How the pandemic shifted consumer behaviour and forced innovation
Whilst under government orders to ‘stay at home’, we’ve seen huge shifts in how we work, shop and communicate, dramatically impacting both consumer and client behaviour. Over the course of the pandemic, our 24/7 online world saw a sharp rise in demand for e-commerce, direct to consumer and the rapid evolution of the subscription economy. Record numbers of consumers took to mobile and apps to do their daily shopping, find a bargain and collect/redeem digital vouchers. Therefore I wasn't surprised to read in a recent report that in 2020, a decade of e-commerce growth was packed into a single year.¹
It would be no exaggeration to describe the last 18 months as truly life altering. The pandemic has forced us all to sit back and re-evaluate how we live our daily lives and what’s most important to us.
Time spent in shopping apps grew 49% year-over-year
in Q1 2021
In fact, I believe many of the trends that we’ve seen take shape over the last 12-18 months would have happened over time anyway, but there’s no doubt the pandemic escalated that timeline. Worldwide time spent in shopping apps grew 49% year-over-year in Q1 2021, and app usage among Android shoppers averaged a staggering two billion hours per week this May (2021), up 51% from pre-pandemic levels.²
With stats like these highlighting the drastic change in consumers’ shopping behaviour, millions of businesses were forced to innovate. Companies invested in their existing e-commerce channels or completely shifted their offering to go online for the first time. But unlike pre-pandemic innovation, which was often driven to increase profits or to get ahead of competitors, innovation in the pandemic/post-pandemic world focused on a companies' resilience. The consequences of not doing so were dire, so it forced many companies to plan for the unexpected.
68% of agencies changed the way they did business³ during the course of the pandemic.
A recent study showed that 68% of agencies changed the way they did business³ during the course of the pandemic
Seeing innovation like this take place en-masse also had a domino effect on agency partnerships. A recent study showed that 68% of agencies changed the way they did business³ during the course of the pandemic and in my role working alongside global brands to build commercial partnerships, I saw much of this first hand. As the pandemic hit many brands hit the pause button on their ad spend while they took stock, but as they started to turn spending back on, it was clear that much of the ad spend was flowing online. Not only was it where consumers were spending their time and money, but it also allowed brands to take a more data-driven approach, tracking ROI and becoming agile in an ever-changing environment.
With so much change already taking place, many of us are left wondering what lies ahead? And if the last 18 months have taught us anything, it's that we need to be prepared for the unexpected. Although, a trend we can count on continuing is the rise in e-commerce. With average order values growing 22% in a single year (2020), studies suggest that sales will reach a total of 5 trillion dollars in 2021.⁴
Convenience and shareable experiences in-app will continue to grow
We’ll continue to see digital-first shopping apps drive better engagement as consumers try out new retail experiences. Convenience and shareable experiences in-app will also be a key theme as it has a significant impact on cultivating loyal user engagement. It’s proven that the more interactive features available for users to engage with, the more they frequent the app.¹
Video is another engagement driving format that we continue to see evolve. From 1:1 personalised videos, to live streaming or 360-degree video content, it’s an extremely effective way to engage audiences, with 72% of businesses saying video across the likes of TikTok and Instagram Reels improved their conversion rate.⁵
Lastly, it will be important to keep an eye on visual search and AI, and all the data/insights that it brings with it. Visual search could take the user experience to a totally new level, as people upload their images to conduct a search, they’ll receive specific and accurate results. With Pinterest and Google Lens already in this space, I’m sure it won’t be long before we see brands across fashion, beauty, home decor, food, and many more catching on. But would this spell the end for influencers? or would the evolving AI data make the processes of finding influencers to partner with easier and faster? I guess that’s yet to be seen and only time will tell.
Innovation will continue to be key for survival.
In our ‘always-on’ digital world, brands will be pushed to keep up with ever-evolving consumer needs
In an uncertain world one thing that is certain, innovation will continue to be key for survival. In our ‘always-on’ digital world, brands will be pushed to keep up with ever-evolving consumer needs and set themselves apart from their competitors. It's going to be an interesting time ahead but at Intermediary we’re well-positioned to help navigate the ever-changing landscape, aiding media and creative companies to build meaningful partnerships with brands at ease.
Angie Gola-Ebue
