# Slide 1 # US Apparel Sampler ## Ecommerce Forecast, Advertising Benchmarks, and Strategic Priorities # Slide 2 ## AGENDA ### 1 | Apparel Sales Forecast ### 2 | Advertising Benchmarks ### 3 | Strategic Priorities # Slide 3 ## US retail sales in apparel, footwear, and accessories will top $619 billion in 2025 *billions in US apparel, footwear, and accessories retail sales and % change, 2023-2027 (redacted)* | Year | Sales (Billions) | % Change | |------|------------------|----------| | 2023 | $582.87 | 4.1% | | 2024 | $606.13 | 4.0% | | 2025 | $619.16 | 2.2% | | 2026 | $---.-- | --.% | | 2027 | $---.-- | --.% | Note: excludes travel and event tickets, payments such as bill pay, taxes, or money transfers, restaurant sales, food services and drinking place sales, gambling and other vice goods sales Source: EMARKETER Forecast, May 2025 # Slide 4 ## Ecommerce sales in this category will continue to grow faster than physical store sales *% change in US apparel, footwear, and accessories retail sales, by channel, 2023-2027 (redacted)* | Year | Ecommerce | Physical retail | |------|-----------|-----------------| | 2023 | 10.7% | 0.7% | | 2024 | 8.5% | 1.5% | | 2025 | 3.2% | 1.5% | | 2026 | --.% | --.% | | 2027 | --.% | --.% | Note: ecommerce includes products or services ordered using the internet, regardless of the method of payment or fulfillment; physical retail includes products or services purchased via physical channels (e.g., stores, infomercials, printed catalogs, vending machines), and excludes products or services ordered using the internet Source: EMARKETER Forecast, May 2025 # Slide 5 ## Womenswear sales will have the sector's highest ecommerce penetration, reaching 49.1% by 2027 *ecommerce % of US apparel, footwear, and accessories retail sales, by subcategory, 2025 & 2027 (redacted)* | Category | 2025 | 2027 | |----------|------|------| | Womenswear | 45.7% | 49.1% | | Kidswear | 43.9% | --.% | | Menswear | 41.9% | --.% | | Footwear | 29.6% | --.% | | Jewelry | 18.3% | --.% | Note: includes products or services ordered using the internet, regardless of the method of payment or fulfillment; excludes travel and event tickets, payments such as bill pay, taxes, or money transfers, restaurant sales, food services and drinking place sales, gambling and other vice goods sales Source: EMARKETER Forecast, May 2025 # Slide 6 ## AGENDA ### 1 | Apparel Sales Forecast ### 2 | Apparel Advertising Benchmarks ### 3 | Strategic Priorities # Slide 7 ## Digital ad spending in this category will grow 6.0% in 2025—below the US average—but will rebound in 2026 *% change in US apparel and accessories vs. total digital ad spending, 2023-2027 (redacted)* | Year | Apparel & accessories digital ad spending | Total digital ad spending | |------|-------------------------------------------|---------------------------| | 2023 | 19.6% | 10.5% | | 2024 | 18.3% | 15.6% | | 2025 | 6.0% | 9.5% | | 2026 | --.% | --.% | | 2027 | --.% | --.% | Note: includes advertising that appears on desktop and laptop computers as well as mobile phones, tablets, and other internet-connected devices, and includes all the various formats of advertising on those platforms; total digital ad spending forecast from July 2025 Source: EMARKETER Forecast, Aug 2025 # Slide 8 ## CPM rates for fashion and fashion accessories advertisers are slightly below average across Meta and Google *US Meta and Google ad CPMs, by select industry, 2024 (redacted)* | Industry | Meta | Google | |----------|------|--------| | Fashion | $--.-- | $--.-- | | Fashion accessories | $9.57 | $7.61 | | Total | $13.37 | $10.61 | Note: the amount advertisers pay for every 1,000 impressions of their ads on the referenced platform; data represents activity among AdScale clients, broader industry metrics may vary Source: AdScale, Q4 2024 # Slide 9 ## Clickthrough rates for fashion ads are roughly 2% on Google and Meta, while accessories benchmark lower *US Meta and Google ad clickthrough rates, by select industry, 2024 (redacted)* | Industry | Meta | Google | |----------|------|--------| | Fashion | --.% | --.% | | Fashion accessories | 1.88% | 1.33% | | Total | 1.85% | 1.51% | Note: the total number of clicks divided by the total number of impressions attributed to the advertising campaign on the referenced platform; data represents activity among AdScale clients, broader industry metrics may vary Source: AdScale, Q4 2024 # Slide 10 ## AGENDA ### 1 | Apparel Sales Forecast ### 2 | Apparel Advertising Benchmarks ### 3 | Strategic Priorities # Slide 11 ## Create a measurement-first influencer strategy **Marketers Use Influencer Marketing to Support Many Different Business Goals** *% of social media marketers worldwide*, on their influencer marketing goals, by company type, Jan 2025 (redacted) | Goal | B2B | B2C | B2B2C | Total | |------|-----|-----|-------|-------| | Brand awareness | 67% | 79% | 61% | 66% | | Audience engagement | --.% | --.% | --.% | --.% | | Credibility and trust | --.% | --.% | --.% | --.% | | Revenue growth | --.% | --.% | --.% | --.% | | Customer loyalty and retention | --.% | --.% | --.% | --.% | | Product development and co-creation | --.% | --.% | --.% | --.% | ▪ Measurement can no longer be a post-campaign exercise; marketers should establish success metrics aligned with business objectives and campaign goals. ▪ Apparel marketers should adapt a framework that optimizes channels, placements, and metrics for specific outcomes. ▪ EMARKETER report: "Influencer Marketing Measurement 2025" Note: n=650; *Australia, the UK, and the US Source: Sprout Social, "Q1 2025 Pulse Survey Analysis" conducted by Glimpse, Feb 13, 2025 # Slide 12 ## Seek out underexplored advertising opportunities **YouTube, Reddit, and Subscription OTT Stand Out as Undermonetized Digital Media Channels** *US ad spending per hour spent with select digital media channels by US users, 2025 (redacted)* | Channel | Ad spend per hour spent by users (dollars) | Ad spend (billions) | Hours (billions) | |---------|-------------------------------------------|---------------------|------------------| | YouTube | $--- | $---.-- | ---.-- | | Reddit | $--- | $---.-- | ---.-- | | Subscription OTT | $--- | $---.-- | ---.-- | | Total digital media | $0.43 | $338.27 | 838.95 | ▪ Platforms like YouTube and Reddit drive massive engagement but remain undervalued in ad spend. ▪ Apparel brands should reallocate their spend on these platforms to take advantage of the latest ad formats. ▪ EMARKETER reports: "YouTube for Marketers Explainer" and "Reddit Marketing 2025" Note: ad spending per hour spent by users is total ad spending divided by adult users, then divided by average daily time spent by adult users; total hours are annual average time spent per adult user multiplied by adult users; subscription OTT calculation includes users of any age and time spent by adult users with ad-free subscriptions; YouTube gross ad revenues before traffic acquisition costs (TAC); Reddit net ad revenues after TAC; users are internet users who watch YouTube via app or website (ages 18+); access their Reddit account via any device (ages 18+); or watch video via any app or website that provides paid subscription access to streaming video content (any age) at least once per month; YouTube user forecast from March 2025; Reddit user forecast from May 2025; time spent forecast from June 2025 Source: EMARKETER Analysis; EMARKETER Forecast, July 2025 # Slide 13 ## Optimize for AI **AI Summaries Reduce Traditional Search Result Clicks by Nearly Half** *% of US Google searches resulting in each type of user action, with vs. without AI summary, March 2025 (redacted)* | Action | Pages with AI summary | Pages without AI summary | |--------|----------------------|--------------------------| | Leaving Google to browse a different site | --.% | --.% | | Continuing to search Google | --.% | --.% | | Ending their browsing session | --.% | --.% | | Clicking on a link from the search results | 8% | 15% | ▪ AI search is poised to radically transform the path to purchase. ▪ To continue driving brand awareness, apparel brands need to optimize across AI search and invest in new marketing channels that will make up for any decline in website traffic. ▪ EMARKETER report: "Navigating the AI-Powered Path to Purchase" Note: n=68,879 Google searches among 900 adults ages 18+; numbers may not add up to 100% due to rounding Source: Pew Research Center, "Google Users Are Less Likely to Click on a Link When They Encounter Search Pages With AI Summaries," July 22, 2025 # Slide 14 [EMARKETER logo]