazon to the rescue: Brands like Geologie and Foria are pushing their Amazon stores and Buy with Prime integrations as DTC shipping cutoffs loom. Geologie, for example, will direct customers to Amazon starting December 19 to ensure two-day delivery. Foria is running identical promotions on its site and Amazon, shifting focus to Prime as the holidays close in.

The perks and pitfalls: Amazon offers speed and reliability, but brands must navigate tight deadlines, like Amazon’s October inventory cutoff for Black Friday deals. Higher fees and advertising investments are also part of the game, but the payoff includes increased visibility and reliable delivery during peak demand.

Strategic discounts: Manscaped employs a “diminishing discount strategy,” offering steep early-season deals that taper off closer to Christmas. Flash deals on Amazon complement this approach, targeting last-minute shoppers scrambling for guaranteed delivery.

Beyond Amazon: Brands like Foria are also driving traffic to brick-and-mortar retailers like Ulta, using store locators to guide customers. It’s all about meeting customers wherever they shop—online or in person.

The bottom line: With holiday chaos in full swing, Amazon has become a key player in helping DTC brands deliver on time. For shoppers, it’s Prime or bust. For brands, it’s all about planning smart and adapting fast.

Black Friday smashes records with $74.4b in global sales

Black Friday 2024 was a blockbuster for online shopping, hitting a global record of $74.4 billion, up 5% from last year, according to Salesforce. In the U.S., online spending surged to $10.8 billion, marking a 10.2% increase, per Adobe. This cements the shift from in-store chaos to digital dominance.

Mobile wins big: Mobile shopping continued its upward climb, making up 55% of all online purchases in the U.S., totaling $5.9 billion—a 12.1% year-on-year increase.

Discounts drive frenzy: Steep markdowns on toys (27.8%), electronics (27.4%), and TVs (24.2%) fueled the spending spree, as shoppers hunted for holiday gifts.

Chatbots step in: GenAI-powered chatbots saw a meteoric rise, with traffic to retail sites up 1,800% from last year. Around 20% of U.S. consumers used chatbots to find deals, hinting at a new era of AI-driven shopping discovery.

With $11.3 million spent per minute during peak hours, Black Friday’s online momentum shows no signs of slowing, proving that e-commerce continues to redefine holiday shopping.

Cracking the code on influencer marketing ROI

With influencer budgets up 74% in 2024 (CreatorIQ), brands are under pressure to prove ROI, but measurement remains a challenge. Here’s how marketers are tackling it:

The ROI challenge: Determining ROI is the top concern for 53% of marketers, according to Linqia’s 2024 report. Brand lift studies help track awareness but fail to measure mid-funnel metrics like watch time or creator integration into communities.

Media mix modeling gaps: While media mix modeling (MMM) is widely accepted, its TV-focused origins struggle with influencer campaigns due to lower impressions and platform shifts. Some brands are turning to digital-first models that incorporate watch time and sentiment analysis for better insights.

CPM deals gain momentum: To mitigate risks, many brands are moving to CPM-based contracts, tying creator pay directly to performance metrics. Half of marketers prioritize reach and CPM, followed by engagement (48%) and conversions (46%).

New tools in play: Innovative metrics like Traackr’s VIT (visibility, impact, trust) go beyond vanity metrics, blending reach, engagement, and brand lift. This holistic approach is helping brands like Unilever refine campaigns and prove value.

As influencer strategies evolve, focusing on deeper metrics like cultural relevance and brand love will help ensure long-term success.

NOTES 📝

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