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  • ๐ŸŒ€ Instagram dominates social ad space ๐Ÿ‘‘

๐ŸŒ€ Instagram dominates social ad space ๐Ÿ‘‘

Plus: Value of Customer Reviews ๐ŸŒŸ

Welcome to MarketMaze, the #1 newsletter for staying on top of the latest in Ecommerce & Marketplaces. Get all the insights you need in just 5 minutes!

๐Ÿง  Big Story: 
Instagram dominates social ad space ๐Ÿ‘‘

๐Ÿ“Š Key Data:
Value of Customer Reviews ๐ŸŒŸ

๐Ÿ“– Ecommerce ecosystem news:
๐Ÿ‡บ๐Ÿ‡ธ Temu pilots ads to challenge Amazon dominance
๐Ÿ‡บ๐Ÿ‡ธ Microsoft launches Curate for Commerce & Sponsored Ads
๐Ÿ‡บ๐Ÿ‡ธ Amazon Ads unveils AI-powered SQL generator for AMC
๐Ÿ‡บ๐Ÿ‡ธ Mediaocean drives AI & automation in marketing
๐Ÿ‡บ๐Ÿ‡ธ Omnicom gains 5 years of Amazon search data
๐Ÿ‡บ๐Ÿ‡ธ Amazon ads now track Walmart sales

+ over 15 other handpicked hot news from the last week you need to know ๐Ÿ”ฅ

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Instagram dominates social ad space ๐Ÿ‘‘

Instagramโ€™s $71B revenue leads social platforms, beating YouTube and TikTok. By 2025, it will drive 50% of Metaโ€™s US ad revenue, powered by Reels.

๐Ÿ“Š Different Players

Instagram led 2024 with $71B in ad revenue, topping rivals.
YouTube came second with $34B, steady but far behind Instagram.
TikTok grew to $17B, gaining traction but missing Instagramโ€™s scale.
Snapchat stagnated at $6B, while Pinterest earned just $3B.
Meta dominates social ads, with Instagram its crown jewel.


๐Ÿ’ฐ US Instagram

Instagramโ€™s US ad revenue will hit $32B in 2025.
This represents a 24.4% growth over 2024, per eMarketer.
Reels is the fastest-growing ad format, driving this surge.
By 2025, Instagram will account for 50.3% of Metaโ€™s US revenue.A TikTok ban could boost Instagram further, capturing 20% of ad spend.


๐Ÿ“ˆ Revenue Per User

Instagram leads US platforms with $250 per user by 2025.
Facebook trails with $207, despite its larger user base.
TikTok comes third, generating $132 per user, far behind Instagram.
YouTube lags at $40 per user, with Snapchat at $25.
Meta leverages AI to optimize Instagram ads and drive revenue growth.


Value of Customer Reviews ๐ŸŒŸ

Products moving from low to medium review velocity see a 21% uplift, while medium to high drives 29%. 4-star ratings dominate Amazonโ€™s 98% sales share.

๐Ÿš€ Review growth = more sales

Profitero's latest research proves review velocity drives sales.
Products jumping from low to medium review growth saw a 21% uplift.
Going from medium to high growth further increased sales by 29%.
Yet, 32% of products studied stayed stuck at low growth rates.
Benchmarks and active strategies are key to staying competitive.


๐Ÿ›’ Quick reviews win visibility

Fast reviews are game changers for new launches on Amazon.
Products gaining 50 reviews in under 2 months saw an 86% sales boost.
These products also jumped 5 spots in organic ranking.
Slow movers gained only 3 spots, limiting page 1 visibility.
Sampling campaigns and genuine review tactics speed up this process.


โญ 4-star products dominate

Ratings matter just as much as review speed.
Products with 4+ stars account for 98% of Amazon's sales.
Moving from below 4 to 4+ stars increases sales by 16%.
Monitoring and managing negative reviews protects your star rating.
Ratings + reviews = trust, boosting conversions and organic placement.

P.S. Each news title is a link to a larger briefing!

๐Ÿ“ฃMarketing in Ecommerce

๐Ÿ‡บ๐Ÿ‡ธ Temu pilots ads to challenge Amazon dominance. Temu starts paid search ads for merchants in the US to boost sales. The move counters rising tariffs and creates a new revenue stream, like Amazon.

๐Ÿ‡บ๐Ÿ‡ธ Microsoft launches Curate for Commerce & Sponsored Ads. Microsoft Advertising introduces tools to help brands & retailers monetize first-party data, simplify operations, and boost revenue with minimal effort.

๐Ÿ‡บ๐Ÿ‡ธ Amazon Ads unveils AI-powered SQL generator for AMC. At CES 2025, Amazon Ads launched a generative AI tool for AMC. It simplifies SQL query creation, saving advertisers hours & boosting campaign innovation.

๐Ÿ‡บ๐Ÿ‡ธ Mediaocean drives AI & automation in marketing. Mediaocean's 2025 report reveals generative AI as a key trend, 68% ad spending boost in social media, and a 17% automation uptick. It guides brands in a tech-driven era.

๐Ÿ‡บ๐Ÿ‡ธ Omnicom gains 5 years of Amazon search data. Omnicom Media Group & Amazon partner to unlock 5 years of search data. Flywheel clients access insights to refine strategies & track consumer trends globally.

๐Ÿ‡บ๐Ÿ‡ธ Amazon ads now track Walmart sales. Marketers can now see if Amazon ads drive Walmart sales, thanks to a Stackline-Gigi partnership. With $60B at stake in retail media, this could shift strategies.

๐Ÿ‡บ๐Ÿ‡ธ Stackless Data launches profit-first platform. Stackless Data unveiled a game-changing tool for e-commerce. It focuses on profitability metrics like LTV and CAC to maximize long-term growth and ROI.

๐Ÿ‡บ๐Ÿ‡ธ Microsoft Clarity unveils Google Ads integration.. Advertisers now see real-time user engagement metrics, bridging ad spend and user behavior insights to optimize campaigns and improve ROI.

๐Ÿ› ๏ธTools for Ecommerce

๐Ÿ‡บ๐Ÿ‡ธ Klarna partners with Stripe to double reach. Klarnaโ€™s partnership with Stripe has doubled new merchants in Q4 2024. Stripe businesses in 25 countries can now offer Klarnaโ€™s BNPL, driving conversions by 14%.

๐Ÿ‡บ๐Ÿ‡ธ Salesforce unveils Agentforce to revolutionize retail. Agentforce boosts productivity with AI agents managing orders, appointments, and loyalty. Retail Cloud unifies POS, inventory, and customer data for seamless shopping.

๐Ÿ‡บ๐Ÿ‡ธ Algolia launches AI-powered Shopping Guides. Algolia's new Shopping Guides use Generative AI to create educational content that simplifies shopping. Merchants gain tools to boost customer engagement and reduce returns.

๐Ÿ‡บ๐Ÿ‡ธ Rokt invests $300M in mParticle for real-time relevance. Rokt's $300M investment in mParticle merges ecommerce and customer data expertise. The partnership promises 50% better results, protecting first-party data assets.

๐Ÿ‡บ๐Ÿ‡ธ BigCommerce launches Catalyst for effortless storefronts. BigCommerce's Catalyst simplifies launching high-performance stores with one click. Marketers and developers gain flexibility without technical hurdles.

๐Ÿ‡บ๐Ÿ‡ธ Passport acquires Brand Access to expand global solutions. Passport's acquisition of Brand Access integrates localized operations with cross-border logistics, empowering brands like Ridge and HexClad to expand globally.

๐Ÿ‡บ๐Ÿ‡ธ commercetools launches InStore for unified retail growth. commercetools unveils InStore, merging online & offline commerce. Retailers like Jaycar & Screwfix benefit from seamless operations & rapid innovation.

๐Ÿšš Ecommerce Logistics

๐Ÿ‡บ๐Ÿ‡ธ DHL expands with 14 new return centers. DHL Supply Chain boosts reverse logistics with its latest acquisition of Inmar Supply Chain Solutions, adding 14 return centers and 800 associates.

๐Ÿ‡ฌ๐Ÿ‡ง InPost invests $725M in UK logistics expansion. The company plans $1.2B investments in the UK by 2029, aiming to revolutionize e-commerce logistics with 12K new jobs and a 50% Paczkomat network expansion in 2025.

๐Ÿ‡ฟ๐Ÿ‡ฆ FedEx launches FICP in South Africa for e-commerce. FedEx introduced International Connect Plus (FICP) in South Africa, offering cost-effective shipping for packages up to 20kg. Delivery is promised in 3-4 business days.

๐Ÿ‡ช๐Ÿ‡ธ CEVA Logistics opens a new hub in Tarragona. CEVAโ€™s 18,000 sqm Tarragona facility boosts Iberian operations. The site highlights sustainability, efficiency, and scalability to meet rising logistics demand.

๐Ÿ‡บ๐Ÿ‡ฆ Temu partners with Ukrposhta for faster delivery. The partnership ensures 80% of parcels arrive in 3 days. Ukrposhta handled 1.5M Temu parcels in trials, reflecting demand for fast shipping in Ukraine.

๐Ÿ‡จ๐Ÿ‡ณ Cainiao shifts focus to logistics with restructuring. Cainiao transfers e-commerce duties to Alibaba, realigns teams, and attracts new clients. Global operations now drive over 50% of revenue growth.

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