Not so global anymore: what happened to US digital market in 2020
The year has not been easy. Global pandemics, extra changes in the data safety laws. We have seen multiple trends rising across the year. Finally, we are at the year’s end. What did it teach us? What to expect? Admitad US would like to share a few takeaways.
Biden Tech gives more space
The US government has been onto digital monopolies for years, so the tables aren’t exactly expected to turn in a day. Efforts in fighting Amazon, Google and Facebook might turn out liberating for smaller enterprises and give smaller marketers room for growth — both in terms of media presence and e-commerce turnovers.
Deglobalization & “Buy American”
As the trade war with China keeps raging and Canadian aluminum gets heavier imports tariffs, it is hard not to wonder about the future of international cooperation. Whenever government procurement is covered by Buy American, U.S. companies tend to win the contract.
Buying American has been a helpful tool in the past to address overdependence on imports. However, in the present crisis, the concept would undermine US businesses’ ties and liabilities to their international partners, and offer little help to solve a global challenge. There is a loophole for e-commerce, though: “Buy American” policy hasn’t affected private purchasing decisions.
Can this be an appropriate time for cross-border shops to enter the US market? Yes, it can.
While COVID-19 is having noticeable effects on the cross-border sales in the United States, Admitad’s analyst team expects the year-over-year trend for growth in cross border e-commerce to continue.
Continued exponential growth of Chinese shops has been reinforced due to Black Friday and Singles’ Day peak sales.
Some analysts predict that the dollar would fall due to Biden’s predictability, others believe it should grow along the margin income of the clients from China. Whichever it is, the Chinese dragon will surely take advantage of it.
Europe-like Data Safety?
We have to admit that in terms of privacy the US is somewhat behind the European market, where cookie-blocking regulations were introduced first. Global corporations have had the chance to adapt, but for many the transition has been painstakingly slow.
As an German-based Company, we were at the epicenter when the “quake hit”. As browsers keep tightening the screws, we were ready to provide new ways to track target actions in full accordance with the strictest laws. We expect cookie-based tracking to dissolve in a few years, and are ready to face the challenge. We can only hope our clients and partners heed our call.
Avenues for diversification
The great layoff of April 2020 saw employment plunge by more than 20 million, with most industries suffering a decline of more than 10%. As long as the viral outbreak remains a significant issue, demand in the most affected industries will continue to lag.
The Fed can keep financial markets operating, provide liquidity for markets, and even lend directly to companies so that they don’t shut down. But it can’t maintain the incomes of unemployed people forever.
In 2021, the prices of restaurant meals, airplane tickets, schooling, and day care are expected to rise due to regular cleaning and social distancing. At the same time, we can expect heavy discounting for apparel.
We noticed that changes brought by the pandemic were good for both online education and digital services for entrepreneurs, namely hosting and VPNs. More users wanted to become publishers, as we have seen a surge in registrations. However, that might have to do with people trying to diversify their incomes, rather staying at home due to social distancing.
What can you do?
In these turbulent times affiliates need to adapt to changes fast and do not waste any second. Admitad tools will make your work simple and convenient.
- A Chrome Extension lets you work with your favorite brands without lengthy negotiations and approvals. In it, you will create referral links and coupons for those goods and services that you want to talk about. Connect, post links, and get paid for every purchase;
- Moneylink is a code that turns all links on your site into referral ones the moment they are clicked on. It is installed in 15 minutes and, afterwards, it works automatically. A selection of 30 thousand brands allows you to monetize sites on a wide variety of topics;
- Coupons and promo codes by Admitad. This is a special tool that aggregates all the active coupons and promo codes, including discounts and special offers. The tool is available in the personal account of the publisher on Admitad website or in Admitad Extension;
- Telegram Bot helps you to create deeplinks in just a click from any device.It also supports AliExpress Hot Product feature and has access to 30,000 advertisers through Admitad Lite.
In times of great changes, the US government and population have had to adapt to the virus’ aftermath. The hermit-like existence of the many has surely opened new doors for e-commerce and closed a few too, but as the availability of vaccines increases, so normalizes customers’ behaviour.
Can we be certain that any of the forecasts come true? Not really. Black Swans can’t be predicted. But we will try to keep you updated nonetheless.