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More flat than fizz

Traffic has turned up, but growth can’t turn the corner

The big picture of ecommerce tells us exactly what we might expect: we’re mired in an ecommerce slump.

Traffic carbonates the ecommerce soda, and based on the past 5 quarters, there’s more flat than fizz. Yes, traffic’s up - but low to mid-single digit growth causes barely a burp.

Meh traffic growth can’t overcome the conversion contraction plaguing digital. With AOV rising only modestly, cratering conversion dashes any real growth hopes.

History has taught us that the best way to counter a retreat like this is to step forward. Acquisition costs have stabilized, with some outlets reporting improved roas at facebook (Common Thread Collective) and lower CPCs at google (Tinuiti).  This is a uniquely good time to attract traffic.

Of course, driving scads of traffic without making journey improvements is short-sighted. Those that remove frustration from the journey and properly segment their new traffic will strike a winning balance of traffic with conversion gains.

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