CRC eCommerce Summit 2024

2024 Cleveland Research Company eCommerce Summit Conference Recap

High-Level Overview

The 2024 Cleveland Research Company (CRC) eCommerce Summit highlighted the most important trends and innovations shaping the eCommerce industry today. Below are the key themes from the event:

1. eCommerce Innovation on the Rise

   The eCommerce landscape is experiencing a surge in innovation, driven by advancements in AI, the growth of Retail Media Networks, and improved digital measurement practices. These developments are transforming how brands engage with consumers and measure success.

2. Bridging the Gap with Data

   Data is becoming the key to breaking down silos within organizations. By unifying teams across marketing, media, omnichannel sales, and analytics, brands can streamline decision-making and create more effective campaigns by focusing on high-quality, integrated data.

3. Retail Media Networks’ Growing Influence

   Retail Media Networks have seen tremendous growth, with Amazon leading the charge. Walmart and Target are also significant players in this space, and these platforms are now a critical component for brands looking to capture customer attention and drive sales.

4. Amazon's Increased AI Focus

   Amazon has significantly ramped up its focus on AI, with AI-driven tools playing a central role in how the company manages its platform. Brands will need to stay agile and align their strategies with these technological shifts to maintain their competitive edge.

5. Prioritizing Sales Incrementality Over ROAS

   Instead of focusing solely on Return on Ad Spend (ROAS), brands are being encouraged to emphasize sales incrementality—measuring how ad spend contributes to actual sales growth. This shift is expected to improve the effectiveness of advertising investments.

6. Content Accuracy in the Age of AI

   With Amazon's AI systems increasingly relying on accurate product detail pages (PDPs) for customer interactions, it’s more critical than ever for brands to maintain accurate, up-to-date product information. This not only affects customer experience but also boosts search optimization.

7. Marketplace Growth Driven by Third-Party Sellers

   Third-party (3P) sellers are fueling marketplace growth. Brands need a well-rounded strategy that incorporates both first-party (1P) and third-party (3P) sales to remain competitive in this growing ecosystem.

Amazon-Specific Insights

Amazon’s platform continues to evolve, and the CRC conference provided valuable insights for brands navigating these changes:

1. Leveraging Spanish Keywords for Market Reach

   Brands are using Spanish keywords to target a significant portion (~10-12%) of their market, capitalizing on demographic diversity and expanding reach within key categories.

2. Supporting Growth with B Terms

   Lower search frequency keywords (B terms) are proving to be a successful growth driver for brands that find it difficult to compete for high-cost, high-traffic keywords (A terms). Combining A and B terms in listings can help brands boost performance while keeping costs manageable.

3. Title and Bullet Point SEO Shifts

   Amazon’s algorithm no longer differentiates between titles and bullet points for SEO relevance, treating them equally. Brands should ensure that high-frequency (A terms) appear in titles, while B terms are well-integrated into bullet points to maximize search optimization.

4. No Need for Keyword Duplication

   Amazon’s algorithm now ignores duplicated keywords, so there’s no need to repeat terms within a listing. Instead, brands should prioritize exact matches to ensure higher SEO relevancy.

5. Boosting Visibility with Content Updates

   A recent 3P study found that updating content by 12% can extend the “honeymoon period” for an ASIN, leading to more page views. For major promotional events, brands should consider content updates about six weeks in advance to maximize visibility.

6. AI-Driven Content Optimization

   Amazon’s AI is now reordering content to emphasize exact match terms in titles and ensure critical phrases are prioritized. This highlights the importance of precision in keyword selection for improved SEO performance.

7. Amazon Marketing Cloud (AMC) for DSP Success

   Brands are leveraging Amazon Marketing Cloud (AMC) to create high-converting, profitable audiences for Demand-Side Platform (DSP) advertising. AMC also provides valuable insights into lifetime value (LTV) and New-to-Brand (NTB) ROAS, helping brands optimize their targeting strategies.

Retail Landscape Insights

The CRC conference also addressed broader retail trends that impact consumer behavior and market dynamics:

• Slower Consumer Growth: Consumer purchasing power has slowed to 2%, down from 3% over the past five years, as inflation and economic uncertainty persist. Value-oriented channels continue to thrive as consumers look to save.
• Dominance of the Big Three: Amazon, Walmart, and Costco are driving growth, accounting for one-third of all year-over-year market gains. These major players are expanding their dominance, leaving less room for smaller competitors.
• Amazon’s Investment in Logistics: Amazon’s $100 billion investment in sub-same-day centers positions the company as the top logistics provider. This, combined with the fact that 80% of Amazon’s revenue comes from search advertising, demonstrates the company’s focus on operational excellence and ad-driven revenue growth.

What Brands Look for in an Agency

The conference also revealed insights into what brands expect from their agency partners. Understanding these expectations can help agencies tailor their approach:

1. Seamless Integration with Brand Teams

   Brands want agencies to feel like a natural extension of their internal teams. They expect deep product knowledge and regular engagement, such as lunch-and-learn sessions, to stay aligned on goals and strategies.

2. Alignment with Brand Goals

   Agencies need to align closely with a brand's objectives and processes. Having an understanding of the brand’s unique challenges and goals is crucial for successful collaboration.

3. Preference for Local Connections

   Some brands favor agencies with a local presence, which allows for in-person meetings and stronger personal relationships. This hands-on approach can foster trust and better communication.

4. Access to Full Agency Resources

   Transparency regarding all available resources—such as ad tech tools, reporting capabilities, and expertise—is essential. Brands want to make sure they are utilizing the full range of services an agency can provide.

5. Hands-On Management and Accountability

   Brands expect clarity on who manages various aspects of their accounts, including keyword strategy and campaign execution. Agencies that provide clear roles and accountability are highly valued.

6. Dedicated Teams for Specific Areas

   Brands appreciate when agencies assign specialized teams for different focus areas like omnichannel strategy, Amazon, DSP, and search. This approach allows for targeted expertise and better results.

7. Consistency and Long-Term Stability

   One recurring issue brands face with agencies is high turnover. Stability and consistency in staffing allow brands to maintain long-term strategies without the need for constant re-education of new agency personnel.

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