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Your order this week:
Mastercard to Simplify Online Card Use by 2030
Google Ad Manager Introduces Beta Email Ad Tags
Marketing Budgets Shrink 15% Year Over Year
Global Alcoholic Beverage E-Commerce Market Surges
Costco Eyes Ad Network Expansion
DIGITAL PAYMENTS
Mastercard to Simplify Online Card Use by 2030
Mastercard announced Tuesday (June 11) its goal to make online card usage as seamless as in-store experiences by 2030. The company plans to phase out manual card entry in Europe, introducing a one-click button for eCommerce transactions.
In a press release to PYMNTS, Mastercard outlined its vision for the one-click solution to expand to other markets after Europe. “It should be just as simple, safe, and convenient online as it is in store,” said Jorn Lambert, chief product officer at Mastercard.
Mastercard is collaborating with banks, FinTechs, and merchants to implement this shift. A critical element is tokenization, replacing traditional card numbers with random ones to reduce eCommerce fraud and facilitate seamless payments.
The plan also includes Mastercard’s Click to Pay system, easing adoption for merchants and bank partners. Additionally, payment passkeys will replace passwords with on-device biometric authentication.
“We can bring the same security, simplicity, and speed to online checkout that contactless has brought to the physical world,” Lambert added.
Mastercard’s latest data shows tokenized transactions grew over 50% year-over-year, now making up 25% of network transactions. This shift aligns with consumer demands for better fraud prevention in eCommerce, highlighted in a PYMNTS and Nuvei report.
ECOMMERCE ADVERTISING
Google Ad Manager Introduces Beta Email Ad Tags
Google Ad Manager has quietly launched a beta version of an advertising tag for email newsletters. These email ads are cookie-proof, not relying on third-party tracking cookies. With the impending end of tracking cookies in web browsers by 2025, publishers and advertisers are exploring new channels.
Email ads fall into three categories: sponsorships (flat rate), context-based (priced per action), and subscriber-targeted programmatic (priced per action). GAM’s beta supports all types but is optimized for programmatic ad slots.
Newsletter sponsorships are often personal endorsements from the sender, priced at a flat rate. Context-based ads align with the email’s subject matter, feature advertiser-written copy, and are action-based priced.
Subscriber-targeted programmatic ads are digital display ads based on the recipient rather than content. For example, a fishing newsletter might display a laundry detergent ad. Pricing is performance-based.
Programmatic ads use a linked HTML image tag with a unique subscriber identifier. The crucial clkk parameter combines a unique subscriber identifier, campaign ID, and date. GAM prohibits passing personally identifiable information, requiring hashed email addresses instead.
While the GAM tag supports all ad types, it delivers image ads only, ideal for programmatic ads. However, subscribers with images turned off won’t see these ads, and ad blockers may remove them due to their linkage to Doubleclick(.)net. Thus, GAM email tags are best suited for programmatic ads. Read more.
MARKETING TRENDS
Marketing Budgets Shrink 15% Year Over Year: Gartner Survey
A recent report from Gartner’s CMO Survey reveals a concerning trend in marketing budgets, showing a 15% decrease year over year. Conducted among 395 marketing decision-makers in Europe and the US, the survey highlights a significant decline in marketing expenditure compared to previous years.
Despite this downturn, there’s a glimmer of optimism among CMOs regarding the role of AI in marketing strategies. With budgets tightening—representing an average of 7.7% of total company revenue this year—CMOs are increasingly turning to AI to drive efficiency and productivity.
However, while Gartner’s findings paint a stark picture of budget constraints, a contrasting report from Deloitte, Duke University’s Fuqua School of Business, and the American Marketing Association suggests a slight increase in marketing budgets as a percentage of company revenues.
Nevertheless, the overarching sentiment underscores the need for CMOs to reassess priorities and embrace AI-driven solutions to navigate the evolving marketing landscape. As marketing budgets face constraints, investment in technology, particularly AI, emerges as a pivotal strategy to drive growth and innovation in the years ahead.
ECOMMERCE TRENDS
Global Alcoholic Beverage E-Commerce Market Surges
InsightAce Analytic‘s latest research unveils a promising trajectory for the global alcoholic beverage e-commerce platform market. Valued at US$2.19 billion in 2021, the market is poised to escalate at a compound annual growth rate (CAGR) of 34.3% from 2024 to 2031. This surge mirrors the burgeoning trend of online alcohol sales, as consumers increasingly opt for the convenience of purchasing beverages with just a few clicks.
The surge in e-commerce for alcoholic beverages stems from factors such as lockdowns and travel restrictions during the pandemic, prompting a shift towards online shopping. Liquor merchants worldwide have embraced online sales and delivery options to accommodate customers avoiding crowded stores.
COVID-19 catalyzed the premiumization of alcoholic beverages as consumers sought to replicate bar and restaurant experiences at home. This trend, driven by product innovation and increased disposable income, has propelled the growth of online alcohol sales.
North America is poised to dominate the market, fueled by the proliferation of e-commerce liquor platforms and rapid technological adoption. In the Asia Pacific, shifting lifestyles and expanding internet delivery applications are expected to drive substantial market growth.
Key players in the market include Thirstie, Danta, Naked Wines, Lot18, and others. Recent notable developments include Uber Technologies‘ acquisition of Drizly in October 2021, and BottleRover‘s expansion of free alcohol delivery services in April 2021.
These moves underscore the dynamic landscape and fierce competition within the alcoholic beverage e-commerce sector. Request a sample from the report here.
ECOMMERCE ADVERTISING
Costco Eyes Ad Network Expansion
Costco is developing an ad network based on its loyalty membership data, leveraging the shopping habits of its 74.5 million household members for targeted advertising. Currently testing capabilities and evaluating ad-tech vendors, the third-largest U.S. retailer aims to become a formidable player in the fragmented retail media space, projected to reach $166 billion by 2025.
The beta program supports sponsorships (flat rate), context-based (action-priced), and programmatic ads (performance-based), with a focus on programmatic slots. For example, a baby product brand could target customers who buy baby products. Costco’s membership cards link individual purchases to households, enhancing ad targeting and tracking.
Costco joins companies like Target, Walmart, and Kroger in capitalizing on customer shopping data amid increasing privacy legislation and tech platform constraints. Although late to the retail media scene, Costco sees this move as a strategic step to drive value for its members.
The company’s existing ads business includes its Costco Connection magazine and basic on-site contextual ads managed by Criteo. However, the new initiative marks a more aggressive foray into the ad space. With potential to quadruple its current media revenue, Costco aims to reinvest profits to keep prices low for consumers.
Signing off,
The Merchant @CartHustle