Wehkamp and Zalando control 80-85% of the online fashion market

Geplaatst door Louise Verschuren op Dec 4, 2017 3:21:15 PM

Earlier this month the a4uexpo took place at Hotel Okura, Amsterdam. A two-day event focused on performance marketing, packed full of information sessions and networking opportunities. The following is a keynote report on increasing (online) video consumption and the second screen opportunities for advertisers. The most important results from TradeDoubler's research, 'From first impression to last click` as well as a summary of the panel discussion concerning the state of performance marketing in the Netherlands, were also part of the program. In this panel debate, Lennart Ruigrok of Vesper Retail estimated that together, Wehkamp and Zalando control approximately 80 to 85% of the online fashion market.

Wehkamp and Zalando control 80-85% of the online fashion market

During a panel discussion moderated by Jochem Vroom of Imbull, the international public was informed about the status, market and prospects within the Dutch performance marketing landscape. According to the Deloitte Ad Spend study carried out earlier this year, the market for affiliate marketing had grown by 3.3% in 2012. This is in contrast to double these growth rates in preceding years. Jessica Haagmans, Affilinet's managing director, expects these higher growth rates will make a comeback. The UK market, Europe’s leader in performance marketing, is estimated at 1 billion euros, compared with 131 million in the Netherlands. According to Haagmans, approximately 25% of products in the UK are purchased online, compared to only 10% in the Netherlands. This, together with increasing consumer confidence, will give the market a boost.

The panel also sees a bright future in the role of mobile devices in the field of affiliate marketing. More and more consumers navigate the web on a mobile device. For the orientation phase, such devices are already indispensable. iDeal for mobile will make it possible for mobile devices to play a major role in the actual purchasing phase. The panel expects the mobile iDeal project to be ready in a year’s time.

In addition to widely discussed topics such as conversion attribution, cookie legislation and consolidation of various affiliate networks, opportunities for international entrants were also discussed. The panel were able to see possibilities for their contribution across the board. Publishers who put their souls into brand investment and enter the market with a long-term vision could become the next generation of front-runners.

Lennart Ruigrok of Vimodos estimates that Wehkamp and Zalando control approximately 80 to 85% of fashion e-commerce market in the Netherlands. In the fashion industry there are countless opportunities for niche markets. In other industries, especially in homes & interiors and b2b, there are immense prospects for both advertisers and publishers.

5.1 billion mobile devices versus 4 billion toothbrushes

The keynote session - hosted by DG’s VP of EMEA, Deann Harvey - focused on the explosive growth of video consumption across various devices and what this means to advertisers. Deann began her story with an impressive set of statistics:

  • The global population of 7.1 billion has 5.1 billion mobile phones in its possession. That's over one billion more than the 4 billion toothbrushes out there. We are more connected than we are hygienic.
  • A study involving British 16 to 30 year olds reported that 94% would rather do without sex than do without their mobile devices.
  • The average 65 year old has spent 14 years of his life watching video footage. This timespan will increase dramatically in future generations, but the methods of this consumption are rapidly changing.

One striking image from her presentation shows the huge transformation in mobile and tablet usage. St. Peter's square in 2005 vs. 2013 at the inauguration of the new pope.

Video is emotion
Part of these rapid changes is the increasing importance of video content. Video is emotion; it can make us laugh or cry, and it is the best method to catch and retain the attention of consumers. Interactive video ads encourage almost 10% of viewers to interact.

A fantastic opportunity for advertisers is the combination of TV and online. Almost 80% of viewers have a ‘second screen’ available in the form of a mobile, tablet or PC at any given time. DG research reveals that 19% of this potential consumer group go online after watching a TV commercial, 13% of them searching for a discount or a voucher.

ACR – automatic content recognition
In the world of abbreviations, ACR is definitely an initialism to remember. Automatic content recognition: mutual communication between different devices, such as mobile phone and TV. In 2012, 280 million TV apps such as Zeebox and Netflix were downloaded. The STER Extra-app is also a good example. This app offers huge opportunities for advertisers, showing the consumer a banner, lead generation form, or direct discount code for the same product on their second screen simultaneously with the airing of the commercial on TV. The result of this combination is high conversion rates.

TradeDoubler - performance marketing from first impression to last click
Andrew Buckman presents the most important results of an investigation into the role of performance marketing within the customer journey across 8 different European countries. "First impression to last click" research looks into which performance channels consumers use within various phases until an actual purchase takes place.

This research shows that consumers are already making use of online performance channels during the initial orientation phase. These might be reviews or content/blogging sites. During the orientation phase, over 90% of participants use one or more online performance channels, while more than 80% use performance channels for an actual purchase.

This study also looks into the increasingly important role of mobile devices. Even when a consumer is inside a physical store, the advertiser can never be sure of a purchase because 60% of smartphone owners go on to use their mobile device during physical shopping trips I order to find out more about the product, or even worse, to buy the product online.