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Shopify SEO 2022: The Guide to Optimizing Shopify

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Shopify SEO 2022: The Guide to Optimizing Shopify

The author’s views are entirely his or her own (excluding the unlikely event of hypnosis) and may not always reflect the views of Moz.

 A trend we’ve been noticing at Go Fish Digital is that more and more of our clients have been using the Shopify platform. While we initially thought this was just a coincidence, we can see that the data tells a different story:

The Shopify platform has been steadily rising in popularity throughout the years. Looking at BuiltWith usage statistics, we can see that usage of the CMS has more than doubled since October 2017. Currently, 4.24 of the top 10,000 sites and 3.02% of the top 100,000 are using Shopify.

Since we’ve worked with a good amount of Shopify stores, we wanted to share our process for common SEO improvements we help our clients with. The guide below should outline some common adjustments we make on Shopify stores.

What is Shopify SEO?

Shopify SEO is a set of  SEO adjustments that are unique to the Shopify platform. While Shopify stores come with some useful things for SEO, such as a blog and the ability to redirect, it can also create SEO issues such as duplicate content. 

Some of the most common Shopify SEO recommendations are:

  1. Remove duplicate URLs from internal linking architecture

  2. Remove duplicate paginated URLs

  3. Create blog content for keywords with informational intent

  4. Add “Product,” “Article,” & “BreadcrumbList” structured data

  5. Determine how to handle product variant pages

  6. Compress images using crush.pics

  7. Remove unnecessary Shopify apps

We’ll go into how we handle each of these recommendations below:

Duplicate content

In terms of SEO, duplicate content is the highest priority issue we’ve seen created by Shopify. Duplicate content occurs when either duplicate or similar content exists on two separate URLs. This creates issues for search engines as they might not be able to determine which of the two pages should be the canonical version. On top of this, often times link signals are split between the pages.

We’ve seen Shopify create duplicate content in several different ways:

  1. Duplicate product pages

  2. Duplicate collections pages through pagination

Duplicate product pages

Shopify creates this issue within their product pages. By default, Shopify stores allow their /products/ pages to render at two different URL paths:

Shopify accounts for this by ensuring that all /collections/.*/products/ pages include a canonical tag to the associated /products/ page. Notice how the URL in the address differs from the “canonical” field:

URL In Address Bar Is Different Than Canonical Link

While this certainly helps Google consolidate the duplicate content, a more alarming issue occurs when you look at the internal linking structure. By default, Shopify will link to the non-canonical version of all of your product pages.

Shopify collection page links to non-canonical URLs

As well, we’ve also seen Shopify link to the non-canonical versions of URLs when websites utilize “swatch” internal links that point to other color variants.

Thus, Shopify creates your entire site architecture around non-canonical links by default. This creates a high-priority SEO issue because the website is sending Google conflicting signals:

  1. “Here are the pages we internally link to the most often”

  2. “However, the pages we link to the most often are not the URLs we actually want to be ranking in Google. Please index these other URLs with few internal links”

While canonical tags are usually respected, remember Google does treat these as hints instead of directives. This means that you’re relying on Google to make a judgement about whether or not the content is duplicate each time that it crawls these pages. We prefer not to leave this up to chance, especially when dealing with content at scale.

Adjusting internal linking structure

Fortunately, there is a relatively easy fix for this. We’ve been able to work with our dev team to adjust the code in the product.grid-item.liquid file. Following those instructions will allow your Shopify site’s collections pages to point to the canonical /product/ URLs.

Duplicate collections pages

As well, we’ve seen many Shopify sites that create duplicate content through the site’s pagination. More specifically, a duplicate is created of the first collections page in a particular series. This is because once you’re on a paginated URL in a series, the link to the first page will contain “?page=1”:

First page in Shopify pagination links to ?page=1 link

However, this will almost always be a duplicate page. A URL with “?page=1” will almost always contain the same content as the original non-parameterized URL. Once again, we recommend having a developer adjust the internal linking structure so that the first paginated result points to the canonical page.

Product variant pages

While this is technically an extension of Shopify’s duplicate content from above, we thought this warranted its own section because this isn’t necessarily always an SEO issue.

It’s not uncommon to see Shopify stores where multiple product URLs are created for the same product with slight variations. In this case, this can create duplicate content issues as often times the core product is the same, but only a slight attribute (color for instance) changes. This means that multiple pages can exist with duplicate/similar product descriptions and images. Here is an example of duplicate pages created by a variant: https://recordit.co/x6YRPkCDqG

If left alone, this once again creates an instance of duplicate content. However, variant URLs do not have to be an SEO issue. In fact, some sites could benefit from these URLs as they allow you to have indexable pages that could be optimized for very specific terms. Whether or not these are beneficial is going to differ on every site. Some key questions to ask yourself are:

  • Do your customers perform queries based on variant phrases?

  • Do you have the resources to create unique content for all of your product variants?

  • Is this content unique enough to stand on its own?

For a more in-depth guide, Jenny Halasz wrote a great article on determining the best course of action for product variations. If your Shopify store contains product variants, than it’s worth determining early on whether or not these pages should exist at a separate URL. If they should, then you should create unique content for every one and optimize each for that variant’s target keywords.

Crawling and indexing

After analyzing quite a few Shopify stores, we’ve found some SEO items that are unique to Shopify when it comes to crawling and indexing. Since this is very often an important component of e-commerce SEO, we thought it would be good to share the ones that apply to Shopify.

Robots.txt file

By default, Shopify creates a robots.txt file for your store with quite a few prewritten “Disallow” commands. We find that in most cases, Shopify’s default robots.txt rules are good enough for most store owners. You can see an example of Shopify’s default robots.txt rules here:

An example robots.txt file in Shopify

Here are some sections of the site that Shopify will disallow crawling in:

  • Admin area

  • Checkout

  • Orders

  • Shopping cart

  • Internal search

  • Policies page

However, as Shopify stores get bigger and more customized, there’s a greater chance that you might need to adjust the robots.txt file. Fortunately, as of June 2021, Shopify now let’s you update the robots.txt file

In order to edit the Shopify robots.txt file, store owners must create a robots.txt.liquid file and then create custom rules to specify any changes.

In order to create a robots.txt.liquid file, store owners can perform the following steps:

  1. Login to your Shopify admin area

  2. In the left sidebar, go to Online Store > Themes

  3. Choose Actions > Edit code

  4. In “Templates”, select the “Add a new template” link

  5. Find the left-most dropdown and choose “robots.txt”

  6. Choose “Create template”

This should create your Shopify robots.txt.liquid file. You can then add rules to your robots.txt.liquid file by adding liquid code. Fortunately, this code isn’t too difficult to add, and Shopify does a good job of highlighting how to do it in their official documentation. Following these steps should allow you to have much more control over which URLs are crawled in your Shopify site.

Sitemap.xml

By default, Shopify will generate a sitemap.xml index file at the URL path “domain.com/sitemap.xml”. Shopify’s sitemap.xml index file will automatically create links to child sitemaps that contain URLs of the following page types:

  1. Product Pages (sitemap_products_1.xml)

  2. Collection Pages (sitemap_collections_1.xml)

  3. Blog Posts (sitemap_blogs_1.xml)

  4. Marketing Pages (sitemap_pages_1.xml)

This sitemap.xml file will dynamically update as new pages are added/removed from to the site. Generally, the Shopify sitemap.xml is good to go out of the box and doesn’t need to be adjusted.

One thing to be aware of is that Shopify will include any published pages in the sitemap.xml file. The most common issue we see is that legacy pages that are published but no longer linked to on the site get included in the sitemap.xml file. It’s worth crawling your sitemap.xml to find any instances of published pages that are included in the sitemap but are not important for search engines to crawl.

Adding the “noindex” tag

While you cannot adjust the robots.txt, Shopify does allow you to add the “noindex” tag. You can exclude a specific page from the index by adding the following code to your theme.liquid file.

{% if template contains ‘search’ %}

<meta name=”robots” content=”noindex”>

{% endif %}

As well, if you want to exclude an entire template, you can use this code:

{% if handle contains ‘page-handle-you-want-to-exclude’ %}

<meta name=”robots” content=”noindex”>

{% endif %}

Redirects

Shopify does allow you to implement redirects out-of-the-box, which is great. You can use this for consolidating old/expired pages or any other content that no longer exists. You can do this by going to:

  1. Online Store

  2. Navigation

  3. URL Redirects

The big thing to keep in mind is that you will need to delete a page before you can implement a redirect on Shopify. This means that you’ll want to be really sure you’re not going to use the page in the future. To make this process a little less stressful, we recommend implementing the “Rewind Backups” app.

Log files

As of now, Shopify does not allow you to access log files directly through the platform. This has been confirmed by Shopify support.

Fast Simon implementation

Fast Simon is an enterprise solution that adds robust personalization features to your Shopify store, and is becoming increasingly popular. If your Shopify site is utilizing the Fast Simon technology, you’ll want to be sure that you’re taking steps to adjust any potential indexing issues from an improper implementation. 

Confirm that Fast Simon is pre-rendering your website’s content so that Google doesn’t run into crawling and indexing issues. This will give Googlebot a server-side, rendered version of your site that will make it easier for it to interpret the content. For more details, you can read our case study here

Structured data

Product structured data

Overall, Shopify does a pretty good job with structured data. Many Shopify themes should contain “Product” markup out-of-the-box that provides Google with key information such as your product’s name, description, price etc. This is probably the highest priority structured data to have on any e-commerce site, so it’s great that many themes do this for you.

Shopify sites might also benefit from expanding the Product structured data to collections pages as well. This involves adding the Product structured data to define each individual product link in a product listing page. The good folks at Distilled recommend including this structured data on category pages.

Every product in Shopify collections page marked up with Product structured data

Article structured data

As well, if you use Shopify’s blog functionality, you should use “Article” structured data. This is a fantastic schema type that lets Google know that your blog content is more editorial in nature. Of all of the informational content schema, “Article” seems to be the one that Google may prefer since that’s what’s referenced in their official documentation. However, “BlogPosting” schema is also another type of structured data you could add to your Shopify blog

BreadcrumbList structured data

One addition that we routinely add to Shopify sites are breadcrumb internal links with BreadcrumbList structured data. We believe breadcrumbs are crucial to any e-commerce site, as they provide users with easy-to-use internal links that indicate where they’re at within the hierarchy of a website. As well, these breadcrumbs can help Google better understand the website’s structure. We typically suggest adding site breadcrumbs to Shopify sites and marking those up with BreadcrumbList structured data to help Google better understand those internal links.

Implementing structured data on Shopify

If you want to implement structured data and have a developer on hand, it can be good to have them add the above structured data types. This ensures that these schema elements will always be present on your site.

However, if your development resources are more limited, we find that Schema App Total Schema Markup is a great option. This will incorporate structured data types such as Product and BlogPosting schema on the proper pages of the site. As well, it will even add OfferCatalog schema to mark up every single product within a category page. Their support is also fantastic as they’re team helps you with any technical issues you might encounter.

Improving Shopify site speed

One of the biggest complaints we hear about Shopify is that it suffers from slower speeds. However, compared to other e-commerce platforms, we find that Shopify performs quite well. Out of the box, Shopify uses the Fastly CDN and leverages browser caching which gives you a solid performance foundation. In the past, we’ve actually benchmarked the average speed metrics of 400+ Shopify sites. Below are the average performance metrics of the Shopify sites we tested in our dataset.

  • First Contentful Paint: 3.8 seconds

  • Time To Interactive: 22.1 seconds

  • Total Page Size: 4.41 MB

  • Total Image Assets: 2.1 MB

  • Requests: 171

In terms of improving performance, below are the things we’ll generally advise our clients to do:

  • Lazy load images with the lazysizes library

  • Automatically compress images using Crush.pics

  • Eliminate any low usage Shopify apps

  • Manually resize and compress large images on high priority pages

  • Migrate tracking codes to Google Tag Manager

Keyword research

Performing keyword research for Shopify stores will be very similar to the research you would perform for other e-commerce stores.

Some general ways to generate keywords are:

  • Export your keyword data from Google AdWords. Track and optimize for those that generate the most revenue for the site.

  • Research your AdWords keywords that have high conversion rates. Even if the volume is lower, a high conversion rate indicates that this keyword is more transactional.

  • Review the keywords the site currently gets clicks/impressions for in Google Search Console.

  • Research your high priority keywords and generate new ideas using Moz’s Keyword Explorer.

  • Run your competitors through tools like Ahrefs. Using the “Content Gap” report, you can find keyword opportunities where competitor sites are ranking but yours is not.

  • If you have keywords that use similar modifiers, you can use MergeWords to automatically generate a large variety of keyword variations.

Keyword optimization

Similar to Yoast SEO, Shopify does allow you to optimize key elements such as your title tags, meta descriptions, and URLs. Where possible, you should be using your target keywords in these elements.

To adjust these elements, you simply need to navigate to the page you wish to adjust and scroll down to “Search Engine Listing Preview”:

Optimization Options For Metadata in Shopify

Adding content to product pages

If you decide that each individual product should be indexed, ideally you’ll want to add unique content to each page. Initially, your Shopify products may not have unique on-page content associated with them. This is a common issue for Shopify stores, as oftentimes the same descriptions are used across multiple products or no descriptions are present. Adding product descriptions with on-page best practices will give your products the best chance of ranking in the SERPs.

However, we understand that it’s time-consuming to create unique content for every product that you offer. With clients in the past, we’ve taken a targeted approach as to which products to optimize first. We like to use the “Sales By Product” report which can help prioritize which are the most important products to start adding content to. You can find this report in Analytics > Dashboard > Top Products By Units Sold.

Shopify revenue by product report

By taking this approach, we can quickly identify some of the highest priority pages in the store to optimize. We can then work with a copywriter to start creating content for each individual product. Also, keep in mind that your product descriptions should always be written from a user-focused view. Writing about the features of the product they care about the most will give your site the best chance at improving both conversions and SEO.

Shopify blog

Shopify does include the ability to create a blog, but we often see this missing from a large number of Shopify stores. It makes sense, as revenue is the primary goal of an e-commerce site, so the initial build of the site is product-focused.

However, we live in an era where it’s getting harder and harder to rank product pages in Google. For instance, the below screenshot illustrates the top 3 organic results for the term “cloth diapers”:

SERP for

While many would assume that this is primarily a transactional query, we’re seeing Google is ranking two articles and a single product listing page in the top three results. This is just one instance of a major trend we’ve seen where Google is starting to prefer to rank more informational content above transactional.

By excluding a blog from a Shopify store, we think this results in a huge missed opportunity for many businesses. The inclusion of a blog allows you to have a natural place where you can create this informational content. If you’re seeing that Google is ranking more blog/article types of content for the keywords mapped to your Shopify store, your best bet is to go out and create that content yourself.

If you run a Shopify store (or any e-commerce site), we would urge you to take the following few steps:

  1. Identify your highest priority keywords

  2. Manually perform a Google query for each one

  3. Make note of the types of content Google is ranking on the first page. Is it primarily informational, transactional, or a mix of both?

  4. If you’re seeing primarily mixed or informational content, evaluate your own content to see if you have any that matches the user intent. If so, improve the quality and optimize.

  5. If you do not have this content, consider creating new blog content around informational topics that seems to fulfill the user intent

As an example, we have a client that was interested in ranking for the term “CRM software,” an extremely competitive keyword. When analyzing the SERPs, we found that Google was ranking primarily informational pages about “What Is CRM Software?” Since they only had a product page that highlighted their specific CRM, we suggested the client create a more informational page that talked generally about what CRM software is and the benefits it provides. After creating and optimizing the page, we soon saw a significant increase in organic traffic (credit to Ally Mickler):

1643100461 112 Shopify SEO 2022 The Guide to Optimizing Shopify

The issue that we see on many Shopify sites is that there is very little focus on informational pages despite the fact that those perform well in the search engines. Most Shopify sites should be using the blogging platform, as this will provide an avenue to create informational content that will result in organic traffic and revenue.

Apps

Similar to WordPress’s plugins, Shopify offers “Apps” that allow you to add advanced functionality to your site without having to manually adjust the code. However, unlike WordPress, most of the Shopify Apps you’ll find are paid. This will require either a one-time or monthly fee.

Shopify apps for SEO

While your best bet is likely teaming up with a developer who’s comfortable with Shopify, here are some Shopify apps that can help improve the SEO of your site.

  • Crush.pics: A great automated way of compressing large image files. Crucial for most Shopify sites as many of these sites are heavily image-based.

  • Schema App Total Schema Markup: This app may be used if you do not have a Shopify developer who is able to add custom structured data to your site.

  • Smart SEO: An app that can add meta tags, alt tags, & JSON-LD

  • Yotpo Reviews: This app can help you add product reviews to your site, making your content eligible for rich review stars in the SERPs.

  • Rewind Backups: Creates backups of your site. Great to implement before making development changes or adding redirects.

Is Yoast SEO available for Shopify?

Yoast SEO is exclusively a WordPress plugin. There is currently no Yoast SEO Shopify App.

Limiting your Shopify apps

Similar to WordPress plugins, Shopify apps will inject additional code onto your site. This means that adding a large number of apps can slow down the site. Shopify sites are especially susceptible to bloat, as many apps are focused on improving conversions. Often times, these apps will add more JavaScript and CSS files which can hurt page load times. You’ll want to be sure that you regularly audit the apps you’re using and remove any that are not adding value or being utilized by the site.

Client results

We’ve seen pretty good success in our clients that use Shopify stores. Below you can find some of the results we’ve been able to achieve for them. However, please note that these case studies do not just include the recommendations above. For these clients, we have used a combination of some of the recommendations outlined above as well as other SEO initiatives.

In one example, we worked with a Shopify store that was interested in ranking for very competitive terms surrounding the main product their store focused on. We evaluated their top performing products in the “Sales by product” report. This resulted in a large effort to work with the client to add new content to their product pages as they were not initially optimized. This combined with other initiatives has helped improve their first page rankings by 113 keywords (credit to Jennifer Wright & LaRhonda Sparrow).

Graph of first-page keyword rankings over time

In another instance, a client came to us with an issue that they were not ranking for their branded keywords. Instead, third-party retailers that also carried their products were often outranking them. We worked with them to adjust their internal linking structure to point to the canonical pages instead of the duplicate pages created by Shopify. We also optimized their content to better utilize the branded terminology on relevant pages. As a result, they’ve seen a nice increase in overall rankings in just several months time.

Graph of total ranking improvements over time.

Moving forward

As Shopify usage continues to grow, it will be increasingly important to understand the SEO implications that come with the platform. Hopefully, this guide has provided you with additional knowledge that will help make your Shopify store stronger in the search engines. If you’re interested in learning more about Shopify, you can also check out our Shopify SEO Learning Center.




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Comparing Credibility of Custom Chatbots & Live Chat

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Building Customer Trust: Comparing Credibility of Custom Chatbots & Live Chat

Addressing customer issues quickly is not merely a strategy to distinguish your brand; it’s an imperative for survival in today’s fiercely competitive marketplace.

Customer frustration can lead to customer churn. That’s precisely why organizations employ various support methods to ensure clients receive timely and adequate assistance whenever they require it.

Nevertheless, selecting the most suitable support channel isn’t always straightforward. Support teams often grapple with the choice between live chat and chatbots.

The automation landscape has transformed how businesses engage with customers, elevating chatbots as a widely embraced support solution. As more companies embrace technology to enhance their customer service, the debate over the credibility of chatbots versus live chat support has gained prominence.

However, customizable chatbot continue to offer a broader scope for personalization and creating their own chatbots.

In this article, we will delve into the world of customer support, exploring the advantages and disadvantages of both chatbots and live chat and how they can influence customer trust. By the end, you’ll have a comprehensive understanding of which option may be the best fit for your business.

The Rise of Chatbots

Chatbots have become increasingly prevalent in customer support due to their ability to provide instant responses and cost-effective solutions. These automated systems use artificial intelligence (AI) and natural language processing (NLP) to engage with customers in real-time, making them a valuable resource for businesses looking to streamline their customer service operations.

Advantages of Chatbots

24/7 Availability

One of the most significant advantages of custom chatbots is their round-the-clock availability. They can respond to customer inquiries at any time, ensuring that customers receive support even outside regular business hours.

Consistency

Custom Chatbots provide consistent responses to frequently asked questions, eliminating the risk of human error or inconsistency in service quality.

Cost-Efficiency

Implementing chatbots can reduce operational costs by automating routine inquiries and allowing human agents to focus on more complex issues.

Scalability

Chatbots can handle multiple customer interactions simultaneously, making them highly scalable as your business grows.

Disadvantages of Chatbots

Limited Understanding

Chatbots may struggle to understand complex or nuanced inquiries, leading to frustration for customers seeking detailed information or support.

Lack of Empathy

Chatbots lack the emotional intelligence and empathy that human agents can provide, making them less suitable for handling sensitive or emotionally charged issues.

Initial Setup Costs

Developing and implementing chatbot technology can be costly, especially for small businesses.

The Role of Live Chat Support

Live chat support, on the other hand, involves real human agents who engage with customers in real-time through text-based conversations. While it may not offer the same level of automation as custom chatbots, live chat support excels in areas where human interaction and empathy are crucial.

Advantages of Live Chat

Human Touch

Live chat support provides a personal touch that chatbots cannot replicate. Human agents can empathize with customers, building a stronger emotional connection.

Complex Issues

For inquiries that require a nuanced understanding or involve complex problem-solving, human agents are better equipped to provide in-depth assistance.

Trust Building

Customers often trust human agents more readily, especially when dealing with sensitive matters or making important decisions.

Adaptability

Human agents can adapt to various customer personalities and communication styles, ensuring a positive experience for diverse customers.

Disadvantages of Live Chat

Limited Availability

Live chat support operates within specified business hours, which may not align with all customer needs, potentially leading to frustration.

Response Time

The speed of response in live chat support can vary depending on agent availability and workload, leading to potential delays in customer assistance.

Costly

Maintaining a live chat support team with trained agents can be expensive, especially for smaller businesses strategically.

Building Customer Trust: The Credibility Factor

When it comes to building customer trust, credibility is paramount. Customers want to feel that they are dealing with a reliable and knowledgeable source. Both customziable chatbots and live chat support can contribute to credibility, but their effectiveness varies in different contexts.

Building Trust with Chatbots

Chatbots can build trust in various ways:

Consistency

Chatbots provide consistent responses, ensuring that customers receive accurate information every time they interact with them.

Quick Responses

Chatbots offer instant responses, which can convey a sense of efficiency and attentiveness.

Data Security

Chatbots can assure customers of their data security through automated privacy policies and compliance statements.

However, custom chatbots may face credibility challenges when dealing with complex issues or highly emotional situations. In such cases, the lack of human empathy and understanding can hinder trust-building efforts.

Building Trust with Live Chat Support

Live chat support, with its human touch, excels at building trust in several ways:

Empathy

Human agents can show empathy by actively listening to customers’ concerns and providing emotional support.

Tailored Solutions

Live chat agents can tailor solutions to individual customer needs, demonstrating a commitment to solving their problems.

Flexibility

Human agents can adapt to changing customer requirements, ensuring a personalized and satisfying experience.

However, live chat support’s limitations, such as availability and potential response times, can sometimes hinder trust-building efforts, especially when customers require immediate assistance.

Finding the Right Balance

The choice between custom chatbots and live chat support is not always binary. Many businesses find success by integrating both options strategically:

Initial Interaction

Use chatbots for initial inquiries, providing quick responses, and gathering essential information. This frees up human agents to handle more complex cases.

Escalation to Live Chat

Implement a seamless escalation process from custom chatbots to live chat support when customer inquiries require a higher level of expertise or personal interaction.

Continuous Improvement

Regularly analyze customer interactions and feedback to refine your custom chatbot’s responses and improve the overall support experience.

Conclusion

In the quest to build customer trust, both chatbots and live chat support have their roles to play. Customizable Chatbots offer efficiency, consistency, and round-the-clock availability, while live chat support provides the human touch, empathy, and adaptability. The key is to strike the right balance, leveraging the strengths of each to create a credible and trustworthy customer support experience. By understanding the unique advantages and disadvantages of both options, businesses can make informed decisions to enhance customer trust and satisfaction in the digital era.

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The Rise in Retail Media Networks

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A shopping cart holding the Amazon logo to represent the rise in retail media network advertising.

As LL Cool J might say, “Don’t call it a comeback. It’s been here for years.”

Paid advertising is alive and growing faster in different forms than any other marketing method.

Magna, a media research firm, and GroupM, a media agency, wrapped the year with their ad industry predictions – expect big growth for digital advertising in 2024, especially with the pending US presidential political season.

But the bigger, more unexpected news comes from the rise in retail media networks – a relative newcomer in the industry.

Watch CMI’s chief strategy advisor Robert Rose explain how these trends could affect marketers or keep reading for his thoughts:

GroupM expects digital advertising revenue in 2023 to conclude with a 5.8% or $889 billion increase – excluding political advertising. Magna believes ad revenue will tick up 5.5% this year and jump 7.2% in 2024. GroupM and Zenith say 2024 will see a more modest 4.8% growth.

Robert says that the feeling of an ad slump and other predictions of advertising’s demise in the modern economy don’t seem to be coming to pass, as paid advertising not only survived 2023 but will thrive in 2024.

What’s a retail media network?

On to the bigger news – the rise of retail media networks. Retail media networks, the smallest segment in these agencies’ and research firms’ evaluation, will be one of the fastest-growing and truly important digital advertising formats in 2024.

GroupM suggests the $119 billion expected to be spent in the networks this year and should grow by a whopping 8.3% in the coming year.  Magna estimates $124 billion in ad revenue from retail media networks this year.

“Think about this for a moment. Retail media is now almost a quarter of the total spent on search advertising outside of China,” Robert points out.

You’re not alone if you aren’t familiar with retail media networks. A familiar vernacular in the B2C world, especially the consumer-packaged goods industry, retail media networks are an advertising segment you should now pay attention to.

Retail media networks are advertising platforms within the retailer’s network. It’s search advertising on retailers’ online stores. So, for example, if you spend money to advertise against product keywords on Amazon, Walmart, or Instacart, you use a retail media network.

But these ad-buying networks also exist on other digital media properties, from mini-sites to videos to content marketing hubs. They also exist on location through interactive kiosks and in-store screens. New formats are rising every day.

Retail media networks make sense. Retailers take advantage of their knowledge of customers, where and why they shop, and present offers and content relevant to their interests. The retailer uses their content as a media company would, knowing their customers trust them to provide valuable information.

Think about these 2 things in 2024

That brings Robert to two things he wants you to consider for 2024 and beyond. The first is a question: Why should you consider retail media networks for your products or services?   

Advertising works because it connects to the idea of a brand. Retail media networks work deep into the buyer’s journey. They use the consumer’s presence in a store (online or brick-and-mortar) to cross-sell merchandise or become the chosen provider.

For example, Robert might advertise his Content Marketing Strategy book on Amazon’s retail network because he knows his customers seek business books. When they search for “content marketing,” his book would appear first.

However, retail media networks also work well because they create a brand halo effect. Robert might buy an ad for his book in The New York Times and The Wall Street Journal because he knows their readers view those media outlets as reputable sources of information. He gains some trust by connecting his book to their media properties.

Smart marketing teams will recognize the power of the halo effect and create brand-level experiences on retail media networks. They will do so not because they seek an immediate customer but because they can connect their brand content experience to a trusted media network like Amazon, Nordstrom, eBay, etc.

The second thing Robert wants you to think about relates to the B2B opportunity. More retail media network opportunities for B2B brands are coming.

You can already buy into content syndication networks such as Netline, Business2Community, and others. But given the astronomical growth, for example, of Amazon’s B2B marketplace ($35 billion in 2023), Robert expects a similar trend of retail media networks to emerge on these types of platforms.   

“If I were Adobe, Microsoft, Salesforce, HubSpot, or any brand with big content platforms, I’d look to monetize them by selling paid sponsorship of content (as advertising or sponsored content) on them,” Robert says.

As you think about creative ways to use your paid advertising spend, consider the retail media networks in 2024.

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AI driving an exponential increase in marketing technology solutions

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AI driving an exponential increase in marketing technology solutions

The martech landscape is expanding and AI is the prime driving force. That’s the topline news from the “Martech 2024” report released today. And, while that will get the headline, the report contains much more.

Since the release of the most recent Martech Landscape in May 2023, 2,042 new marketing technology tools have surfaced, bringing the total to 13,080 — an 18.5% increase. Of those, 1,498 (73%) were AI-based. 

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“But where did it land?” said Frans Riemersma of Martech Tribe during a joint video conference call with Scott Brinker of ChiefMartec and HubSpot. “And the usual suspect, of course, is content. But the truth is you can build an empire with all the genAI that has been surfacing — and by an empire, I mean, of course, a business.”

Content tools accounted for 34% of all the new AI tools, far ahead of video, the second-place category, which had only 4.85%. U.S. companies were responsible for 61% of these tools — not surprising given that most of the generative AI dynamos, like OpenAI, are based here. Next up was the U.K. at 5.7%, but third place was a big surprise: Iceland — with a population of 373,000 — launched 4.6% of all AI martech tools. That’s significantly ahead of fourth place India (3.5%), whose population is 1.4 billion and which has a significant tech industry. 

Dig deeper: 3 ways email marketers should actually use AI

The global development of these tools shows the desire for solutions that natively understand the place they are being used. 

“These regional products in their particular country…they’re fantastic,” said Brinker. “They’re loved, and part of it is because they understand the culture, they’ve got the right thing in the language, the support is in that language.”

Now that we’ve looked at the headline stuff, let’s take a deep dive into the fascinating body of the report.

The report: A deeper dive

Marketing technology “is a study in contradictions,” according to Brinker and Riemersma. 

In the new report they embrace these contradictions, telling readers that, while they support “discipline and fiscal responsibility” in martech management, failure to innovate might mean “missing out on opportunities for competitive advantage.” By all means, edit your stack meticulously to ensure it meets business value use cases — but sure, spend 5-10% of your time playing with “cool” new tools that don’t yet have a use case. That seems like a lot of time.

Similarly, while you mustn’t be “carried away” by new technology hype cycles, you mustn’t ignore them either. You need to make “deliberate choices” in the realm of technological change, but be agile about implementing them. Be excited by martech innovation, in other words, but be sensible about it.

The growing landscape

Consolidation for the martech space is not in sight, Brinker and Riemersma say. Despite many mergers and acquisitions, and a steadily increasing number of bankruptcies and dissolutions, the exponentially increasing launch of new start-ups powers continuing growth.

It should be observed, of course, that this is almost entirely a cloud-based, subscription-based commercial space. To launch a martech start-up doesn’t require manufacturing, storage and distribution capabilities, or necessarily a workforce; it just requires uploading an app to the cloud. That is surely one reason new start-ups appear at such a startling rate. 

Dig deeper: AI ad spending has skyrocketed this year

As the authors admit, “(i)f we measure by revenue and/or install base, the graph of all martech companies is a ‘long tail’ distribution.” What’s more, focus on the 200 or so leading companies in the space and consolidation can certainly be seen.

Long-tail tools are certainly not under-utilized, however. Based on a survey of over 1,000 real-world stacks, the report finds long-tail tools constitute about half of the solutions portfolios — a proportion that has remained fairly consistent since 2017. The authors see long-tail adoption where users perceive feature gaps — or subpar feature performance — in their core solutions.

Composability and aggregation

The other two trends covered in detail in the report are composability and aggregation. In brief, a composable view of a martech stack means seeing it as a collection of features and functions rather than a collection of software products. A composable “architecture” is one where apps, workflows, customer experiences, etc., are developed using features of multiple products to serve a specific use case.

Indeed, some martech vendors are now describing their own offerings as composable, meaning that their proprietary features are designed to be used in tandem with third-party solutions that integrate with them. This is an evolution of the core-suite-plus-app-marketplace framework.

That framework is what Brinker and Riemersma refer to as “vertical aggregation.” “Horizontal aggregation,” they write, is “a newer model” where aggregation of software is seen not around certain business functions (marketing, sales, etc.) but around a layer of the tech stack. An obvious example is the data layer, fed from numerous sources and consumed by a range of applications. They correctly observe that this has been an important trend over the past year.

Build it yourself

Finally, and consistent with Brinker’s long-time advocacy for the citizen developer, the report detects a nascent trend towards teams creating their own software — a trend that will doubtless be accelerated by support from AI.

So far, the apps that are being created internally may be no more than “simple workflows and automations.” But come the day that app development is so democratized that it will be available to a wide range of users, the software will be a “reflection of the way they want their company to operate and the experiences they want to deliver to customers. This will be a powerful dimension for competitive advantage.”

Constantine von Hoffman contributed to this report.

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