The fashion and beauty industries have a long history of ad selling.
But this year, they’ve seen a dramatic spike in the number of people who are paying to shop.
In 2016, fashion advertisers paid an estimated $1.3 billion to retailers for ad space, according to market research firm eMarketer.
In 2017, the number is expected to be $1 billion.
But that doesn’t necessarily mean the ads are getting more expensive.
“It’s the same kind of numbers, but the numbers are really, really high,” said Steve Johnson, founder of marketing firm, KMR.
“The amount of dollars that have been spent is staggering.”
Advertising has traditionally been a way for companies to market to customers, but with the advent of social media and the rise of e-commerce, more and more brands are turning to advertising as a way to reach new audiences.
“Advertisers are seeing a lot more social media engagement,” Johnson said.
“They’re seeing more people in their target demographics.”
According to Johnson, there are several factors behind this trend.
“I think the big thing is that more people are starting to realize that there are other avenues to reach people,” he said.
In fact, the majority of people surveyed said they were more interested in shopping online than at a store.
“People are starting see other ways to get their product and service delivered,” Johnson added.
“And that is the reason that a lot of brands are starting more to pay for ads, which is more about getting more engagement.”
This trend has been especially noticeable in the fashion industry, which has historically relied heavily on direct-to-consumer advertising, Johnson said, but this year it’s been taking more of a more digital approach.
“Now, you have all these social channels, you’ve got Instagram, you’re seeing people are just more and so many of the companies are starting taking digital to the next level,” Johnson explained.
“A lot of these people are getting the social proof that the online audience can be a part of the experience.”
Johnson believes this is partly because the more consumers see a company’s product or service, the more they’ll spend on it.
“If you see an opportunity, you’ll probably buy something,” he continued.
“But I think the trend that we see is, people are going to be more and much more savvy about how to spend their money.”
This could be seen in a recent study from eMarket, which found that a significant number of consumers say they would buy from an online retailer if they had to.
“We found that almost 60 percent of respondents would purchase a product or an app from an offline retailer if it meant the company had the right product or the right app,” said the study’s author, John D’Esposito, an analyst with eMarker.
“In other words, we found that over half of consumers would be willing to spend $100 or more on an online purchase if the retailer had the correct product or app.”
According the study, the digital transformation is also affecting the way people spend money.
“When you go to an online store, you think about your time and the money that you’re going to spend,” said Johnson.
“You think about all the time that you spent there.
But then, you don’t really think about how that money is going to make your life better, which can really make you feel like you’re wasting money.”
The digital revolution isn’t just affecting consumers; it’s also changing the way companies manage their business.
While the online world has brought about a new paradigm, it’s not just about online purchases.
“Online is changing the business model.
Online has changed how brands have to do business,” Johnson pointed out.
“So the next challenge that I think is going on is the ability of brands to be self-sustainable.”
According a recent survey by eMarkets, a leading fashion and consumer insights firm, 83 percent of online shoppers say they are willing to pay a higher price for their goods.
“This is an industry that has historically been self-sufficient,” said eMarketers co-founder, Jonathan Smith.
“There is a lot going on, but there is no money in it.
There is no revenue stream.
It’s a self-sufficiency that has never existed before.”
For retailers, this shift is particularly concerning because the way they manage their online presence has traditionally relied heavily upon sales and marketing, with a focus on keeping up with the latest trends and trends in fashion.
In 2018, for instance, nearly half of all online sales were from retailers, according eMarkers.
“What I see is that as more people start to see how important online shopping is, it is only going to become more important,” Johnson predicted.
“As people start looking at online shopping as more of an investment, I think retailers are going be really looking at their online strategies and their social media strategies and trying to find ways to better manage the interactions.” The