Introduction

As we entered 2023, many brands were planning for the worst. Now, with peak just a few months away, the landscape remains challenging. However, there are clear strategies for success. Take a deep dive into the trends and opportunities for ecommerce brands in the July edition of the Readout.

Will Ashton CEO, Nest Commerce

Projections from the start of the year that we would see a sharp reduction in consumer spending have been proven wrong. Despite this, H1 results for retailers were mixed. Many brands are still doing very well. However, the online retail boom of the pandemic years is an increasingly distant memory.

Unlike this time last year, when the environment was far more unpredictable, there is now a clear playbook for success. While growth isn’t easy in the current landscape – it is out there for the taking. We will explore more on this in our H2 strategy pack later in the report.

Challenges from the macro economic situation and targeting issues mean that investing in upper-funnel and creative are now essential for success online.

We’ve seen a rebound in results in EU markets, with much higher returns compared to this time last year.

Meanwhile, Meta is performing better than at any time since iOS 14. We will delve into what is driving lower media costs and improved performance on the platform later in the report – but it is a welcome respite for brands that are feeling the squeeze.

We will be hosting a breakfast roundtable on Meta strategy for Q4 on 19th July in our London office for any brands that want to discuss these results in person.

Advancements in AI are having a big impact on media buying. Nimble organisations that are open to testing have the upper-hand here compared to large agencies.

We have more confidence in performance this Q4 compared to last year, with more than a year’s worth of data since the downturn. If the economy recovers next year, then investments made in advertising now will be even more important. Either way, there is still a working route for growing your brand.