Outlook for the US e-commerce market! Three major trends are becoming increasingly evident

It is learned that eMarketer recently released several key trends in the US e-commerce market and pointed out that 2022 will be a year of great challenges for the US e-commerce market. Inflation, supply chain, and economic downturn all affect e-commerce and digital advertising.

E-commerce spending is growing

E-commerce spending is growing, with eMarketer predicting it will exceed $1 trillion this year. Analyst Andrew Lipsman points out that this growth is not driven by flashy projects like augmented reality or social commerce, but by more tangible factors like mobile commerce, buy now, pay later, and click and collect. All of these drivers reduce friction and increase convenience.

That could mean trouble for Amazon, which saw its first decline in retail market share after failing to see its physical retail gain from the click-and-collect boom, but still dominates e-commerce market share.

Retail media advertising share rises

Retail media is the third largest trend in digital advertising and is on par with search and social media ad spending. As more people search for products in online marketplaces, more advertisers will also increase their retail media ad spending. Both will also rise in tandem with e-commerce sales.

But retail media isn’t the fastest-growing ad format, that’s going to be connected TV (CTV). However, inflation and economic turmoil could dampen CTV ad spending, as high-priced and high-contribution ads like CTV are often the first to be cut.

TikTok is reinventing social and advertising

TikTok is dominating the US social media market, which can be seen mainly from three aspects.

First, video accounts for more than half (56.5%) of Americans' social media usage time. Second, TikTok surpassed Instagram among Gen Z users in 2021 and will surpass Snapchat in 2024. Third, adults currently spend as much time on TikTok as they do on YouTube, and TikTok will surpass YouTube in the next year. If teenagers are included, the time spent is even higher.

TikTok is making progress in advertising. This year, TikTok will have 7.2% of advertising revenue, which will increase to 10.0% in 2024 and surpass YouTube for the first time. Economic uncertainty and changes in AppTrackingTransparency privacy have caused advertisers to invest more money in TikTok.

Editor✎ Ashley/

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