eMarketer forecasting analyst Eric Haggstrom and principal analysts at Insider Intelligence Andrew Lipsman and Nicole Perrin discuss the size and growth of ecommerce channel advertising, and where it is headed. They then talk about Sephora stores inside Kohl's, the future of the department store, and why Google is in a spat with the IAC.

eMarketer principal analyst Nicole Perrin and forecasting analyst at Insider Intelligence Eric Haggstrom discuss what they're paying attention to in 2021 and why: digital ad measurement, connected TV, and ecommerce channel advertising.

Ecommerce channel advertising is having a big year, with eMarketer forecasting accelerated growth for 2020. Profitero CEO Bryan Wiener joins eMarketer principal analyst at Insider Intelligence Nicole Perrin to discuss consumers' massive shift to ecommerce, how it's benefited the ad businesses of Amazon and other marketplaces, and what online sellers should consider as they strategize for Q4 and beyond.

Marketers will spend $17.37 billion on advertising on ecommerce sites and apps this year, according to eMarketer’s first-ever forecast of ecommerce channel ad spending. Ad spending on ecommerce properties will be up 38.8% from 2019—an acceleration of spending growth, thanks to the pandemic. By the end of this year, ecommerce channel advertising will represent 12.2% of US digital ad spend.

How does ecommerce channel advertising fit into the larger picture of search? Most, but not all, advertising that occurs on ecommerce properties is search, which we define as advertising where the primary targeting is based on a user query. We estimate that 72.2% of ecommerce channel ad spending this year falls into this category, and Amazon’s ad business is dominated by it. WHAT’S IN THIS REPORT?

Amazon’s net US digital ad revenues will rise by 41.0% this year as consumers shift dramatically to more ecommerce shopping and advertisers pay to get in front of shoppers at their leading destination.

During a year where investments in most advertising channels shrunk or stalled, connected TV ad spending is poised to keep growing.

Experimenting with advertising channels can yield up to 3% better advertising performance, research shows.

And it will also take a more generous cut of the ad revenues that run on nonpartner channels than it does on partner channels, where publishers generally receive 55% of the ad revenues associated with their YouTube videos. This means that ad inventory will be lower quality than what appears on YouTube Partner Program channels. On the bright side, it will likely be cheaper.

Like pay TV, vMVPDs have carriage fees, subscription revenues, and advertising. vMVPDs offer viewers access to live programming and the numerous channels that they are accustomed to with traditional TV. As vMVPDs become more popular, they are accounting for a larger share of TV networks’ audiences.

With COVID-19 putting pressure on media budgets, advertisers are figuring out how to realign their OOH strategies.

The coronavirus pandemic is putting a major dent in US digital ad spending growth. Outlays will increase by just 1.7% this year—read on to learn what that means for major ad channels and platforms.