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Branding After Performance: Rise of marketplace in Advertising: it´s all about the mindset


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rise of marketplace in advertising: it´s all about the mindset

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Branding After Performance: Rise of marketplace in Advertising: it´s all about the mindset

  1. 1. Marketing & Insights Director LATAM Advertising - MercadoLibre Juan Lavista #1 e-commerce and fintech in LATAM Rise of marketplaces in Advertising: It's all about the mindset
  2. 2. The birth of e-commerce ‘71 Stanford/MIT students trading pot ‘84 Jane Snowball: ordering groceries on her TV ‘94 Dan Kohn selling Sting’s CS ’94 Pizza Hut: Extra pepperoni online order
  3. 3. Source: emarketer, 2019. Retail eCommerce Sales Penetration Mobile Commerce e-commerce Latin America 5.8% 2.1% 4.2% 1.4% Western Europe North America 4.7% 10.7% 4.2% 10.3% China 36.6% 29.7% China vs LATAM: Lot´s of catch up = huge upside!
  4. 4. Source: emarketer, May 2019. LATAM = +$140Bn In 5 years, global e-commerce will grow 2x
  5. 5. Source: emarketer, May 2019. Argentina = +$2Bn In 5 years, argentinian e-commerce will grow
  6. 6. Marketplaces as distribution enablers to scale DNVBs in USA
  7. 7. 106MM USD average per brand in a year 75 largest web-only brands drove $8 billion in online sales last year Source: “Top Digital Native Brands”, Digital Commerce 360, 2018 Rise of Digital Native Vertical Brands
  8. 8. Brands are actively ring-fencing customers & benefits, to maintain leadership positions Acquisitions Active M&A strategy to manage biz erosion & capitalize white spaces
  9. 9. What worked before, might not be the recipe for today's online world
  10. 10. Dollar Shave Club and Harry's shrunk Gillette´s lion share from 70% to 50% Has your brand been disrupted yet? Source: CNBC, Sep 2018. VS.
  11. 11. Offline trade marketing dollars are moving to search on marketplaces
  12. 12. Digital shelfTraditional shelf
  13. 13. Visibility (Brick & Mortar) Visibility (Digital)
  14. 14. Advertising in e-Commerce
  15. 15. Do you think marketplaces are a place to do Branding or Performance?
  16. 16. Source: emarketer, 2018 Digital Ad Spending LATAM: growth projection Digital: +$1Bn/year+10pts in 5 years
  17. 17. Source: Forecast 2021, Digital Ad Spending US & China, emarketer, 2019 Marketplaces are winning share in digital ad spending China 2019 Digital Ad Revenues by Company USD 80 Bn Other media players % e-commerce/Retail 36.6% % e-commerce/Retail 4.2% Marketplaces 1% or less Others 34% Google & Facebook 66% % e-commerce/Retail 10.7% US 2019 Digital Ad Revenues by Company USD 129 Bn
  18. 18. Deep dive on marketplaces as media vehicles Source: “Amazon Ads: benchmark report”, Tinuti, 2019 & MELI Internal Data. USA: Advertisers are balancing Branding & Performance LATAM: Focus on Performance (for now) Branding Performance
  19. 19. What’s driving these choices?
  20. 20. Massive audiences... with purchasing mindset Search...
  21. 21. Source of NEW buyers 71% of all purchases in US leading marketplace are new-to-brand Source: “Amazon Ads: benchmark report”, Tinuti, 2019 Leaky bucket!
  22. 22. +65% online searches are made in marketplaces Source: “La primera vez que pensaste buscar este producto, ¿Por qué sitio web comenzaste?”, Estudio GFK, 2019. Where are you investing your search dollars?
  23. 23. Brands must build awareness inside the marketplaces at discovery stage 5 out of 10 top searches are unbranded Source: MELI Internal Data
  24. 24. “The challenge is rising above the noise”
  25. 25. Brands are 3x more likely to be purchased in a consumer initial-consideration - McKinsey
  26. 26. Do you now think marketplaces can serve as a brand building tool?
  27. 27. The power of INSIGHTS But what drives most value for brand builders & sales?
  28. 28. Discovery Consideration Purchase
  29. 29. Discovery Consideration
  30. 30. WHO are they? WHAT are they looking for? HOW do they buy? WHEN do they buy?
  31. 31. 2nd most purchased category in Argentina The portable knowledge center used by CEOs to reach success Books Insights Source: MELI Internal Data
  32. 32. Their most purchased category is construction Those survivors who lived their youth without mobile, internet, social & tinder Baby Boomers Insights Source: MELI Internal Data
  33. 33. 3x more conversion rate, concentrating +80% of our traffic Hundreds of icons that are on our cell phone, although 99% of us use only 10 Apps Insights Source: MELI Internal Data
  34. 34. Seasonality: Facts
  35. 35. Where 7 out of 10 product searches are unbranded and 80% is mobile a Monday that lasts a week (and sometimes more) Cyber Monday Source: MELI Internal Data Recap Seasonalities
  36. 36. 45% of sales during Hot Sale Those devices that make our lives a better place to live in Consumer Electronics Source: MELI Internal Data Recap Seasonalities
  37. 37. 19x more products purchases than a normal day and +90% from Brand Stores Black Friday The day when everyone goes mad on buying stuff they don’t need Source: MELI Internal Data Recap Seasonalities
  38. 38. Most purchased product during Cyber Monday 2019 in Argentina The real deal for first-time parents Diapers Source: MELI Internal Data Recap Seasonalities
  39. 39. Key Takeaways Branding: Brands need to drive awareness & consideration, specially amongst those in discovery stage Insights: Marketplaces have insights that only ecommerce platforms can deliver Performance: Brands are betting on marketplaces to connect with audiences in a purchasing mindset
  40. 40. Thank you